Australia: The 100-room Royce Hotel on St Kilda Road in Melbourne has been put up for sale with market expectations in excess of AUS$60 million.
The hotel has a 1920s art deco facade and was originally Melbourne‘s first Rolls-Royce car dealership. It is for sale along with a four-level office building on a 2164-square-metre site.
Both the hotel and the office building, which includes a permit for another 67 hotel rooms, are being offered with vacant possession by owners and operators, the Bursztyn family.
The family developed the hotel on the old car showroom premises, retaining many of its heritage elements including its chandeliers, leadlight windows and ornate ceilings.
“A number of the hotel rooms used to be car service bays,” said Dan McVay, of McVay Real Estate Australia, who is selling the hotel.
McVay said the potential to add another 67 rooms was an added enticement with a 100-room hotel “right on the edge” of the scale buyers sought. “Every extra room added will go straight to the bottom line,” he said.
The hotel also features the award-winning dish Restaurant, the amberoom bar, conferencing and event facilities, a gym and 25 undercover car spaces.
“The Royce Hotel has been privately managed as a standalone hotel since its opening in 2000 and now provides the opportunity to introduce branded hotel management to further improve both the sales distribution networks as well as creating cost efficiencies,” said McVay.