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- Melbourne’s iconic ‘Bayview on the Park’ hotel sold for new benchmark property pricing by JLL
Melbourne’s iconic ‘Bayview on the Park’ hotel sold for new benchmark property pricing by JLL
One of Melbourne’s well-known hotels, the Bayview on the Park across from Albert Park has been sold unconditionally in what is one of the city’s largest downtown hotels and grounds for 2021 by Peter Harper and Nick MacFie of JLL Hotels & Hospitality Group, alongside JLL Capital Markets. Josh Rutman and Mingxuan Li.
The property was sold following a highly competitive expression of interest process managed exclusively by Peter Harper and Nick MacFie of JLL Hotels & Hospitality Group, alongside Josh Rutman and Mingxuan Li of JLL Capital Markets.
Located at 50-52 Queens Road, the five-level old-style hotel has 203 rooms, a restaurant and bar, several meeting rooms, an outdoor pool and multi-parking. floors. It occupies a large triple lot of 6,966 m² overlooking Albert Park and Port Philip Bay and was owned and operated by Bayview International Hotels & Resorts. The property was offered to the market with the vacant possession.
Peter Harper, Managing Director of JLL and Head of Australasian Investment Sales, Hotels & Hospitality Group, said: “Given the existing improvements and huge land ownership, we have attracted the interest of an incredible number of people. large groups, including those looking to reestablish the hotel, convert it to an alternate use or pursue a complete redevelopment.
JLL Executive Director and Head of Capital Markets Josh Rutman said: “We have managed some very significant land sales in recent years along St Kilda Road and Queens Road, but this is the third most large landholding wholly owned by the entire precinct and the market reacted accordingly. While this is an exceptional result for our supplier given the property is vacant and without planning approval, it is also not surprising given the current level of activity among Melbourne developers so that they are looking to build their book of work and take advantage of the sharp drop in residential supply expected in the years to come, ”said Mr. Rutman.
“Ultimately, the allure of a site of this magnitude saw one major developer backed by institutions secure ownership before several other developers. These groups all bid with great confidence as Queens Road has a very good reputation for providing high quality residential, commercial and retirement living products, and due to the scarcity of such offers, it therefore makes sense that Building players for hire saw great value in delivering the product to the compound.
“This sale of Bayview on the Park continues a trend we’re seeing across Australia, where hotels in prime locations that are nearing the end of their lifecycle are worth more as alternative uses. As a result, we welcome hotel owners to better understand their options not only regarding the value of the redevelopment, but also adaptive conversions to medical use, build-for-rental, and more. This is particularly the case in Melbourne where the impending new supply cycle will make it very difficult for some existing hotels to remain competitive and profitable. Mr. Harper said.
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