Pelligra takes over the old Ramada Encore hotel
The Pelligra Group bought one of Melbourne’s largest suburban accommodation assets, the former Ramada Encore hotel in Dandenong, for $ 10.5 million.
Now closed, the hotel in the city’s southeast has been sold by Phileo Australia, a developer and investor, who deregistered it two years ago.
On the buyer’s side is Pelligra, a busy developer in the local market. Last year, in a $ 35 million deal, he took over a hotel on the outskirts of Melbourne that had been used for quarantine.
Its latest acquisition, at 50-52 rue McCrae, covers a 2370 m² site. The hotel has 108 rooms, a restaurant and bar, a fitness center and meeting rooms.
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“The Pelligra Group will look to renovate the hotel as well as add additional accommodation as part of a rebranding and repositioning of the hotel,” said Scott Callow, Senior Director of CBRE Hotels, who negotiated the sale.
“Dandenong is seen as a key location for new hotel offerings in the coming years, as major hotel brands indicate a desire to be on site due to its large catchment area. “
The real estate investment that underpins the tourism and hospitality sectors has defied the disruption caused by the pandemic and repeated lockdowns in major capitals.
Pubs, both urban and regional, have changed hands at a rapid pace. Sydney pub czar Justin Hemmes has gone wild, buying pubs and hotels from Lorne to Byron Bay in recent weeks.
Larger assets are also changing hands, like the 140-room InterContinental Double Bay, which developers Fridcorp and Piety Group bought from Chinese real estate giant Shanghai United in May for around $ 180 million in one of the biggest hotel contracts signed since the start of the pandemic. .
This week, RF Corval, a fund management platform backed by billionaire Andrew Roberts, purchased tourism-backed real estate, acquiring the observation deck and restaurant atop Melbourne’s Eureka Tower as part of a ‘a $ 60 million deal with its private equity owner.
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