Hotel investor and developer, Mazen Tabet (Tabet Group) has acquired South Yarra boutique hotel The Lyall Hotel and Spa for AU$30.5 million.

Previously owned by Rowina and Peter Thomas, the hotel has become a globally recognised brand since it opened 20 years ago and remains synonymous with boutique luxury and refined service.

Tabet, who is also the owner of luxury Melbourne hotel The Royce, plans to re-open The Lyall in early 2023 following an extensive refurbishment, which is currently underway.

All 48 rooms and suites will be transformed, and the hotel’s restaurant and cocktail bar will be expanded.

“We have been honoured and proud to welcome and care for our wonderful loyal guests over the past 20 years in what has become their Melbourne “home away from home,” said Rowina Thomas.

“We wish The Royce team continued success and enjoyment in maintaining The Lyall’s unique style as we move onto new adventures.”

The Royce management team aims to continue to deliver a high standard of service for guests.

“We are proud to pay homage to The Lyall Hotel’s founders, Rowina and Peter Thomas, and the unrivalled reputation they have developed for the property,” Tabet said.  

“The Royce management team will continue to offer the impeccable service and intimate setting the hotel is renowned for.”

Tabet’s The Royce Hotel, which he purchased in 2017 for around AU$55 million, is also undergoing a major refurbishment and is set to reopen on February 1, 2023. The St Kilda hotel features a 1920s art deco facade and was the site of the city’s first Rolls-Royce car dealership.

The Tabet Group’s hotel portfolio has grown exponentially in recent years through the acquisition of properties including the Skyways Hotel, Lynbrok Hotel, Highlands Hotel and the Village Belle Hotel among others.