Three Accor-operated hotels in Melbourne have hit the market, representing a portfolio sale worth an estimated AU$$200 million.
The divestment of Action Hotels’ Victorian portfolio, led by Savills Australia and New Zealand, sees a total of 575 rooms on offer – individually, in any combination, or as a complete set – making it one of the largest hotel portfolio opportunities to hit the Australian market this year.
The portfolio includes the 347-room Novotel Melbourne South Wharf, 155-room Ibis Melbourne Glen Waverley, and 73-room Ibis Budget Melbourne Airport.
“This is a rare opportunity to secure immediate scale in a single capital city across three distinct hotel offerings,” said Savills Australia and New Zealand National Director – Hotels, Nick Lower.
“Each asset is underpinned by strong income performance, institutional-grade operations, and long-term value upside. These characteristics are exactly what capital is chasing in the current cycle.
“With very few investment-grade hotels being brought to market in recent years, we anticipate strong interest from institutions, sovereign wealth funds, family offices, private investors, and offshore buyers seeking access to Melbourne’s maturing hotel sector.”
The 4.5-star Novotel property is positioned in one of Melbourne’s most successful mixed-use precincts with direct connectivity to the Melbourne Convention and Exhibition Centre, DFO South Wharf, and the Crown Entertainment Complex.
Ibis Melbourne Glen Waverley is a freehold suburban hotel situated in Melbourne’s eastern growth corridor, while Ibis Budget Melbourne Airport is located within the airport precinct and enjoys high occupancy driven by consistent air traffic, according to Savills.
Savills Australia and New Zealand Managing Director, Hotel Capital Markets, Mark Durran, said “institutional and private investors alike are increasingly seeking hospitality assets that offer not just yield, but long-term optionality”.
“What makes this portfolio so attractive is its diversity, CBD exposure, suburban growth, and airport resilience, paired with the flexibility to acquire individually or in combination. It’s a rare strategic play in one of Australia’s most investable cities,” said Durran.
All three assets are currently under Hotel Management Agreements, with the option to convert to franchise agreements post-acquisition.
“Each hotel brings its own compelling narrative, including premium positioning, secure cashflow, and multiple pathways to enhance returns,” said Savills Australia and New Zealand, National Director – Hotels, Max Cooper.
“Together, they offer a portfolio of real substance. Investors will see the value, not just in the income today, but in the flexibility these assets provide for the future.”
According to Savills Australia and New Zealand Associate Director – Hotels, Niall Kumar, Melbourne is entering “a unique window of opportunity in the hotel investment cycle”.
“With occupancy, ADR, and event-driven demand rebounding to pre-pandemic levels, the timing is compelling for both counter-cyclical investors and those seeking long-term growth,” he said.
“These assets are not only well-positioned for immediate income but also offer multiple value levers, whether through brand repositioning, operational efficiencies, or strategic redevelopment.”
The sale is expected to attract a broad cross-section of Asian investors, according to Savills Australia and New Zealand Director – Hotels, Benson Zhou.
“Melbourne has recently been named the second most attractive city globally for capital deployment, following Sydney, and the scale and branding of these assets present a rare opportunity to enter or expand in the market,” said Zhou.