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Melbourne’s Adelphi Hotel on Flinders Lane has sold for the second time in 18 months after being acquired by Melbourne based hotel investor Mazen Tabet in a deal worth a reported $19 million.
The acquisition adds to Tabet’s existing Melbourne properties which comprise The Royce Hotel on St Kilda Road and The Lyall Hotel in South Yarra.
Adelphi Hotel, which is located in the “Paris End” of the CBD, has been sold with vacant possession of hotel management by administrators BRI Ferrier.
The administrators were appointed to hotel owner Virtical which acquired Adelphi Hotel in May last year for $25 million.
Tabet has appointed 1834 Hotels to operate the hotel in a deal negotiated by the joint selling agents from JLL and Savills.
“Having sold the asset last year and received 13 offers, we knew the campaign would garner considerable interest and this was proven from our marketing campaign which saw more than 140 enquiries and a dozen inspections,” says Nick MacFie, senior vice president of investment sales at JLL Hotels & Hospitality.
The 1834 Hotels group currently operates 40 hotels nationally in largely regional locations.
“Continuing to expand into the Victorian market aligns with our strategic goals to further strengthen 1834’s presence and brand across Australia,” says Andrew Bullock, CEO of 1834 Hotels.
“We look forward to building on the hotel’s rich history and offering exceptional guest experiences.”
The company’s current management portfolio in Melbourne incluiudes Mantra 100 Exhibition and Urban Apartments Melbourne on Elizabeth.
“The Adelphi is a standout asset, both architecturally and in terms of location,” says Nick Lower, the national director of Savills Hotels.
“Its long-standing reputation as a boutique hotel of choice made it an incredibly attractive proposition for buyers. We’re thrilled to see it go to a new owner with such a strong track record in Melbourne’s hospitality sector.”
The Sydney-based Virtical, which was formerly known as Core Asset Development, managed a significant property portfolio that included development plans for a $100 million luxury residential and hotel project known as The Sapphire of Eden in the southern NSW coastal town of Eden.
The company also refurbished Eden’s Australasia Hotel last year and is also reported to have acquired popular Sydney watering holes Kinselas and the Courthouse in 2023 for $61 million.
Virtical was placed into liquidation last week.
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