A Chinese investor has splashed $30.7 million in cash on a brand-new, 128-room hotel 14 kilometres from Melbourne’s CBD, betting on the area’s growth potential.

Even more intriguing, the four-star Trio Hotel Box Hill at 851 Whitehorse Road, Box Hill was sold completely empty, providing the new owner with complete flexibility around branding, fit‑out and strategy.

The hotel features a 90-seat restaurant, cocktail bar, and function and event spaces for up to 300 guests, along with access to an indoor pool, gym, sauna, steam room and landscaped gardens.

Agent Benson Zhou at Savills Melbourne said offers poured in from local and offshore buyers.

“The end buyer paid in cash, which is pretty amazing. They have a big hotel chain back in China geared towards business travellers and they were looking to expand in Australia,” he said.

The hotel has 128 rooms, a 90-seat restaurant, cocktail bar and more. Picture: realcommercial.com.au

“They see huge potential beyond the rooms; there’s a massive function room and commercial space so they can do banquets, weddings and conferences.”

The allure of Box Hill

Mr Zhou said he sees steady interest from Asian buyers seeking large, modern assets in Australia’s major cities and growth corridors.

He said Box Hill, labelled ‘Melbourne’s second CBD’, was a huge draw for buyers, given there’s no purpose-built hotel in the suburb.

“There are some serviced apartments and Airbnbs, so this hotel will be a first.”

Box Hill is a booming Chinese hub linked by train, tram and major roads and is seeing plenty of development in hospitality, residential and retail. Yet median weekly household income sits at $1,267, 33% lower than Greater Melbourne’s $1,901, according to ABS data.

Box Hill is regarded as ‘Melbourne’s second CBD’. Picture: realcommercial.com.au

REA senior economist Ms Flaherty said the area was well known among buyers in China.

“There’s a massive Asian community there, it’s one of Melbourne’s key suburban jobs hubs, there’s a TAFE plus there’s people visiting family needing somewhere to stay — which could all be reasons why Box Hill is drawing interest from that sector.”

Australia a safe haven for offshore investors

Australia’s hotel market has been roaring back post-pandemic, with deal volumes and occupancy rates climbing steadily.

 Colliers latest Capital Markets Investment Review charts a 80% year-on-year surge in Australian hotel transactions to $2.7b in 2025 — and the average deal size rose to $40m, significantly more than Trio Box Hill.

The rebound signals renewed confidence, with several large deals in play that could push 2026 volumes even higher, said the report.

Hotel transactions in Australia surged 80% year-on-year to $2.7 billion last year. Picture: realcommercial.com.au

It added that offshore capital represented 49% of total deal flow, led by Thai, US and Singaporean investors attracted by Australia’s resilient hotel sector, global outperformance, booming tourism, stable politics and transparent market.

Tourism Research Australia forecasts total visitor spending in Australia to rise from $191.6 billion in 2025 to $233 billion by 2030.

Melbourne on the move

In Melbourne, Mr Zhou said demand for hotels was “stable”, powered by the city’s big events like the Australian Open, Formula 1 and Spring Racing Carnival.

Colliers’ head of hotels, transaction services Karen Wales said Melbourne’s hotels were experiencing “a significant, event-driven and investment-backed rebound”, becoming the largest hotel market in Australia by stock.

“A surge in major events, increased international arrivals, and high-end, luxury hotel developments saw occupancy levels average 77% in Melbourne in 2025, up 4.1 points on 2024,” she said.

Demand for hotels in Melbourne has been powered by big events like the Australian Open, Formula 1 and Spring Racing Carnival. Picture: realcommercial.com.au

Empty hotels like Trio Box Hill can be particularly appealing, she added.

“An offering with vacant possession has the potential to widen the buyer pool and bring owner operators or groups who wish to implement their preferred brand or operating structure.”

Nevertheless, experts said Victoria’s tax surcharges continue to bite.

“It’s a really expensive place to own property because of the land taxes, so investors are more cautious,” said Ms Flaherty.

But there was cause for optimism, she added.

“Melbourne is set to be the strongest growing capital city in the country over the next decade and that creates the need for all kinds of property, whether that’s residential, hotel or other commercial offerings.”