Former crime hotspot motel in Coburg North listed for $3.6m+
The former hotel at 844-846 Sydney Rd, Coburg North, has a colourful history.
A once-notorious hotel in Melbourne’s north that was formerly a hotspot for cockroaches and crime has hit the market.
The now-vacant StayInn Motel at 844-846 Sydney Rd, Coburg North, is for sale with $3.6m-$3.7m price expectations.
Set on a 2289sq m block of land, the site was previously used as crisis accommodation for people including recently-released prisoners and those experiencing homelessness, in addition to serving as a hotel.
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Guests who stayed at the venue before it shut down in 2019 posted reviews on TripAdvisor and similar websites, describing it as “a dodgy, dodgy place”, “the worst hotel on the planet” and a “junkie city” allegedly frequented by drug dealers and prostitutes.
Bed bugs and cockroaches were also mentioned in the comments.
At one stage, the hotel had the lowest TripAdvisor rating in Victoria with one visitor stating: “Do not stay here. Ever.”
A fellow traveller wrote: “Terrible place. Police there every day. Other residents all druggies. Would not stay again.”
However, other reviews stated the motel provided a valuable service by providing vulnerable people with temporary low-cost housing.
In 2017, a man was shot in the leg when an argument broke out in the motel’s foyer.
The following year, the motel featured in a documentary aired on SBS’s VICE channel.
The 2289sq m site is near the intersection of Sydney Rd and Bakers Rd (outlines are indicative only).
The boarded-up StayInn Motel photographed in 2018.
And in 2021, the Sydney Rd site was listed for sale with a $4.5m price tag.
NSL Property Group managing director Guy Naselli said that at the time, a vacant 700sq m section of the site sold to a new owner who is planning to build townhouses.
The remaining land including the former hotel is now back on the market with most buyers showing interest at the $3.6m to $3.7m mark.
Located in a mixed-use zone, a now-expired planning permit for the address
had previously approved the construction of a motel and dwellings in a two-to-four storey building.
“It allows a multitude of different uses, obviously residential in nature,” Mr Naselli said.
“But we’ve already started to field inquiries from aged care, child care, NDIS and traditional residential developers.”
Police at the hotel following a 2017 shooting. Picture: Nicole Garmston.
The ex-motel is close to Village Cinemas, Mercy College and Pentridge Village.
A number of interstate-based investors have inquired about the site that’s on Coburg Lake’s banks.
Mr Naselli said that it might be possible to renovate the existing motel buildings but a new owner would likely find it more affordable to demolish them and start afresh.
“There’s the tram on your doorstep, multiple entry points and the location has changed a lot,” he said.
“Coburg North is probably less than 10 km from the CBD – so to find an over-2000sq m in this area available for sale is easier said than done.”
Mr Naselli said that the suburb had gentrified in recent years as rising home prices pushed many buyers out of nearby Brunswick and Carlton.
The motel was also previously home to a restaurant.
A photo of the motel and its pool taken in about 2017.
He said the former motel had “a colourful history, but like most things, it’s ready for a new lease of life”.
“I think it’s a very different offering to what was there 50 years ago and 40 years ago,” he added.
“It’s ready to become a new landmark for the area.”
And it wouldn’t be the first property in the area to turn a corner.
Nearby Pentridge Prison, which once housed some of the nation’s worst criminals and hosted Australia’s last instance of capital punishment, with the hanging of Ronald Ryan, now a thriving housing development and commercial precinct.
Expressions of interest for 844-846 Sydney Rd close at 3pm on August 21.
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