Hospitality operator bets on Melbourne CBD revival with $3.9m Bourke St buy
A prime Bourke Street retail freehold has changed hands for $3.888m, as hospitality operators move to lock in long-term positions in Melbourne’s CBD revival.
Cashed-up hospitality operators are putting millions back into Bourke St, in a sign Melbourne’s CBD night-time economy is stirring again.
The two-storey property at 171 Bourke St sold for $3.888m with the buyer planning to open a new Asian fusion dining venue in mid-2026, a move that points to growing confidence in the East End’s hospitality comeback.
The tightly held freehold sits near the intersection of Bourke and Russell streets, an area that has re-established itself as one of the CBD’s most active hospitality pockets since the city reopened post Covid.
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Colliers, which brokered the sale, said demand for CBD hospitality assets had strengthened as operators looked to lock in long-term sites rather than rely on short-term leases.
Colliers head of Victorian investment services, Matt Stagg said the Bourke Street strip between Russell and Spring streets had led the city’s hospitality recovery.
“Since Melbourne reopened from Covid in 2022, this Bourke Street precinct between Russell St and Spring St has led the revitalisation of the Melbourne CBD hospitality and entertainment industry,” Mr Stagg said.
171 Bourke St, Melbourne.
The sale comes amid a run of high-profile hospitality openings across the surrounding blocks, with major operators doubling down on the East End.
Recent additions include Hyde Melbourne Place, operated by Accor, along with new and expanded venues from Australian Venue Co, Chris Lucas and Andrew McConnell, cementing the strip’s appeal for locals, tourists and late-night trade.
The Bourke St address also benefits from its proximity to Chinatown, Melbourne’s theatre district and Collins St’s luxury retail strip, while sitting within walking distance of Bourke St Mall and major public transport links.
The building adjoins the recently opened 189-room Melbourne Place hotel, adding another steady stream of foot traffic to the area and strengthening its credentials as a destination dining precinct.
Colliers Asian market associate director, Yvonne Zhou said Asian hospitality operators and investors were increasingly drawn to the Bourke St strip.
Melbourne, Australia – JULY, 2025, Melbourne public transport Coburg, Sydney road tram number 19 looking back towards the cbd. Picture: Jason Edwards
“Asian hospitality owner-operators and investors are attracted to the Bourke Street precinct due to its proximity to Chinatown,” Ms Zhou said.
She said major investment by established hospitality groups had helped lift confidence in the area’s long-term prospects, particularly for night-time trade.
“Asian property investors are also aware of major investment by established hospitality operators, which adds to the vibrancy of the precinct and night-time economy,” Ms Zhou said.
GENERIC images of Bourke St, Melbourne CBD. Picture: Tony Gough
The deal reflects a broader shift across parts of the CBD, where hospitality operators are increasingly prepared to put capital on the line to secure freehold sites in locations they believe will outperform.
While office markets across the city remain uneven, hospitality-led pockets such as Bourke St’s East End have benefited from the return of tourism, major events and theatre crowds.
With another new venue now locked in for a 2026 opening, the latest sale adds further weight to a strip where operators are no longer just leasing space, they are buying into Melbourne’s CBD revival.
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