Investors pour in for Melbourne’s Grosvenor Hotel

Melbourne’s iconic Grosvenor Hotel is being tipped to sell for more than $11 million after drawing strong attention from investors and developers.

The historic 1860s building at Balaclava, near St Kilda, is already garnering intense interest from a broad range of buyers after it hit the market labelled  as “one of a dying breed of corner hotels”.

The 1963sqm site is located in an area that “has seen undeniably strong growth” and  has enormous development potential,  according to CBRE’s Mark Wizel.

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“Over the last three years we have witnessed a dramatic surge in transactions of established hotels and gaming venues that present high underlying land value and provide development upside in strategic locations,” Wizel says.

The Grosvenor Hotel has bars, a bistro and a bottle shop.

The mutlifaceted property is being offered with a three-year lease in place to an established tenant, providing a passing income of $525,000

Investors are likely to be buoyed by the strong lease covenant along with the triple street frontage of the property totalling 225m.

Location is also expected to be a key selling point – situated 6.5km from the CBD and within strolling distance of the popular St Kilda beach and bustling St Kilda Rd office precinct.

The opportunity to snap up the historical treasure comes after several recent bayside hotel sales including the Beach Hotel, Marine Hotel and Water Rat Hotel.

All three were home to established businesses in attractive locations, transacting to long-term land bankers and developers.