Islington: Luxury Hobart hotel checks in for sale

The Islington Hotel at No.321 Davey St, South Hobart is for sale. Picture: Supplied
One of Hobart’s finest hotels is on the market.
Described as “prestigious” and “a landmark”, Davey St’s Islington Hotel is available to purchase just a few years after it last sold.
Set within a grand Regency-style mansion that was built in 1847, the Islington is one of Tasmania’s most celebrated accommodation offerings, boasting a rich heritage, curated interiors, and panoramic views of Mt Wellington.
The Islington Hotel is the only Tasmanian property in the Small Luxury Hotels of the World Collection and one of just two Virtuoso hotels in the state.
MORE: ‘Bombarded’: 200 people at Moonah inspection as market lifts
Glamorous Hobart hotel sold to international resort group
Humble waterfront home with $1m+ hopes

Islington Hotel.

Islington Hotel.
Colliers hotels executive Sam Abel said the Islington is a truly unique asset, blending heritage charm with contemporary luxury.
“Its strong track record of high room rates and profitability, combined with its vacant possession status, offers significant flexibility for an incoming purchaser,” he said.
“There’s also considerable upside potential through activating function spaces, enhancing the food and beverage offering, or expanding the room count, subject to approvals.”
With 11 individually designed guest suites, the hotel has consistently earned accolades including the Conde Nast Hot List, Tatler’s 101 Best Hotels, and most recently, Tripadvisor’s 2024 Travellers’ Choice Best of the Best award for luxury accommodation.
The hotel sits on a generous 3551sq m site within a historic mansion precinct, just 1km from the CBD.
Its secluded setting behind high gates gives the impression of a private residence.
MORE: Auction: Servo investment pumps up Shearwater
Hobart home sold in days for $146k over starting price
Two thirds of Hobart rents jump higher

Islington Hotel.

Sam Abel, Colliers hotels executive.
Karen Wales, Colliers head of hotels Australia, said Hobart’s hotel sector has rebounded strongly, with room rates averaging $214 and occupancy reaching 78 per cent over the year to July 2025.
She said Hobart’s RevPAR (Revenue Per Available Room) is 11.8 per cent above pre-Covid levels, and the market is on a clear growth trajectory.
“With the development cycle slowing and limited new supply expected, opportunities to acquire luxury hotels with vacant possession will become increasingly scarce,” she said.

Islington Hotel.
Mr Abel said Tasmania has emerged as a global tourism hotspot, with double-digit growth in international visitation outpacing all other Australian states and territories.
“The Islington Hotel is ideally positioned to benefit from this momentum, offering a rare blend of heritage, luxury, and location,” he said.
Property records show the award-winning hotel was sold in 2021 for $3.5m.
No.321 Davey St, South Hobart is for sale by expressions of interest closing on November 7.