South Yarra to welcome new luxury hotel

Melbourne’s luxury accommodation market will soon welcome a new boutique offering, with a South Yarra hotel currently under construction and to be sold ahead of its expected completion in 2019.

Local developer Argo Group is selling the hotel it is developing at 230 Toorak Rd – a former retail and office site that was sold in July last year.

The new hotel, designed by architects Woods Bagot, will have 93 rooms across seven levels, as well as a ground floor bar and restaurant.

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Room sizes will range from 26sqm to 32sqm.

Savills’ Michael Simpson and Tom Shadbolt are marketing the property, and say the opportunity to be the hotel’s first owner presents a unique chance to select an operator and determine the hotel’s positioning within the market.

The site was formerly occupied by retail stores and offices.

“Argo Group is offering to market an exclusive opportunity to gain exposure to Australia’s most desirable, most tightly held and most coveted hotel market, and the flexibility to appoint a preferred hotel operator with control over branding, market positioning and management terms,” Simpson says.

“The design-led boutique hotel will immediately appeal to discerning customers seeking high quality accommodation in the lively South Yarra district.”

Melbourne-based construction firm Hickory is building the hotel, while Construction Assignments has been retained as the project manager.

The hotel will be sold by expressions of interest, which close on December 8.