For the first time in more than 30 years, the landmark 96-room Hotel Sophia on the corner of King and Little Lonsdale Streets in Melbourne’s CBD is being offered to market with vacant possession, via leading agency Savills Australia. Investor interest is expected to be high on the back of Savills’s recent sales of the nearby 190-room Batman Hill on Collins and the Carlton Lygon Lodge.
The Hotel has undergone recent major renovations to cater to increasing demand for Melbourne CBD accommodation, with an additional three storeys constructed - delivering a further 48-rooms to the hotel.
Hotel Sophia occupies a prime freehold corner and is in close proximity to the CBD’s commercial office precinct and event centre including Marvel Stadium and Melbourne Convention and Exhibition Centre. It also offers excellent connectivity to transport via the Central Southern Cross Train Station and tram network.
Savills Hotels Mark Durran commented “we expect significant investor interest, it is a timely opportunity to capitalise on Melbourne’s tourism rebound. The vacant possession enables an operator to effectively rebrand and reposition the hotel asset.”
Savills Hotels Nikola Sasic said Hotel Sophia is expected to generate interest from boutique hotel owner-operators as well as hostel groups, publicans, and other budget accommodation providers.
Benson Zhou Head of Asia Markets for Savills Victoria added “The freehold land is abutted by soaring residential towers including the Aspire development, and such a parcel of land poses future development potential or more comprehensive conversion of use as residential, BTR or student accommodation.”