Global bidders line up for Pullman Hotel

One of Melbourne’s most distinctive hotels has drawn interest from top global investors.

The Pullman on The Park is distinctive because of its geography, located between the Melbourne Cricket Ground and the central business district. It is just minutes from the Paris End of Melbourne’s CBD, home to many of the city’s premium and A-grade office buildings

So the $200 million deal has attracted two of the world’s largest property investors, the Connecticut-based Starwood Capital Group and private equity group Blackstone based in New York.

The Pullman’s lobby and popular front bar have been put through a solid $12.5 million refurbishment.

Real estate giant Brookfield has put the AccorHotels-run Pullman on the Park on the market.

Previously known as Hilton on the Park, the Pullman has been managed by Accor since January 2015.

The hotel features 419 rooms and suites, the lobby bar and restaurant, business centre, a 100 seat ballroom, 18 conference and meeting rooms and parking for 215 cars.

It is the largest listing this year and the Australian reports that it’s attracted a lot of overseas interest with three major purchasers vying for it.

One of the bidders, Blackstone, has a big appetite for hotels with $6 billion worth of office buildings, shopping centres and warehouses around Australia in its global portfolio.

The sale of the Pullman is being managed by McVay Real Estate’s Dan and Sam McVay and Peter Harper and Craig Collins from the JLL Hotels & Hospitality Group.

The sale is significant fuelling Victoria’s ability to attract more domestic and international visitors.

It also coincides with other recent sales including Melbourne hotelier Mazen Tabet picking up the popular Royce Hotel on St Kilda Road in a deal worth $55 million. And last year, Singapore’s UOL Group acquired the Hilton South Wharf hotel in a deal worth $230 million.

5th April 2018