Bourke St buyers double down on hospitality as Melbourne’s CBD night-life shows signs of revival

Cashed-up hospitality operators are once again putting serious money into Melbourne’s CBD, with a fresh Bourke St sale adding momentum to the idea the city’s night-time economy is starting to properly hum again.

A 2-storey freehold at 171 Bourke St has changed hands for $3.888 million, with the buyer planning to launch a new Asian fusion dining venue in mid-2026 — a sign of renewed confidence in the East End’s hospitality resurgence.

The tightly held site sits close to the Bourke and Russell streets intersection, right in a pocket that has bounced back strongly since Melbourne reopened post-Covid, re-establishing itself as one of the CBD’s busiest zones for dining, drinking and late-night activity.

Colliers brokered the deal and said demand for CBD hospitality assets was lifting as operators looked to secure long-term positions rather than gamble on short-term leases.

Colliers head of Victorian investment services Matt Stagg said the stretch of Bourke St between Russell and Spring streets has been leading the city’s hospitality recovery.

“Since Melbourne reopened from Covid in 2022, this Bourke Street precinct between Russell St and Spring St has led the revitalisation of the Melbourne CBD hospitality and entertainment industry,” Stagg told RealCommercial.com.au.

The sale also lands amid a wave of notable openings nearby, with major groups continuing to back the East End and expand their footprints in surrounding blocks.

Recent additions include Hyde Melbourne Place, operated by Accor, along with new and expanded venues from Australian Venue Co, Chris Lucas and Andrew McConnell — reinforcing the strip’s pull for locals, tourists and late-night crowds.

It’s not hard to see the appeal. The Bourke St address sits near Chinatown, Melbourne’s theatre district and Collins St’s luxury retail strip, while also being an easy walk to Bourke St Mall and key public transport connections.

The building also adjoins the recently opened 189-room Melbourne Place hotel, which adds another reliable stream of foot traffic and strengthens the area’s reputation as a destination dining precinct.

Colliers Asian market associate director Yvonne Zhou said Asian hospitality operators and investors have been increasingly drawn to the Bourke St strip.

“Asian hospitality owner-operators and investors are attracted to the Bourke Street precinct due to its proximity to Chinatown,” Zhou told RealCommercial.com.au.

She said major investment from established hospitality groups was helping lift confidence in the precinct’s long-term outlook, particularly when it comes to after-dark trade.

“Asian property investors are also aware of major investment by established hospitality operators, which adds to the vibrancy of the precinct and night-time economy,” Zhou said.

More broadly, the deal reflects a shift playing out across parts of the CBD: operators are increasingly willing to put capital on the line to secure freehold sites in locations they expect to outperform.

While office conditions across Melbourne remain patchy, hospitality-heavy pockets — including the East End of Bourke St — have benefited from the return of tourism, big events and theatre crowds.

With another venue now slated to open in 2026, the latest sale is another marker that operators aren’t just renting space in Melbourne’s revival — they’re buying into it.

Jonathan Jackson, 17^th December 2025