CapitaLand closes in on Quincy Hotel as InterGlobe prepares exit
Melbourne's Quincy Hotel looks set for a change of hands, with Singaporean investor CapitaLand securing exclusivity to acquire the 241-room property from Indian airline billionaire Rahul Bhatia's InterGlobe Enterprises.
The 29-storey boutique hotel at 509 Flinders Lane has built a reputation as one of the city's design-led standouts since opening in 2021. The transaction is tipped to value the asset above $100 million, with CapitaLand, which is headed locally by former Credit Suisse investment banker Angelo Scasserra, already in market raising capital for the deal.
Investors are being pitched a five-year hold targeting an internal rate of return above 16 per cent and an annual distribution yield of roughly 8 per cent.
Marketing material for the raise points to the hotel's relatively young age, noting it needs only minimal capital works given its near-new condition. CapitaLand is understood to be planning a switch of hotel operator, moving away from incumbent Far East Hospitality, and has framed the purchase as landing well below replacement cost on attractive terms.
The sale process follows InterGlobe's renewed push to offload the asset, restarting talks via McVay Real Estate in March after an earlier unsuccessful campaign through CBRE in 2023. Bhatia, who founded budget carrier IndiGo, bought the hotel for about $91 million in 2018 while it was still under construction, with expectations at the time that it could eventually fetch upwards of $120 million.
CapitaLand had not responded to a request for comment from Street Talk at time of publication.
The deal would mark another step in CapitaLand's local expansion since recruiting Scasserra as Australian chief executive and Rahul Bharara as chief investment officer last year, part of a stated ambition to grow its Australian asset base to $20 billion within four years. The group has simultaneously been moving to divest its Australian corporate lending arm, picked up through its acquisition of Farrel Meltzer's Wingate Group, in order to sharpen its focus on real estate.
Scasserra and Bharara currently oversee a $5.1 billion Australian portfolio for CapitaLand, of which living and lodging assets account for about $1.3 billion.
Jonathan Jackson, 30th June 2026
