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Adelphi Hotel, the renowned boutique hotel located on Flinders Lane, has been put up for sale in what is being dubbed as one of Melbourne’s most significant hotel sales recently. The property features 34 bespoke guest rooms, a rooftop pool and bar/events venue, a cocktail bar, a boardroom, and a lower-ground restaurant leased to NOMAD Melbourne.

Adelphi

JLL Hotels & Hospitality’s Peter Harper, Nick MacFie, and CVA’s Charles Cini and Ian Angelico have been appointed to market the property via an Expressions of Interest campaign, which closes on Thursday, 27 April 2023 at 2 pm (AEST).

The hotel is located in Melbourne’s thriving entertainment precinct and surrounded by high-end fashion flagships, such as Chanel, Gucci, Louis Vuitton, Prada, Fendi, Cartier, and Bulgari. The city’s best theatres, Federation Square, Melbourne & Olympic Parks, and Crown Casino are just a short walk away.

“The Adelphi Hotel not only embodied the spirit of the city but also pioneered the local boutique hotel sector,” said Peter Harper, Managing Director & Head of Investment Sales Australasia, JLL Hotels & Hospitality. “Since its inception, the Adelphi has been recognized by travelers as the best boutique hotel in the city. This has been reinforced by numerous industry awards, and it has won Victoria’s Best Boutique Hotel Award four times.”

The property is being offered with vacant possession of management, allowing an incoming purchaser to continue the Adelphi brand’s legacy or reposition and rebrand it to suit an existing operation or portfolio better. The property’s excellent fundamentals provide the flexibility to explore alternative uses.

Adelphi Façade

“The Adelphi Hotel operation and Mon Bijou’s rooftop bar and events space have essentially been operating separately for several years,” Harper said. “Stapling the two components back together should have an immediate positive impact on both. Furthermore, a strong case can be made for significant trading uplift through cosmetic enhancements to the guest rooms or leveraging an existing operation to improve departmental and undistributed expenses.”

The co-owner, Ozzie Kheir, a property developer, entrepreneur, and racing identity, has been part of the Adelphi Hotel since 2013 and is looking forward to handing over the reins of the landmark property to new operators. “It has been incredibly rewarding to build on the Adelphi Hotel brand over the past ten years, knowing it is one of Melbourne’s true iconic landmarks,” he said. “My residential business, Resimax, is now entering a phase of rapid growth, and that’s where my focus needs to go over the next few years.”

The sale of the Adelphi Hotel provides a rare chance to obtain an investment foothold in the best part of the Melbourne CBD, with several upside opportunities available. The built-form characteristics of the property lend themselves to conversion into Melbourne’s hottest entertainment venue, like the Establishment in Sydney, or even commercial or residential.

In conclusion, the sale of Adelphi Hotel offers a unique opportunity to invest in one of Melbourne’s most iconic landmarks. With its strategic location, bespoke guest rooms, and world-class amenities, the property is poised to attract investors from across the globe.