Melbourne Hotel Portfolio Hits Market in One of 2025’s Largest Institutional Offerings

Three Accor-operated assets, totalling 575 rooms, present significant sale and rare optionality in one of Australia’s most resilient markets

Savills Australia and New Zealand has been exclusively appointed to manage the divestment of Action Hotels’ Victorian portfolio, comprising three strategically located, Accor-operated hotels across metropolitan Melbourne.

With a combined capacity of 575 rooms, the offering is one of the largest hotel portfolio opportunities to hit the Australian market in 2025. The high-profile portfolio includes:

• Novotel Melbourne South Wharf (347 rooms): A 4.5-star, large-scale CBD asset positioned in one of Melbourne’s most successful mixed-use precincts. The hotel enjoys direct connectivity to the Melbourne Convention and Exhibition Centre, DFO South Wharf, and the Crown Entertainment Complex.

• ibis Melbourne Glen Waverley (155 rooms): A freehold suburban hotel situated in Melbourne’s eastern growth corridor, benefiting from strong local trading performance, a diversified income base, and medium-to-long-term development potential.

• ibis Budget Melbourne Airport (73 rooms): A rare airport precinct accommodation offering, with high occupancy driven by consistent air traffic and proximity to key infrastructure. The property presents value-add potential through repositioning or operational uplift.

The portfolio will be offered individually, in any combination, or as a complete set, creating flexible entry points for a broad range of investors, from institutional funds to high-net-worth private capital.

Speaking on the portfolio, Nick Lower, National Director – Hotels at Savills Australia and New Zealand, said, “This is a rare opportunity to secure immediate scale in a single capital city across three distinct hotel offerings. Each asset is underpinned by strong income performance, institutional-grade operations, and long-term value upside. These characteristics are exactly what capital is chasing in the current cycle.

“With very few investment-grade hotels being brought to market in recent years, we anticipate strong interest from institutions, sovereign wealth funds, family offices, private investors, and offshore buyers seeking access to Melbourne’s maturing hotel sector,” Mr Lower said.

Mark Durran, Managing Director, Hotel Capital Markets at Savills Australia and New Zealand added, “Institutional and private investors alike are increasingly seeking hospitality assets that offer not just yield, but long-term optionality.

“What makes this portfolio so attractive is its diversity, CBD exposure, suburban growth, and airport resilience, paired with the flexibility to acquire individually or in combination. It’s a rare strategic play in one of Australia’s most investable cities,” said Mr Durran.

Backed by Accor, one of the world’s largest and most respected hotel operators, all three assets are currently under Hotel Management Agreements, with the option to convert to franchise agreements post-acquisition, providing significant margin expansion potential and greater flexibility for future owners.

Speaking on the opportunity, Max Cooper, National Director – Hotels at Savills Australia and New Zealand, said, “Each hotel brings its own compelling narrative, including premium positioning, secure cashflow, and multiple pathways to enhance returns. Together, they offer a portfolio of real substance. Investors will see the value, not just in the income today, but in the flexibility these assets provide for the future.”

Niall Kumar, Associate Director – Hotels at Savills Australia and New Zealand, added. “Melbourne is now entering a unique window of opportunity in the hotel investment cycle. With occupancy, ADR, and event-driven demand rebounding to pre-pandemic levels, the timing is compelling for both counter-cyclical investors and those seeking long-term growth.

“These assets are not only well-positioned for immediate income but also offer multiple value levers, whether through brand repositioning, operational efficiencies, or strategic redevelopment,” Mr Kumar said.

Benson Zhou, Director – Hotels at Savills Australia and New Zealand said, “This offering is likely to attract a broad cross-section of Asian investors, particularly those with mandates to increase their exposure to Australia’s hotel sector.

“Melbourne has recently been named the second most attractive city globally for capital deployment, following Sydney, and the scale and branding of these assets present a rare opportunity to enter or expand in the market.”

The diversity of the assets, from a flagship CBD hotel to a tightly held suburban site and a rare airport leasehold, creates broad market appeal. The offering is structured to maximise competitive tension by allowing investor self-selection aligned to their risk profile, investment horizon, and operational strategy.

The offering arrives at a time of renewed momentum in the Australian hotel sector. While transaction volumes softened in 2024 due to capital cost pressures, the recent RBA rate cut and strong trading fundamentals have rekindled investor confidence. Melbourne, in particular, is emerging as a value play, with high event-driven demand, major infrastructure investment, and a clear recovery in both occupancy and RevPAR.

From flagship CBD scale to suburban stability and airport corridor resilience, this is a once-in-cycle opportunity to secure income-generating assets in Australia’s second-largest hotel market.

This portfolio of assets is for sale via an International Expressions of Interest campaign, closing early August 2025.