Shangri-La Melbourne hits market in unprecedented luxury hotel opportunity

The unprecedented opportunity to acquire a new, luxury 5-star flagship hotel in the heart of the Melbourne CBD is set to attract savvy investors from across the globe.

Colliers’ Gus Moors and Karen Wales and Deloitte’s Stephen Hynes and Paul Bartlett have been appointed to bring to market the landmark Shangri-La Melbourne on behalf of the owners, S P Setia.

The exceptional offering comprises a world-class, luxury 5-star hotel set within an iconic 60-storey, two-towered building connected by a spectacular 46th floor two-storey glass oculus skybridge.

The hotel itself, occupying the taller tower and boasting approximately 57,114sqm gross floor area, directly overlooks the magnificent UNESCO heritage-listed Carlton Gardens and its centrepiece, the Royal Exhibition Building.

Shangri-La Melbourne will occupy a sprawling park-front corner site with a combined 4,140sqm total land area at 308 Exhibition Street, Melbourne.

“This architectural wonder is destined to become a Melbourne landmark for decades to come,” Mr Moors said. “This is a rare generational asset in one of the most culturally vibrant and desirable cities in the world, under the aegis of one of the world’s most prestigious luxury hotel brands: Shangri-La.

“S P Setia have been working with Colliers and Deloitte over the past few  months to bring the Shangri-La hotel to market. As the builder, Multiplex, draws close to completing the construction of this magnificent 60 storey hotel tower, S P Setia has recognised that there is an opportunity to sell the property upon full completion, currently scheduled for 2023 with hotel opening anticipated in early 2024.

“With the Shangri-La hotel development moving into a fitout phase soon, it is now timely  to seek investors who can see the tremendous upside in owning Melbourne’s most luxurious hotel, to work with S P Setia to deliver this bespoke offering and unique opportunity.

“The weight of global capital, seeking large scale, prime located hotel properties is immense at present. Investors will be drawn to the chance to own Melbourne’s finest property operated by Shangri-La, one of the world’s premier luxury hotel companies, renowned internationally for its outstanding hospitality service and the finest dining experiences

“As hotels markets across the country move into rapid recovery mode, the timing of the delivery for the Shangri-La will see this 500-room property open at an ideal time in the hotel cycle.”

“Upon completion, Shangri-La Melbourne will incorporate an incomparable range of luxury accommodation choices, including approximately 500 spacious and well-appointed guestrooms, along with exquisite family rooms – the first of its kind in Australia  – with  Horizon Club guestrooms, Premier and Presidential Suites on its upper levels,” Mr Hynes said. “Amenities will include a range of eclectic bars and restaurants with alfresco dining, expansive conference facilities, a spa and wellness centre, an indoor heated swimming pool and more.

“This is a once-in-a-lifetime opportunity to take ownership of a landmark project with a prestigious Melbourne CBD address overlooking the UNESCO Carlton Gardens.”

From its sought after location, Shangri-La Melbourne will offer easy access to the city’s prime attractions including luxury shopping, theatres, restaurants, bars and cafes and sporting destinations.

Mr Moors said world class hotels such as the Shangri-La Melbourne would form a major part of the revitalisation of the Melbourne CBD.

“The city’s hotels will welcome domestic and international tourists back to celebrate Melbourne’s world class events calendar and accommodate corporate demand as the city recovers and expands,” Mr Moors said.

Shangri-La Melbourne is offered for sale via an exclusive invitation-only International Expression of Interest campaign, which closes Thursday 28 April 2022 at 2:00pm AEST.

It is expected the luxury 5-star flagship hotel will attract interest in the mid-$500million price range.