Sydney-based private investment firm Pro-invest Group will build a Holiday Inn Express on a $30-million tract of land it acquired in Melbourne’s central business district.
Pro-invest bought two adjoining buildings in an off-market deal brokered by CBRE’s Melbourne City Sales team. As part of a multiple-franchise agreement with IHG, the company has more than a dozen Holiday Inn Express properties in the works, including another in Melbourne announced last year. Earlier this year, the company opened Australia’s first Holiday Inn Express in Sydney, and will be rolling out IHG's Even brand across the country.
Three years ago, as part of a $150-million deal with IHG, Pro-Invest created a property development and hotel operating company to build and operate an initial 15 Holiday Inn Express hotels, totaling approximately 2,100 rooms, in central business, suburban and airport locations in Sydney, Melbourne, Perth and Brisbane.
2016 has been a boom year for Melbourne's hotel scene, particularly in the western side of the city's central business district. CBRE’s Josh Rutman said that despite recent barriers on development imposed by the government and banks, the Melbourne CBD and surrounding city fringe areas have seen an influx of capital seeking out development sites.
“Both residential and hotel developers are taking a longer term view that Melbourne’s strong growth forecasts are sound and this should see them receive a terrific return on their investment,” he told The Australian.