Plato Capital subsidiary sells Melbourne Tune hotel for $52M

Melbourne Tune Hotel

TP Real Estate Holdings, a 50-percent-owned subsidiary of Plato Capital, is selling a Melbourne hotel for $52 million. 

The subsidiary, through two vehicles, will sell the building for $51.7 million and the hotel business for $0.3 million. The deal is expected to be completed by March 4.

The hotel business is currently operated under the Tune brand, but the buyers of both the property and hotel business were not disclosed. 

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

According to the Business Times, Plato currently carries its stake in the property and hotel business at a net book value of $16.5444 million. Sales proceeds will repay property-related loans of as well as expenses and fees related to the transaction. Plato expects that its share of whatever is left over will be about $13.14 million, which will represent a gain of $6.845 million.

Read more on

Suggested Articles

The two locally owned resorts join the Benchmark Resorts & Hotels brand as a result of the deal.

The combined company now will own and operate a portfolio of 40 hotels totaling more than 5,000 guestrooms.

The global crisis will provide significant merger and acquisition opportunities for hospitality companies willing to take the risk.