The Ibis Glen Waverley is to be offered for sale – providing the first major mid-scale hotel offering in Melbourne for 2019.
The Australian hotel market, and Melbourne in particular, has been starved of investment opportunities, underpinning strong investor interest in the limited number of quality investment opportunities.
CBRE Hotels agents’ Wayne Bunz and Scott Callow will steer the sale process for the 3.5-star Ibis Glen Waverley.
The hotel is located on a prominent highway site, features 155 guest rooms, a ground level café, restaurant and bar, conference and function facilities and a large business centre.
CBRE’s Scott Callow added; “The Ibis Glen Waverley is situated in the geographical centre of Melbourne’s metropolitan area, which is well serviced by freeway links to the CBD and Melbourne Airport. Existing and future demand will be underpinned by the growth of Monash University, business parks and the population in Melbourne’s south east.”
It taps into a strong, corporate driven market in Melbourne’s south-east growth corridor, which is benefitting from significant development and infrastructure improvements to cater for the region’s population growth.
Glen Waverley’s LGA is the second largest employment region in Melbourne, after the CBD, with economic growth historically outstripping that of Greater Melbourne.
This has underpinned the strong trading performance of the Ibis Glen Waverley, which has achieved a high profit margin of 40% since opening in 2007.
Operated by Accor under the Ibis Budget brand, the hotel benefits from the company’s market leading sales, marketing and distribution network.
CBRE Hotels’ National Director Wayne Bunz noted that the listing coincided with a recent hotel supply cycle in Melbourne. However, he said the city had historically been renowned for absorbing new supply.
“The supply cycle follows a period of constrained demand in a market which enjoys a wide range of demand drivers, including conferences and events throughout the year, driving corporate and leisure demand on a seven day a week basis. Melbourne is home to the AFL Grand Final, Melbourne Cup, the Australian Open, the Grand Prix all which continues to see Melbourne perform as the leading event capital of Australia,” Mr Bunz said.
“We consider it reasonable to expect that market demand will exceed new supply as has typically been the case in Melbourne.”
The Ibis Glen Waverley is being offered for sale by way of a public International Expression of Interest (“EOI”) campaign closing 15th May 2019.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
