Carlton Rydges hits market for first time in 20 years

A Rydges hotel site in inner-city Melbourne has hit the market for the first time in 20 years, with price expectations of more than $40 million.

The hotel at 701 Swanston St is in the highly sought-after suburb of Carlton, and is being touted as a “blank canvas” opportunity, with1,762 sqm, on a dual-frontage corner lot.

Jones Real Estate managing director Paul Jones says the sale is an incredibly rare opportunity, with the sale offering buyers flexibility.

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“Blue-chip corner locations overlooking parkland, with two street frontages and an option to develop another 18 levels subject to council approval, aren’t that common in inner-city areas,” he says.

The Rydges Carlton hotel has a prime parkside position.

“A new owner has the option to extend the hotel lease or to explore the site’s huge potential. With excellent facilities and an 82% annual occupancy rate the hotel earnings are very sound.”

The 107-room, five-storey building has operated under private ownership since 1997.

Despite having operated as a Rydges franchise the site is being sold with a vacant possession. The vendors are open to considering straight sale terms, joint-venture proposals and a long-term settlement.

Proximity to Melbourne’s CBD, the University of Melbourne campus and the bustling Lygon St precinct are major draw cards, says agent Tim Spargo.

The property currently has a rooftop pool and function space.

“Carlton is a place where people live, work, dine and study and this site provides buyers with a truly strategic position,” he says.

“The size of the lot combined with its premium location open up a wide range of possibilities for mixed-use developments with a well-situated pocket precinct.”

The listing comes as Melbourne’s hotel market continues to undergo aggressive expansion on the back of strong interest from overseas investors and occupancy rates remaining steady.

The site is being sold via an expressions of interest campaign closing June 5.