Mercure Melbourne Doncaster: Hotel on top of Bunnings could sell for $60m+

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

The Mercure Melbourne Doncaster at 6 Tower St, Doncaster, is looking for a buyer.

An award-winning Doncaster hotel atop a Bunnings store is set to book in a $60m sale.

The four-star Mercure Melbourne Doncaster has hit the market, with industry sources expecting it to sell for an impressive eight-figure sum.

Featuring 183 rooms, a restaurant and bar, outdoor dining space, sundeck, indoor pool, fitness centre and six function spaces, both the accommodation huband two-level Bunnings at 6 Tower Rd opened in 2021.

Last year, the Chilean soccer team used the hotel as its base during the 2023 FIFA Women’s World Cup that held several games in Melbourne.

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Savills Australia and New Zealand’s Mark Durran, who is managing the sale along with colleague Benson Zhou, said the Bunnings store was not included in the listing.

Mr Durran said that international hospitality and accommodation operator Accor, which owns Mercure, had decided to sell the Doncaster hotel after several unsolicited, informal approaches from potential buyers.

“In the current market, new hotels are highly sought after,” Mr Durran said.

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

The heated swimming pool is located on level three of the hotel.

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

Modern Australian flavours are among the hotel’s food specialities.

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

The hotel is adjacent to the Westfield Doncaster shopping centre.

He said this was because of the high costs of construction and for refurbishing older hotels.

Mr Durran pointed to the $96m sale of the Docklands’ hotel Four Points by Sheraton, which he helped to broker earlier this year, as an example of the demand for recently-built hotels in Melbourne.

Accolades won by the Doncaster hotel include the Victorian Accommodation Awards for Excellence’s best mid-range accommodation gong and the Australian Hotels Association’s mid-range accommodation hotel of the year, both in 2022.

Mr Durran described the venue as having “arguably the best meeting and event facilities in metropolitan Melbourne”.

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

There’s extensive event and meeting facilities.

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

More than 180 guest rooms and suites, a restaurant and bar, fitness centre with a swimming pool and gym, three outdoor terraces and 129 basement carparking spaces are among the hotel’s features.

Mercure Melbourne Doncaster, 6 Tower St, Doncaster - FOR HERALD SUN REAL ESTATE

The view from the rooftop is pretty good too.

He is expecting interest from buyers such as local, interstate and international hotel operators, hotel fund managers and high-net-worth individuals.

Mr Durran said the new owners might want to use the site for their own operations or keep the existing branding and staff in place.

The hotel boasts views of the Melbourne CBD skyline to the west and Yarra Valley to the east.

Expressions of interest will close at 3pm on September 6.


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