Rydges Geelong to test demand for mid market accommodation assets

Rydges Geelong has 138 guest rooms, a restaurant and bar, conference centre and 5991sq m of freehold property with four street frontages.

Geelong’s Rydges hotel has been listed for sale with the owners offering the four-star property and the opportunity to rebrand and take over managing the business.

Listed hospitality group EVT Limited has appointed JLL Hotels and Hospitality Group to offer for sale Rydges Geelong, which is being sold to recycle capital and fund hotel growth within its company’s Australian portfolio.

The eight-storey Gheringhap St hotel last traded for close to $20m in 2017 and underwent a substantial upgrade completed in 2020.

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The hotel offers 138 guest rooms ranging from 30sq m to 60sq m, a restaurant and bar and conference and events centre, and a swimming pool and fitness centre.

JLL Melbourne agents Nick MacFie and Peter Harper, who are handling the expressions of interest campaign, which is offering the property with vacant possession of brand and management available to buyers.

The 5991sq m freehold property has four street frontages.

Rydges Geelong ground floor reception, bar and restaurant were relaunched in 2020 after a makeover.

Rydges Geelong has been listed for sale. The four-star hotel is at 89-105 Gheringhap St, Geelong.

Price guidance is in the high-$20m range for the asset.

Mr Harper said the asset also offers an upside to new owners through refurbishment or repositioning.

“Geelong is one of the largest regional cities in Australia. It’s gone under an enormous transformation over the past decade from an economic standpoint, with a growing population.

“It’s the gateway not only for tourism on the Surf Coast and the Great Ocean Road, but also Tassie now with the Spirit of Tasmania.”

Mr Harper said it would be a sought-after asset.

There are 138 guest rooms at Rydges Geelong.

“It’s a good price point and an asset that a lot of investors are looking for and in fact just ticks so many boxes with a really big underlying landholding, proven trading performance, flexibility and management,” he said.

“It’s in a really attractive market.”

Mr Harper said buyers active in the mid-market accommodation space in the past year has included owner operators, some who would operate under a franchise arrangement and some that don’t have recognised brands themselves.

“EVT are absolutely happy to discuss ongoing management,” he said.

The hotel was original built in 1971 in a tri-arc design as a TraveLodge. It was part of the Accor group under the Mercure brand prior to 2017.

EVT operates more than 80 hotels across Australia, including under the QT, Rydges and Atura brands.