St Kilda hotel and hostel offer an attractive investment opportunity

Melbourne, 21 May 2014 - A popular St Kilda hotel and hostel is being brought to the market for sale by Expressions of Interest to be handled exclusively by CBRE Hotels.

The Elephant and Wheelbarrow Hotel and Ritz Backpackers are prominently located on the corner of Fitzroy Street and Princes Street within the entertainment precinct.

The ground floor comprises The Elephant and Wheelbarrow Hotel which features a public bar, lounge bar, dining area and alfresco seating to Fitzroy Street. Currently subject to a 24 year lease, the lessee’s are experienced operators who originally refurbished the Hotel and have operated the leasehold business since 1998.

The first and second floors are occupied by the Ritz Backpackers with approximately nine years remaining on the lease. The 30 room hostel has a mix of private rooms and dorms, as well as an outdoor courtyard, communal kitchen and large lounge room.

Scott Callow and Joseph Du Rieu from CBRE Hotels are marketing the property.

Mr Callow said the Freehold investment offered an attractive investment opportunity with dual income streams.

“Both the hotel and the hostel are long standing successful business operations with relatively long lease periods,” said Mr Callow.

“This is a prime location for future development overlooking parklands in one of Melbourne’s most popular areas. St Kilda Beach and Albert Park Lake and parklands are just a short walk away,” said Mr Du Rieu.

Mr Callow said that they would be seeking offers above the $9 million mark.

The property will be sold by Expressions of Interest, closing Thursday 26th June at 2.00pm, unless sold prior.

For more information, please contact Scott Callow on 0418 153 606 or Joseph Du Rieu on 0408 892 976.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.