$140m guide for Sorrento's Continental Hotel
Australia’s version of the Hamptons has delivered a once-in-a-generation hotel investment opportunity, with the iconic Continental Hotel Sorrento – affectionately known to locals as “The Conti” – hitting the market just three years after a $120-million redevelopment transformed the 150-year-old landmark into one of the country’s most sophisticated coastal hospitality precincts.
Established in 1875, the hotel-turned-luxury lifestyle precinct at 1-21 Ocean Beach Road has been listed for $140 million, alongside the nearby workers’ accommodation site, Sorrento Lodge, with a guide price of $10 million, via an international expressions-of-interest campaign conducted by Cushman & Wakefield and JLL.
Blending beachside sophistication with operational scale, the Continental Hotel has long been the social heart of Sorrento and a rite of passage for summer visitors to the Mornington Peninsula, about a 90-minute drive from Melbourne, with its new rooftop pool delivering sweeping coastal views across Port Phillip Bay.
Owned by a consortium including the Victor Smorgon Group, the Kanat Group, and property developer Trenerry Property, the approximately 21,000-square-metre precinct integrates its historic fabric with contemporary luxury through a Woods Bagot-led design.
The limestone stunner comprises a 108-room hotel operated by IHG Hotels & Resorts under its flagship five-star InterContinental banner, alongside three restaurants and a bar, conference facilities, multiple Art Deco-inspired event spaces, including a grand ballroom, and the Aurora Spa & Bathhouse. The precinct is supported by 154 underground car parks across a 5575-square-metre landholding.
Respected hospitality figures Craig Shearer and Scott Pickett run the pub’s food and beverage arm, ranging from fine dining to casual bites, while the bathhouse component is led by its founder, Lyndall Mitchell.
According to Peter Harper, managing director and head of investment sales Australasia at JLL, the listing ranks among the most prestigious coastal hotel opportunities to emerge in Australia in recent years.
“The Continental Sorrento is a trophy asset located in the heart of Australia’s version of the Hamptons,” Harper said.
“This sale campaign represents a once-in-a-generation opportunity to acquire an iconic asset on a passive investment basis and enjoy the financial returns and personal accolades it offers.”
Originally created by comic actor George Coppin as a grand European-inspired seaside hotel, the Continental has been a defining presence in Sorrento, evolving alongside the township itself.
Its most recent architectural restoration – completed in 2022 after building works stalled for a long period under previous ownership – repositioned the hotel while carefully retaining its heritage fabric and coastal character. Designers balanced old and new by integrating historic relics into contemporary spaces, while introducing modern finishes to older corners to create a cohesive feel. The hotel now comprises a Heritage Wing, alongside the new Main Wing and Riley Lane.
The striking building is believed by its owners to be the largest limestone structure in the Southern Hemisphere, and was acquired by the consortium out of receivership for about $14.5 million in 2020 after the Continental’s transformation hit significant setbacks.
Before the current ownership and redevelopment, restaurateur Julian Gerner secured planning approvals and commenced works around 2018. However, the project stalled the following year when the joint-venture partner, Steller Group, collapsed into voluntary administration, leaving construction incomplete and the site effectively dormant. Funding and contractual issues followed, with a failed 2019 sale and receivership in early 2020 halting progress, before the consortium saved the site.
Beyond its blue-chip investment credentials, the property remains deeply embedded in local culture. During peak holiday periods, queues regularly spill along Ocean Beach Road as locals and visitors wait to secure a table, cocktail or sunset vantage point, a visible marker of the asset’s enduring popularity and its status as a destination in its own right.
Sorrento, nestled between Portsea and Blairgowrie at the tip of the Mornington Peninsula, remains one of Victoria’s most exclusive and tightly-held coastal destinations, renowned for its pristine bay and ocean beaches, expanding boutique retail scene and intense seasonal demand.
The broader region is home to championship golf courses and some of the state’s most highly-regarded wineries, underpinning strong year-round visitation from both domestic and international travellers, to the tune of 8 million a year.
Daniel Wolman, Cushman & Wakefield’s international director and co-head of investment sales for Victoria, said those fundamentals were expected to drive strong investor competition.
“We anticipate strong interest from both domestic and international investors, given the property’s prime location, quality tenants and enduring appeal as a year-round destination,” Wolman said.
The sale also includes Sorrento Lodge, located at 211 Ocean Beach Road, which is also being offered on a leaseback basis.
Positioned on a 2893-square-metre site, the accommodation facility provides 76 beds and an on-site manager’s residence, addressing growing demand for affordable workforce stays across the peninsula’s hospitality sector.
“With a lack of accessible housing preventing local businesses from attracting staff, Sorrento Lodge is designed to deliver a more affordable way of life in the heart of a beloved coastal region,” its website reads.
The property is being sold via an international expressions of interest campaign closing at 2pm on Wednesday, March 11.
