Adelaide boutique hotel with heritage-listed facade tipped to fetch more than $15 million

The triple-storey property was built as the headquarters of Our Boys Institute, a Christian-based youth group.

The property is more than 120 years old, though there are few original features inside the hotel. Photo: Supplied

In 2007, it was converted into a 69-room boutique hotel. The $4.2 million refit produced mainly double and king rooms. There is also a family room and an executive suite.

The property’s façade is heritage-listed but most of its interior, which now has few original features, is not. A listing on the South Australian Heritage Register notes the hotel “exhibits a high quality of design and its elaborately detailed three-storey sandstone facade is of particular note.”

The site last traded for $2 million in 2006, when it was sold to Adabco Lodgings by the state government’s former Department of Employment, Training and Further Education, now part of the Department of State Development.

The hotel has 69 rooms and there is potential to add more. Photo: Supplied

Built entirely on publicly raised funds, the 3500-square-metre floorplan originally cost £4000 to construct. It was home to the Our Boys Institute until the early 1960s and was the base of self-improvement classes and sporting activities. It housed lecture and games rooms, a library, reading room and a large gymnasium.

CBRE’s Scott Callow, who is marketing the hotel, said the buyer is able to increase the number of rooms in the hotel. The new owner can also expand the hotel’s food and beverage operations after the vendor vacates the 180 square metres of office space it occupies on the ground floor.

Currently the hotel only serves a continental breakfast in-house and brings in other meals from a nearby restaurant. However, it did recently gain a liquor license and has “a pretty attractive big rooftop” deck, says Mr Callow.

There’s a lot that can be done with this rooftop terrace. Photo: Supplied

“I think there’s a real opportunity there to offer a more rounded food and beverage offering, particularly with functions,” he says.

The property, which is managed by 1834 Hotels, should attract significant interest from interstate and overseas parties who see Adelaide as an increasingly important location.

The hotel market in the city of churches has experienced “strong growth, largely driven by the city’s growing sport and event calendar”, Mr Callow says.

“Adelaide has gone a long way in broadening its events calendar year-round to even out business.”