The StayInn in Coburg North: Australia's 'worst motel' finally sells after years of infamy

The site at 844-846 Sydney Road is believed to have exchanged hands for circa $3.5 million, according to an insider.

However, selling agent Guy Naselli, managing director of NSL Property Group, declined to comment on the price.

“This sale marks the end of an infamous era and the start of a brighter future,” he says.

“This site has been a talking point for all the wrong reasons and now it has the chance to become a project the community can finally be proud of.”

For years, the site made headlines for all the wrong reasons.  Guests slammed it as “dodgy,” “slum-like,” and “the worst hotel on the planet.” 

While infamous for syringes, bed bugs and even a shooting, the motel also drew praise for its role as crisis accommodation, documented in a 2018 VICE film.

The property, located just nine kilometres from Melbourne’s CBD, was listed for a price in excess of $3.7 million.

In a win for the housing crisis, private investors will repurpose the 2289-square-metre mixed-use block with double street frontage into much-needed housing.

Set around a pool that’s seen better days, the property offers 30 rooms ready for redevelopment after being boarded up since 2019.

Despite being cosmetically tired, Naselli says the building structure is sound.  Working with existing infrastructure, a local residential developer will renovate and convert it into apartments.

Naselli says the derelict motel received multiple offers, indicating strong buyer interest from childcare providers, aged care, not-for-profits, and residential developers.

“We probably had three or four buyers miss out, all at around the same price,” he adds. 

“So, from that point of view, it just means there’s potentially another $14 million or $15 million worth of capital to deploy for another asset similar to that.”

“It was an interesting one to get away, but we got it done in the end, which is good.”