The Essendon Hotel has a new future brewing
Local watering hole, the Essendon Hotel, has hit the market, offering investors the chance to secure a leased asset with strong patronage along one of inner-Melbourne’s most recognisable thoroughfares.
The modern pub at 914–918 Mount Alexander Road has become a destination for locals and visitors alike seeking a laidback beer with friends and family or a hearty mid-week meal.
Spanning roughly 525 square metres of floor area across two levels with 10 metres of street frontage on Mount Alexander Road, the space underwent extensive renovations in 2019 and includes a bar, dining and function rooms and on-site parking.
Investors are taking notice of the secure lease, which features fixed annual compounding increases and open market reviews with options until 2049. Currently, the property is returning $170,000 per annum plus GST plus outgoings, which will increase to $175,100 per annum plus GST plus outgoings as of July 2025.
Zach Molinaro, commercial sales and leasing consultant at Vinci Carbone, says the strength of the investment lies in the hotel’s established tenancy and local reputation.
“The opportunity is in buying a well-leased investment with a well-patronised business – any property investment is only as good as the tenant’s business,” Molinaro says.
“The interest has been very good; we are in discussions with a few parties that will hopefully lead to a sale.”
Located just eight kilometres from the Melbourne CBD, Essendon is known for its heritage streetscapes, strong residential base and excellent connectivity via trams, trains and major arterials. Mount Alexander Road, one of the suburb’s main commercial corridors, provides excellent visibility to commuters.
“There are several surrounding businesses that generate moderate foot traffic,” Molinaro explains.
“The hotel is a bit of a destination for locals and very well frequented by families in the surrounding area.”
He adds that while “rare” is a word often overused in property marketing, opportunities like this are becoming increasingly scarce.
“Finding a prominent property on such a well-known road is definitely difficult,” he notes.
