Grand Queenscliff Hotel in search of some love

“All around the country,” he says, “there has been a big shift in the investor profile for these sorts of properties. They are now largely selling to high net worth individuals.”

Big-name investors have been attracting attention to little-known regional pubs – Justin Hemmes for instance with his latest purchase in Narooma that adds a fourth property to his stable of NSW South Coast hotels, and one more address to the Merivale group’s hospitality pot, which is now working with $150 million in mainly coastal assets.

Late last week, the regional Victorian hotel that can be credited with kick-starting the revival of grand old hotels as super chic gourmet and accommodation venues in the late 1970s, hit the market after being vacant since it last changed hands for $3.5 million in 2015.

The graciously lovely and fortuitously located 1889 Queenscliff Hotel, on a 1685 square metre block right opposite the water in one of Port Phillip Bay’s prettiest and most heritage-loaded townships, has had scores of doorknockers over the last few years asking if it’s for sale?

It wasn’t then but, says Damian Cayzer of Queenscliff’s Kerleys Coastal Real Estate, it is now as the last purchaser believe it is “the opportune time to offer a property that offers such great opportunity”.

“There has been excellent growth in the local property market”.

While listed for only a few days, the 16 bedroom property with the elegant downstairs restaurant, commercial kitchen, courtyard, outdoor terrace, and “a reading, sitting and smoking room”, has elicited plenty of enquiry.

Scott Callow won’t name the interested parties, but says “they are names you’d be aware of”.

The main name that is automatically associated with the Queenscliff Hotel is that of the late Mietta O’Donnell, Melbourne’s so-called “Queen of Cuisine” from the 1970s and ’80s who, with her sisters and partner Tony Knox, brought the gracious property back to a life of high style in 1978.

Callow says that 100 per cent of those enquiring make reference to Mietta, even though her involvement ceased over 20 years ago.

Although it has been shut for so long, Damian Cayzer says the vendor meanwhile put a lot of “behind the scenes work in’, consulting with Heritage Victoria over three years to refine, restore and extend, which means the present selling proposition comes with approved extension plans plus a liquor licence.

Of course, a place 130 years old and so long vacant has some maintenance issues. Callow says “it’s certainly in need of some repair with the roof and waterproofing and those types of things. It won’t be a five-minute job”.

The failing roof has impacted the upstairs accommodation. But Cayzer reassures that since he had cleaners and stylists and florists come through the place a few weeks ago to spruce up the downstairs for photographs, “someone could walk in and basically start operating now”.

Some money needs to be spent on things that have gone wrong but, say the two agents, there is so much about Queenscliff Hotel that is so right.

Located on an isthmus only a short haul from Geelong and 90 minutes from Melbourne, with 34 other heritage-listed properties, Queenscliff is one of the gateway towns to the Great Ocean Road.

And while he knows the word “unique is overused”, Cayzer says, “I don’t know if there is a better boutique hotel than this one?”