Small, eclectic five-star Hobart hotel with swag of awards for sale
An award-winning five-star boutique hotel – considered one of Hobart’s few true luxury offerings – has been listed for sale at an undisclosed price.
The historic Islington Hotel, built as a Regency-style homestead in 1847, offers a “curated heritage experience” at 321 Davey Street, South Hobart, with sweeping views of Mount Wellington just 3.5 kilometres from the CBD.
Owned and operated by La Vie Hotels and Resorts, the 11-room adults-only retreat exudes tranquillity, serenity, and sophistication. It is being sold with its extensive artwork and furniture collection, enabling a seamless handover to a new owner who can continue operations without interruption.
“It feels like a really luxurious hotel, but also not like you’re walking into a massive hotel at the same time – it kind of feels like a bit of a home away from home,” says listing agent Sam Abel of Colliers International Sydney.
“All fixtures, fittings, everything within the hotel is being sold as well.”
Set behind a stately sandstone facade and surrounded by manicured gardens, the 3551-square-metre property features uniquely designed rooms, each with a distinct theme reflecting the Islington’s past, present, and future, as well as a refined restaurant offering dishes “foraged from Tasmania’s coastal seas, lush paddocks and forest depths”.
High-end operators, including luxury retreat groups, have shown strong interest in the property, says Abel.
“Being a smaller boutique hotel, it definitely has its target audience,” he says. “It’s a pretty well-known property around Hobart, so there’s been a lot of chatter.”
Since opening as a hotel in 2005, the Islington has earned numerous prestigious accolades. It remains the only Tasmanian property in the Small Luxury Hotels of the World Collection, and one of just two Virtuoso-affiliated hotels in the state.
Recent honours include being named “Best Boutique Hotel in Australia” by Australian Gourmet Traveller and receiving TripAdvisor’s 2024 Travellers’ Choice Best of the Best Award for small luxury accommodation.
While there is no official price guide, the property last sold for around $4.5 million in 2020–21.
“The Islington has a strong track record of high room rates and superior profit margins due to its experiential yet eclectic positioning within the accommodation market,” the listing reads.
Originally a private residence, the Islington was transformed into a luxury hotel following extensive renovations, including the addition of a light-filled glass conservatory. The property also features elegant event spaces across outdoor terraces, established heritage gardens, and a 19th-century mahogany dining room, with guests invited to relax by the library fireplace.
Described by its owners as a “Tasmanian art museum”, the hotel showcases an eclectic collection of ancient and contemporary works curated over three decades.
“This eclectic collection of ancient and contemporary works weaves together the rich tapestry of Islington’s own heritage, intertwined with the original owners’ roots in Tasmania,” its website reads.
The Islington Hotel is for sale via an expressions of interest campaign closing at 4pm on Friday, November 7, unless sold prior.
