'Palm Springs come to Mildura': Glam mid-century hotel for sale in Sunraysia region
A Palm Springs-style dream in Victoria’s north-west, Mildura’s Kar-Rama Hotel brings a splash of glamour to the banks of the Murray River.
Recently reborn as a chic mid-century boutique escape complete with a butterfly-shaped pool, the 34-room property is now on the market, offering investors a slice of retro-luxe resort life in one of regional Australia’s fastest-growing cities.
The Kar-Rama Hotel at 153-163 Deakin Avenue reopened in February after three years of renovations by its owner-operators, who have held the property for many years.
They have now brought the freehold property to market for between $8 million and $8.5 million, and wish to continue running the business through a leaseback.
“It’s Palm Springs comes to Mildura,” says selling agent Scott Callow, Victorian director of HTL Property.
Sitting on 2857 square metres of land in the heart of Mildura’s commercial district on a popular accommodation strip, the hotel is expected to bring in $600,000 annually in rent.
Kar-Rama Hotel’s books are performing well, ahead of schedule, and generating good forecasts, Callow says. “It’s going very well … it’s worked out well for them.”
The hotel consists of three two-storey buildings, with chic rooms with digital key access, a lobby lounge and a separate work area, all built around a new showpiece pool and terrace.
King beds are the norm, and rooms have smart TVs, high-speed WI-FI and popular bathroom products by Leif.
While the hotel doesn’t feature in-house dining, base building works for a private dining room and commercial kitchen have been completed, with equipment ready to be installed.
“The food and beverage revenue is estimated at approximately $158,000 for the first full year of operation,” HTL reports.
Guests will also be able to enjoy a wellness centre with two spa rooms and infrared saunas from early next year.
There has been significant interest in the property, with potential buyers also keen to take over the business, Callow says.
“We’ve had a very pleasing amount of interest, and a lot of parties have indicated to us that they would certainly like to buy the freehold and the business if they can,” he says.
The owners, who moved to Mildura from Melbourne, bought the motel as an investment and took over after their tenant’s lease expired, Callow says.
The renovation involved demolishing three buildings, stripping back and refurbishing two remaining structures, and adding two new buildings, along with a complete overhaul of the site’s landscaping.
One new building features 11 guest rooms, while the other houses the reception area, lobby, guest lounge and administrative office on the ground floor, plus a private dining room, lounge, caterer’s kitchen and spa rooms on the upper level, accessible by lift and stairs.
“They’ve had this vision to undertake this sort of transformation … which delivered a pretty attractive offering,” Callow says.
“This one is in a pretty prime location, and it had tremendous bones, so it [the refurbishment] was an opportunity for them to maximise on what was already there with large room modules [and the like].”
Mildura offers a peaceful riverside lifestyle on the Murray River, with manicured gardens and scenic natural escapes that entice visitors from far and wide.
Mildura enjoys direct flights from Sydney and Melbourne, but is a decent drive from its nearest cities: four hours from Adelaide and six from Melbourne.
Mildura is the key regional hub of the Sunraysia district, home to more than 57,000 residents and growing, with thriving agricultural and mining industries. Settlers here transformed the Mallee desert into a fruit bowl through irrigation, and it is well-known for producing grapes, citrus fruits, nuts and vegetables.
Significant investment from council, state government, sporting bodies, and private backers has transformed Mildura’s sporting precincts, positioning it as an emerging events destination that attracts major regional and national competitions, as well as prominent musicians. Kings of Leon played here in 2022, and Lenny Kravitz is set for a gig next month.
With the region’s culinary offerings at your doorstep, expect award-winning wineries, citrus groves, and a strong paddock-to-plate dining culture. Other attractions include the Mildura Arts Centre and the Australian Inland Botanic Gardens.
“The tourism industry has seen significant investment in expanding the city’s formidable athletics and events-based visitor economy,” says HTL Property.
“Boutique hotels in regional areas have seen a rapid rise in occupancy and revenue, with heightened institutional interest in luxury accommodation in rural centres.”
Investors can sit back and take advantage of smooth operations through the long-term lease to 1834 Hotels, valid with options until 2060.
1834 Hotels is a business offering management partnership for more than 50 hotels, motels, apartments and resorts across Australia, including Melbourne’s Adelphi Hotel, and Chateau Yering.
The property is for sale via an expressions of interest campaign, which closes at 4pm on Thursday, October 16.
