San Remo’s Silverwater Resort is back on the market three years after it failed to sell, with its private syndicate of owners hopeful that recent demand for Melbourne hotel assets will have a flow-on effect to the regional property located within ‘striking distance’ of the city.
The four-and-a-half-star San Remo resort and conference facility, which has views to Phillip Island, was last listed in 2016 before it was taken off the market, despite fielding interest from several parties, according to listing agent Scott Callow from CBRE.
The current level of demand for hotel assets made it the right time for the owners to bring the property back to market, said Mr Callow, who advised that the resort’s owners had expectations of $25 million or more.
“The market for hotels remains very strong, particularly in Melbourne,” he said, adding that San Remo was “within striking distance of the city.”
The listing includes the resort management rights and 88 apartments – more than half the apartments in the development – as well as six conference and meeting facilities with a capacity for up to 500 delegates and food and beverage facilities. The new owners would also acquire an existing development application for 16 ‘dual-key’ apartments.
The resort’s heated indoor and outdoor swimming pools, sports courts and a children’s playground are part of part of the owners’ corporation and are not part of the sale.
The resort would likely appeal to “purchasers seeking an alternative, higher-yielding investment opportunity in a non-CBD location,” said co-listing agent Wayne Bunz.
While Melbourne faces an oversupply of hotel rooms in the coming years, following a spike in apartment project conversions, Silverwater Resort has enjoyed a virtual monopoly on the local resort and conference market since it was opened in 2007.
“There are very little transactions in this space in Victoria,” Mr Callow said.
He said the closest similar property in Victoria was the Sebel Forest Resort in Creswick, about 240 kilometres away.
The listing hits the market at a time when the regional Victorian hotel market is enjoying a new injection of energy, with several new hotel projects planned or under construction.
Melbourne’s famed Yarra Valley wine region is set to get a 170-room hotel run by global hotel manager IHG under its new upscale Voco brand.
The $120 million hotel, conference, distillery and restaurant complex is being developed by Barnes Capital.
And plans for a $50 million luxury spa and resort complex, Lake Bellagio just outside of Daylesford, wer recently given the green light by the Hepburn Shire Council. The proposal includes a spa and wellness area, conference centre and restaurant, as well as 100 units.
The Silverwater Resort is being offered for sale by expressions of interest closing Thursday, May 2.