Melbourne could lose a Hilton
One of Melbourne’s high occupancy luxury hotels may close late next year.
Hilton on the Park’s owner Brookfield Australia is advertising the property for sale with vacant possession and Hilton’s lease over the hotel complex expires in late 2014.
Hilton on the Park has undergone $30 million in refurbishments in the past few years and had an occupancy rate of more than 85% in 2012. The 18-storey luxury hotel, which opened in 1974, offers 419 rooms, day spa, swimming pool and conference facilities.
The Canadian group Brookfield acquired the East Melbourne property in its $410 million takeover of Thakral Holdings in 2012 and this year has listed several properties for sale, including the Hilton on the Park, Sofitel Brisbane Central, Novotel Sydney Brighton Beach and Sofitel Gold Coast Broadbeach.
However industry sources say Brookfield has failed to attract any worthwhile offers for any of the properties, especially anything close to the $160 million it wants for Hilton on the Park and three adjacent buildings.
The loss of Hilton as a tenant will undoubtedly devalue the property.
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