Qatar Airways swoops on Melbourne Sheraton for $135 million
Middle Eastern airline Qatar Airways has snapped up the landmark Melbourne Sheraton hotel for about $135 million.
The airline has been keen to expand its hotel portfolio and has been looking at building a berth in the Australian hotel sector. For some years, it’s been looking to become a hotel owner in key Australian locations including the Victorian capital.
According to a Savills Hotels market report released this week, the deal revealed by The Australian last August was one of the few hotel transactions last year. Activity was down 35 per cent on 2016.
The elegant five star Sheraton Hotel was put on the market last year by its owner Melbourne based developer Golden Age which was reorganising its holdings after buying a neighbouring site in the city.
Qatar Airways confirmed it bought the 174-room hotel in a statement this week.
The Sheraton has always been considered a prize asset because of its location in the “Paris end” of the Melbourne CBD at the top end of Little Collins Street, where visitors find the city’s celebrated laneways that house leading shops, restaurants and Melbourne’s main theatres. It is also within walking distance of the iconic Parliament House and the Melbourne Museum.
The Sheraton features the Little Collins Street Restaurant with its Signature Seafood Buffet and High Tea.
It also offers a magnificent view of Melbourne and features the distinguished East Restaurant on the ground floor, as well as the eats at Crux & Co Pâtisserie. The Spa at the Sheraton Melbourne features five treatment rooms, an indoor heated lap pool and a state-of-the-art fitness centre.
Qatar Airways made the acquisition through its Dhiafatina Hotels division which was established in 2010. The division is building a growing portfolio of hotel properties.
Each of these was hand-picked to complement Qatar Airways’ global strategy of growth.
“Melbourne is an incredibly important destination on the Qatar Airways network, so much so that last year we began flying our state-of-the-art Airbus A380 aircraft to Melbourne,” Qatar Airways chief executive Akbar Al Baker said.
Leon Getler 20th February 2018.
