West Melbourne hotel sold by powerful consortium amid legal battle

A near new West Melbourne hotel has been sold by the powerful consortium behind Mornington Peninsula’s Hotel Continental development 

The sale comes amid a legal stoush former operator, TFE Hotels, a joint venture between the Vidor family’s Toga Hotels and Singaporean operator Far East Hospitality and will be acquired by a Tasmanian investor.

According to The Australian Financial Review, the consortium which consists of developer Trenerry Property, Victor Smorgon Group and the Kanat Family, sold the 99-room former Adina apartment hotel for about $35 million.

The hotel forms part of the consortium’s $340 million West End development. It had hoped to sell the hotel for as much as $45 million.

“Trenerry can confirm that the property has sold and also that they have commenced Supreme Court proceedings against TFE for wrongful termination of the lease, but they are unable to provide any further details at this time,” a spokeswoman for the developer said.

TFE posted a note on its website confirming the closure. 

“From time to time as we grow our portfolio, hotels will also leave our family, and it is with much sadness that we write to let you that Adina West Melbourne has ceased to be part of the TFE family as at 12 February 2022,” the note said.

Adina was one of 60 hotels operated by TFE, which is currently on an expansion drive.

As for the Continental Hotel in Sorrento, developer Trenerry is now putting the finishing touches on the 108-room $120 million redevelopment.

Irit Jackson, 2^nd June 2022