Hotel Indigo to grace Melbourne CBD after $20M revamp of Holiday Inn

Pro-invest Group intends to spend $20 million on the Holiday Inn hotel on Flinders Lane in the Melbourne CBD to turn it into the city’s first Hotel Indigo.

The renovation and reposition follows the fund manager’s similar intention for the Larmont Hotel behind the Kings Cross Coca-Cola sign in Sydney’s Potts Point.

Pro-invest acquired the Larmont in December 2022 for $46 million and like the Holiday Inn will reposition it as a Hotel Indigo.

The move fits into the group’s plans to focus on more eclectic, lifestyle accommodation that attract younger travellers.

The 209-room Holiday Inn in Melbourne is opposite Southern Cross Station and was purchased from New Zealand Carter Group’s headed by NZ Rich Lister Philip Carter for a confidential amount believed to be upwards of $47 million.

The acquisition is part of Pro-invest’s third hospitality opportunity fund, for which it is raising $500 million to focus on buying distressed assets at low prices and revamp them.

The Holiday Inn was originally built in 1990 and was used as quarantine accommodation during the pandemic. Having been closed permanently, it is expected to come back to life as a Hotel Indigo Melbourne on Flinders in mid-2023.

Pro-invest will operate the hotel under a franchise agreement with IHG. It will include an upgrade to 216 rooms and a Spanish-themed tapas restaurant and bar called Beso.

“We really like this end of town,” said Jan Smits, chief executive of Asia Pacific at Pro-invest

“Putting a lifestyle brand on that asset will be fantastic.

The Larmont will be a 103-room venue.

Jonathan Jackson - 7-3-23