Shayher Group nears $200 million Park Hyatt Melbourne acquisition
Melbourne’s landmark Park Hyatt Hotel is reportedly on the verge of changing hands in what could be the largest commercial property transaction in the city in a year, with Taiwanese property developer Shayher Group poised to acquire the asset for approximately A$200 million.
The prospective buyer, a subsidiary of the broader Par Jar Group, is already a significant player in Australia’s hospitality market, holding the W Hotel in Brisbane – a 32-storey, 312-room luxury property in the city’s CBD. Shayher’s potential acquisition would further expand its Australian hospitality footprint.
The Park Hyatt Melbourne, which has been on the market for around six months, is being sold by Chinese group Fu Wah International, a diversified developer with multiple luxury assets across the Asia Pacific, including the five-star Park Hyatt Auckland. Fu Wah acquired the Melbourne hotel nearly a decade ago for an estimated A$140 million.
JLL Hotels & Hospitality managing director Peter Harper is understood to be managing the negotiations but has not commented publicly. The transaction has yet to be finalised.
The sale comes at a challenging time for Melbourne’s hotel industry, which is navigating a subdued recovery, weaker occupancy rates, and a substantial development pipeline.
“There is … still several years in Melbourne’s recovery arc,” noted the Dransfield Hotel Futures Report.
STR data revealed that Melbourne experienced a 3.3% decline in hotel rate growth over the 2024 financial year. In contrast, Sydney and Perth hotels posted rate increases of nearly 4% and 3.2% respectively.
Despite broader market softness, Accor reported strong recent performance across Victorian hotels, with a 39% year-on-year increase and 41% growth in autumn bookings. The uplift has been attributed to major cultural and sporting events including the Melbourne International Comedy Festival and key AFL matches.
Despite this, Dransfield warns that Melbourne’s market still faces the challenge of “significant and prolonged supply additions”, with the current supply wave projected to continue for another two years.
Average hotel occupancies in Melbourne sit around 70%, trailing Sydney’s 80%-plus average.
Jonathan Jackson, 15th April 2025
