Hotel and resort operator Oaks Hotels & Resorts has opened its third hotel in the Melbourne CBD at 60 Market Street, after buying the management rights from the property’s receivers Deloitte for $9.25 million.
The property is part of the now collapse Westpoint empire. In a complex deal in June this year, Oaks bought the management rights to the hotel and all common areas of 60 Market Street from Pacific Hotels Market Street.
The 24 storey tower has been extensively refurbished and converted into a quality 4.5 star graded hotel containing 280 strata apartments and suites, 37 strata titled rooms, two restaurants and conference facilities.
The addition of 60 Market Street to Oaks existing Melbourne portfolio comprising Oaks on Collins and Oaks Griffin Street, will lift total apartments managed by the group in the Melbourne CBD to 625 units.
Oaks managing director Brett Pointon said 60 Market Street’s prime location and high quality fit-out stamped it as a potential flagship property for Oaks. He further stated that initially the apartments will be split between the permanent and serviced letting pools.
“We’ve enjoyed excellent occupancies over an extended period in our two existing Melbourne properties, and are confident of quickly establishing 60 Market Street as a favoured CBD destination for both business and leisure travellers,” he said.
Deloitte’s partner Sal Algeri said he was pleased to be able to bring the project to completion ahead of time and deliver what was contracted for by the hotel room investors.
“There’s no doubt that our in-depth knowledge of the Melbourne market combined with our extensive marketing resources will generate the targeted returns for investors in 60 Market Street,” Pointon said.
Oaks, which has expanded aggressively throughout Australia and New Zealand following its public listing in January 2006, currently manages 2,800 apartments on a short-stay basis in 29 hotels and resorts.
Under its current growth blueprint, Oaks is on track to increase its total apartments in the serviced letting pool (short term accommodation) to more than 3,500 by the close of the 2007 financial year.
By Adam Parsons
