South Melbourne’s City Fringe Tenanted Hotel Investment Hits the Market

In a market defined by scarcity and opportunity, a prominent city fringe tenanted hotel investment has emerged in South Melbourne, offering investors a blend of location, income, and long-term potential.

The Clarion Apartments, located at 51–59 Palmerston Crescent, is a modern serviced apartment hotel comprising 69 fully equipped apartments, including 57 studios and 12 one-bedroom units, alongside premium amenities such as a gym, conference centre, and secure parking.

The property also features a 125 sqm* ground-floor retail space on a high-profile corner, adding further versatility to its offering.

Positioned with dual frontage to Kings Way and Palmerston Crescent, the site benefits from exceptional visibility and accessibility, just minutes from Melbourne landmarks including Albert Park, the Royal Botanic Gardens, and the Crown Entertainment Complex. Located just 300 metres* to the soon-to-open Anzac Station, part of the $13.48 billion Metro Tunnel Project (Source: Victorian Government’s Big Build), further enhancing its connectivity and future value.

For sale through Cushman & Wakefield’s Daniel Wolman, Leon Ma, Oliver Hay, and HTL Property’s Scott Callow, Andrew Jackson, Andrew Jolliffe, the property generates a gross rental income of $1.64* million per annum (excl. GST), and sits on 789 sqm of Commercial 1 Zoned land, allowing for diverse future uses including residential or co-living developments (STCA).

Leon Ma of Cushman & Wakefield said this listing reflects the strength and resilience of Melbourne’s hotel sector. “Clarion Apartments presents a rare opportunity to secure a tenanted hotel asset in one of Melbourne’s most dynamic precincts.”

“With strong rental returns and strategic positioning near major infrastructure, this property is perfectly placed to benefit from the city’s ongoing growth and investor confidence.”

Daniel Wolman of Cushman & Wakefield said “Alternative investments like hotel assets are drawing heightened interest from both domestic and offshore capital. In a market where traditional sectors are tightly held, properties that offer income, flexibility, and strategic location are proving to be highly attractive. Investors are increasingly looking beyond the conventional to secure long-term value.”

Scott Callow of HTL Property said “South Melbourne continues to evolve as a lifestyle and business hub. Its proximity to the CBD, cultural landmarks, and major transport upgrades makes it one of the most desirable and high-performing locations in the city.”

The property is being offered for sale via Expressions of Interest closing Thursday 13 November at 12pm, with inspections available through exclusive agents Cushman & Wakefield and HTL Property.

Under instructions from KordaMentha as Receivers and Managers.

* Approx

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