Panache Expands Melbourne Assets with Exhibition St Deal
Melbourne’s hotel sector is experiencing a resurgence of operator activity as national investment in the sector climbs 33 per cent to $2.8 billion and occupancy rates strengthen in the capital and further afield.
At the Paris end of Exhibition Street, Panache Hotel Group has assumed management of Mantra 100 Exhibition—the company’s third Melbourne property and fourth partnership with Accor across three states.
The apartment-hotel comprises one and two-bedroom apartments with separate living areas.
Mantra 100 Exhibition joins Peppers Docklands and Melbourne City Suites in Panache’s Victorian portfolio.
Panache Hotel Group chief executive Wilson Bao said Panache was in “a strong growth phase and Mantra 100 Exhibition is another marker of the momentum we’re generating across the country”.
The acquisition follows Panache’s addition of The Sebel Sydney Chatswood in November.
Panache operates under a hybrid “lanchise” model that combines leasing and franchising structures. The model provides property owners with guaranteed rental income while giving Panache operational control to drive performance improvements.
Panache Hotel Group vice-president of strategy and development Thomas John said the company specialised in “elevating established assets with strong fundamentals—sharpening positioning, refining operations and building on performance”.
Meanwhile, HTL Property is seeking leasing proposals for a proposed 100-apartment serviced apartment hotel at 14-18 Cremorne Street, Cremorne.
The development would comprise 114 rooms across 11 floors plus ground-level bar, rooftop restaurant, conference facilities and gymnasium.
Close to Swan Street and minutes from the MCG, Rod Laver Arena and AAMI Park, the development targets corporate and leisure accommodation demand.
HTL Property director Scott Callow said Cremorne’s combination of major event venues and commercial tenancy makes the property “exceptionally positioned to capture the growing demand for premium accommodation in the area”.
And at Carlton Radisson Hotel Group has opened Park Inn by Radisson Melbourne Carlton, an 89-room asset 4km from the CBD.
It is the first Park Inn branded property in Australia.
RHG chief operating officer for Middle East, Africa and Southeast Asia-Pacific Tim Cordon said the opening was “a strong first step for the brand in Australia, combining a connected location with efficient, sustainable operations that owners appreciate”.
Global chief development officer Ellie Youns told The Urban Developer that Australasia was one of the group’s most potential markets and it was “launching brands that are right for each destination and raise the bar for the market”.
The hotel operates with up to 80 per cent solar-powered energy and features high-efficiency fixtures and drought-tolerant native landscaping. Facilities include an outdoor pool, a cafe and a wellness hub featuring infrared and steam saunas.
Luxury operator secured for St Kilda project
COMO Hotels and Resorts has revealed it will operate a $300-million hotel, spa and serviced residences at The Carter Building on St Kilda Road, slated to open in early 2028.
Developer Orchard Piper and partner The Carter Group are delivering the project. Kerry Hill Architects designed the property, having previously completed COMO The Treasury in Perth.
Orchard Piper director Luke McKie said the partnership would deliver a hotel that “redefines Melbourne’s hospitality landscape”.
“COMO has a market-leading reputation earned over decades of consistent delivery,” he said.
The hotel would occupy the first nine levels with 102 rooms, including family suites plus a COMO Shambhala wellness centre.
Construction began in August this year on the project, which also includes 54 private apartments above the hotel component. Residents will be able to access hotel services and COMO’s global recognition program.
Occupancy strengthens despite supply surge
National hotel investment activity reached $2.8 billion over the past four quarters, a 33 per cent increase on the previous year, according to Ray White Group.
National occupancy rates reached 72.8 per cent for the year to October 2025, up from 70.7 per cent, while revenue per available room climbed 2.5 per cent to $113.05.
Melbourne’s occupancy improved to 73.2 per cent from 70.1 per cent despite substantial supply additions.
Research from M3 Property shows Melbourne has added 5000 hotel rooms across 22 properties since January 2019, a 21 per cent increase in supply, with around 61 per cent of new rooms in the upper-upscale or luxury categories.
International visitor spending reached $8.5 billion in the June quarter 2025, up 32 per cent on the previous year.
Cross-border capital accounted for 12 per cent of hotel acquisitions over the past year, with Singaporean investors contributing $150 million and Thai interests deploying $376 million over two years.
Ray White Group reported yields ranging from 7 to 9 per cent continue attracting institutional and offshore capital seeking exposure to Australia’s tourism recovery.
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