Global flexible living operator Urban Rest has taken control of a 150-key Melbourne CBD property in its largest deal to date, signing a management agreement for the 23-33 Lonsdale Street site.
A multimillion-dollar refurbishment program is to follow, transforming the 29-storey building into Urban Rest Melbourne CBD.
Targeting the corporate accommodation market, the rebranded site is planned to open in 2026 with apartment-style layouts including full kitchens, laundry facilities and dedicated work areas.
Urban Rest chief executive David Whelan said the project was a “massive milestone in our expansion strategy”.
“Urban Rest Melbourne CBD isn’t just about scale, it’s about setting a new benchmark for premium, digitally enabled corporate accommodation in one of the most dynamic cities in the world,” Whelan, who also founded Urban Rest, said.
Planned amenities include a Peloton-equipped gymnasium, residents’ lounge and co-working spaces for extended-stay business travellers.
Digital check-in and check-out systems alongside localised guest support services are also planned.
Melbourne’s position as a major corporate hub continues to attract investment from accommodation providers on the back of strong demand across professional services, creative industries and infrastructure sectors.
Urban Rest chief commercial officer Jeff Baars said changing traveller preferences were driving the group’s expansion.
“We’re seeing a clear shift in what today’s business travellers value—space, flexibility and effortless service,” Baars said.
The Lonsdale Street acquisition expands Urban Rest’s Melbourne portfolio to 14 properties, according to the company’s website.
Urban Rest operates serviced apartment properties in Sydney, Auckland, London and Dublin.
The Lonsdale Street property has changed hands several times since opening in 2007. Originally owned by MP Investment Nominees Pty Ltd, the building was sold in 2014 after the owner went into receivership.
Hong Kong-based Ovolo Hotels acquired the freehold in March 2014 as part of an Australian expansion strategy that included three hotel acquisitions.
According to a 2014 announcement, Ovolo had planned to rebrand the property but continued operating under management arrangements with operators Oaks Hotels, Nolo Apartments and now Urban Rest.
Melbourne’s hotel sector continues to attract significant international investment, with the city leading Australia’s new hotel construction pipeline since 2019 thanks to 81 new hotel openings.
According to JLL, more than 7050 rooms will be added to Melbourne’s hotel stock by the first quarter of 2026, a 32.6 per cent increase over six years.
