The agent selling Hobart’s Astor House expects the Art Deco landmark to fetch more than $4 million, saying demand for city accommodation will grow as Macquarie Point stadium is built.
Ray White Commercial Tasmania managing director Matthew Wallace said the building at 157 Macquarie Street had been with the same owner since the early 1980s, but the owner had now decided it was time to simplify things for his family.
The agency is seeking offers of more than $4 million, with Wallace expecting the price to go “well into” the $4 millions.
“The market will tell us at the end of the day,” he told Pulse.
The two ground-floor restaurants and the Astor Hotel currently return around $202,000 in net income, Wallace said.
The hotel’s operator had run the 23-room business for more than 20 years on a “peppercorn” rent. 19 rooms have shared bathrooms and four have ensuites.
The hotel, across levels one and two, is being offered with vacant possession.
Wallace said a buyer might need to spend money on the hotel but there was “a lot of upside”, with Hobart accommodation set to be in high demand as the stadium is built.
“It’s very hard to get new buildings to stack up commercially with the current building cost,” he said.
He said the cost of replacing the 23 rooms would be “astronomical”.
The ground floor holds The Astor Grill and Pitzi, which are both on secure leases.
The building also includes a two-bedroom residence with a rooftop terrace, where the hotel manager currently lives and a sandstone basement.
The sale listing describes the building as one of “Hobart’s most recognisable Art Deco landmarks”.
The property is being sold by expressions of interest, which close at 4pm on December 3.
