The stately Grand Hotel in the heart of Victoria’s prized Yarra Valley is being offered to market by a private family.
Occupying a highly visible 1,510sqm corner zoned Commercial 1, the hotel property incorporates a front bar with TAB, cocktail bar and lounge, a dining room with additional café area, a mix of single and twin share boutique accommodation rooms upstairs plus a function space that includes the first floor veranda, an alfresco area at the front and a large, shady beer garden with outdoor bar and children’s play area at the rear, plus a drive-through bottleshop and onsite parking.
Healesville is a popular destination in the Yarra Valley – just over an hour from the capital and one of the most celebrated tourism and wine regions for Melburnians, where world‑class wine meets high-quality local produce.
The town melds gourmet indulgence with immersive nature experiences, making it a target for weekend wanderers, and both domestic and international visitors.
Accordingly, the demand for accommodation, particularly catering to weddings, events and conferences, is growing in Healesville and the general region. Tourism-generated revenue and visitor numbers have reportedly grown 6.5 and 5 per cent (year on year, respectively) to generate $49.5 billion for the state economy.
The RACV Healesville Country Club & Resort is the largest hotel in the region, with 80 rooms, followed by Balgownie Estate, with 70 rooms.
Both experience strong occupancy levels, prompting development of a new nearby 33-room hotel complex by Fender Katsalidis architects.
Interest in the region is demonstrated in the very recent sale of St Andrews Hotel in the Kinglake foothills, in the Yarra.
Healesville’s Grand is leased to experienced hoteliers Lisa and Tom McKay, who have racked up seven of their 23 years’ experience at the pub since taking the operation when it was listed in 2018. Their current 3-year lease includes four 5-year options.
The vendor is a private local Melbourne family investment company, collecting $230k PA rental income.
The tourism and hospitality sector “continues to forge ahead” despite recent interest rate disappointments, sustaining interest from buyers eager to bolster portfolios with a resilient asset class and a track record of navigating economic uncertainty.
An Expressions of Interest campaign closing Wednesday, 2 December is being conducted for the freehold by Savills ANZ’s Mathew George, anticipating a sale price of circa $3.5 million.
“Quality hospitality assets with strong fundamentals continue to attract buyer interest from private investors, syndicates, hospitality operators and high-net-worth buyers seeking long-term income streams underpinned by operational upside,” says George.
“The Grand Hotel in Healesville will showcase the continued appeal of tightly held hospitality investments and assets, particularly those combining accommodation, established tenants, long-term leases, good departmental revenue mix and sought-after locations”.
