The Dava Hotel, 614 Esplanade, Mount Martha
The freehold interest in the renowned Dava Hotel, operating for 88 years along the water in Mount Marta, has been brought to the market by Stonebridge Property Group and Wilson Property.
It is being marketed by agents as one of the best ‘land banking’ opportunities ever to be offered in the Mornington Peninsula. With a land holding spread over 15,502 sqm*, Commercial 1 Zoning and 113 m* frontage to the heavily trafficked Esplanade, they anticipate strong interest the wider market.
The campaign comes after the reported $50m+ sale of the Rye Hotel to Endeavour Group, a result which is currently being assessed by the Australian Competition and Consumer Commission.
With its unparalleled views across the bay, the ‘Dava’ has been an iconic venue since the 1920’s. The original building was home to The Sisters of Charity, a boarding school and preparatory school for boys in the 1920’s. A decade on in 1935, it was redeveloped as The Dava Lodge Hotel and Guest House.
Since then, many licensees have developed and put their stamp on the building. The current owner of the freehold had run the hotel for several years before leasing the venue out for last 18 years.
Despite its history, it is understood that the property is not subject to a heritage overlay or any current listings with Heritage Victoria, which the selling agents said provides a huge opportunity for the successful purchaser.
With panoramic views across Port Phillip Bay from the rooftop deck, the hotel also comprises of a spacious modern bistro, TAB, public bar and gaming room (including 32 gaming machines), indoor/ outdoor kids play area and large drive through bottle-shop. This all backed by a major commercial kitchen with walk-in cool-room, walk-in deep freeze and ample storage.
A tenant for nearly 20 years, Taverns of Victoria Pty Ltd, lease the property on a 5-year lease providing a current annual income of $517,208 + GST + Outgoings per annum, with uncapped annual CPI rental reviews in place.
“The central location between Mornington Main Street and Mount Martha Village is one of few beachside commercial precincts on the Mornington Peninsula. Adding that “with favourable commercial zoning allowing up to 10 metres of height (STCA), The Dava Hotel opportunity suits investors, land bankers, hospitality groups and developers” – Stonebridge Partner Rorey James noted
The Mornington Peninsula is Victoria’s most visited regional tourism, with an average of 7.87 million domestic and international tourists from 2018-2020.
The Dava Hotel is for sale via Public Tender, closing on Thursday 21st September 2023.