M&G Singapore look to sell The Olsen and The Cullen boutique art hotels in unique opportunity for investors

Two popular inner Melbourne hotels that paved the way for the boutique-lifestyle market in Australia have hit the market with a hefty price tag.

The Cullen and The Olsen hotels have been listed for sale in a unique opportunity for commercial real estate investors.

Two popular boutique-lifestyle hotels in Melbourne’s inner southeastern suburbs have hit the real estate market and are expected to fetch a multimillion-dollar price tag.

The Olsen and The Cullen Hotels have been listed for sale by JLL Hotels and Hospitality Group, for joint or individual purchase.

The two Art Series hotels “paved the way” for boutique-lifestyle hotels in Australia, according to lead agent Peter Harper.

“When they came on the scene it was unlike anything else we had in the Australian market,” he said.

“Not too many hotels are styled around a particular artist or brand, so they’ve developed their own incredibly loyal following.”

The Olsen Hotel opened in 2010, named after Australian landscape artist Dr John Olsen.

Last sold as a pair in 2015 to the M&G Singapore Fund for $146m, Mr Harper said the hotels should yield another multimillion price tag for the fund.

“The process is around six to nine months normally for an unique sale like this,” he said.

“We are expecting them to come in at around the $160m mark.”

Mr Harper said while the price high, the hotels make up a small portion of the M&G Singapore Fund and they want to “relocate the capital”.

Both hotels are styled around particular artists, from which they also garner their names.

Artist John Olsen inside the Olsen Hotel.

The Olsen Hotel, located on Chapel St, was named and styled after Australian landscape artist Dr John Olsen.

Dr Olsen died earlier this year and was considered one of Australia’s “greatest painters”.

He won the Archibald Prize in 2005 for his portrait Self Portrait Janus Faced.

The hotel opened in 2010 and has hosted celebrity guests including Justin Bieber.

The Cullen Hotel opened in 2009, named and styled after Australian contemporary artist Adam Cullen.

The Cullen Hotel, located on the corner of Grattan St and Commercial Rd in Prahran, was named and styled after artist Adam Cullen.

The late artist designed art throughout the hotel in the company of around 450 contemporary Australian art pieces.

The Cullen opened in 2009, the first of the Art Series boutique-lifestyle hotels in the collection.

Adam Cullen in his studio, with works he is creating for the new Cullen Hotel in Prahran. Picture: Ken McGregor.

Mr Cullen died in 2012 and was well known for winning the Archibald Prize in 2000 with a portrait of actor David Wenham.

“These are unique in comparison to other commercial investments as the new owner is buying both the hotel and the business,” Mr Harper said.

“It’s the strongest hedge against inflation because they are strong investments on both fronts.”

Mr Harper said the interest in the hotels had come from a broad range of portfolios.

“Our first round bids closed just before Christmas,” he said.

“The interest was a mix between high networth individuals, private companies and other group funds.”

The sale process is expected to continue for the next six months.