Rare property atop Arthurs Seat up for grabs after failing to sell for $11m
A vacant Mornington Peninsula pub with the potential to become “the next Conti” is back on the market.
South East
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A VACANT pub on the Mornington Peninsula’s highest peak is being sold and agents are tipping it could be transformed into a luxury hotel to rival The Continental Sorrento.
Arthurs Hotel, which has a current liquor license to 1am for about 430 patrons, recently hit the market for the second time in less than two years.
The near 100 year old pub at 790 Arthurs Seat Road failed to sell at auction in 2021 despite bidding reaching $11 million.
However, real estate agents handling the sale said this time the vendors were “motivated to meet the market” and interest in the property was strong.
The campaign is being managed by Goss Waddell ICR and Stonebridge Property Group.
Goss Waddell ICR partner Danny Clark said the 7254 square metre property had caught the attention of some of Melbourne’s wealthiest people, including those who already owned significant properties and businesses on the Mornington Peninsula.
“There are a lot of wealthy individuals in the region, who are what we would call land bankers and they’d love to own this property,” he said.
“They have the kind of money that would allow them to hold onto the property while they thought about what they wanted to do with it.
“They wouldn’t be happy with a second rung hotel. It has the potential to be the next Conti in terms of luxury and location.”
The Continental Sorrento reopened in 2022 after a $120m makeover that included more than 100 luxury rooms under the InterContintal brand, the Aurora Spa and Bathhouse and silver service restaurant Audrey by Scott Pickett.
The Arthurs Seat property is split across five separate titles including the pub and four other lots that could be sold separately to fund development plans.
Mr Clark said the hotel was the only venue “at the top of the mountain” and shared “the best views in Melbourne” with Arthurs Seat Eagle gondola opposite.
The existing liquor license was rare, he said.
“I don’t think we’ll see another one granted for that many patrons on the Mornington Peninsula again,” he said.
The site was already fully fitted with commercial kitchens, several bars, a reception centre, caretakers’ residence and bottle shop/convenience store.
There was also a free 65 space council owned car park nearby.
Stonebridge Property Group partner Rorey James said the hotel had been vacant for about three years and both the community and local council had a vested interest in seeing the property thrive again.
“I imagine the right plan would be supported,” he said
Expressions of interest close March 8.