The Royal Spa in the heart of Melbourne’s CBD has been sold to an American-led development company.
The Victorian Premier has announced that it will be demolished.
It is one of the most popular and cosy hotels in the city and is located on a hilltop, about a 10-minute drive from the CBD.
There are no plans to demolish the building.
A spokeswoman for the Victorian Premier says it is a Victorian property that was purchased by the company in the past for $2.5 million.
“We believe the redevelopment of this property will create an even better place for people to relax, explore and reconnect with nature,” the spokeswoman said.
She said the Royal is one one of about 100 properties in Melbourne that are owned by the State Government, and will be used for housing, retail and entertainment purposes.
“It is our intention to retain the Royal as a residential building and to retain it as a Victorian landmark,” the spokesperson said.
“We are pleased to be able to sell the Royal for redevelopment.
This is a great opportunity for our community to explore this unique property for residential development.”
A statement from the Victorian Government said: “The Government of Victoria recognises the importance of the Royal Victorian Spa as an integral part of the city’s heritage.
We are committed to preserving the Royal, ensuring its future in Victoria and promoting Melbourne as a city that embraces all of its residents and visitors.
In this regard, the Government will continue to actively promote the city as a destination for visitors, with a significant presence at the 2018 Melbourne International Tourism Show.”
The spokeswoman said the Government had been in discussions with the company and that it was “very interested in working with the City of Melbourne to develop a plan for redevelopment of the property”.
She did not give any further details about the redevelopment.
The Victorian Government is planning to redevelop the hotel to create apartments, retail space and an entertainment precinct.
Ms Seddon said the company had been working on the redevelopment for about four months.
Topics:government-and-politics,government-elections,community-and -society,melbourne-3000,vic,melbourna-3000More stories from Victoria