The c1873 Customs House Hotel, in Williamstown, has traded for $5.85 million.
On a 1100 square metre Commercial 1 zoned site at 159-163 Nelson Place, overlooking Hobsons Bay and the Royal Yacht Club of Victoria, the investment returns annual rent of $245,398.
The double-storey, 910 sqm venue has been modernised.
The venue is also permitted for outdoor dining.
In a heritage precinct, the rear of the plot – which has laneway access – was marketed for its development upside.
“The demand for well located hotel investments has never been stronger, and we’re seeing record yields in the current market,” Mr Callow said.
Last year, a two level arcade on 729 sqm at the nearby Ferguson Street retail strip traded for $5.92m.
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