Melbourne's buoyant accommodation sector has prompted local developer Argo Group to offer a 93-room hotel to the market.
The yet-to-be-built Woods Bagot-designed hotel at 230 Toorak Road will be delivered as a turnkey project and is expected to generate interest around $55 million.
Savills Australia's Tom Shadbolt, who will market the property with colleague Michael Simpson, said he expected a lifestyle hotel outside the CBD to attract strong interest from both large hotel management brands and boutique operators.
Argo director Nick Argyrou, the brother of Hickory Group founders Michael and George Argyrou, said the project received planning approval in July and would start construction next year.
"It will be something quite luxurious for the area," he said.
Hickory Group will build the hotel.
The new hotel will compete with nearby Mantra Group's Art Series The Olsen hotel and The Como, both on Chapel Street.
Mantra will officially open the latest in its Art Series offering, The Chen, in Box Hill on Monday.
Named after Chinese Australian artist Zhong Chen, the hotel will celebrate the ethnic diversity of Box Hill, Mantra said.
Melbourne's wealthy Deague family sold the management and leasehold rights of the Art Series Hotels brand to Mantra Group in August for $52.5 million.
