For Sale: Leo’s Spaghetti Bar + Hostel Accommodation | Iconic St Kilda Venue with Cheap Rent

For Sale: Leo’s Spaghetti Bar + Hostel Accommodation | Iconic St Kilda Hospitality Asset

An extraordinary opportunity to acquire one of Melbourne’s most recognised hospitality names, combined with a fully operational accommodation business in one of the city’s busiest tourism precincts.

Leo’s Spaghetti Bar is more than a restaurant. Established in 1956, it is a true Melbourne institution with almost 70 years of trading history, a prominent Fitzroy Street position, and a reputation deeply embedded in St Kilda’s hospitality culture.

Now offered together with an established hostel accommodation operation under the same roof, this rare asset delivers multiple income streams, immediate trading cash flow, and significant upside for an ambitious operator or investor.

A Landmark Hospitality Opportunity in the Heart of St Kilda

Positioned on iconic Fitzroy Street, St Kilda, just approximately 6km from Melbourne CBD, this business benefits from strong exposure to locals, tourists, eventgoers, backpackers, interstate visitors and international travellers.

Surrounded by some of Melbourne’s most visited attractions, including St Kilda Beach, Luna Park, Palais Theatre and Acland Street, the location offers year-round appeal and consistent customer flow.

Key Features

Two Established Businesses in One Asset
A licensed restaurant and bar, plus a fully operational accommodation business, providing diversified revenue from dining, drinks, late-night trade and room bookings.

Melbourne Icon Since 1956
Leo’s Spaghetti Bar is one of Melbourne’s best-known Italian dining institutions, with a long-standing name, heritage and loyal brand recognition.

234-Seat Licensed Venue
Large-format hospitality premises with substantial seating capacity and approval for late-night trading until 3:00am.

Established Accommodation Income
The hostel accommodation business is already operational, with bookings generated through major online travel platforms.

Prime Tourism and Hospitality Location
Located in the centre of St Kilda’s entertainment, food and tourism strip, with strong pedestrian exposure and visitor traffic.

Favourable Long-Term Lease
Secure tenure with highly competitive rent of approximately $9,870 per month + GST, offering a compelling cost base for a venue of this scale and location.

Why This Opportunity Stands Out

This is a genuine turnkey business acquisition with income from day one. The combination of a heritage hospitality brand, a large licensed venue, accommodation revenue and a premier Melbourne location creates a rare platform for both stability and growth.

For the right operator, this is not just a business purchase. It is an opportunity to take control of a Melbourne icon and reposition it for its next major chapter.

Immediate Growth Opportunities

A motivated purchaser could unlock further value through:

Brand revitalisation and stronger digital marketing
Expanded events, functions and late-night entertainment
Tourism, travel and accommodation partnerships
Improved hostel occupancy and yield management
Menu refresh, delivery channels and group bookings
Potential franchising, licensing or brand expansion of Leo’s Spaghetti Bar

Ideal Buyer

This opportunity is ideally suited to:

Experienced hospitality operators
Accommodation or hostel operators
Investors seeking multi-stream business income
Hospitality groups looking for a flagship St Kilda venue
Entrepreneurs wanting to revive and scale an iconic Melbourne brand

A Rare Multi-Income Hospitality Asset

Opportunities of this calibre are seldom offered to market. With its history, location, scale, late-night licence, accommodation component and affordable lease structure, Leo’s Spaghetti Bar represents a highly compelling acquisition in one of Melbourne’s most famous lifestyle precincts.

Inspection and further details are available to qualified buyers.

For a confidential discussion or to request the Information Memorandum, please contact:

Grita Angelucci

For more details, please email broker or call agents.