Construction set to begin on Chadstone’s 13-storey luxury Sofitel hotel
AS shopping centres across the world look to offer more in lifestyle choices, the $130m Chadstone hotel development is set to begin.
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WORK will start next year on a $130 million Sofitel hotel that will rise over the ever-expanding Chadstone shopping centre.
Chadstone co-owner Vicinity Centres has selected Paris-based AccorHotels Group to operate a 13-storey hotel under its premium MGallery by Sofitel brand at the nation’s biggest shopping centre.
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The investment in Chadstone, which notches up more than 22 million visits annually, comes hard on the heels of shopping centre magnate Frank Lowy selling the international arm of his Westfield empire to a French company.
Shopping centre operators across the world are looking to bulk up and invest in lifestyle offerings — food and entertainment — in order to provide a lure to combat the rise of online shopping.
Vicinity managing director Angus McNaughton said the new hotel was a key element in the evolution of Chadstone.
“This is an exciting development for Chadstone as it continues its evolution to a mixed-use, lifestyle and entertainment destination,” Mr McNaughton said. “We look forward to delivering superior boutique accommodation, dining, wellbeing, lifestyle and conference amenities, which are aligned to Chadstone’s existing premium customer experience across shopping, dining and entertainment.”
Vicinity owns Chadstone, which sprawls over an area about the size of 10 MCG playing surfaces, with billionaire property magnate John Gandel.
Its new 250-room hotel, set between the main shopping centre and an 11-storey office tower that opened last year, is expected to open late in 2019.
The hotel will feature conference and meeting room facilities, a ballroom capable of hosting functions for up to 400 people, two restaurants, a lounge bar, pool, day spa and gym.
It will create 1300 new jobs, Vicinity says, including 1250 during the construction phase and 120 ongoing roles at the hotel.
Mr McNaughton said there was strong demand for a premium hotel at Chadstone driven by business travellers, international and domestic tourists and visitors generally.
The centre’s $85 million office tower was fully leased, proving that Chadstone was more than just a retail location, Mr McNaughton said.
“The new hotel will increase the number of users and potential shoppers to the site, as well as providing premium accommodation for travellers to Chadstone and the wider Monash region,” Mr McNaughton said.
It will be designed by Melbourne architectural firm Bates Smart.
Vicinity is the nation’s second biggest listed landlord, controlling more than $25 billion in retail assets spread across 81 shopping centres.
The AccorHotels Group is the nation’s largest hotel operator and in October struck a $1.2 billion deal to buy listed Australian accommodation group Mantra.
AccorHotels already operates two MGallery by Sofitel hotels in Melbourne, the Hotel Lindrum on Flinders St and The Como in South Yarra.
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