Hotel boom sweeps Melbourne — tourism growth drives building projects

MELBOURNE is the place to be — for visitors. At least 18 new hotels are being built in the city in the next four years alone. Here’s where all the new accommodation will be springing up.

MELBOURNE is experiencing a hotel boom with plans for more than 4500 new rooms across the city.

At least 18 major new hotels are on the drawing board or being built.

Most of the new hotels are coming to the CBD, Docklands and Southbank, but hotels are also popping up in Epping and Box Hill.

The biggest will be the 90-storey Crown at Queensbridge project which will have 388 hotel rooms, plus 708 apartments.

An increase in tourist and business visitors is propelling the growth, with more travellers coming from China and Singapore.

The Ritz-Carlton brand is coming to Melbourne.

The conference and exhibition market is also cranking up demand for quality accommodation.

The Sheraton and Hyatt chains opened two new hotels in the past five months. The Four Points by Sheraton at Docklands started taking bookings from March 2017 and the Hyatt Place Melbourne opened its doors at Essendon Fields in June.

Major recent announcements include the Mandarin Oriental at 600 Collins St, the Marriott at Docklands and the 500-room Shangri La on the old Telstra site on Latrobe St,

The pending projects across the city will increase the total number of rooms by 21 per cent, according to research by industry data analysts STR.

An artist's impression of the 50-level Mandarin Oriental luxury hotel planned for the heart of Melbourne.

Novotel South Wharf, Melbourne, due to open in March 2018. Pic supplied

Melbourne was outstripping Sydney too, with the research revealing the supply of hotel rooms in the metropolitan area had jumped by 12.0 per cent since 2011, compared to 5.8 per cent in the Harbour City.

Dougal Hollis, general manager of industry body Tourism Accommodation Australia, said annual visitor spending in Victoria was expected to grow from $25 billion to $35 billion by 2025.

Hyatt Place general manager Norman Khan said demand for rooms since opening had exceeded expectations.

“Even during the past week there were a few nights where we reached 100 per cent occupancy,’’ Mr Khan said.

Hyatt Place Hotel, at Essendon Fields, has enjoyed a successful few months. Pic supplied.

The AccorHotels group is building its first “dual hotel’’ in one Melbourne CBD tower — ibis will occupy the lower floors of the 36 level-building on Lt Lonsdale St, with Novotel rooms on the upper.

The two hotel brands will share public spaces such as reception and dining.

The 483-room project will open late in 2018.

The Novotel and ibis will share public spaces including reception, in Lt Lonsdale St. Pic supplied.

AccorHotels Pacific chief operating officer Simon McGrath said Melbourne was a known destination for sport, business, conferences and tourism.

“Significant investment in infrastructure such as this Novotel hotel will further increase the capacity for Melbourne to attract significant events, conferences and exhibitions and cater to the domestic and international travel markets,’’ Mr McGrath said.

Figures from Tourism Accommodation Australia showed international visitor growth to Victoria was driven by more arrivals from China (up 28.1 per cent) and Singapore (up 18.5 per cent).

Melbourne Airport’s curfew-free status and more direct flights have also helped.

Low-cost carrier Scoot flies five times a week between Melbourne and Singapore.

Chinese airlines — Air China, China Eastern, China Southern and Sichuan — have also increased services.

Coming: 2017-201

Crown Queensbridge: 388 hotel rooms (+708 apartments)

Novotel, South Wharf: 347 rooms

Holiday Inn Express Southbank: 339

Holiday Inn Express, Lt Collins St: 299 rooms

Next Hotel, 80 Collins St, 300 rooms

ibis, Little Lonsdale: 270 rooms

Novotel Little Lonsdale: 213 rooms

Ritz Carlton, Spencer St: 240 rooms

Quest NewQuay Docklands: 113 rooms

Adina Apartment Hotel Southbank: 220 rooms

Mantra, Epping: 214 rooms

Hotel Indigo, Docklands: 170 rooms

element, Richmond: 168 rooms

Mandarin Oriental at 600 Collins St: 196 rooms (+148 apartments)

Marriott at Docklands: 200 rooms and 110 apartments

Shangri La on Latrobe St: 500 rooms

W Hotel, Collins St: 294 rooms

Savoy Tavern, Spencer St, 187 rooms

Recent arrivals: 2017

Four Points by Sheraton, Docklands: 273 rooms — opened March

Hyatt Place Melbourne, Essendon Fields: 166 rooms — opened June

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@IanRoyall