Melbourne CBD to be flooded with rooms in hotel boom
CENTRAL Melbourne is experiencing an unprecedented boom in hotel construction with 12 properties being built and as many as another 25 in the planning pipeline.
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CENTRAL Melbourne is experiencing an unprecedented boom in hotel construction with 12 properties being built and as many as another 25 in the planning pipeline.
The under-construction hotels will add another 3000 rooms for the city’s holiday and conference visitors by 2020.
One prominent venue will be Melbourne’s first W Hotel being built in the $1 billion Collins Arch development on Collins St.
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The five-star digs will offer 294 rooms and suites, including an “Extreme Wow Suite” aimed at honeymooners and special occasions.
The hotels rush comes as the construction rate of inner-city apartments slows — a proposed apartment tower by Spacious Property Group developers on La Trobe St has even been reconfigured into a hotel.
The next hotel to open its doors will be the joint Novotel and Ibis on Lt Lonsdale St. The 483-room Accor property will receive its first guests from December 1.
The types of hotel vary from the W Hotel luxury to a “pod room” hotel at the Holiday Inn Express on City Rd, Southbank.
Dougal Hollis, Victorian general manager of Tourism Accommodation Australia, said changing lifestyle trends, such as a focus on wellness, were encouraging hotel investors to be innovative with new developments.
“And the rising middle class in key markets such as China and India were also driving increased travel and demand for hotel stays, stimulating investment in Melbourne, including W Hotel, M Gallery, Ritz Carlton, St Regis Hotels and Mandarin Oriental,’’ Mr Hollis said.
W Hotel is part of the Marriott group which has four hotels in Melbourne but wants to have another nine by 2022.
Marriott regional senior director of hotel development Richard Crawford said Melbourne appealed to domestic travellers, while extra flights and the cheaper Australian dollar lured visitors from the US, Asia and South America.
“In particular, demand for luxury accommodation from brand-conscious international visitors is on the rise,’’ Mr Crawford said.
The Marriott group also hopes to build a St Regis butler-service hotel as part of the $1 billion, triple-tower Flinders Bank project on the former convention centre site. Planning Minister Richard Wynne is expected to rule on the application in coming weeks.
Visit Victoria chief executive Peter Bingeman said the strong investment in hotel properties reflected the tourism industry’s domestic and international visitor growth.
“Leading international hotels are seeing Melbourne as a global destination and have shown their confidence through investment, it’s a case of supply meeting ever-growing demand,” Mr Bingeman said.
Latest Visit Victoria figures show that 3 million people a year come from overseas for a Victorian holiday. And 24 million overnight visitors come from interstate.
The state’s tourism industry was valued at $26.8 billion for the 12 months to March, an 8.6 per increase on the previous year.
Victoria’s major events, dining, entertainment and sporting events remain the biggest drawcards for tourists.
The City of Melbourne now has 2360 cafes and restaurants fuelling record growth in the city’s night-time economy now generating $3.2 billion a year.
The council’s Development Activity Monitor showed that hotels containing 8395 more rooms have planning approval and awaiting construction.
Melbourne Lord Mayor Sally Capp said 41,000 people worked in the tourism sector in the city.
“As Melbourne grows as a tourist haven it’s important we meet the demand for hotels and accommodation, particularly five-star accommodation sought by the burgeoning Chinese market,” Cr Capp said.
Hotel — location — no of rooms — Opening date
380 Melbourne: 380 Londsdale Street - 350 rooms - Mar 2020
Quest New Quay: St Mangos Lane and Docklands Drive — 221 — 2019
W Hotel: 408 Flinders Lane — 294 — Dec 2019
Vibe:1-5 Queen Street — 206 — Late 2019
Brady Hotel: 109-115 Lt Lonsdale St — 206 — Late 2019
Quest: 478 St Kilda Rd — 2019
Accor: 399-401 Lt Lonsdale St — 478 — 2018
Element Melbourne Richmond Hotel: 588 Swan Street — 168 — 2019
Ibis Styles*: 167 City Road — 162 — Late 2018
Peppers Southbank: Clarendon and Haig Sts — 162 — Early 2019
Holiday Inn Express: 35 City Rd, Southbank — 345 — Dec 2018
Adina Grand Apartments: Dudley St — 92 — Dec 2018
*Operator to be confirmed
COMING SOON
Other projects either waiting for final approval or for construction to start
St Regis Hotel: Spencer and Flinders Sts — 168 rooms
Seafarers Place: North Wharf — 280 rooms
Queensbridge Tower (Crown): 1 Queensbridge — 388 rooms
Marriott Docklands: Waterfront Way — 200 rooms
Hotel Indigo: 695-699 La Trobe Street — 170 rooms
Ritz Carlton: 250 Spencer St — 263 rooms
Le Meridien (Palace Theatre): 20 Bourke St — 235 rooms
Holiday Inn & Hotel Indigo (co-branded): The Walk Arcade — 453 rooms
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