Minor Hotels chief Dilip Rajakarier is bullish about Brisbane hotel

A top hotelier has warned that the local domestic leisure traveller market is sluggish but is punting its new hotel at Queen’s Wharf in Brisbane will be a a hit with international tourists.

Queens Wharf Residences in Brisbane. Picture: Supplied

Buoyed by Brisbane’s forthcoming 2032 Olympics coupled with the booming local conference market, Bangkok-based Minor Hotels, one of the world’s largest owners and operators of hotels and resorts, has launched Queen’s Wharf Residences, a new apartment-style hotel located in the tallest tower of the Sunshine Capital’s $3.2bn Queen’s Wharf precinct.

Speaking from Thailand, Minor Hotels chief executive Dilip Rajakarier is bullish about Brisbane and not at all concerned about Queen’s Wharf’s prior association with the embattled Star Entertainment, which sold its half stake to Chow Tai Fook and Far East Consortium in March.

“There won’t be any impact,” he says simply.

“We are quite bullish about Brisbane, Queens Wharf is mixed use, it’s got dining, it’s got major events, this is where the business is coming from. The Queensland Government has been quite proactive in announcing the new stadium. It is putting a lot of money into infrastructure and making it become more of a lifestyle convention centre and destination in terms of MICE (Meetings, Incentives Conferences & Exhibitions business) and of course sports because of the stadium,” he said.

He adds Queen’s Wharf will attract international tourists drawn to Australia through Minor’s strong global networks.

But he is concerned that the local domestic leisure traveller market is sluggish saying there’s a “bit of a dull outlook about Australia mainly because of interest rates, the currency, the GDP and some of the internal headwinds.”

“The domestic (leisure) market is slow compared to prior years… people are tightening their wallets. We have seen a softening,” Mr Rajakarier said.

Minor Hotels was founded by American-born Thai businessman William Heinecke in 1978. Today the company has 562 hotels and resorts in 81 countries including Australia, Thailand, Africa and Europe with 372 properties fully owned and operated by Minor. Brands include Avani, Oaks, NH Collection and Anantara.

In Australia, Mr Rajakarier said Minor’s Queensland properties account for some of its best Australian performers while its Victorian properties, particularly those in Melbourne, have been a bit slow, presumably due to the preponderance of hotel development in that state. Minor is depending on the domestic market, principally the corporate sector including the conference and meeting and incentive market to populate its Queen’s Wharf Residences but Mr Rajakarier expects foreign tourists such as Japanese, Indian and Asian tourists will also seek out Minor’s luxury apartments.

“Victoria used to be challenging but we see Melbourne coming back quite strong,” Mr Rajakarier said, adding that NSW, Perth and Adelaide are strong. “The resorts are a little bit soft because leisure travel has softened which has affected our resorts but we are being well compensated by our corporate guests in our city hotels,” said Mr Rajakarier, adding that Minor owns and operates 70 hotels and resorts in Australia and New Zealand.

With its new long term management agreement of 25 years struck with Queen’s Wharf Residences owners Far East Consortium Minor will manage more than 200 Queen’s Wharf Residences apartments which will offer one, two and three-bedroom apartments. Prices start from $349 a night.

The embattled Star Entertainment sold its half stake in the Queen’s Wharf complex to Hong Kong’s Chow Tai Fook Enterprises and Far East Consortium as well as two towers on the Gold Coast for $53m in March.