International hotel chain Accor is increasing its presence in Western Australia, building a 15-storey Ibis Styles hotel in East Perth.
Diploma paid $3.4 million for the site, located at the corner of Adelaide Terrace and Plain Street, opposite the Hyatt, in September 2010.
Accor said construction of the $22.5 million project got under way in March.
The 15-storey hotel will comprise 228 rooms as well as a restaurant and bar, with business and gymnasium facilities.
The hotel is expected to be complete by July 2015.
Accor chief operating officer Simon McGrath said he expected the Ibis Styles East Perth to be a key development for the city, being the first newly built economy hotel in more than a decade.
“Ibis Styles East Perth will respond to the growing demand for quality product at a genuine economy price and it will cater to the increasing number of travellers seeking wallet-friendly travel experiences,” he said.
“The hotel will provide visitors to Perth with an affordable accommodation option, leaving more spending money to explore the city’s tourist attractions, retail and dining scene.”