Building and construction giant BGC has been nominated by the state government to develop a hotel at the former FESA House on Hay Street.
Tourism Minister Kim Hames said BGC and the state government would work over the next three months on contract and design negotiations.
Dr Hames said the final size and design of the hotel would be dependent of the government and BGC agreeing on terms.
The hotel site is the first released by the state government under its hotel incentives initiative, which was launched in October last year.
“The quality of submissions was extremely high, with each proponent submitting a detailed analysis of their proposals, including architect drawings, full cost analysis, financial modelling, land tenure structure and proposed commercial terms,” Dr Hames said in a statement.
Dr Hames said the government was on the front foot to bolster WA hotel room numbers, after research showed Perth had the highest hotel occupancy rates in Australia at 85.3 per cent.
“The severe shortage of hotel rooms in Perth is negatively impacting on WA’s ability to attract corporate and leisure visitors; major conferences and events; increase aviation capacity; and disperse travellers throughout the state,” he said.
“Hotels are a critical infrastructure for the state’s economy. Tourism WA is closely monitoring supply and demand to ensure a measured application of the development incentives.”
