The state government is calling for hotel developers for a 7,300 square metre site on Hay Street in Perth’s CBD, the first land released under its hotel incentives scheme.
Tourism Minister Kim Hames today launched a registration of interest process for a hotel development at FESA House at 480 Hay Street, and the Perth Chest Clinic, located behind it on Murray Street.
Dr Hames said the sites combined to comprise more than 7,300 square metres over three lots, and was very confident of attracting developer interest.
“It’s hoped the successful developers will be announced by the end of the year,” Dr Hames said.
Staff working at FESA house will be relocated to the agency’s new headquarters in Cockburn by the end of the year.
Dr Hames said several other sites were currently being assessed for potential development under the incentives scheme.
“Perth desperately needs more hotel rooms, with the average annualised occupancy rate of 85.43 per cent, the highest in the nation,” he said.
“Western Australia is currently the only state in Australia that offers hotel development incentives.
“They include provision of Crown land at reduced market rates, flexible floor space bonuses and infrastructure grants.”
Tourism Council WA chief executive Evan Hall welcomed the announcement, saying the industry had been pushing for a new approach to hotel development in the state.
“The new incentives which include the release of Crown land at a reduced rate for hotel developments will help facilitate hotel accommodation by overcoming regulatory and market barriers and encouraging much needed hotel investment” said Mr Hall.
“Tourism Council WA would like to see at least 300 hotels rooms on this site to supply the increase in visitors to Perth which has been driven primarily by the resource sector” said Mr Hall.
“However one hotel is not near enough, we need at least another 6 hotels between now and 2020 to be built.”