Despite hotel development in the CBD experiencing significant constraints due to high land prices and construction costs, two major expansion projects and one new development remain on track.
Despite hotel development in the CBD experiencing significant constraints due to high land prices and construction costs, two major expansion projects and one new development remain on track.
Seasons of Perth, formerly the Sebel of Perth, on Pier Street is about to embark on its extensive refurbishment and addition project, adding a tower and renovating its existing 116 rooms.
The addition project will add an extra two floors to the nine-storey hotel, and an additional four storeys above the bar, increasing the number of rooms to 188 upon completion.
The end value of the develop-ment is estimated at $50 million. While details of the develop-ment have not been made public, it is understood construction will begin this September.
Seasons of Perth was the first Australian hotel established by the Seasons Hotel Group, owned by ASX listed company International Equities Corporation.
Operated by Renaissance Australia Pty Ltd, a wholly-owned subsidiary of IEC, the property has been successfully managed and achieved an operating profit of $1 million in 2006, up from a loss of $1.3 million the previous financial year.
IEC has since opened a Seasons hotel in Melbourne, and is expected to open a second Seasons hotel in Melbourne and one in South Australia.
The company also operates a Seasons hotel in Myanmar.
Development in the Perth hotel market has remained stagnant since the 148-room Medina Executive Barrack Plaza opened last June, and the five-star Richardson Hotel last November.
The Sheraton Perth Hotel is currently undertaking a $20 million expansion project, converting its Adelaide Terrace office space into 96 executive rooms and suites.
The new suites, and additional meetings and restaurant facilities, are expected to come online in August, taking the total number of rooms at the hotel to 486.
Also proposed is the development of Perth’s first five-star all-suites hotel, under the Frasers Suites brand, as part of a $300 million mixed use development on the former bus depot site in East Perth.
The $70 million, 180-room hotel will be furnished to a 4.5-star standard, with each two- or three-bedroom suite including a sitting room and kitchen.
Frasers Property chief executive Dr Stanley Quek said the all-suites hotel would be the first hotel built in over 12 years in the area, and the second residence in Australia run by Frasers Hospitality.
“This hotel will be built on balance sheet to our specifications,” Dr Quek said.
The company’s first all-suite residence hotel, Frasers Suites Sydney, was opened late last year.
Dr Quek said despite fluctuating demand for Perth hotels, the continued growth of the resources boom had underpinned the company’s confidence in developing a new hotel product in Perth.
According to Jones Lang LaSalle Hotels, Perth was Australia’s best performing hotel market in 2006, buoyed by an exceptionally strong December quarter which lifted occupancies to 87.1 per cent and revenues per available room by 26.9 per cent.
