01/11/2017 - 06:48

Jaxon to build $80m hotel

01/11/2017 - 06:48

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Perth’s hotel construction boom shows no sign of letting up, with Jaxon set to commence work this month on a 27-storey Mantra hotel that will be a stone’s throw from three recently completed hospitality projects at the western end of the city.

Perth’s hotel construction boom shows no sign of letting up, with Jaxon set to commence work this month on a 27-storey Mantra hotel that will be a stone’s throw from three recently completed hospitality projects at the western end of the city.

The $80 million project is backed by WA developer George Atzemis, who purchased the former Musgrove Music site at 900 Hay Street in 2013.

Mr Atzemis said the shift in the market and the entrance of a number of new hotel players since the site was purchased had not altered his plans.

“We had a significant amount of enquiry about developing a hotel on the site after we secured it, so it was clear the location was right,” he said in a statement.

“What we were proposing for the site was a 4.5 star, 250-room hotel, and we continued to view that as a fantastic opportunity and one that would occupy a space in the market that no-one else had their foot on.”

The new development follows last year’s $25 million refurbishment of the nearby Holiday Inn on Hay St, which Mr Atzemis owns jointly with business partner Con Berbatis.

It comes soon after the opening of the Intercontinental Perth City Centre hotel, which followed the opening of Mantra's 120-room Peppers Kings Square Hotel late last year.

Another new hotel slightly further away is the 126-room Tribe hotel in West Perth, which opened in May.

Other hotel projects under construction include the Westin Perth Hotel at the eastern end of the CBD, the Ritz-Carlton at Elizabeth Quay and QT Hotel on the corner of Barrack Street and Murray Street.

Two Doubletree by Hilton hotels are also under construction, at Northbridge and Barrack Square.

The hotel at 900 Hay Street will be operated by Mantra Group and has been designed by Campion Design Group.

Jaxon chief executive David Dodds said the commencement of construction on the project was the culmination of an extended scoping and planning process, which had seen the builder work closely with the developer, development manager Kish Consulting and Savills Project Management to finalise the design and contract.

“This was a logistically challenging site due to its location on Hay Street, bordered by existing buildings and an operational laneway between Hay and Murray Streets to the adjacent multi-storey car park,” said Mr Dodds.

“We’ve worked very closely with the client from the initial concept phase in 2015, to ensure those challenges have been addressed and that the outcome for the project will be an attractive, iconic new building for the CBD, and a great new addition to the Perth hotel market.”

Jaxon won the construction contract after completing the Holiday Inn refurbishment.

Jaxon were a good match for us – privately owned, responsive and able to move quickly to get things done,” Mr Atzemi said.

“We had a good working relationship with them so we were happy to move forward with them on another project.”

Kish Consulting director James Kish said the hotel was expected to open its doors to guests in the last quarter of 2019.

The hotel will include a retail component of approximately 700sqm on the ground and first floors.

“We’ll be seeking the highest and best use of that space, but it’s likely to mesh with Hay Street’s profile and offer high end fashion and food,” said Mr Kish.

Mr Dodds said the Mantra Hotel contract cemented Jaxon’s position as one of the strongest performers in the WA construction sector.

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