20/03/2015 - 11:55

Singaporean developers move on hotels

20/03/2015 - 11:55

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Construction will begin shortly on a new 67-room hotel at the Melbourne Hotel in Perth’s CBD, while international hotels and resorts chain Marriott will bring one of its branded hotels to Wellington Street, with both proposals being backed by Singapore-based developers.

Singaporean developers move on hotels
PROGRESS: The historic Melbourne Hotel is to be transformed by Doric into a much larger hotel. Photo: Attila Csaszar

Construction will begin shortly on a new 67-room hotel at the Melbourne Hotel in Perth’s CBD, while international hotels and resorts chain Marriott will bring one of its branded hotels to Wellington Street, with both proposals being backed by Singapore-based developers.

Perth-based construction company Doric is understood to be close to finalising a deal for a major redevelopment at the Melbourne Hotel site on the corner of Hay Street and Milligan Street.

The $70 million proposal includes refurbishment and extension of the existing heritage building to create a 67-room hotel, as well as a 20-storey office tower.

However, Doric chief executive Vince Mulholland told Business News the construction of the commercial component hinged on Singapore-based boutique developer Oakesfield signing a suitable anchor tenant.

Mr Mulholland said the hotel would be built first, with the whole project to be built in two stages.

Recent additions to the Melbourne Hotel, built in 1997, will be demolished to allow for the build of a seven-storey new structure, which will house the 67 rooms.

Perth-based architecture firm The Buchan Group has designed the Melbourne Hotel redevelopment.

Doric’s construction deal at the Melbourne Hotel is its second current project for a Singapore-based developer, alongside the Park on Swan apartment project in Rivervale, which has an end value of $160 million.

The contractor will start work on that development once its pre-sales campaign, being coordinated by Limnios Property Group, reaches its required target.

Meanwhile, development approval has been issued for a Courtyard by Marriott hotel to be built at 609 Wellington Street, as previewed online by Business News earlier in the week.

Singaporean development group Roxy-Pacific Holdings is backing the proposal, which will cost $47 million to construct before fit-out expenses.

Roxy-Pacific bought the vacant site, which was formerly a Wilson car park, from Singapore’s Crescendas Hospitality earlier this year, in a deal worth $17 million.

The 23-level, 332-room hotel will be the first Marriott-branded hotel in Perth, although Marriott is also the owner of the Ritz-Carlton brand, which will become one of the flagship developments at Elizabeth Quay.

Singapore’s Fragrance Group is also pursuing a hotel development, in close proximity to the Melbourne Hotel.

Fragrance Group bought the Milligan Square development site from Georgiou Capital late last year for $30 million.

It is planning to build a 132-room hotel on the site, as well as restore the historic Pearl Villa and Milligan Hostel.

The proposal also includes approval for an office tower, however, Fragrance Group is in the middle of converting that into a residential project.

Fragrance Group also purchased a plot of land at 374-396 Murray Street last year, which has development approval for a 286-dwelling and apartment tower, as well as a 14,000 square metre office building.

It is understood Fragrance Group is evaluating the possibility of converting the office component at that site into another hotel, however, the company had not responded to Business News inquiries at time of publication.

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