Airport West Hotel

Expression of Interest January 2020

Contents

Introduction ...... 3

Evaluation Criteria ...... 5

Returnable Schedule ...... 7

Conditions ...... 10

Definintions ...... 13

Introduction

Perth Airport; Airport West Hotel expression of interest

Perth Airport; Airport West Hotel

EXPRESSIONS OF INTEREST ARE SOUGHT FROM An Information Pack is annexed to this document and EXPERIENCED HOTEL OPERATORS FOR A NEW describes the site and location of new hotel as well as HOTEL AT PERTH AIRPORT WEST, ADJACENT TO other relevant information from the Perth Airport THE REDCLIFFE STATION ON THE Masterplan 2020. FORRESTFIELD-AIRPORT LINK. Various hotel development and operational models will be considered as part of this process, including but not Interested parties are invited to submit proposals for limited to: the management of the hotel on a long-term basis.

• Agreement for building lease The opportunity includes working in partnership with Perth Airport to define the hotel development project, • Hotel Management Agreement prepare a feasible business case for both hotel operator and land owner as well as manage the hotel Please submit proposals via email to th on completion of the property development works. [email protected] by 27 February 2019 (Closing Date).

4 2020 Perth Airport | Airport West Hotel January 2020

EVALUATION CRITERIA

Evaluation Criteria

Airport West Hotel expression of interest

The Expression of Interest submissions will be assessed on the following criteria;

CRITERIA DESCRIPTION

Relevant experience A track record of operating hotels in dynamic and competitive environments.

Demonstrated understanding of key trends and influences on hotel operations in the Perth hotel Industry insights market.

Insights into key customer segments and proposed value proposition to engage customer Hotel strategy segments.

Commercial terms Feasible terms for both the hotel operator and Perth Airport.

Capacity for development Willingness and ability to develop feasibile plans in partnership with PAPL, understanding that the partnership project needs to be viable for both hotel operator and property owner.

The organisational capacity, which includes a proposed local management team and resources to Organisational support ensure a sustainable operation.

Strategic value Benefits of proposed partnership and alignment with Perth Airport’s Masterplan 2020.

Returnable Schedule

Airport West Hotel expressions of interest

Returnable Schedule

Please include the following information in any Expression of Interest submission: 1. Corporate organisation and relevant existing hotel operations. 2. Understanding of the Perth hotel market and assessment of the Airport West hotel opportunity. 3. Proposed hotel branding, accommodation standard, food, beverage, conference and any other proposed activities (including the minimum information in below Table 1). 4. Proposed approach to hotel development: a. Suggested process for defining the design and development scope. b. Indicative design briefs or performance specifications. 5. Operating proposal: a. Proposed terms for building lease (as per below Table 2). b. Proposed terms for hotel management agreement (as per below Table 2 ). 6. Acknowledgement of the “Disclosures” in the Information Park: a. “Airport Consolidation” by end of 2025. b. Potential Airport Central Hotel at some future stage. c. Potential “in-terminal” micro hotel, very short stay accommodation, at some future stage. 7. Key operational personnel. 8. Organisation’s financial, management and marketing capabilities.

Please include the following information;

Table 1; Hotel operational strategy; Airport West Hotel

Proposed brand -

Value proposition -

Indicative room numbers -

Convention or meeting rooms proposed -

Food & beverage offer -

Bar or tavern offer -

Other amenities proposed -

Table 2: Property terms; Airport West Hotel

Preferred tenure (building lease or management agreement) -

Building lease; -

Indicative base rent per room -

Any proposed performance rent -

Proposed minimum term (years) -

Management agreement (“HMA”);

Base fee

Incentive fee

FF&E reserve contribution

Proposed minimum term (years)

Conditions

Perth Airport; Airport West Hotel expression on interest

In providing an EOI submission, the 3.2 Respondent to inform itself fully 4. ADDENDA TO EOI DOCUMENTS respondent is deemed to have read and agreed to the following conditions: PAPL does not warrant the accuracy, 4.1 PAPL may issue addenda currency or completeness of any information supplied in the EOI PAPL may, at any time up to 48 hours Documents and is not responsible for any before the Closing Date, issue addenda to loss or damage caused by reliance on this 1 STEPS OF EOI PROCESS clarify the EOI Documents or to affect a information. modification to the EOI Documents. Respondents should make their own 1.1 Submissions enquiries about all matters contained in the EOI Documents or relevant to the EOI 5. FURTHER INFORMATION Submissions must include all information process. Respondents must: requested in the Returnable Schedule and 5.1 Further information must be submitted via email to a) acquaint themselves with all [email protected] by the aspects of the EOI Documents Closing Date. PAPL reserves its right to seek further (including all documents information from Respondents on any included, supplied with or matter and at any time by requesting: 1.2 Right to amend process referred to in them);

PAPL reserves the right at anytime and b) examine all other relevant a) presentations from Respondents; from time to time to cancel, vary, information available on supplement, supercede or replace the EOI reasonable enquiry; b) structured interviews with process (in whole or in part) set out in this Respondents; document by notice in writing to interested c) inform and satisfy themselves as to requirements of any parties. c) written responses from government authority and Respondents; and/or legislative requirements that do 2. VALIDITY OF SUBMISSION or may apply to the project and d) site visits with Respondents. the execution of the 2.1 Validity Respondent’s works; and 5.2 Change in circumstances

Proposals are to be valid for acceptance d) form their own assessment of The Respondent must promptly inform by PAPL for 120 days from the Closing the nature and extent of work PAPL of any material change to any Date, or for such longer period as agreed required to execute the project information provided in its submission or between PAPL and the Respondent. and properly account for all of any event that would potentially have an work in its EOI submission. impact on the financial position and 3. RESPONDENTS OBLIGATIONS capacity of the Respondent. 3.3 No warranty on accuracy of reports REGARDING INFORMATION 6. USE OF INFORMATION PAPL has relied on the reports prepared 3.1 Respondent responsible for it by various consultants and other 6.1 Use of information parties. PAPL has not independently The EOI and the Information Pack and any verified the information contained in those PAPL will not provide copies of EOI additional information supplied by PAPL reports. PAPL and its directors, submissions to any other Respondents (EOI Documents) do not purport to employees and agents do not make any without the relevant Respondent’s contain all relevant information in relation representation or warranty (express or permission. PAPL may share the EOI to the project and are provided solely on implied) as to the accuracy, currency or submissions with PAPL’s directly engaged the basis that a Respondent will be completeness of the information provided. consultants for EOI evaluation purposes. responsible for making its own assessment of the matters referred to in the EOI Documents. The Respondent 3.4 Respondent to review risks 6.2 No claims should verify all relevant representations, statements and information (including The Respondent should obtain No Respondent or any other person those contained or referred to in the EOI independent advice from appropriate claiming through an EOI is entitled to Documents or made orally during any sources and make its own evaluation of its make any Claim against, or receive any discussions with PAPL, its employees or EOI submission. compensation from, PAPL or any other agents). No person has been authorised person if PAPL or any other person to make any representation or warranty in 3.5 Respondent has no Claim discloses ideas, issues and design connection with the EOI Documents and concepts raised in an EOI submission or any such representation or warranty, if The Respondent will have no claim against during the EOI process with other given or made, should not be relied on as PAPL on the basis that its respondent was Respondents during the EOI process. having been authorised by PAPL. disadvantaged by lack of information or inability to resolve ambiguities.

The discussion will be confidential, and PAPL 6.3 No claim for compensation 7.1 Shortlist is not required to disclose any information or Respondents release PAPL from any Claim Following assessment of the EOI submissions, discussion with another Respondent. arising directly or indirectly from: one or more Respondents whose submission(s) is/are considered to best meet The Company is not bound to accept any the assessment criteria may be short listed for submissions after negotiations with any a) PAPL retracting the EOI; or negotiations with PAPL. preferred respondent.

b) any other matter arising out of or in relation to the EOI process. 7.2 PAPL may clarify, discuss or negotiate 7.4 Decision of PAPL

PAPL will, as appropriate, engage in The decision of PAPL is final, and negotiations 6.4 Ownership of EOI Responses clarification, discussions or negotiations with will not be entered into with parties not invited any Respondent for the purpose of clarifying to be involved with the project. All documentation, materials and other its EOI. information submitted during the EOI process shall become the property of PAPL and will However, PAPL may, in its absolute discretion, not be returned. 7.3 Simultaneous discussions enter into negotiations at any time with any other party. PAPL may, in its absolute discretion, conduct 7. SELECTION OF PARTNER simultaneous discussions to clarify or improve submissions with more than one Respondent.

IN THE EOI DOCUMENTS: EOI means the invitation for expression of Respondent means a person or entity that interest as set out in section 1 of this provides a written response or EOI submission document. to this EOI. Closing Date means 5.00pm in Australian Western Standard Time on 24th Feburary Information Pack means the information Related Entity has the meaning given to that 2020. pack provided as part of this EOI. term in the Corporations Act 2001 (Cth).

Claim means any allegation, debt, cause of PAPL means Perth Airport Pty Ltd. Returnable Schedule means items listed in part 3 of this document. action, liability, claim, proceeding, suit or Partnership opportunities means a demand of any nature howsoever arising and commercial model yet to be defined between Successful party means the chosen whether present or future, fixed or the parties and could be a Concession, Joint interested party, if any, that is selected by the unascertained, actual or contingent whether Venture, or operator agreement, sub-licence PAPL (in PAPL’s sole discretion) to explore at law, in equity, under statute or otherwise. or any other form of arrangement. partnership opportunities. Conditions means the Conditions of Tender in the Returnable Schedule.

Thank you

CONTACT DETAILS Please do not hesitate to contact us should you have any questions regarding this proposal or if you wish to conduct a site inspection.

Noel Ryan Leasing & Development Manager 2 George Wiencke Drive Perth Airport, Western Australia E [email protected] M +61 478616667 T +61 8 9478 8471 perthairport.com.au

Information Pack Opportunity

© 2020 Perth Airport | PERTH AIRPORT Airport West Hotel Perth Airport is seeking expressions of interest from experienced hotel operators for the first hotel to be constructed on the Perth Hotel site Airport estate. The site is immediately adjacent to the future Redcliffe railway station and is part of the emerging Airport West retail precinct as well as the established business park.

The site is expected to be available to commence construction in 2021 with a potential hotel opening in 2022/23.

• Adjacent future Forrestfield-Airport train station. • Part of Airport West business park & retail precinct. • 3.5 or 4 star hotel. • 150 to 200 rooms. • Expected rooms 22m2 to 24m2. • Conference & meeting room opportunities. • Ground floor food & beverage (possible third party). • Tavern or entertainment opportunity (possible third party). • Potential rooftop amenity or venue.

3 © 2020 Perth Airport | 30 January 2020 PERTH AIRPORT Hotel site • Greenfield 1.5 hectare site. • Ground floor connection with railway station and retail precinct. • Business park; nearby to Rio Tinto, Byrnecut, Mader & Arc Infrastructure. • Airport West retail precinct; DFO, Costco and further future retail developments. • Strong vehicle connections to Tonkin Highway & Great Eastern Highway.

1.5 hct

BUSINESS PARK T4

DFO

COSTCO

Masterplan 2020: In accordance with the Airports Act, Perth Airport has prepared Preliminary Draft Masterplan 2020. Public comments on this document closed in October 2019. T3 & T4 Following public consultation, the plan is expected to be presented to consolidation Commonwealth Minister for consideration in January 2020. by end 2025 There are several critical elements of the Masterplan that need to be disclosed as part of Airport West hotel opportunity.

Airport consolidation: From the end of December 2025, all commercial flight services will be consolidated into on central aviation hub at Airport Central. The current T3 and T4 operations will be moved to a new domestic terminal and upgraded international at T1.

The proposed hotel site at Airport West is clearly closer to the current T3 & T4 than T1 & T2. We expect there will be a significant drop in passing vehicle traffic to the Airport West site when consolidation occurs.

The Airport West hotel site will maintain premium connection to commercial airline passengers through the new Forrestfield-Airport railway link.

7 © 2020 Perth Airport | 30 January 2020 PERTH AIRPORT Disclosures Airport Central hotel; The Premliminary draft Masterplan 2020 also includes a potential new hotel at Airport Central. This site is in addition to the proposed hotel at Airport West.

The approximate location of the Airport Central Hotel is as marked in yellow on the adjacent plans. The location is within walking distance of the commercial airline terminals as well as the Airport Central train station. Initial indication is that the Airport Central hotel site could accommodate 200 to 250 rooms.

Proponents for the Airport West hotel need to aware that the Airport Central hotel is part of the Masterplan 2020 and is likely to be operational after the consolidation of airport operations, if not earlier.

In-terminal hotel; Perth Airport is also considering an “in-terminal” hotel as part of its exiting T1 operations. Such a hotel is likely to be internal, “cabin” style offering of around 30 sleeping compartments. Should this development proceed, it is likely that such accommodation will be in place by end of 2020.

operations Japan

Dubai Doha

Guangzhou Hong Kong Current 2018 operations (pa): Bangkok • 14.5m passengers.

Kota Kinabalu • 130,616 aircraft movements. Kuala Lumpur Forecast 2040 operations (pa): Singapore

Jakarta Denpasar • 28.5m passengers. Christmas Is. Cocos Is. • 202,000 aircraft movements. Darwin Kununurra Argyle Derby Cairns Christmas Creek Broome Mauritius Port Headland Woodie Karratha Ginbata The Granites (NT) Onslow Cloudbreak Solomon Nifty Telfer Learmonth Barimunya Coondewanna Alice Springs Paraburdoo Boolgeeda Newman Johannesburg West Angelas Brisbane Leinster Gold Coast Geraldton Leonora Windarling Mt Keith East Jaurdi PERTH Kalgoorlie

24/7 operations Busselton Sydney Esperance Albany Adelaide Canberra Auckland Perth Airport is the closest Australian capital city Melbourne

to all major south-east Asian hubs. Hobart Christchurch

Perth Airport is strategically located 12 kilometres from the Perth Central Business District. The Airport is surrounded by key arterial roads including the Tonkin Highway, Roe Highway, Great Eastern Highway, Leach Highway and Abernethy Road providing convenient access to Perth’s major metropolitan road network. The Airport is part of a 2,105hct estate which has sufficient capacity to expand to meet the projected commercial aviation demand of the 21st Century. An objective of the Perth Airport Masterplan 2020 is to bring land not required for long-term aviation services into productive use to support economic development and create employment in Western Australia.

Shareholders of Perth Airport Development Group Pty Ltd 5%

7% Utilities of Australia Pty Ltd ATF Utilities Trust of Australia (UTA)

The Northern Trust Company (TNTC in its capacity as 38% custodian for Future Fund Investment Company No.3 Pty Ltd (FFIC3), a wholly owned subsidiary of The 17% Future Fund Board of Guardians (FFBG)

Utilities of Australia Pty Ltd ATF Perth Airport Property Fund (PAPF)

Gardior Pty Ltd as trustee for The Infrastructure Fund 30%

Australian Super Pty Ltd

Sunsuper Pty Ltd

Thank you.

NOEL RYAN LEASING & DEVELOPMENT MANAGER

Level 2, 2 George Wiencke Drive Perth Airport, WA 6105 PO Box 6. Cloverdale WA 6985 T: +61 (8) 9856 5632 M: +61 0478 616 667 E: [email protected] www.perthairport.com.au