TAA (Vic) Current and Future Hotel Developments

August 2019

Hotel Market Outlook 2

Supply and Demand 3

Australian Key International Visitor Trends 7

Australian Key Domestic Visitor Trends 9

Demand Drivers 11

Major Stakeholders 13

New Projects Announced 14

Development Summary

(including inner suburbs, city and surrounds)

o New hotel openings 17 o Under Construction 18 o Approved 19 o Proposed 22

 Suburban developments 24  Regional developments 25

 Hotel openings over the past 12 years (Melbourne) 27

Tourism Accommodation (Victoria) 1

Market outlook remains broadly positive

Prevailing economic conditions

 “Slowing global growth and a pick up in the pace of housing price losses weighed on consumer spending and household construction over the second half of 2018.”

- “Looking forward, a restrained household sector will continue to weigh on growth, but will somewhat be offset by increased government spending and exports growth.”

- “Continued falls in the value of their largest asset have prompted households to be more cautious with their wallets, while also causing developers to think twice before beginning new construction projects.1”

- Combined, the slowdown in household consumption growth and retreat in dwelling investment were responsible for about half the decline in economic growth (the economy grew at an annualised rate of 3.8 per cent over the first six months of 2018, falling to 0.9 per cent, post a significant slowdown over the balance of the year) (Ibid).

- Spending on infrastructure projects by state governments across Australia’s fastest growing cities, the continued rollout of the National Disability Insurance Scheme and tax cuts announced in the Federal Budget will assist to offset future declines in economic activity (Ibid).

 In a sign of developer confidence in Melbourne “amid current economic uncertainty,” “construction of $700m worth of new office, hotel and apartment projects has kicked off in key urban precincts of Docklands and Fishermans Bend.2

- Projects include a $500 million dollar office tower (Chinese developer, Poly) at 1000 La Trobe Street, opposite Marvel Stadium, where construction recently commenced (Ibid).

1 Economy is a tale of two halves: Deloitte Insights, May 2019 2 Confident developers kick of $700m of new Melbourne projects, AFR, July 15, 2019 Tourism Accommodation Australia (Victoria) 2

- Local developer, Capital Alliance “has appointed Crema Constructions as builder of its $200m mixed-use project, The Normanby (199-201 Normanby Road)” that includes the 200 room debut of Marriott’s AC Hotels by Marriott brand in Australia – AC Melbourne Southbank Hotel (Ibid).

Supply and Demand

National

 Long term revenue forecasts for hotels in Australian major capital cities forecast RevPAR growth averaging 3.3 per cent, per annum, underpinned by high occupancy levels, despite a material change in new hotel room supply over the next five years.3

- Supply growth of 3.8 per cent is expected, long term to FY2027, with “uplift concentrated in Melbourne, as developers continue to recognise favourable demand fundamentals” (Ibid).

 The influx of new hotel brands coming into many Australian cities (17,000 under construction, out of a total proposed development pipeline of 53,000) will help Tourism Australia achieve its strategic goal of growing tourism spending to $115b by 2020 (two years ahead of schedule).4

- Demand growth is forecast at 4.0 per cent to FY2027, while long term growth expectations for Average Room Rate averaging 3.1 per cent per annum are expected (Ibid).

Melbourne

 Melbourne’s long term RevPAR growth average (to FY2027) is projected to be 2.8 per cent. Sustained increases in new supply over the next five to six years will test equivalent demand growth and “operators may respond with rate competition.”

 Annual demand growth is expected at 4.7 per cent to FY2027

- Whilst occupancy levels are expected to “slightly depress through the height of supply arrivals,” but will be “largely upheld” by strong demand drivers, over the same period5.

3 Dransfield: Hotel Futures 2019: RevPAR forecast – 2019: 2027 4 Hotel glut brings cheaper rooms and more choice, AFR, May 3, 2019 5 Dransfield 2019, p. 8 Tourism Accommodation Australia (Victoria) 3

 Strong demand drivers include 500,000sm of new lettable office space in the CBD over the next three years; Melbourne Convention and Exhibition Centre’s status as Australia’s largest convention space; strong domestic and international tourist arrivals; Melbourne’s curfew-free airport status, and the attraction of the ‘best of the best events (many exclusive to our city).

Melbourne Supply

 Melbourne development activity has surged in the past 12 months, with a large movement of proposed hotel projects into construction phase.

- As a result, Melbourne currently holds the “mantle of the largest live pipeline (of new rooms) of all capital cities.”6

 Dransfield’s supply forecast reflects expectations that 12,100 rooms will enter the market over the next nine years (to FY 2027), “at an average annual growth rate of 4.7 per cent.”7

- Melbourne’s live pipeline (recently completed, under construction and proposed) has increased from 45 to 70 projects, with 25 projects currently under construction (Ibid).

- All classes of new hotel stock are well represented in these projects. This increases the need for older stock to be refurbished, to remain competitive.

 Occupancy levels are expected to “slightly depress through the height of (new) supply arrivals,” but will be “largely upheld” through commensurate increases in demand drivers, resulting in expectations that Melbourne occupancies will “return to current levels at the back end of the forecast” (to FY2027)8

- Occupancies are expected to average 82 per cent over the forecast period, while rate growth expectations averaging 2.7 per cent are expected, when factoring in “additional supply pressures and anticipated operator reaction” (Ibid)

 RevPAR growth is expected to fluctuate over the forecasted period, with “full forecast expectations to FY2027 for a 2.8 per cent growth, per annum.”

6 Dransfield 2019, p. 14 7 Dransfield 2019, p. 47 8 Dransfield 2019, p. 48 Tourism Accommodation Australia (Victoria) 4

- FY2019 – Expectation to maintain prior year’s RevPAR, “with rate growth offsetting a slight occupancy reduction”

- In the medium term (to FY2021), RevPAR growth is expected to be “restrained averaging 0.8 per cent, per annum, as (new) supply impacts occupancy and discounting behaviour emerges.” This “subdued performance” is likely to persist to FY2024, as the “supply pipeline rounds off.”

- A longer term ‘recovery’ in RevPAR growth is expected, as “a window of supply stagnation” caps projects that will be delivered, approaching the end of the forecast period in FY 2027 (Ibid).

 “Supply significantly reduces compression and slows rate growth”

- The number of busy nights for Melbourne (in excess of 90 per cent occupancy) has reduced from 112 in 2015 to 89 in 2018, resulting in a two percentage point differential in Average Daily Rate Premium (33 per cent in 2018 and 31 per cent in 2018).9

 STR’s projections reflect Melbourne’s under contract pipeline of new rooms reflects the following additional supply, over the next five years:

- 2,300 in 2019 - 3,800 in 2020 - 2,400 in 2021 - 1,700 in 2022 - 1,000 in 2023

 By 2023, Melbourne will only have 1,700 rooms less than Sydney, at circa 47,300. (Ibid).

Travel trends

 Falling corporate and leisure passenger numbers, higher fuel costs, the low Australian dollar and reduced consumer confidence are hurting the travel and aviation sectors10

9 An Insider’s look to Australian accommodation performance, STR, May 2019 10 Dark skies ahead for travel, airlines and airports, AFR, May 24, 2019 Tourism Accommodation Australia (Victoria) 5

- The three month average growth in traffic numbers for international passengers and Australian residents is now falling, compared with consistent growth of 4-5 per cent in recent years (Ibid).

- Melbourne Airport CEO, Lyell Strambi “admitted fuel prices and geopolitical forces (US China trade war and Brexit) are hurting the industry”, but warned against taking a “whole of market (negative) view,” when claiming there are “opportunities amid the gloom” (Ibid).

Construction

 Weak off-the-plan apartment sales and worsening market conditions have resulted in a number of major apartment projects being “shelved or converted into offices, student housing or hotel projects, after not achieving sufficient sales results.” Apartment valuations have also been adversely impacted.11

- The ‘’ will be the tallest residential building in the Southern Hemisphere, with 88 per cent (971) of the 1,103 apartments in the 101-level Southbank tower (currently under construction) having been sold. This figure is down on the 1,081 apartment sales reported in September 2017, “indicating a high (contract) cancellation rate of more than 10 per cent” (Ibid).

 Historically high rates of new supply for Melbourne’s student accommodation market, with 13,000 beds to be built in Melbourne over the next four years (representing 46 per cent of the current student accommodation pipeline), will not be enough to meet burgeoning demand from domestic and international students

- Accounting for this new stock of student accommodation, Melbourne “will still have the biggest deficit (in required beds) in 2022, with 5.2 international students, per bed.”

- Overseas investors are starting to recognise growth opportunities in this undersupplied market, with “keen interest coming from European pension funds, Asian capital and Middle Eastern sovereign wealth funds”(Ibid).

11 10 per cent cancellation rate: Australia 108 sales going backwards, AFR, June 11, 2019 Tourism Accommodation Australia (Victoria) 6

Key International Visitor Trends

International Tourism into Australia

(All figures stated derived from March 2019 Quarterly Results of the Tourism Research Australia International Visitor Survey)

 International visitor arrivals, 8,534,294 (up by 2.68 per cent)  International visitor nights, 270,672,359 (up 0.82 per cent)  International visitor expenditure, $44.34b (up by 5.30 per cent)

 China remained Australia’s leading tourism market, with arrivals increasing by 3 per cent to 1.3 million visitors, while trip spend increased by 10 per cent to reach $1.2b.

 Other Asian markets reflect declines in visitor arrivals and visitor nights spent in Australia (note graph below).

- The exception being arrivals from India, that reflect double digit growth in visitation and visitor spend, making it Australia’s fastest growing market. Indian visitors’ average spend per night is significantly less than other guests ($81), however their average stay is significantly longer, at 61 nights.

- This growth is currently constrained by the lack of direct flights between Melbourne and India, increased frequency of same a current priority for Melbourne Airport executives.

- Currently, Air India operates three services per week between Delhi- Melbourne, with aforesaid executives keen to increase this frequency to daily services, given the market’s untapped growth potential.

Visitor Average Key Market Visitors Annual Annual Nights Expenditure Synopsis ('000) Growth Growth ('000) per Night (AUD) China 1,329 2.59% 56,983 4.25% 210 New Zealand 1,262 1.73% 12,900 -0.23% 200 United States of America 750 -0.32% 13,074 -7.89% 305 United Kingdom 673 -3.91% 21,385 -6.16% 157 Japan 438 8.59% 10,667 -3.02% 185 Singapore 393 2.61% 5,826 0.32% 259 Malaysia 350 -1.42% 7,755 -10.80% 168 India 343 14.62% 20,926 20.87% 81 Hong Kong 272 -1.39% 6,282 -12.44% 201 Korea 263 -5.24% 9,670 -14.15% 154 International Visitor Trends: Key Market Synopsis Tourism Accommodation Australia (Victoria) 7

Averages for International Visitors by Key Markets, also make for interesting reading:

Average Average Nights Trip Average Expenditure Country Stayed Expenditure Per Night United States of 17.4 $5306.15 $304.57 America Singapore 14.8 $3842.13 $259.31 China 42.9 $9005.48 $210.04 Hong Kong 23.1 $4655.60 $201.21 New Zealand 10.2 $2042.46 $199.87 Japan 24.4 $4500.37 $184.61 Malaysia 22.2 $3727.23 $168.12 United Kingdom 31.8 $4975.61 $156.59 Korea 36.8 $5667.57 $154.18 India 61.1 $4933.02 $80.78 Australia total 31.7 $5195.28 $163.81 Averages for International Visitors by Key Markets

 Taiwan is a growth market, with a 6 per cent increase in visitors to 185,000, a 10 per cent increase in visitor nights, to 10.422m and a 13 per cent increase in trip expenditure to $1b.

International Tourism to Victoria

 Melbourne ranked second on nights spent in hotels, motels and resorts (HM&R) by international visitors across Australian capital cities (YE. March 2019) at 6.11m (up by 2.93 per cent).

- Of the circa 22.17m nights spent in HM&R in major Australian capital cities, 14.61m of these (66 per cent) were in either Sydney (8.50m) or Melbourne (6.11m)

- Melbourne (+2.93 per cent), Perth (+8.95 per cent) and Canberra (+30.51 per cent) were the only capital cities that experienced growth in year on year comparisons.

 Performance for HMR in regional Victoria reflected a growth in nights spent by international visitors at 686,473 nights (up 7.67 per cent).

- It is worth noting that this result was a distant third, behind Queensland (3.169m nights) and New South Wales (1.161m nights).

Tourism Accommodation Australia (Victoria) 8

- When considering the aforementioned results for international visitor arrivals to major capital cities, and the dominance of Melbourne and Sydney in these results, there appears to be a significant opportunity for dispersal of international visitors into regional Victoria.

 Visitor nights spent in unregulated accommodation increased by 63.1 per cent, across Australia, from Y.E. March 2018 to Y.E. March 2019.

- Over the same period, nights spent in HM&R increased by 39.9 per cent.

- Appreciating that nights spent by international tourists in unregulated accommodation includes stays in private accommodation this result still reflects a significant increase in their use of unregulated vs. hotel accommodation, given there has only been an increase of circa 3,000 nights spent by guests for the purpose of visiting friends and relatives.

 A full breakdown of TAA’s summary of Tourism Research Australia’s (most recently available) International Visitors In Australia: March 2019 Quarterly Results of the International Visitor Survey can be accessed by clicking on the link below:

TAA Summary: International Tourism Report – Overview of Accommodation Performance

Domestic Tourism in Australia

(All figures stated derived from March 2019 Quarterly Results of the Tourism Research Australia National Visitor Survey. These figures were released in July 2019.)

 Domestic overnight visitors, 109,050,644 (up by 10.08 per cent)  Domestic visitor nights, 386,161,722 (up 9.79 per cent)  Domestic visitor expenditure, $74.549b (up by 14.25 per cent)  Average domestic trip expenditure, $683.62 (up by 3.78 per cent).

 Over half of the Domestic Trip Expenditure figure recorded for Australia, reflects spending that occurred in regional areas (at nearly $38b)

- Though trip numbers continue to increase, the average duration of trips taken has fallen by eight per cent, since 2009 to 3.5 days.

 Over a quarter of all domestic overnight visitors came to Victoria (27.83m and 25.5 per cent), reflecting the biggest percentage growth of all Australian states and territories (March 2019 vs. March 2018).

Tourism Accommodation Australia (Victoria) 9

- However, just over 20 per cent of all domestic visitor nights across Australia were spent in Victoria (97.05m and 20.4 per cent).

- The average length of stay, for domestic visitors into Victoria is the second lowest in Australia, likely reflecting a reason for this statistic:

State/Territory NSW QLD VIC WA SA TAS NT ACT

Nights 111,371 97,052 78,965 44,223 24,914 12,576 9,663 7,386

Avge. Length 3.13 3.95 2.83 4.35 3.57 4.03 5.85 2.52 of Stay (nights)

Visitor length of stay by state: YE: March 2019

Total Domestic Visitors

Table: Domestic Overnight Visitors – Y.E. March 2019 vs. March 2018

Tourism Accommodation Australia (Victoria) 10

Total Domestic Visitor Nights

Table: Domestic Visitor Nights – Y.E. March 2019 vs. March 2018

Nights spent in hotels, motels and resorts

 Melbourne again ranked first for nights spent in hotels, motels and resorts (H,M&R) by domestic visitors (11.95m) and had the third largest rate of growth, year on year, (up 16.31 per cent), behind Perth (up 17.9 per cent) and Sydney (up 17.66 per cent).

 Nights spent across all accommodation categories in Melbourne reflected growth of 14.68 per cent at 29.68m.

 Regional Victoria ranked a distant third for nights spent by domestic visitors in H,M&R across Australia, (7.47m nights, a 4.17 per cent growth), behind New South Wales (16.13m nights, a decline of 0.84 per cent) and Queensland 15.55m, an impressive 18.45 per cent growth.

 Nights spent in all accommodation categories across regional Victoria (YE. March 2019 vs. YE. March 2018) reflected growth of 11.36 per cent, to 49.29m).

 A full breakdown of TAA’ summary of Tourism Research Australia’s (most recently available) Travel by Australians: March 2019 Quarterly Results of the National Visitor Survey can be accessed by clicking on the link below:

TAA Domestic Tourism Report: Overview of Accommodation Performance

Tourism Accommodation Australia (Victoria) 11

Demand Drivers

Australian Domestic Capital City Forecasts

 Overnight business travel is expected to grow at the fastest pace over the long term (to FY2027) at 4.2 per cent, per annum to 96m nights).

- Although larger, the visiting friends and relatives (VFR) and holiday markets are expected to grow at a slower pace, at 1.9 per cent, per annum to 125m nights for VFR and 1.5 per cent, per annum to 170m for holiday travellers12

 Melbourne Convention Bureau generated over $500m of economic contribution for the Victorian economy for events secured in the 2018/19 financial year.

- This result reflects that business events are the highest yielding sector of Victoria’s visitor economy and reinforces the economic opportunity that international business events provide.13

- Click on the following link to view forthcoming business events scheduled at the Melbourne Convention and Exhibition Centre for the 2019/20 financial year

 “Events are driving more demand than before, but supply additions may give a perception that occupancy isn’t as strong,” therefore rates are adjusted. “Home rentals have (also) grown as an alternative option.14”

 Melbourne is experiencing “very strong demand for office investments, in the nation’s tightest CBD office market.”

 “Melbourne is now the tightest CBD office market in the nation, with an office vacancy rate of 3.2 per cent and net face rents forecast to go up by a further nine per cent by the end of 2019.”15

 The importance of the development of new attractions to drive visitation will be enhanced by the announcement that Victoria’s Budj Bim Cultural Landscape, along the Great Ocean Road, has been recognised on the UNESCO World Heritage List

12 Dransfield 2019: p. 16 13 Melbourne Convention Bureau Update: June 2019 14 An Insider’s look to Australian accommodation performance, STR, May 2019 15 Melbourne office market to balloon 10 per cent by 2021, Commercial Real Estate, May 31, 2019 Tourism Accommodation Australia (Victoria) 12

- This follows a commitment of $13m from the Victorian Government “to implement the Budj Bim Master Plan, to support tourism infrastructure projects.”

- The Master Plan “outlines visitor targets, with the ultimate goal of attracting more than 150,000 annual visitors in 10-25 years.”16

Major Stakeholders

Airbnb

 Airbnb has signed a strategic partnership with Australian property and guest management company Made Comfy ensuring that all properties that Made Comfy manages, for stays of under 30 days, will be exclusively available on the Airbnb booking platform.17

 The “Airbnb Country Pub Project” is a recently announced joint initiative between the New South Wales Government and Airbnb that aims to provide “assistance to regional communities looking to attract tourism to the area.”

- The project invites people to “nominate their favourite country pub to receive a grant of up to $50,000 to help revive and promote the venue.18”

Hyatt Hotels Corporation

 Hyatt Hotels Corporation has revealed that the group has 21 hotels and resorts planned to open in the Asia Pacific region, by the end of 2020.

- The expansion will reflect seven Park Hyatt branded properties, six each under the Grand Hyatt and Andaz brands and two Alila resorts, boosting their portfolio in the region by 25 per cent

- The majority of openings scheduled for 2019 and 2020 are in the Middle East and Asia, save for the Park Hyatt Auckland, expected to open by November19.

Accor

 Accor’s first quarter 2019 financial performance reflected “an 8.8 per cent rise to $1.57b and a 1.6 per cent in group RevPAR globally”20

16 Visit Victoria celebrates Budj Bim on UNESCO World Heritage List, 7 July 2019 17 Airbnb gets MadeComfy with local start up, AFR, April 29, 2019 18 Airbnb launches new initiative to bolster regional pubs, The Daily Liberal, June 19, 2019 19 Hyatt Hotels Corporation to add 21 luxury hotels in Asia Pacific by 2020, HM, 8 July, 2019 20 Hotel giant names Australia its weakest market worldwide, AccomNews, 28 April, 2019 Tourism Accommodation Australia (Victoria) 13

- However, Australian RevPAR fell 1.6 per cent, in the three months to March, with the group citing “an oversupply in major cities and the upcoming general election” for adversely impacting pricing and occupancy levels (Ibid).

Expedia

 A recent Expedia survey determined that “price and guest weightings carry more weight than brand value, as key attributes to hotel property selection” - Price is, by far, “the most influential driver of hotel selection, as consumers prioritise value above all else, when allocating their travel budgets.”

- Guest ratings have a strong influence on choice too, with consumers willing to pay more for a hotel with a higher guest rating.

- A recent review of over 95,000 reviews and ratings by Cornell University found that friendly service; bed quality to ensure a good night’s sleep; a clean and well-functioning room and “an excellent breakfast remains central to customer satisfaction.”21

New Projects Announced

Melbourne

 The first new hotel for Melbourne Airport in 20 years will come in the form of the 464-room dual branded Ibis Style/Novotel, near terminal four property.

- The hotel will be the central feature of a new precinct called ‘The Hive’ – that will also include 10,000sm of office space, bar, restaurant and conference facilities, and a child care centre.22

 An agreement struck between the City of Melbourne and PDG Corporation will see a boutique hotel constructed in Southbank at 132 Kavanagh Street.

- Construction of a mixed use facility will see a 32 storey complex built, that will contain a hotel, 176 apartments and 40 affordable housing units, plus shops and community facilities. Construction is expected to commence in late 2020, with completion of the 110m tower development expected in 2022.23

 Hilton Melbourne Square will also boost hotel construction activity in Southbank.

21 Price trumps brand in hotel choice: Expedia survey, HM, May 15, 2019 22 Melbourne Airport hotel gets go-ahead, AFR Jun 30, 2019 23 Accom developments changing face of inner city Melbourne, AccomNews, 11 July, 2019 Tourism Accommodation Australia (Victoria) 14

- The 600 room hotel will be constructed on the corner of Power and Kavanagh Streets, as part of a $2.8b mixed use development, comprising residential, commercial, retail and open parkland.24

- Hilton Melbourne Square is earmarked as a “major meetings and events hotel,” with 2,800sqm of event space, joining Hilton’s recently announced property at Hilton Melbourne Little Queen Street (Ibid).

- DoubleTree by Hilton Melbourne has also recently launched seven new luxury hotel rooms (including three loft-style suites) on Level 14 of the hotel, a space previously utilised as a private penthouse.25

 A 20-storey mixed use tower to be built in Dandenong, at a cost of $67m, will house Australia’s newest Oakwood branded hotel (the second in Australia). - The tower will include 98 hotel rooms and 56 residential apartments, in a building that will become the tallest in the region.26

 Zagame’s House Melbourne (formerly Quality Hotel Downtowner on Lygon) has recently benefited from a report $18m transformation, that includes significantly enhanced room fitouts, with custom furniture, luxury décor and acoustically panelled walls “for optimum privacy and ambience.”

- “Generous bathrooms feature modern matt black hardware, alongside custom lit circular mirrors that feature multiple illumination settings.”

- A wine shop and bar “Lord Lygon” features a tapas and drinks menu “that champions locally based farmers, distillers and producers.27”

 Lancemore Group are touting an as yet unnamed new acquisition of a 113 room property in “the Paris end of Melbourne, in the heart of the theatre district, which will be relaunched in late November/early December.28”

 Nightcap branded hotels have opened at 41 locations, nationwide (seven across metropolitan Melbourne), in the past 12 months.

24 New signing Hilton Melbourne Square hotel to open in 2023, The Hotel Conversation, June 3, 2019 25 DoubleTree by Hilton unveils lux new addition, Travel Weekly, May 28, 2019 26 Multi-million-dollar investments dominate accom news, AccomNews, May 12, 2019 27 New hotels opening in Melbourne and Brisbane, Travel Monitor, 19 March 2019 28 The Lancemore Group: LinkedIn page, 15 July 2019 Tourism Accommodation Australia (Victoria) 15

- Nightcap Hotels operate as part of the Australian Leisure and Hospitality (ALH) Group’s portfolio of over 330 venues, located across the country.

- Nightcap’s business model reflects an all-inclusive offer, that incorporates ALH’s adjacent bistros, bars and restaurants29

 Quality Hotel Batman’s Hill on Collins recently completed a renovation of “all 85 of its standard rooms, following a $1.75m renovation project that was completed over six months.”30

- Further building upgrades are scheduled to continue from mid-2020 (Ibid).

Regional Victoria

 The Ritz Geelong Apartment Hotel features 127 short stay apartments that rise above Geelong’s 166 year old Ritz Hotel on Bellerine Street in the central business district.

- The project is being developed by Melbourne-based company, Integrated Development Solutions (Phillip Petch), having received private project funding from Monark Property Partners (Liberman family)31

29 ALH Group celebrates Nightcap Hotels opening 41 locations in first year, Mirage News, May 28, 2019 30 Quality Hotel Batman’s Hill unveils new refurbishment, The Hotel Conversation, June 5, 2019 31 Apartment hotel offers investors 6-8 pc returns, AFR, May 22, 2019 Tourism Accommodation Australia (Victoria) 16

DEVELOPMENT SUMMARY

New hotel openings since March 2014

Star Date Hotel Hotel Suburb Rooms Hotel Group Rating Opened Element Melbourne Richmond Richmond 168 4.5 Marriott June 2019 Mantra Epping Epping 214 4.5 Accor May 2019 Shadow Play by Peppers Southbank 70 4 Mantra Mid-April 2019 Quest New Quay Docklands 221 4 Quest February 2019 Quest St Kilda Road Melbourne 104 4 Quest March 2019 Sebel Melbourne Malvern Malvern 98 4.5 Accor Hotels December 2018 Novotel and ibis Melbourne Central Melbourne 483 4.5 Accor Hotels November 2018 United Places – Botanic Gardens South Yarra 12 5 Home Hotel August 2018 Quest Epping – Cooper Street Epping 96 4 Quest July 2018 AVANI Hotel – 60 A’Beckett St Melbourne 120 4 Minor Hotels June 2018 Novotel Melbourne South Wharf Southbank 347 4 Novotel March 2018 Tyrian Serviced Apartments Albert Park 85 5 Tyrian January 2018 Gerry and Mitchelton Winery Estate Ngambie 58 5 December 2017 Andrew Ryan The Chen – An Arts Series Hotel Box Hill 100 5 Mantra November 2017 Sage Hotel Ringwood 120 4.5 Silver Needle October 2017 Essendon Hyatt Hotels Hyatt Place 166 4 June 2017 Fields and Resorts Jackalope Hotel Willow Creek Merricks Jackalope 46 5 March 2017 Vineyard North Hotels Starwood Four Points by Sheraton Melbourne Docklands 273 4 Hotels and March 2017 Resorts Imagine Hotels Imagine Marco Southbank 176 4 January 2017 and Resorts Sebel Melbourne Moorabbin Moorabbin 120 4.5 Accor Hotels January 2017 QT Hotels & QT Melbourne Melbourne 188 September 2016 5 resorts Punthill North Apartments Melbourne 130 4 Punthill Group August 2016

Quest Dandenong Central Dandenong 95 4 Quest August 2016 Oaks Southbank Southbank 70 4 Oaks Group July 2016 Peppers Docklands – M Docklands Docklands 87 4.5 Mantra January 2016 Oaks Pinnacle South Yarra 41 4.5 Oaks December 2014 Larwill Hotel (Art Series) Parkville 100 4.5 Arts Series December 2014 Wyndham on William Melbourne Melbourne 87 4.5 Wyndham November 2014 Brady Hotel Melbourne 146 4 Brady Hotels October 2014 Quest Melbourne Airport Tullamarine 96 4 Quest October 2014

Tourism Accommodation Australia (Victoria) 17

South The Coppersmith 15 4.5 Bagios Group July 2014 Melbourne Sheraton Melbourne Melbourne 174 5 Sheraton March 2014 Total 4,306

MELBOURNE NEW OPENINGS (Under Construction, Proposed, Approved)

Under construction

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

Shangri-La Melbourne 300 plus $640M SP Under 2022 288-326 Exhibition Street (overlooking residential twin Setia (Malaysian construction Carlton tower /designers Cox (site clearing Gardens - project and Fender works) Telstra’s Katsalidis Exhibition Street site)

Hilton Melbourne Little Queen Melbourne 244 Unknown Multiplex Hilton Construction Late 2019 Street M&LHospitality commenced Equity Chambers (Singapore) Cnr Bourke and Little Queen Streets

Voco Melbourne Central Melbourne 252 $500M Brady Property IHG Commenced Mar 2020 Group 2018 Brady Group 380 Londsdale Street

W Hotel 294 $2.20 B CBUS/Daisho W Hotel Under 2020 435 Collins Street Melbourne (Starwood) Construction

Vibe Hotel Melbourne Melbourne 204 Singaporean TFE Hotels Under Late 2019 1-5 Queen Street Well Smart construction (old Fletcher Jones showrooms) Investment Holding

Brady Hotels Melbourne 150 hotel Urbis Brady Group Under Complete- 109-115 Little Lonsdale Street rooms (22 Peddle Thorp construction Q2, 2019 floor high Architects rise)

LinQ South 162 hotel Maxcon Next Story Construction September 167 City Road Melbourne suites Group near completion 2019

Tourism Accommodation Australia (Victoria) 18

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

Holiday Inn Express (Pod Room Southbank 345 $25 M Pro-invest EVEN hotel Under Early 2020 Hotel) construction 35 City Road Southbank

Adina Grand Apartment Hotel West 92 Trenerry TFE Hotels Under 2019 West End Melbourne Melbourne Property construction (former Australia Post site, next to Festival Hall)

UniLodge – student Melbourne 198 hotel Greenfort Under 2020 accommodation rooms, 383 Capital construction 478 – 488 Elizabeth Street dwellings

Adina Apartment Hotel Southbank 220 serviced Developers Adina Hotels Under 2019 Southbank apartments Hume Partners construction 55 Southbank Boulevard Property and BATESSMART

PM Port Melbourne Port 336 PM Group Registration and 320 Plummer Street Melbourne dwellings, sales – under (Apartment Hotel) 200 serviced construction apartments Total 2,797

Approved

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

Veriu Queen Victoria Market West 111 $450 PDG Veriu Confirmed Late-2022 (Munro site) Melbourne (mixed use)

Courtyard by Marriott Hotel West 150 Ousia Properties Marriott Planning 2021 Melbourne Pty Ltd assessment

St Regis Hotels & Resorts Melbourne 168 Part of Century Group Marriott Planning 2022 Cnr Spencer and Flinders Street $800m Aus International build

Seafarers Place Melbourne 280 hotel $450m Riverlee - TBC Approved Build Northbank Goods Shed rooms and Melbourne commence 150 – mid 2019 apartments Southbank Queensbridge Tower Southbank 188 room $420m Sheng Le Group TBC Ministerial 2023 87 – 127 Queensbridge Street hotel planning 733 approval apartments confirmed

Tourism Accommodation Australia (Victoria) 19

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

Marriott Docklands 200 hotel $200m Capital Alliance Marriott Approved – Mid-2020 Harbour Town Shopping Centre Docklands rooms, 110 construction (build above) apartments commencing Waterfront Way mid-2018

Fragrance Group 173 hotel Fragrance Group Approved 539-557 Collins Street ( 555 Melbourne rooms Collins Street) 780 apartments

Hotel Indigo Docklands 305 Salta Properties IHG Approved TBC 695-699 Latrobe Street apartments Deluxe 5-star brand and 170 hotel rooms

AC Melbourne Southbank Hotel Fishermans 200 Capital Alliance Marriott Agreement 2020 by Marriott Bend, near signed 199 Normanby Road Southbank

Holiday Inn and Hotel Indigo Melbourne 453 Focus Ventures IHG Deal signed 2023 (co-branded) (272 Holiday The Walk Arcade – Bourke St to Inn and 181 Little Collins Street Hotel Indigo)

Hyatt Centric Melbourne 280 $150m Little Projects Hyatt Hotels Deal signed 2020 9-27 Downie Street (off Flinders Corporation Lane)

Marriott Executive Apartments Melbourne 176 serviced $360m Woodlink IHG 424 – 426 St Kilda Road, apartments mixed Designed by 163 use Bates Smart residential developm apartments ent

Mandarin Oriental Hotel Group Melbourne 196 $700m Landream Mandarin Management 2023 586-606 Collins Street tower (China) Oriental agreement signed

The Ritz Carlton Melbourne 263 Unknown Far East Ritz Carlton Approved 2020 79 stories Consortium 250 Spencer Street including 2,600 apartments

Aero Apartments Melbourne 19 levels, 174 Guangdong Approved 41-49 Bank Street apartments Carrington RE 88 proposed Mixed use hotel rooms development

Le Meridien Melbourne 230 rooms $100 M Sinclair Brook/ Approved – site Expected The Palace Theatre Jinshan Marriott - Le works expected to open in 30 Bourke Street Investments Meridien brand to commence in late 2020 early 2019 Sofitel SO Melbourne 210 $450 M MIT Australia Accor Approved 2023 Queen Victoria Market (twin towers)

Tourism Accommodation Australia (Victoria) 20

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

Corner of William and Franklin Street 386-412 William Street (City Mazda)

Premier Tower Melbourne 160 hotel Singaporean TBC Approved 2020 (Old Savoy Tavern site) rooms, 660 developer 134 Spencer Street apartments Fragrance Group (Cnr Bourke & Spencer Street)

Holiday Inn Express Melbourne 299 $30 M Pro-invest Approved 2020 595-599 Little Collins Street Group

Tune Hotels Melbourne $18.5M Tune Hotels Approved 540 Flinders Street

383 La Trobe Street Melbourne 488 Sterling Global Approved 2020 (currently an Australian Federal apartments Police office) and 196 hotel rooms 180 Russell Street (was Total Car Melbourne 200 AXF Property So Stay Approved Park) Group serviced apartment Hotel Lindrum Melbourne 77 TMG Approved 26 Flinders Street. Developments (high-rise tower) Pty

Shama Luxe Aurora Melbourne 252 serviced $770 M Singapore- Onyx Approved 2020 Melbourne Central Central apartments based Ascendas 224 La Trobe Street (92 storey) Hospitality Trust Mixed use (A-HTRUST)

Hilton Melbourne Square South 600 hotel $2.8b OSK Property Hilton Approved 2023 93-199 Kavanagh Street Melbourne rooms, 2,610 dwellings Ovolo South Melbourne Hotel South 80 $50 M Perri Projects Ovolo Approved 2020 Moray / Dorcas Street Melbourne 183-199 Moray Street

One Melbourne Quarter 250 Golden Age JV Starwood Planning 2021 85 Spring Street Melbourne Starwood Capital

63 Exhibition Street Melbourne 185 hotel Salta Approved 2023 (ASF House) rooms (119 dwellings) Total 5.659

Tourism Accommodation Australia (Victoria) 21

Proposed

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

Meriton Suites Apartment Hotel Melbourne 263 $29m Not allocated Meriton Requests for TBC 140 King Street apartments tenders soon (57 storey)

190 Little Collins Street Melbourne 184 rooms $35m Golden Age Not appointed Planning TBC (Uniting Church site) (recently Group (approved) sold)

Queensbridge Tower 388 hotel $2.0B Crown and JV Crown and Extension to TBC Crown Southbank Melbourne rooms and Schiavello Schiavello construction 1-7 Queensbridge Street 667 Includes Group start time 6 star property apartments upgrade of 87 recently denied (323m high) Square and by Victorian (non-gaming) Sandridge Rail Government Bridge

Tribe Hotels Collingwood TBC TBC Salta Properties Tribe Hotels Planning TBC 60-88 Langridge Street (acquired by (Site purchase Accor) completed)

PARKROYAL Melbourne Docklands 266 suite, 4.5 300M Digital Harbour Not Under TBC (Altus hotel and apartment) star hotel Holdings PPHG Construction as 238 Harbour Esplanade yet. Development pending

Quincy Hotel Melbourne 241 Sold for BPM - Developer TBC Permit approved (debut of brand for TFE Hotels in (30 levels, $91.3m looking to sell, Australia) café and to Indian off the plan rooftop bar) billionaire Corner King St and Flinders Lane - Kapil Maxcon (builder) (33 King Street, near Southern and Cross Station) Rahul Bhatia (InterGl- obe)

Hotel tower project Melbourne 130 TBA – BPM To be Site has been 2023 9-11 Exploration Lane (34 stories) sale price Corporation appointed cleared, ready expected (selling) (Development for construction. circa approval Final sale $50m expires end- negotiation 2019) underway

Taper Melbourne 144 (serviced $36.6 M Artemis Hotel Proposed 97-105 Franklin Street apartments) Group

Jackalope Hotel Melbourne 32 $11.4M Jackalope Planning 2019 Maria George Building Hotel assessment 175 Flinders Lane Melbourne

Tourism Accommodation Australia (Victoria) 22

EST. STAGE OF PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR DEVELOPMENT

NEXT Hotel Melbourne 255 $110 Queens and Silver Needle Construction not Estimated Investment operate under yet commenced completion 80 Collins Street Corporation Next Brand in 2020 (located Le Louvre building (QIC)

The Hotel Windsor Melbourne 100 $300 M Halim Group Delayed Not before 111 Spring Street 27-storey Builder- Built and Japan’s 2021 tower Obayashi Designer - Denton Corker Marshall

63 City Road Southbank 270 Cornerstone TBC Proposed 2021

Marvel Stadium Hotel Docklands 200 Australian TBC Proposed 2023 Football League

274-278 Lonsdale Street Melbourne 181 TBC TBC Proposed 2023

422 Little Collins Melbourne 250 Dilato TBC Proposed 2023 Investments

22 – 24 Benetts Lane Parliament 44 Aust Global TBC Proposed 2023 Investments

258 City Road Southbank 130 Altus Pan Pacific Proposed 2023 Development

Total 3,078

Tourism Accommodation Australia (Victoria) 23

SUBURBAN HOTELS (Under Construction, Proposed, Approved)

STAGE OF PROJECT CITY ROOMS EST. COST DEVELOPER GROUP YEAR DEVELOPMENT

Oakwood Hotel Dandenong 98 Unknown Barnes Oakwood Announced May n/a Capital 2019

Holiday Inn & Suites Dandenong 160 Unknown PE Capital IHG Announced March 2021 2019

Novotel/Ibis Styles Melbourne 464 $150m Australian Accor Hotels Management 2020 Airport Pacific agreement signed. (joint branded with shared BOH Airports Construction soon facilities) Corporation to commence

Mantra M-City Clayton 250 room $1b mixed JV – Accor Deal signed with Late-2020 hotel and use Saracenco Accor 180 development Group and Mantra- Schiavello managed serviced apartments

Hyatt Place Springvale 200 $50m PE Capital Hyatt Hotels Deal signed. Final August Corporation planning approvals 2020 pending

Mercure Melbourne Doncaster Doncaster 190 (six Accord Accor Deal announced 2021 (Shopping- stories. Property town) Retail on Group ground)

MGallery by Sofitel Chadstone 250 $660M Vicinity Under November Chadstone Shopping Centre Centres construction 2019

Quest (mixed use) development Preston 44 rooms Pellicano Quest Proposed/Planning 518 – 528 High Street, Preston + 21 Group apartments and retail

Holiday Inn Coburg 150 Barnes IHG Planning 2020 737 Sydney Road Capital (Architects: Hachem)

Adina Apartment Hotel Coburg 120 TFE Hotels Planning 2020 Pentridge Prison in Coburg

Hume X Craigieburn 256 1.7 B JTX Permit approved Estimated 650 Hume Highway (retail dev) International 2018

Tourism Accommodation Australia (Victoria) 24

STAGE OF PROJECT CITY ROOMS EST. COST DEVELOPER GROUP YEAR DEVELOPMENT

Hotel & serviced apartments

230 Toorak Road South Yarra Permit for $9.2 M Poulakis Argo Group Approved South Yarra 93 hotel family & suites BAM venture approved capital

35-41 Claremont Street South Yarra 294 room LK Property Change of use Delayed hotel Group application tower (residential to hotel)

Aloft Melbourne South 176 Spotlight Starwood Planning Delayed 402 Chapel Street Yarra. Group Hotels & Holdings Resorts

Hyatt Centric South Yarra 150 Alfasi Hyatt Planning 2-10 River Street in South Yarra Property 4.5 star Development Total 3,075

REGIONAL HOTELS (Under Construction, Proposed, Approved)

EST. STAGE OF PROJECT CITY ROOMS DEVELOPER GROUP YEAR COST DEVELOPMENT

Pellicano/Quest – Ballarat Station Ballarat 77 (part of Pellicano Quest Deal signed 2020 mixed use Group redevelop - ment)

Voco Yarra Valley 170 rooms Barnes Capital IHG Planning 2021 and 20 – Martyn individual Barnes cabins

Holiday Inn and Suites Geelong 190 $150m Franze IHG Development 2020 44 Ryrie Street mixed Developments approval use granted

The Sebel Yarrawonga Yarrawonga 120 Lotus Living as Accor Construction Expected a strata title commenced opening – investment early 2020

Tourism Accommodation Australia (Victoria) 25

EST. STAGE OF PROJECT CITY ROOMS DEVELOPER GROUP YEAR COST DEVELOPMENT

Holiday Inn Werribee Werribee 150 Pelligra Group InterContinental Approved 2020 and Citinova Hotel Group

Sorrento’s Continental Hotel Sorrento 38 Steller – Joint venture Permits Redevelop wellness with Julian approved ment centre, pub Gerner postponed and rooms – end April proposed 2019 Total 765

Tourism Accommodation Australia (Victoria) 26

NEW HOTEL OPENINGS OVER THE PAST 12 YEARS

EST. PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR

Alto Hotel on Bourke Melbourne 50 2006

Urban Central Southbank 393 2006

City Garden Hotel Melbourne 63 2007

Causeway Hotel Melbourne 142 2008

The Great Southern Hotel Melbourne 2009 (Hotel Enterprize)

Atlantis Hotel & Tower Melbourne 205 2009

Citadines on Bourke Melbourne Melbourne 380 June 2010

Quality Hotel Batman's Hill Docklands 2010 (refurbished) Crown Metropol Hotel Southbank 658 2010

Mint Apartments (now Mantra) Melbourne 145 2011 568 St Kilda Road

Travelodge Hotel Docklands 290 2011

Oaks on Williams Melbourne 220 Jul 2013 Sebel The Quays Docklands Docklands 96 Jul 2013 Tune Hotel Carlton 235 2013

Hotel Sophia Extension Melbourne 2014 The Coppersmith South 15 Bagios Group Jul 435 Clarendon St Melbourne 2014

Sheraton Melbourne Melbourne 174 Sheraton Mar 27 Little Collins Street 2014

Brady Hotel Melbourne 146 Brandy Hotels Brady Hotels Oct 30 Little Latrobe Street 2014

Quest Melbourne Airport Tullamarine 96 Quest Oct 2014

Wyndham on William Melbourne Melbourne 87 Wyndham Nov 2014

Tourism Accommodation Australia (Victoria) 27

EST. PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR

Oaks Pinnacle South Yarra 41 Oaks Dec 2014

Larwill Hotel (Art Series) Parkville 100 Arts Series Dec 2014 231 Sturt Street Southbank 200 Feb 2015 Adina Apartments St Kilda Additional TFE 2015 Fitzroy Street 8 ap’t to the roof Peppers Docklands – M Docklands Docklands 87 $140 M Capital Mantra Feb 677 La Trobe Street Alliance 2016

Oaks Southbank Southbank 70 OAKS July 2016 57-61 City Road currently Group open Punthill North Apartments 4 Punthill Melbourne 130 August 2016 Group

QT Melbourne QT Hotels September Melbourne 188 5 & resorts 2016

Imagine Imagine Marco Southbank 176 Hotels & January 2017 Resorts

Four Points by Sheraton – Starwood Docklands Docklands 273 Hotels & March 2017 Resorts Jackalope Hotel Merricks Jackalope 46 March 2017 North Hotels

Hyatt Hyatt Place Essendon 166 Hotels & June 2017 Fields Resorts

Sage Hotel Silver October Ringwood 120 4.5 star property Needle 2017

The Chen – An Arts Series Hotel November Box Hill 100 Mantra 2017 Gerry and Mitchelton Winery Estate December Ngambie 58 Andrew 2017 Ryan

Tyrian Serviced Apartments Albert Park 85 Tyrian January 2018

Novotel Melbourne South Wharf Southbank 347 Novotel March 2018

Tourism Accommodation Australia (Victoria) 28

EST. PROJECT ROOMS DEVELOPER YEAR CITY COST OPERATOR

AVANI Hotel – 60 A’Beckett St Minor Melbourne 120 June 2018 Hotels Quest Epping Epping 96 Quest July 2018

United United Places – Botanic Gardens South Yarra 12 August 2018 Places

Accor November Novotel and Ibis Melbourne Central Melbourne 483 Hotels 2018

Accor December Sebel Melbourne Malvern Malvern 98 Hotels 2018

February Quest New Quay Docklands 221 Quest 2019

Quest St Kilda Road Melbourne 104 Quest March 2019

Shadow Play by Peppers Southbank 70 Mantra April 2019

Mantra Epping Epping 214 Mantra May 2019

Element Melbourne Richmond Richmond 168 Marriott June 2019 Total 7,168

Tourism Accommodation Australia (Victoria) 29