TAA (Vic) Current and Future Hotel Developments

November 2019

Prevailing market conditions 2

Tourism forecasts – Victoria snapshot 4

Sporting and cultural event visitors – Victoria 5

Market conditions 7

Supply and demand 8

New supply 9

Travel trends 11

Regulation 12

Key International Visitor Trends 14

Domestic tourism in 16

Demand drivers 19

Major stakeholders 20

Regional Victoria 22

Development Summary

 Melbourne (including inner suburbs, city and surrounds)

o New hotel openings 24 o Under Construction 25 o Approved 26 o Proposed 29

 Suburban developments 31  Regional developments 32

 Hotel openings over the past 12 years (Melbourne) 34 Tourism Accommodation Australia (Victoria) 1

Market outlook remains broadly positive

Prevailing market conditions – Australia

 In 2017/18, tourism remained one of Australia’s fastest growing industries, where tourism-related GDP grew at 5 per cent (inflation adjusted). Our industry now also contributes more to Australia’s economy than traditionally strong sectors such as agriculture, forestry, fishing, utilities and information and media and communications.1

- Tourism-related spending is expected to increase by 4.6 per cent, from $148.7b in 2018/19 to $155.6b in 2019/20

- A further $7.5b increase to $163.1b is expected in 2020/20212

- Although expected to continue to increase, visitation from China is expected to slow, as trade tensions with the USA continue to bite (Ibid).

 Emerging markets of India, Malaysia and Indonesia “will contribute 16.7 per cent of growth, over the next two years (Ibid).

 By 2023/24, India is expected to surpass Japan as a ‘top five’ source market for Australia, while other positions in that group will remain unchanged. (Ibid).

 These results underpin the performance of Australian hotels as some of “the best performing assets globally, this year”3

- “Daily room rates for Australian hotels averaged $USD137 per night, down slightly on 2018, but still fourth in global rankings, behind the Carribbean ($US235), the Middle East ($US144) and Southern Europe (US$141) (Ibid).

- The RevPAR metric for Australian hotels averaged $US101, “with only the Carribbean region performing better at $US160 (Ibid).

- Regional Australian hotels also outperformed Asia Pacific neighbours on occupancy rates, average daily rate and revenue per available room (Ibid).

1 Tourism Research Australia: National Tourism Satellite Account 2017-18 2 Tourism Research Australia: Tourism Forecasts 2019 3 AFR: Australian hotels outperform globally, 11 September 2019 Tourism Accommodation Australia (Victoria) 2

 From an investment perspective, hotel transaction volumes in the Asia Pacific region are expected to be up circa 15 per cent, year on year (2019 vs. 2018)

- The popularity of Japan as an international destination of choice, and related tourism boom “brings positive investor sentiment,” underpinned by events such as the 2019 Rugby World Cup and 2020 Tokyo Olympic Games.4

- Australia remains “sought after” as a hotel investment destination, while Singapore and China “are also on investor’s radars,” given good hotel trading performance (Ibid).

- Melbourne is currently ranked fifth, in terms of asset yields achieved for top global markets, behind Amsterdam, Berlin, London and Madrid. Yield level ranges over the past 36 months in Melbourne range from 4.7 to 6.7 per cent (Ibid).

 From an employment perspective, the tourism industry now employs one in thirteen Australians, as tourism related jobs have grown by 34 per cent in the past 10 years.5

- This result has seen our industry “leapfrog” sectors such as the transport and wholesale industries, reinforcing its economic importance to Australia (Ibid).

4 JLL Hotels and Hospitality Group, Global Focus, July 2019 5 AFR: Tourism now employs one in 13 Australians, 15 August 2019 Tourism Accommodation Australia (Victoria) 3

Tourism Forecasts – Victoria Snapshot

 Tourism spend for Victoria is expected to grow from $31b in 2018/19 to $49.6b in 2028-29, with an annual growth rate of 4.8 per cent, over the next decade.6

 China is predicted to remain Victoria’s largest contributor to international spend growth over the next decade (at 22 per cent of growth), however will “transition to more sustainable levels with significant downward revisions.”

- Slowing growth “is driven by slowing economic conditions, trade tensions with the United States, and a moderation of aviation capacity growth” (Ibid).

 Asia is expected to contribute 45 per cent of tourism growth for Victoria over the next decade, rising from $6.3b currently to $14.5b by 2028- 29.

- Rising economic prosperity and a rising middle class in the region are driving these increases, with key emerging markets mirroring those of Australia nationally, in India, Indonesia and Malaysia (Ibid).

 Traditional Western source markets including the United States of America, the United Kingdom and New Zealand are also expected to grow, the UK and NZ more modestly than USA, given the improvement in the US economy and the strength of the US dollar, relative to Australia’s (Ibid).

 The weaker dollar will make Australia more competitive, in comparison to other overseas destinations and “will contribute to moderate growth in domestic tourism and subdued growth in outbound travel (Ibid).

6 Tourism Research Australia: Tourism Forecast 2019 Tourism Accommodation Australia (Victoria) 4

- Domestic overnight tourism spend growth is “expected to be modest in the short term (+3.4 per cent, per annum to 2028-29),” given limited discretionary spend growth (Ibid).

Sporting and cultural event visitors to Victoria

(Y.E. December 2018 – figures released in August 2019)7

 “While international overnight visitors to Victoria accounted for only four per cent of all visitors to/within Victoria” (YE: December 2018), they accounted for 13 per cent of total event visitors, comprising 23 per cent of all cultural event/festival visitors and 8 per cent of all sporting visitors” (Ibid).

 “Domestic overnight visitors were also over represented at events, accounting for 40 per cent of total event visitors, compared with 31 per cent of all visitors to Victoria” (Ibid).

7 Victorian State Government: Event Visitors to Victoria Summary, August 2019 Tourism Accommodation Australia (Victoria) 5

 “Domestic daytrip visitors were underrepresented at events (particularly cultural events and festivals), accounting for only 38 per cent of all cultural event/festival visitors, compared with comprising 65 per cent of all visitors to/within Victoria.”

Visitors to Melbourne and Regional Victoria

Source: Victorian Government: Event Visitors to Victoria, Y.E. December 2018 (released August 2019)

 “Almost three quarters of all international overnight event visitors to Melbourne were cultural and event visitors, while domestic overnight and daytrip event visitors to Melbourne were predominantly sporting event attendees”8

 “International event visitors to Victoria were more likely to attend a cultural event (69 per cent), than a sporting event (45 per cent), as were domestic overnight event visitors to regional Victoria (54 per cent, compared with 49 per cent). Domestic day trip event visitors primarily travelled to regional Victoria for sporting events (Ibid).

 Eighty four per cent of international event visitor nights in Melbourne were had by visitors who had attended a cultural event, during their trip, “while

8 Victorian Government: Event Visitors to Victoria, Y.E. December 2018 (released August 2019) Tourism Accommodation Australia (Victoria) 6

73 per cent of domestic event visitor nights were had by sporting event attendees” (Ibid).

 “Seventy one per cent of international event visitor nights and sixty per cent of domestic event visitor nights in regional Victoria were accounted for by visitors who attended a cultural event, on their trip” (Ibid).

Market conditions

 Profit margins at Australian restaurants “have plummeted as much as five fold (circa 10 per cent prior to Uber Eats, Deliveroo and Menu log) to between two and four per cent now.”9

 Australian Bureau of Statistics figures now reveal that “businesses in the hospitality industry fail faster than any other they track (Ibid).”

- “Of food service and accommodation businesses that were in existence in June 2014, only 53.8 per cent were still in business in 2018” (Ibid).

 The Australian Competition and Consumer Commission (ACCC) recently found that conditions in Uber Eats contracts that forced “restaurants to wear the cost of meal orders that went awry, even when Uber Eats were to blame” were “unfair, not reasonably necessary and caused significant imbalance between restaurants and Uber Eats.” (Ibid).

 ACCC are also reviewing the proposed merger of “Japanese drinks giant, Asahi and Carlton & United Breweries to let them know if big supermarket chains and hotel groups are capable of keeping an enlarged $16b giant honest, ahead of a planned merger. A provisional decision on the deal is set for 31 October 2019.10

 Thomas Cook, “a 140 year old giant of the travel world, operating in 16 countries and employing 22,000 staff across 600 outlets has collapsed, “leaving the travel plans of 600,000 holiday makers in tatters.”11

- “Another global travel icon Tempo Holidays and Bentours has also recently been placed into voluntary administration. (Ibid)”

9 AFR, Why restaurants hate Uber Eats, 23 July 2019 10 AFR: ACCC looks at liquor chain clout in Asahi-CUB deal, 26 August 2019 11 AccomNews: Australian travel operator collapses within days of Thomas Cook, September 2019 Tourism Accommodation Australia (Victoria) 7

 Meanwhile, Flight Centre Travel has “poured cold water on the potential of shutting almost one in ten of its travel agencies12

- Though a Flight Centre spokesperson has admitted “a concentrated network of shops and teams would exist” in areas with “high foot flow and proximity to the targeted customer base” (Ibid).

 While Amoma.com, the world’s third largest reservations platform has collapsed, “leaving travellers stranded, as hotels stop honouring bookings made through the site.13

- Previously, the platform had been accused of “undercutting room prices by unbundling wholesale rates and distributing them straight to the public” (Ibid).

 Qantas and Virgin are “trying to put pressure on Morrison government, to rein in passenger fees that airport operators charge, arguing that airports “act as monopoles, charging excessive fees and reaping super profits at the expense of airlines and passengers.”14

- Qantas CEO, Alan Joyce references that “airport fees in Australia are more than double what airlines pay in the US, and 50 per cent higher than fees charged in Europe (Ibid)

- However, “the sight of a duopoly decrying the evils of a monopoly market structure itself has prompted considerable mirth in the corporate community” (Ibid).

Supply and Demand

National

 Property markets in Sydney, Melbourne and Brisbane are beginning to rebound, with resultant improved investor confidence.15

- Although markets in Darwin and Perth continue to lag behind, while the outlook for apartments “also remained flat in 15 major centres” across Australia, including Sydney, Melbourne, Brisbane, Alice Springs and Perth following continuing concerns about over supply and construction issues (Ibid).

12 AFR: Flight Centre grounds notion of mass CBD store closures, 23 July 2019 13 AccomNews: Travel colossus goes broke, blaming competition, 4 October 2019 14 AFR: Alan Joyce struggling to win over corporate Australia, 18 September 2019 15 AFR: Melbourne, Sydney and Brisbane property markets climb off bottom, 9 October 2019 Tourism Accommodation Australia (Victoria) 8

 “Falling interest rates, special borrowing deals and higher auction clearance rates are improving buyer sentiment, resulting in a two per cent rise in national house prices through June 2019, although they remain eight per cent down on the peak from late-2017” (Ibid).

New Melbourne Supply

 “Despite an increase in supply, Melbourne city hotels are maintaining occupancy rates above 84 per cent and average daily rates around $198 a night.”16

- Approximately 17,000 rooms are in various stages of planning and construction in Victoria, out of a total national development pipeline of 53,000 new rooms (Ibid).

- “However, Melbourne’s development picture mirrors that of Perth, where influxes of new hotel rooms have resulted in significant falls in RevPAR and occupancy” (Ibid).

- “A Deloitte Access Economics Report released earlier this year predicted Melbourne and Perth would both see occupancy affected over the next three years, as they struggle to absorb the new room pipeline” (Ibid).

 The Swanston Hotel Grand Mercure has been “transformed and rebranded following a $30m interior renovation.17

- The centrally located 15 storey building now proudly sports the Pullman brand and has been renamed to “Pullman Melbourne on Swanston.” It reopens on 28 October (Ibid).

 Victorian Planning Minster, Richard Wynne has refused Melbourne’s Hotel Windsor owners, The Halim family, a fourth extension on their 26-storey redevelopment project.18

- With no extension granted, the Halim’s “would have to apply for a new permit.” “Planning rules subsequently passed would now prevent a tower as high as the (originally) permitted 92 metres, making it unlikely to ever go ahead. (Ibid)

16 AccomNews: New hotels ramp up pressure on capital city occupancy, September 2019 17 HM: Brand conversion delivers new Pullman for Melbourne, 21 October 2019 18 AFR: No-go for Melbourne’s Hotel Windsor tower redevelopment, August 11, 2019 Tourism Accommodation Australia (Victoria) 9

 The Halim’s are “determined to keep the hotel and work with Heritage Victoria to try and find an alternative solution” (Ibid).

 The growth of Oakwood Hotels in Melbourne will continue, with the announcement that a new 154 room property will be constructed in the burgeoning Fisherman’s Bend precinct.

- The hotel development will form part of a 40-storey tower that will also boast “commercial office space, residential apartments, dining and retail.” The property is expected to open in the first quarter of 2022.19

 Accor has announced a partnership with the Brady family, to construct two new Melbourne hotels.

- The 103 serviced apartment style property, Sebel Melbourne Ringwood and the 83 room Peppers Melbourne Richmond are scheduled to open in 2021 and 2022 respectively.20

 Brady Hotels Jones Lane (located in Little Lonsdale Street, near Jones Lane) opened on 1st August 2019. The 153 room property “is the city’s newest boutique luxury hotel and includes four studio apartments.”21

 Expressions of interest are currently open for operators new to Melbourne to run a 199 room lifestyle hotel that will soon begin construction in Southbank.22

- The hotel is expected to form part of a 69 storey mixed use tower, also comprising residential apartments and co-working spaces, with a 2024 opening date (Ibid).

 Hilton have announced they will develop Australia’s second Hilton Garden Inn, in Bundoora circa 20 kilometres from Melbourne.23

- The 168 room property is expected to open in early 2021 (Ibid).

19 HM: Oakwood growth continues, 10 September, 2019 20 CIM: Accor partners with Brady family for two new hotels in Melbourne, 9 September, 2019 21 HM: Brady Hotels ready with second Melbourne hotspot, 17 July 2019 22 HM: New lifestyle hotel coming to Melbourne Southbank, 26 September 2019 23 HM: Hilton Garden Inn lands on Australia’s east coast, 27 September 2019 Tourism Accommodation Australia (Victoria) 10

 Tech hotel brand, YOTEL will debut in Australia, following the announcement that a 244 room YOTEL Melbourne property will be developed in the CBD, “close to major city landmarks, including the MCG, Federation Square and the Arts Centre precinct.”24 The property is scheduled to open in 2022.

 The arrival of a second Hyatt Place in Melbourne will become a reality when a 170 room, Hyatt Place Melbourne Caribbean Park will begin construction in late 2019. It is expected that construction will be completed in 2021.25

 Cromwell Property Group have lodged a development application for 700 Collins Street, in Melbourne’s Docklands Precinct.26

- The application includes plans for a 4.5 star, 182 room full-service hotel. Along with office space and apartment living (Ibid).

Travel trends

 An industry collective “Cultural Attractions of Australia” has been developed, in conjunction with 22 of Australia’s best national cultural offerings.27

- Sites in Victoria that have ‘made the cut’ include Arts Centre Melbourne; Melbourne Cricket Ground; National Gallery of Victoria and Sovereign Hill in Ballarat (Ibid).

- The experiences curated by each institution range in price from $140 to $50,000, to enable visitors’ access to a “deep dive into the nation’s cultural icons” (Ibid).

- The program targets high value travellers and is backed by Tourism Australia, given the trend that “cultural tourism” is now on the rise, with three in ten visitors to Australia visiting a museum or gallery (Ibid).

 The development of micro hotels continues in Australia, as co-working and co-living spaces become increasingly popular.

- Developer Tan Boon Lee (one of Malaysia’s biggest) is developing Australia’s first Cititel X hotel in Sydney28.

24 HM: Tech brand YOTEL announces entry to Australia, 18 July 2019 25 HM: Hyatt Place to double up on Melbourne’s outskirts, 18 July 2019 26 Property Observer: Cromwell lodges application for $350m mixed use development, 4 Oct. 2019 27 AFR: Cultural attractions used to lure tourists, 8 April 2019 28 AFR: Co-working, co-living trend extends to hotels, 2 October 2019 Tourism Accommodation Australia (Victoria) 11

- The hotel’s design concept is “to get as many rooms as possible out of the property and compensate a co-living area and garden terrace on the ground floor, where guests can spend time working, socialising or cooking a meal.” The average room size being between 14 and 18 sqm (Ibid).

- The Doma Group in Canberra operate a hotel, The Little National, with 120 compact rooms, where they encourage guests to also spend time in a communal library (Ibid).

Regulation

 The New South Wales (NSW) government is “again reviewing” its policy on the regulation of short stay accommodation, following four years of debate.

- New considerations include the possible introduction of compulsory registration.29

 Airbnb have rejected “onerous registration that would make it harder and more expensive for local families to earn extra income as a host, or afford a holiday as a guest” (Ibid)

 They question whether the government has caved to aggressive lobbying of “vested interests like international hotel groups, who return very little to the local economy” (Ibid).

- Proposed regulation in NSW includes “a mandatory code of conduct (with five year bans for properties, hosts and guests who breach it), and comprehensive fire safety requirements for holiday lets in residential homes.”30

 The Australian Short Term Rental Association contends that “the state government’s draft fire safety standard” will have a significant impact on the number of short term property listings, because it is “onerous.31”

 “Western Australia has joined Tasmania, Queensland and New South Wales in taking steps to formally define and regulate short stay accommodation.”32

29 AccomNews: Unnecessary and unfair: Why Airbnb rejects NSW short stay plan, 1 September 2019 30 AFR: Airbnb rules ‘like putting foxes in charge of the henhouse” 20 August 2019 31 AccomNews: Short stay body slates onerous fire rules as Airbnb champions safety, October 2019 32 WA mulls regulations on short-stay accommodation Tourism Accommodation Australia (Victoria) 12

- The WA Economics and Industry Standing Committee “has mandated the introduction of a state wide registration scheme for all properties offering short stay hosted or non-hosted accommodation, including the need to obtain and manage a valid registration number and provide data to a managing government agency” (Ibid).

 In Victoria, Better Regulation Victoria (BRV) is currently reviewing regulatory imbalances in the short-stay sector, in particular between traditional accommodation, like hotels, and short stays like AirBnB.

- This follows a recommendation in the 2017 inquiry conducted by the Legislative Council into the Owners Corporation Amendment (Short Stay Accommodation) Bill 2016.

- The inquiry recommended that BRV examine any imbalances; with any relevant findings to be considered as part of the post implementation review and associated work programs led by Consumer Affairs Victoria.

Tourism Accommodation Australia (Victoria) 13

Key International Visitor Trends

International Tourism into Australia

International Visitors 8,601,331 2.81%

International Visitor Nights 273,022,952 1.39%

International Visitor Expenditure $44,585 4.98%

Average International Visitor Expenditure $5,183 2.11%

Key Market Synopsis

Average Visitor Expendit Key Market Visitors Annual Annual Nights ure per Synopsis ('000) Growth Growth ('000) Night (AUD)

China 1,323 0.79% 56,918 0.32% 209

New Zealand 1,272 2.05% 12,819 -0.85% 201

United States of America 764 3.03% 13,106 -2.54% 304

United Kingdom 674 -3.63% 21,649 -2.41% 157

Japan 445 9.10% 11,048 3.16% 185

Singapore 407 7.86% 5,693 1.23% 272

India 350 11.59% 22,003 21.93% 80

Malaysia 346 -1.54% 7,303 -18.31% 175

Hong Kong 280 3.33% 6,095 -14.99% 223

Korea 256 -8.11% 9,751 -13.00% 150

Key Observations

 The average length of international trips has fallen six nights over the last six years to 32 nights, but spend per night has increased 26 per cent, from $129 to $163.

Tourism Accommodation Australia (Victoria) 14

 Growth was impressive for the Japanese market, with visitors up nine per cent to 445,000, and spend up 16 per cent, reaching $2.0 billion. There was also a nine per cent increase in spending by US visitors to $4 billion.

 India has seen the strongest growth over the past three years with visitor numbers increasing 53 per cent to 350,000, and spend up 68 per cent, to $1.8 billion over this period.

- India is now ranked 7th for number of incoming international visitors compared with 15th back in June 2006.

Accommodation sector takeaways

International Visitor Nights Spent in Hotels, Motels and Resorts

Year Ending Year Ending Rank Capital City Change June 2018 June 2019

1 Sydney 8,701,395 8,673,804 -0.32%

2 Melbourne 5,803,633 6,182,247 6.52%

3 Brisbane 2,129,957 1,981,479 -6.97%

4 Gold Coast 2,216,185 1,921,380 -13.30%

5 Perth 1,549,589 1,730,149 11.65%

6 Adelaide 953,877 753,132 -21.05%

7 Hobart 473,113 405,359 -14.32%

8 Darwin 380,228 379,210 -0.27%

9 Canberra 311,508 377,373 21.14%

Capital Cities incl. Gold Total 22,519,486 22,404,133 -0.51% Coast

Key Observations

 There were decreases in visitor nights for ‘Hotel/Resort/Motel or Motor Inn’ across the capital cities with the exception of Melbourne (6.52 per cent increase), Perth (1.65 per cent increase) and Canberra (21.14 per cent increase).

Tourism Accommodation Australia (Victoria) 15

 ‘Hotel/Resort/Motel or Motor Inn’ in regional locations saw an increase in visitor nights in all states and territories except for Victoria (-5.04 per cent), the NT (-4.59 per cent) and Tasmania (-5.36 per cent).

Accommodation Performance - Regional

International Visitor Nights Spent in Hotels, Motels and Resorts

Year Ending June Rank Regional Year Ending June 2019 Change 2018

1 QLD 3,148,210 3,161,147 0.41%

2 NSW 1,046,945 1,073,283 2.52%

3 VIC 680,698 646,397 -5.04%

4 WA 465,412 522,805 12.33%

5 NT 520,943 497,015 -4.59%

6 SA 168,084 278,156 65.49%

7 TAS 272,308 257,709 -5.36%

Total Regional 6,302,599 6,436,512 2.12%

Domestic Tourism in Australia

Domestic Overnight Visitors 113,320,334 ↑11.66%

Domestic Visitor Nights 400,217,246 ↑10.39%

Domestic Trip Expenditure $77.476 billion ↑14.65%

Average Domestic Trip Expenditure $683.69 ↑2.68%

 Domestic overnight travel continued to perform well over the year ending June 2019, with spend reaching a record $77.5 billion.

- The number of overnight trips taken by Australians grew to 113 million, with 400 million nights spent away from home and each traveller spending on average $684 per person per trip.

Tourism Accommodation Australia (Victoria) 16

 On average, middle-aged travellers spent much more ($965) than other visitors ($722) on their holiday. This is because they were more likely to be travelling with children (45%), which increased trip expenses considerably.

 Middle-aged travellers were also more likely to stay at a hotel or motel (39 per cent compared with 28 per cent for other travellers).

 Regarding accommodation, ‘Hotels, Motels, and Resorts’ makes up 24 per cent of all nights and grew to 97.6 million, a nearly 6 per cent increase. Unregulated accommodation (Airbnb, Stayz, etc.) makes up 14 per cent of all nights and grew to 54.8 million, a 22.3% increase.

 Nights spent in ‘Hotels, Motels, and Resorts’ grew in all capital cities except Brisbane (-3.76 per cent) and Darwin (-6.75 per cent). There was significant growth in the Gold Coast (19.17% per cent), Canberra (16.33 per cent), and Hobart (15.74 per cent).

Tourism Accommodation Australia (Victoria) 17

Capital Cities, Nights Spent in Hotels, Motels and Resorts – Domestic Visitors YE June 2018 YE June 2019 Rank Location Change (‘000) (‘000)

1 Sydney 10,315 11,700 13.43%

2 Melbourne 11,215 11,519 2.71%

3 Gold Coast 5,588 6,659 19.17%

4 Brisbane 5,884 5,663 -3.76%

5 Perth 3,738 3,805 1.79%

6 Adelaide 3,122 3,373 8.04%

7 Canberra 2,657 3,091 16.33%

8 Hobart 1,645 1,904 15.74%

9 Darwin 1,482 1,382 -6.75%

Capital Cities Total 45,646 49,097 7.56% incl. Gold Coast

Regional Locations, Domestic Visitor Nights Spent in Hotels, Motels and Resorts YE June 2018 YE June 2019 Rank Location Change (‘000) (‘000)

1 NSW 16,733 16,431 -1.80%

2 QLD 14,375 14,759 2.67%

3 VIC 7,185 7,888 9.78%

4 WA 3,782 4,828 27.66%

5 SA 1,664 2,029 21.94%

6 TAS 1,552 1,464 -5.67%

7 NT 1,191 1,100 -7.64%

Total Regional 46,482 48,501 4.34%

Tourism Accommodation Australia (Victoria) 18

Demand Drivers

Source: JLL Hotels Global Focus – July 2019

 Strong population growth, in excess of other Australian states and territories has a positive flow on effect for Melbourne, with increases of over 100,000 people, per year (note above).

 Melbourne CBD office stock has also seen the biggest increase of any Australian state, over the past 18 years, with a circa 55 per cent increase in stock and 535,000 sqm of new office stock under construction (Ibid).

 Population pull factors remain strong. Melbourne’s investment ‘attractiveness’ is also underpinned by affordability, liveability, quality of education provision and jobs growth (Ibid).

- While “professional and financial service, education, utilities and public service sectors support a diverse expanding services sector economy” (Ibid)

- CBD fringe office supply is accelerating and will compete for corporate attention with the Docklands and Western Core precincts (Ibid).

- Appreciating there is finite development space in Melbourne’s CBD, future developments could look to existing site amalgamations to create larger sites; consideration of the development of previously ‘difficult to develop’ sites; possible campus developments in Docklands and increasing development in fringe locations and development of urban regeneration precincts (Ibid).

Tourism Accommodation Australia (Victoria) 19

 Moulin Rouge the Musical “is set to dazzle Melbourne,” following the announcement that it will take centre stage at the refurbished Regent Theatre in 2021.33

- Visit Victoria has “successfully partnered with Australian production company ‘Global Creatures’ and producer Carmen Pavlovic to bring the spectacular stage show to Melbourne (Ibid).

- The news reinforces Melbourne’s position as Australia’s cultural and creative capital, where we enjoy the “highest share of national live performance attendance and attendance at musical theatre productions (Ibid).

 Melbourne Convention Bureau Chair, Chris Barlow recently made an announcement on the outcome of the recruitment process for the position of Chief Executive Officer of the Melbourne Convention Bureau.

- TAA (Vic) congratulates Julia Swanson on her appointment to the role, following having previously been Acting CEO.

- Barlow confirmed that 130 people were considered for the role, with 76 formal expressions of interest leading to interviews being held with five shortlisted candidates.

Major Stakeholders

Quest

 Quest founder, Paul Constantinou has recommended a new self-rating system be set up to restore trust in the franchise sector, following “poor conduct and exploitative behaviour” evident across the sector.34

- He asserts that franchisees should go through an accreditation process that is accessed independently (Ibid)

 Quest has a business intelligence system that accesses “the performance of seven key performance metrics” and is encouraging other franchise systems to do the same (Ibid).

33 Visit Victoria corporate website 34 AFR: Reform exploitative system, Quest boss urges, July 28, 2019 Tourism Accommodation Australia (Victoria) 20

 Quest continue to expand their brand portfolio, following the commencement of construction for Quest Preston, a development that will include 79 serviced apartments, 21 residential apartments, plus a retail component.35

 Quest will also “double down in Ballarat,” with a new 77 apartment property comprising part of the multimillion dollar redevelopment of Ballarat Station. Construction has commenced, with project completion expected by early 2021.

Best Western

 Fifteen hotel brands operating globally have been aligned under a BWH Hotel Group corporate umbrella.

- Brands include World Hotels, Best Western Hotels & Resorts and the SureStay Hotel Group.

- Each will “continue to be marketed on its individual merits to consumers.”36

Hilton

 Hilton have appointed a Cluster GM for their Melbourne hotels, following the announcement that Adrian Teh has returned to Melbourne.37

- Teh will oversee operations at Double Tree by Hilton on Flinders Street and the soon to open 244 room, Hilton Melbourne Little Queen Street (Ibid).

Marriott

 Marriott International has “signed a deal with Expedia Group, giving the online travel agency exclusive distribution rights for its wholesale inventory to third party providers such as bed banks.”38

Accor

 Fund and investment management company iProsperity Group have purchased AccorInvest’s 23 hotel portfolio for $300m39

- The “predominantly freehold portfolio of economy-style hotels has more than 3,000 rooms nationally, including the 250-room Ibis Melbourne Hotel (Ibid).

35 HM: Question bolsters presence in Melbourne’s North, 30 July 2019 36 HM: Best Western’s Graham Perry talks new BWH Hotel Group, 4 September 2019 37 HM: Hilton appoints Cluster GM for Melbourne hotels, 20 September 2019 38 AccommNewsAustralia: Marriott gives Expedia sole rights to wholesale rates, 4 October 2019 39 AFR: iProsperity Group snags AccorInvest’s 23 hotel portfolio, 2 September 2019 Tourism Accommodation Australia (Victoria) 21

- The operating agreement with Accor is expected to remain unchanged (Ibid).

Regional Victoria

 Bathurst NSW are “forging ahead with plans” to build a second race track, to rival Phillip Island’s historic circuit and has the Island’s “international motorcycle events firmly in its sights.”40

- Bike racing peak body Motorcycling Australia have been consulted to assist with new circuit design, focused on a modern track with better facilities than the Island’s (Ibid).

 State and Federal Government funding, to the tune of $27.5m has been injected into the project (Ibid).

 Australian Grand Prix Corporation Chief, Andrew Westacott has reinforced that long term contracts are in place that will ensure the Formula 1 Australian Grand Prix and the Australian Motorcycle Grand Prix remain in Melbourne and Victoria until 2025 and 2026 respectively (Ibid).

 TAA National CEO, Michael Johnson asserts that a 20 per cent rise in working holiday makers (WHM) is driving business for regional tourism and accommodation operators.

- Government figures released in October “show 7,000 more second year working holidaymaker visas were granted in the 2018/19 financial year vs. 2017/18, with more than 43,000 second year visa recipients.”41

- Johnson contends that “as WHM need to complete three months of specified work in a regional area to be eligible for a second year visa.” He added “WHM’s are an important component of the workforce for Australia’s accommodation providers, particularly in regional areas where a sufficient local workforce may not be available. (Ibid).

 Profits from a regional tourism boom are being “soaked up” by Airbnb offers, “sapping revenue from old-style motels, which are struggling, or closing all together.”42

40 AFR: New Bathurst track targets Phillip Island bike races, 9 August 2019 41 AccomNews: Make visas easier industry urges – fewer restrictions drive tourism, October 2019 42 The Australian: Airbnb cleans up as country pubs, motels struggle, 15 August 2019 Tourism Accommodation Australia (Victoria) 22

- An IBISWorld Reports reasons the decline in the Australian dollar “has made domestic touring more attractive for Australians and has also drawn more overseas tourists”- trends also reflected in the International and National Visitor Survey data referenced above (Ibid).

- Despite a 30 per cent rise in overnight stays in regional Australia (301 million in 2018 vs. 232 million in 2013), motel operators have not benefited from this surge, “with more than half of regional visitor nights now spent in private holiday rentals compared to only 19 per cent in hotels and resorts. Motel operators are “facing strong competition, in terms of room rates, facilities and room availability (Ibid).”

- International visitors now indicate “a desire to spend an average of six nights of a 14-night trip in regional Australia.”43

 Geelong’s Surf Coast Shire are concerned about the impact of Airbnb on the region’s commercial accommodation sector.

- Airbnb data for 2018 reveals that “homeowners in Apollo Bay and surrounds earned $8.6m via 700 properties, Lorne earned $4.1m across 380 properties, while Greater Geelong earned $16.9m through 2,200 listings.”44

- The Shire is concerned that “this new digital industry is largely unregulated and has led to increasing competition from traditional accommodation providers, who are heavily regulated” (Ibid).

 New research indicates that holiday parks are regaining control of their online sales and distribution channels, clawing back market share from online travel agents (OTAs)45

- OTAs currently lead holiday park bookings, at 55 per cent, but “current trajectory would see direct sales take the lead by 2024, as “smart operators have lifted their online game, building better websites and marketing more aggressively” to boost direct bookings and reduce commissions (Ibid).

43 AccomNews: Airbnb killing country accom, report suggests, 18 August 2019 44 Geelong Advertiser: Surf Coast Shire says Airbnb-like services hurting accomm. Industry, 24/09/19 45 AccomNews: OTAs losing share as holiday parks fight back, 21 July 2019 Tourism Accommodation Australia (Victoria) 23

DEVELOPMENT SUMMARY

New hotel openings since March 2014

Star Date Hotel Hotel Suburb Rooms Hotel Group Rating Opened Pullman Melbourne on Swanston* Melbourne 204 4.5 Erdigroup October 2019 Brady Hotels Jones Lane (111 Little Melbourne 153 4 Brady Hotels August 2019 Lonsdale Street) 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 Tourism Accommodation Australia (Victoria) 24

Brady Hotel Melbourne 146 4 Brady Hotels October 2014 Quest Melbourne Airport Tullamarine 96 4 Quest October 2014 South The Coppersmith 15 4.5 Bagios Group July 2014 Melbourne Sheraton Melbourne Melbourne 174 5 Sheraton March 2014 Total 4,663

*Pullman Melbourne on Swanston Hotel – not a new build, but $30m transformation of The Swanston Hotel Grand Mercure.

MELBOURNE NEW OPENINGS (Under Construction, Proposed, Approved)

Under construction

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

The Sebel Melbourne Moonee Moonee 97 JMS Hospitality Accor Urban renewal Opens Ponds (Mason Square) Ponds and project Nov. 2019 Management

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 Late2019 Street M&LHospitality commenced Equity Chambers (Singapore) Cnr Bourke and Little Queen Streets

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

W Hotel 294 $2.20 B CBUS/Daisho W Hotel Under June 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 Architects

Tourism Accommodation Australia (Victoria) 25

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

floor high rise)

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

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

Pan Pacific Southbank 130 Altus Pan Pacific Construction 258 City Road Development commenced 2019 Total 3,024

Approved

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

Oakwood Premier Melbourne Fisherman’s 154 (within Oakwood Planning First Bend 40 storey quarter tower with 2022 238 apartments)

Newcity Development Group Southbank 199 (69 Cre8tive TBC Currently at EOI 2024 Clarke Street storey mixed Property and phase for use dev) New City operators

Veriu Queen Victoria Market West 111 $450 PDG Veriu Confirmed Late-2022 (Munro site) Melbourne (mixed use) Tourism Accommodation Australia (Victoria) 26

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

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

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 Mid – 2022 539-557 Collins Street ( 555 Melbourne rooms completion Collins Street) 780 apartments

Hotel Indigo Docklands 305 Salta Properties IHG Conditional TBC 695-699 Latrobe Street apartments support received Deluxe 5-star brand and 170 from City of hotel rooms Melbourne

AC Melbourne Southbank Hotel Fishermans 200 Capital Alliance Marriott Agreement Early 2021 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 Crema The Walk Arcade – Bourke St to Inn and 181 Constructions – Little Collins Street Hotel Indigo) builder

Hyatt Centric Melbourne 280 $150m Little Projects Hyatt Hotels Deal signed 2021 9-27 Downie Street (off Flinders Hickory Group Corporation Lane) appointed to build

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

Tourism Accommodation Australia (Victoria) 27

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

The Ritz Carlton Melbourne 263 Unknown Far East Ritz Carlton – Approved Stage 1 – 79 stories Consortium project still 2020 250 Spencer Street including says “proposed 2,600 RC hotel” Stage 2 - apartments 2022

Le Meridien Melbourne 230 rooms $100 M Sinclair Brook/ Approved – Expected The Palace Theatre Jinshan Marriott - Le construction not to open in 30 Bourke Street Investments Meridien brand yet commenced late 2020

Sofitel SO Melbourne 210 $450 M MIT Australia Accor Approved 2023 Queen Victoria Market (twin towers) 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 312 $30 M Pro-invest Approved June 2021 595-599 Little Collins Street Group

Ormond Hotel and Momo’s Melbourne 537 $18.5M Ormond Group Tune Hotels Approved 2022 Melbourne (two hotels, 540 Flinders Street and 539-545 will be joined Flinders Lane by pedestrian laneway)

383 La Trobe Street Melbourne 488 Sterling Global Mirvac Approved 2020 (currently historic Melbourne apartments Mint site, leased to Australian and 200 Federal Police) hotel rooms

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

63 Exhibition Street Melbourne 185 hotel Salta Approved – 2023 (ASF House) rooms (119 issues with dwellings) height restrictions (VCAT challenge lost) Total 7,686

Tourism Accommodation Australia (Victoria) 28

Tourism Accommodation Australia (Victoria) 29

Proposed

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

Peppers Melbourne Richmond Richmond 83 Amber Property Accor Planning 83 Bridge Road Group

700 Collins Street Melbourne 182 Cromwell Too early Development TBC 4.5 star Property Group application submitted

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

130 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 Resorts JV Crown and Extension to TBC Crown Southbank Melbourne rooms looking to buy Schiavello construction 1-7 Queensbridge Street out Schiavello Group start time 6 star property and build fourth recently denied hotel by Victorian (non-gaming) Government

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

Tourism Accommodation Australia (Victoria) 30

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

Taper Melbourne 144 (student $36.6 M Artemis Hotel Proposed 97-105 Franklin Street accommodat Group sold to ion) Scape Australia (student accomm provider)

Jackalope Hotel Melbourne 32 $11.4M Jackalope Planning 2020 Maria George Building Hotel assessment 175 Flinders Lane Melbourne

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

YOTEL Southbank 244 Cornerstone TBC Proposed 2022 63 City Road

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

Total 3,187

Tourism Accommodation Australia (Victoria) 31

SUBURBAN HOTELS (Under Construction, Proposed, Approved)

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

Hilton Garden Inn Bundoora 168 Dealcorp Hilton Hotels Planning First quarter 1056 Plenty Road 2021

Polaris 3083 development

Sebel Melbourne Ringwood Ringwood 103 Amber Accor Planning 2021 Property Group

Hyatt Place Caribbean Park Scoresby 171 TBC Hyatt Hotels Construction due 2021 Corporation to commence late- 2019

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

Tourism Accommodation Australia (Victoria) 32

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

Quest Preston Preston 79 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) Hotel & International 2018 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 3,552

REGIONAL HOTELS (Under Construction, Proposed, Approved)

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

Quest Ballarat Station Ballarat 77 (part of Pellicano Quest Deal signed Early 2021 mixed use Group redevelop - ment)

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

Tourism Accommodation Australia (Victoria) 33

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

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

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) 34

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) 35

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) 36

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

Brady Brady Hotels Jones Lane Melbourne 153 August 2019 Hotels Total 7,321

Tourism Accommodation Australia (Victoria) 37