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There is currently around $1.7 billion committed to hotel development in Melbourne.

Does the city have room for more? Are there better opportunities in the suburbs and beyond?

What are the key fundamentals of a good hotel development feasibility?

How do you differentiate your hotel development from the competition?

What are hotel operators looking for?

And what can we learn from recent hotel developments?

These were some of the themes discussed by our esteemed panel comprising Adele Labine-Romain, Australian Tourism Sector Leader at Deloitte, Dean Minett, Founding Director of Minett Consulting, Mark Bullock, Director of Development – Australasia at the Radisson Hotel Group, and Sam Fisher, Development Director at BPM

Adele presented the outlook for tourism in Australia and the potential impact on current and future hotel development.

  • There is more movement in the market than there has been before
  • The tourism sector continues to outperform the economy
  • Domestic travel is the new black
  • Business travel is now the fastest growing segment
  • People are getting out and about (it’s not just about cities)

Dean gave his 4-step guide to successful hotel development

  1. Know your market
  2. Know where to start

Be clear on your vision

Choose the right team to guide you

  1. Do your due diligence

Feasibility study

Understand the agreement types

Operator selection

  1. Choose wisely

Mark was delighted to announce the awakening of a sleeping giant with Radisson Hotel Group actively looking to roll-out new hotels in Australia.

Their acquisition by Jin Jiang Hotels in China means the RHG now encompasses 8,700 hotels globally. They now have more than 170 million loyalty/rewards members making them the world’s largest.

In Australia, Mark said there was most interest in the RED and Park Inn brands. Radisson RED presents a playful twist on conventional hotel stays, offering hangouts with a casual feel, buzzing social scenes and bold design personality. While Park Inn is a cost-effective brand with lower capital investment translating into higher returns.

Finally, Sam shared his experiences of delivering Shadow Play by Peppers and some of the key success stories:

  • THE PEPPERS HMA & Management letting rights means BPM retain control on the quality of amenity, caretaking and service for the building
  • Short-term letting forecast to outweigh long-term letting after 1.5 years of trading
  • Management Letting Rights provides another commercial benefit to the project
  • Ability to increase the hotel pool from 70 apartments into 150-200 apartments.
  • Peppers willing to work within the brand parameters outlined by BPM to create a collaborative outcome between developer and operator.

Point Polaris, as a business, currently has more than 1,100 hotel rooms under management, including the largest new build hotel in Melbourne – Hilton Melbourne Square.

Please contact Justin Farmer, Head of Client Solutions for copies of the presentations –