Virgin chief John Borghetti says Sydney airport needs hotels

Virgin Australia chief executive John Borghetti has called for more diversity in the accommodation offerings at Sydney airport as its publicly listed owner considers developing up to five extra hotels within the busy precinct.

Sydney Airport Corporation has called for expressions of interest to develop a range of hotels near its T1 international terminal and T2 and T3 domestic terminals, investing as much as $350 million on the hotel infrastructure.

“It’s easy to say you need more hotels but you need a range of accommodation,” Mr Borghetti told The Australian yesterday.

He said it was important to have a choice of accommodation options, from budget offerings to six-star hotels.

“What is pretty evident in most cities where large airports exist is that having adequate accommodation is critical,” Mr Borghetti said. “Particularly in Sydney, where there is a (nightly) curfew. I was very interested to see that in Canberra they’re building a hotel across from the terminal.”

But one senior source argues that Sydney airport does not need any more hotels.

“It is a unique airport given its proximity to the city,” said the source, speaking on condition of anonymity. “There are a lot of serviced apartments being developed around the airport. And there will be more real estate, (especially) as real estate development continues to be the highest and best use for capital.”

Sydney has just two hotels within the airport precinct — a Rydges Hotel and a budget Ibis — with the owners of the hotels holding first right of refusal over future development at the airport.

In Canberra, the new 4.5-star Vibe hotel by Toga Far East Hotels is being developed within 150m of the airport terminal and Brindabella Business Park.

The 191 hotel suites and serviced apartment property is expected to open next month.

Source:  The Australian - 20th October 2015