Marriott to give Adelaide its first skyscraper
Adelaide will get a new 17-level hotel as Marriott International looks to expand its portfolio across Australia.
The group plans to add 20 new hotels over the next five years, with The Westin Hotel to be Adelaide’s first skyscraper.
Marriott and the developers behind the $400 million Keystone tower at the historic Freemasons Hall site have agreed to a 236-room hotel in a 37-storey, 183-metre tower.
The group had initially slated Greaton’s $200 million hotel development at the city’s GPO site for the launch of its Westin brand in
Adelaide but decided to use the site for its flagship Marriott brand.
That project is due to open next year, along with A Courtyard by Marriott, which is due to open in Perth in February.
Marriott vice president of hotel development for Australia, New Zealand and Pacific, Richard Crawford, said the group is focusing on regional areas.
“We have been busy opening a 600-room W Hotel (in Sydney) but that’s going to dry up. Those big CBD hotels are going to become rarer and rarer, and so I think the fertile expansion territory for us will be regional areas, under franchises, with mid-tier brands,” Crawford said.
“We’re very heavy in the luxury and the premium space, so we’re focusing on mid-scale and franchising, as well as conversion opportunities where there are perhaps some hotels under duress that might have a brand that doesn’t have the power of Marriott International.
“We’ve been heavily focused on capital cities and we’re looking at tier-two cities. For example, in NSW that might mean Wollongong or Newcastle, in South Australia we want to be in the Barossa. If you take Victoria, Geelong is a tier-two city.”
Crawford said the group will be looking at expanding its franchise model in Australia.
“We’re targeting hotel owners who operate the hotels themselves but might not have a brand – they might be an independent hotel, and they see the value in entering into a franchise agreement,” he said.
Adelaide is a primary target given its strong fundamentals.
“There’s a lot about Adelaide, but also greater Adelaide, and also the tourism and events space – things like Adelaide Oval and festivals – they’ve all contributed to greater interest from investors,” Crawford said.
“It was a case not that long ago where institutional hotel investors were only interested in Melbourne and Sydney. They’re now looking at Adelaide.
“Adelaide has this really sound mix of business now – leisure, corporate and events – which has got the attention of investors, in many cases, for the first time.”
Marriott is behind the Ritz-Carlton, Westin, Sheraton and Marriott brands in Australia. It owns the world’s largest W Hotel in Sydney overlooking Darling Harbour.
Jonathan Jackson, 19th December 2023
