High interest in city hotel tower
A clique of Melbourne's wealthiest and most high-profile businessmen is already fielding global interest in a $100 million hotel within the Australia 108 tower - slated to be Melbourne's tallest - ahead of an expressions of interest campaign closing next month.
Architect turned developer Nonda Katsalidis, businessman Adrian Valmorbida, a scion of the family behind Lavazza coffee, and Benni Aroni of Watersun Homes plan at least 200 all-suite hotel rooms within the 88m tower slated for Melbourne's booming Southbank that is expected to be completed by 2017.
"Australia 108 represents a unique opportunity to acquire what will be an iconic, world-renowned luxury hotel, offering spectacular views across Melbourne and the bay and set in the optimally located arts, entertainment and retail precinct of Southbank," Dean Dransfield, chief executive of Dransfield Hotels and Resorts, said yesterday.
"There's been a high level of interest from the major international hotel operators because this is likely to be the best hotel offering in the next development cycle."
With hotel occupancies above 80 per cent, the Southbank precinct was outperforming the Melbourne CBD hotel scene, reporting overall revenues of more than 30 per cent above city hotels, Mr Dransfield said.
Expressions of interest in the hotel component close on December 3 through Dransfield Hotels and Resorts. While the developers would accept separate hotel investors and operators to take out the hotel component of the tower, Mr Dransfield said it was crucial parties negotiated with the developers simultaneously.
"We don't mind if the operator and investors are separate parties, but we want to talk to them at the same time, so the investors' preferred operator can be selected," he said.
Mr Dransfield added that Southbank appealed to both the business and leisure market. Existing hotels in the precinct include the Southbank Hilton Convention Hotel, a Quay West, Langham, three hotels associated with the casino and a Travelodge. In total, the precinct boasts about 4000 hotel rooms.
The Australia 108 development was approved in March following a rescaling of the tower after height objections from aviation authorities.
Meanwhile, Singaporean businessman Michael Kum, head of M&L Hospitality, is understood to be planning a five-star hotel and apartment complex in Southbank with a potential end-value of between $300m and $500m.
Source: The Australian, 21 November 2013
