Golden Age and Starwood Capital partner for 85 Spring Street's hotel component
Golden Age Group, developer of projects like Sky One in Box Hill, Victoria One and COLLINS HOUSE in the CBD, has announced it has signed an agreement with Starwood Capital Group to enter into a joint venture to manage the hotel component within the new 85 Spring Street.
The $600 million mixed-use development has frontages to both Little Collins and Spring Street. Golden Age Group purchased site from Grocon during February 2017 for $75 million, consequently enlisting Bates Smart to redesign the project.
Hotel aspect aside, the project is set to include 138 apartments across 39 levels in a building which fronts Spring Street and overlooks the parliamentary precinct. Starwood's signature sees it manage a second building fronting Little Collins Street which will rise to 26 levels and include 250 hotel suites plus amenities such as a bar, restaurants, conference rooms and a gym.
The hotel is tentatively slated to open in 2020, meaning a construction start is likely next year.
What the say
Melbourne's hotel market has shown continued growth in rates with strong, stable occupancy and increasing demand due to Melbourne's extensive events calendar and growth in international tourism. We believe strongly in hotels as a well-performing asset class and in the continued strength of the tourism industry
Jeff Xu, the managing director of Golden Age Group
We are excited by the opportunity to enter Melbourne's growing tourism market alongside such a successful property development and partner as Golden Age Group. Melbourne's hotel market achieves almost 80% occupancy while demand continues to grow.
With several new component hotel offerings planned for the Melbourne hotel market, we believe a hotel in this tremendous location with many park view rooms and adjacent to the vibrant city's best retail, restaurants and leisure offerings should perform very well.
Kevin Colket, Asia MD, Starwood Capital Group
85 Spring Street has had an interesting planning history with the most recent planning approval achieved in 2015 under then project architect Denton Corker Marshall.
Golden Age Group's addition of 85 Spring Street to its development ranks earlier this year has seen its development portfolio expand to an estimated $4.2 billion. 85 Spring Street's 338 apartments and hotel suites joins the roughly 1,000 apartments and serviced apartments Golden Age Group has yet to act upon via two additional projects, namely The Glen and Box Hill's 517-521 Station Street.
The joint venture transaction between Golden Age Group and Starwood Capital Group is subject to regulatory approval, with the hotel brand name likely to be announced thereafter.