Perth to get first Holiday Inn Express as city hotel occupancy rate hits 85%
InterContinental Hotels Group will build the first Holiday Inn Express in Australia in the Perth CBD.
The $35 million development comes as Perth boasts Australia’s highest CBD hotel occupancy rate of 85.1% according to the Deloitte Access Economics Tourism and Hotel Market Outlook report for the fourth quarter of 2012.
It forecasts the average price of a Perth hotel room is also expected to increase 30% by December 2015 from $199 to $259.December 2012 quarterly tourist accommodation figures released yesterday by the ABS record a 71.6% occupancy rate for Western Australia licensed hotels with 15 rooms or more, a 69.5% occupancy rate for serviced apartments and a 63.9% occupancy rate for motels and guest houses.
By comparison the hotel occupancy rate in NSW is 76.8%, for services apartments its 74.9% and for guest houses and motels, 57.8%.
The 224 rooms in the Holiday Inn Express will be spread across 20 floors and will incorporate a circa 1888 heritage house.
It will be located at 257 Adelaide Terrace and overlook the Swan River.
The 1,308-square-metre site was purchased in 2007 for $5.05 million.
Launched in 1991, Holiday Inn Express has more than 2,190 hotels worldwide, targeting the more affordable end of the hotel market.
“There is real investment potential in Perth hotels at the moment, with the mining capital of Australia experiencing soaring room rates and a shortage of guest rooms,” says Ralph Nunis, head of Perth-based developer Sunfire Asset.
“The CBD hasn’t seen a new hotel build for more than a decade, so we’re delighted to be working towards a solution for both business and leisure travellers to the city.”
“Once open, the Holiday Inn Express business model also means we will be able to keep operational costs down and room rates at affordable levels, while meeting the highly competitive demands of the market for comfort, convenience and value,” says Nunis.
Construction is set to commence mid 2013 and has an expected completion date of early 2015.
“As one of Australia’s gateway cities, it is vital that visitors to Perth can access suitable and affordable accommodation,” says Trent Zimmerman, CEO of Industry Body Tourism & Transport Forum.
Holiday Inn Express is one of nine IHG brands, including three brands currently operating in Australia - InterContinental, Crowne Plaza and Holiday Inn.