International hotel brand Avani will open its first full-scale Australian hotel after partnering with developer Kenneth Wagner for his on the Sunshine Coast project.
Avani, one of Asia’s fastest-growing upscale hospitality brands with a portfolio of properties in Asia, the Middle East and Africa as well as smaller assets in Adelaide, the Gold Coast and Melbourne, is a subsidiary of Thailand's Minor Hotels.
The hotel group manages more than 530 hotels, resorts and branded residences around the world and has a well-established portfolio in Australia with 56 Oaks hotels as well as a new NH Collection property under construction in Sydney’s Surry Hills.
Minor Hotels chief executive Dillip Rajakarier said the group had been scouting for a first-class location and a new-build property to add to its Australian portfolio for some time.
“We feel confident this property in Mooloolaba ticks all the boxes for travellers seeking the upscale, contemporary experience offered by our brand,” Rajakarier said.
The $250-million, 4.5-star hotel is being delivered by Kenneth Wagner after his development group KPAT Mooloolaba lodged plans for the ambitious Cottee Parker-designed project in September 2021 and was granted approval by the Sunshine Coast Council this year.
Wagner bought the 3000sq m property at the corner of Brisbane Road and First Avenue in mid-2020.
The transaction was made two years after the council decided to split the existing eight-storey carpark into two lots and create more paid parking in the area at a cost of $23.5 million.
Soon after, Wagner entered into talks with representatives from Minor Hotels, having an existing relationship with the hotel group that also manages Oaks Toowoomba, which Wagner delivered in 2020.
Wagner said the hotel would likely open by early 2025 and feature 182 guest rooms, a three-level podium with ground-level commercial tenancies, and two basement levels of car and bicycle parking.
“We will be breaking ground in 2023 to deliver a unique product in one of Queensland’s most sought-after destinations,” Wagner said.
While Avani, a hotel brand known worldwide for its cool, contemporary styling, laid-back ambience and service, will operate the hotel, Wagner plans to own the asset into the future.
While hotel development globally has contracted sharply in the pandemic, Australia has remained a bright spot with the rate of construction on hotels increasing last year.
Australia, which remains in the middle of a hotel development boom that began last decade, continues to hold a high volume of projects in its pipeline.
Nearly 90 per cent of hotel-industry participants in Australia are looking to maintain or increase their exposure in the sector, despite a consensus that per-room revenue in some major cities could take three to five years to recover to pre-pandemic levels.
According to a survey of more than 70 hotel owners, investors, developers and industry consultants undertaken by CBRE, sentiment has risen sharply as tourism continues to ramp up post-pandemic.
CBRE hotels regional director Troy Craig said hotel values across Australia were expected to rise over the next three years with the agency anticipating growth of up to 10 per cent.
“The hotel sector continues to recover from the impact of closed borders,” Craig said.
“While in-bound international traffic is still muted and survey participants expect it will take three to five years to fully return to 2019 levels, recovery in the corporate sector is widely expected to provide a further boost to the current upward swing in 2023.”
Queensland is still considered the most attractive market for hotel purchases or development with the Gold Coast and Brisbane ranking as the cities expected to perform most strongly over the coming year.
“Two-thirds of our survey respondents see growth in asset prices over the medium term, in line with recovering visitation,” Craig said.
“Queensland and New South Wales are clearly the markets attracting the most interest, with Sydney also expected to be 2023’s strongest-performing city.”
Kenneth Wagner’s uncle and corporation chairman of Wagner’s John Wagner will be a keynote speaker at The Urban Developer’s upcoming conference Urbanity on August 3-5.
