Private Melbourne developer DealCorp has partnered with US hotel chain The Standard to open its first Australian property, in central Melbourne.
The chain currently operates hotels in metropolitan areas in such cities as New York, Miami and London, as well as a resort destination in the Maldives, the rapidly growing chain will open a boutique hotel in Fitzroy.
The hotel will be built on a 1132sq m site, on the corner of Rose and Fitzroy streets, which was bought by DealCorp in 2018.
The developer initially sounded out plans for a residential development but remixed its offering after liaising with Minett Prime Square to secure the right accommodation provider for the project.
DealCorp, led by managing director David Kobritz, said the project, worth in excess of $60 million, would be designed by Woods Bagot architects with interiors by Hecker Guthrie.
“With the country’s focus turning to a post-Covid era, this feels like a pivotal moment for hotel and travel,” Kobritz said.
“The Standard was a natural choice for our Rose Street hotel project.
“Not only are our brand values aligned but they are the perfect operator to bring to a suburb such as Fitzroy which has a rich culture and history.”
Woods Bagot principal Peter Miglis said the hotel’s design would take cues from Fitzroy’s industrial heritage, while also respecting its residential surrounds.
The hotel will feature 127 rooms over seven levels and will include a rooftop area.
It will become one of seven in the hotel chain’s international pipeline, with projects in Porto, Lisbon, Brussels, Hua Hin, Bangkok and Singapore on the cards.
Construction of the Fitzroy hotel is expected to start mid-year and will be completed by 2023.
A number of hotel owners and operators have continued to place their faith in the domestic-led tourism recovery despite occupancy rates still well below 40 per cent.
The latest figures from analysts STR show Melbourne currently holds an occupancy rate of 36 per cent with room revenues (revPAR) down 65 per cent at $53 a night compared with a year ago.
Despite this, global hotel giant IHG is on track to open the Holiday Inn Werribee, voco Melbourne Central, Holiday Inn Express Melbourne Little Collins, and InterContinental Sorrento under its flagship luxury brand in the coming months.
Accor has also been active with a swathe of new sites being opened, the most recent the Mövenpick Hotel Melbourne on Spencer with Singapore’s Fragrance Group.
TFE Hotels, the partnership between the Vidor family’s Toga Group and Singapore’s Far East Orchard, has also recently opened its 240-room Quincy Hotel on the corner of King Street and Flinders Lane.
On the corner of Bourke and Little Queen Street in Melbourne’s legal precinct, M&L Hospitality has also opened the 244-room and 10-suite Hilton Hotel, marking the return of the Hilton flagship brand to the Melbourne CBD after five years.
These openings follow the 200-room Marriott Hotel in Docklands opening at the start of March and the 294-room W Melbourne opening its doors in February.
More hotels are due, including a Ritz-Carlton opening this year opposite Southern Cross Station as part of a pipeline of 5000 hotel rooms under construction in Melbourne.