How Perth will reach $3B in hotel development

Aerial view of Perth City Link

It’s hardly a secret that Australia’s hotel scene is hot, and while many eyes are on Sydney, Melbourne and Cairns, the western city of Perth is also in top demand. 

Over the next three years, a full 24 hotels are slated to open and bring nearly 4,000 hotel rooms to the city’s portfolio. The total cost of this development is expected to surpass $3 billion. 

Beyond that, a further 30 hotels or serviced apartments are being considered for Perth and Fremantle for a further influx of 4,181 more rooms.

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This growth is all the more remarkable given that just five years ago, the Western Australian government said that Perth needed 1,900 rooms to open by 2020 if the city was to keep pace with corporate and leisure demand. Since then, according to the Australian Hotels Association’s latest report, Perth has seen 19 new hotels and serviced apartments open for a total of 1,832 rooms…and there are three more years to go until the deadline. 

Australian Hotels Association CEO Bradley Woods said that both Australian and international developers were investing in Perth hotels, and that the new hotels were under the umbrellas of major chains and companies. He also expects Qantas’ new nonstop service from London to Perth to create new demand. 

Recent hotel openings in Perth include COMO the Treasury (48 rooms), Fraser Suites (236 rooms), Alex Hotel (74 rooms) and the boutique Terrace Hotel (19 rooms). The $568-million, 500-room Crown Towers opened last month. Expressions of interest are also being sought for new hotels or serviced apartments at the airport, the Subiaco Pavilion, Riverside near the Causeway and the Royal Hotel in Perth.

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