At a press conference in Hobart on Monday, Fragrance and Tasmanian architectural firms Xsquared and S. Group announced that they will build a 400-guestroom hotel on Davey Street as well as a 495-room hotel on the site of the former Roberts building on Collins Street.
Along with a hotel currently being built on Macquarie Street, the Fragrance Group’s proposed investment in Hobart looks poised to reach more than $250 million, according to company head James Koh.
Koh said that the developments would help meet "current and future hotel accommodation needs in Hobart." But with hotel investment in and around Hobart slated to reach $500 million as of last year, the city is also facing an oversupply.
“Both projects are not intended to open for at least five years, which should alleviate some industry concerns about over supply in the Hobart accommodation market over the next few years as a series of other new hotel developments come online,” Tourism Industry Council Tasmania CEO Luke Martin said. “Both these projects will obviously now need to be considered by the Hobart City Council through its planning processes, and all stakeholders will have the opportunity to contribute to that process.”
Development applications for both new buildings will be lodged with Hobart City Council this week. If approved, the two buildings will be the tallest built in the city.