Starwood Hotels & Resorts Worldwide has struck a deal with Singapore-listed real estate group Hiap Hoe to run two hotels it is developing in Melbourne, Australia for a combined $700 million.
According to The Australian, the pair have struck a deal under which the group's planned hotel in the Docklands will be run as a Four Points and the hotel component of a project in Lonsdale Street will be run under the Aloft brand.
At Pearl River Road in the Docklands, the Singaporean developer is planning a 17-storey tower with more than 300 rooms and two residential towers, which will together contain 425 apartments.
The company has also set its sights on a hotel development at the Lonsdale Street site, where it intends to build a 350-room hotel and 658 apartments.
CBRE advised Hiap Hoe on selecting Starwood and agency director Mark Wizel noted the continuing demand for development sites from Asian buyers.
Striking the deal steps up Starwood's presence in Melbourne, where it is set to open a Sheraton in late March,