Mandarin Oriental Hotel Group is the latest in a string of Asian hotel companies that recently announced new openings in Melbourne, as arrivals growth sends the city’s hotel occupancy and ADR on a steady uptrend.
Mandarin Oriental this week signed a management contract for a new luxury hotel and branded residences within a mixed-use 185-metre tower on Collins Street. Mandarin Oriental, Melbourne is expected to open in 2023 featuring 196 guestrooms and suites, in addition to 148 residences on the tower’s upper floors. The building was designed by the late renowned architect Zaha Hadid.
Within the space of a month, Shangri-La Hotels and Resorts also announced a large-scale Melbourne slated for opening in 2022, while Pan Pacific Hotels Group (PPHG) revealed it will soon return to the city.
Come July 28, PPHG will take over management of the current Hilton Melbourne Sea Wharf, after its parent company completed acquisition of the property.
The 396-room Pan Pacific Melbourne is located along the Yarra River and enjoys direct access to the Melbourne Convention and Exhibition Centre. It will also feature 400m2 of flexible meeting and events space, two dining outlets, and a 24-hour fitness centre.
Hotel occupancy rates in Melbourne for the year ending March 2017 topped 84 per cent and average daily room rates rose to A$192 (US$146), according to a report released last week by CWT Solutions Group, the consulting arm of Carlson Wagonlit Travel, and CAPA – Centre for Aviation.
“Passenger numbers into Melbourne airport are increasing year-on-year, requiring more new accommodation options to satisfy demand. At present, the supply-demand dynamics give hotels the opportunity to charge higher prices as the occupancy rate is so high,” said Richard Johnson, director, Asia-Pacific, CWT Solutions Group.
“Melbourne offers a viable alternative to Sydney as a point of origin and destination for international travel. However, with more choice and the ability for more people to fly direct into Melbourne, there is potential for further pressure on accommodation availability.”
