As demand takes off, Melbourne Airport gets its first new hotel since 2002
Melbourne Airport will build a new 464-room hotel, creating the first new hotel accommodation on its doorstep since 2002 as it plays catch-up to runaway demand.
The super fund-owned airport has signed an agreement with operator Accor to manage the seven-storey, L-shaped hotel that will offer two different brands – a three-star Ibis Styles and four-star Novotel – in two towers that share back-of-house facilities.
The airport lacks many of the facilities its rival airports in Australia and around world take for granted and with planning for a third runway – out of an anticipated four in its master plan – that will be operational by 2022, it already needs to expand the hotel facilities last built when the airport processed 15 million passengers a year. The current figure is 36 million and that will rise to 60 million by 2033.
“It’s obvious that we haven’t really kept up with growth,” said Melbourne Airport chief of property Linc Horton. “There is significant pent-up demand.”
Fender Katsalidis Architects designed the building that will go on the site of the existing Hanna’s Cafe, slated to become a new precinct called The Hive that also has space for two new commercial buildings. The site, south of the current terminal buildings, will face a planned Terminal Five building that will be built next to the current Terminal Four.
Woods Bagot worked on the interiors. The building will have a pool and gym facilities in a separate wing that will be accessible for both residents and airport users. The hotel will also have conference facilities to service the 20,000-odd people who work in the airport precinct daily.
“We are excited to be working with Melbourne Airport on this development and thrilled to be embarking on another dual-branded hotel complex,” said Simon McGrath, AccorHotels Pacific chief operating officer.
‘Expanding the offer’
The current three hotels – Parkroyal, Holiday Inn and ibis budget – on the airport’s front door have a collective 550 rooms. There are another 100 rooms in Quest-branded serviced apartments in an adjacent business park in the hotel precinct. The two new hotels will fill gaps in the airport’s current offering, with the Ibis Styles between its budget namesake and the Novotel between the Holiday Inn and Parkroyal.
“We’re not competing with ourselves,” Mr Horton said. “We’re expanding the offer.”
Construction is due to start in the second half of this year and the hotel will open in 2020. Construction will go out to tender shortly, he said.
Market research showed that there was still much unmet demand for accommodation and more would be developed, Mr Horton said.
“After this hotel there will be more to come.”
