Marriott has picked Sydney Airport over its original choice of the CBD as the launching pad for its trendy Moxy brand after striking a deal to operate a new 301-room hotel at Mascot in early 2023.
The 13-storey hotel with an end value of more than $100 million is being developed on a former carpark at 56 Baxter Road by Sydney fund manager RF Corval and Thai-based KS Hotels & Resorts.
Marriott will operate the hotel under a long-term management agreement.
The hotel giant’s original plans were to open its first Sydney Moxy – a playful, edgy lifestyle brand aimed at youthful travellers – in the CBD, regional development director Richard Crawford told The Australian Financial Review.
“But when this opportunity came along and we dug into [hotel] performance at the airport, we realised this location was a strong play for the brand and for Marriott,” Mr Crawford.
“It’s prominent location and a hotel at scale.
“Hotels are generally getting smaller in size. At 300 rooms, this hotel is big by any standards.”
Hotel amenities will include a bar (which will also serve as the front desk), a cafe, various meeting and event spaces and a fitness centre.
The Moxy Sydney Airport will be the first hotel developed by RF Corval, which owns a $2.2 billion portfolio of assets on behalf of institutional and private investors and which is backed by the Roberts family, founders of building giant Multiplex.
Mr Crawford said he was confident that by 2023 ,when the Moxy hotel is due to open, accommodation demand at Sydney Airport would be back close to pre-COVID-19 levels.
The airport precinct was the country’s best performing hotel precincts prior to the pandemic with occupancy rates well around 90 per cent.
“There are number of hotels at the airport, but they are fairly predictable. This one will step out from the crowd with its distinctive features,” he said.
Also expanding its pipeline is IHG Hotels & Resorts, which is bringing its flagship InterContinental brand to Parramatta west of Sydney.
A 200-room hotel at 197 Church Street in the Parramatta CBD is due to open in 2025 as part of a $500 million development by Holdmark Property Group.
“The hotel will be located directly opposite Parramatta Square, one of the largest urban renewal projects in Australia and is perfectly positioned to cater to those in town for business or leisure,” said Holdmark chief operating officer Kevin Nassif.
On Wednesday, IHG revealed the country’s first Kimpton Hotel would open in the Sydney CBD in October.
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