Starwood Hotels and Resorts is to expand its Australian operations with the opening of a new Four Points by Sheraton at Parramatta to take advantage of the growth in Western Sydney.
It will be the 12th new hotel development in Australia by the global hotel operator which also includes the Four Points by Sheraton at Docklands, Melbourne, and also the first outside of the Sydney City. Starwood is also in discussions with the owner of the Darling Harbour site as to its future as the operator.
It comes as the Starwood group is merging with the global Marriott chain, in a deal worth $18.7 billion.
Andrew Taylor, the director, acquisitions and development, Starwood Hotels & Resorts, Pacific, said the merger will create even more brands that will likely look to Australia for expansion.
Starwood’s brands that operate in Australia include Four Points by Sheraton Sydney, the newly-announced Central Park, Four Points by Sheraton Melbourne Docklands, Aloft Perth Rivervale, The Westin Perth, Aloft Adelaide, Sheraton Adelaide Hotel, The Westin Brisbane, and W Brisbane.
Mr Taylor said the aim is to double the number of hotels under operation around the country, at a time when the hotel sector is entering a “golden age”.
There are a number of new hotels being developed across Sydney, including the Sofitel at Darling Harbour and the new Pullman Mascot which opened recently.
The new site will be developed by Sydney based JL Parramatta Pty Ltd with the hotel signing a 20-year agreement. Four Points by Sheraton Parramatta will feature 271 guest rooms, a bar and lobby lounge with snack kiosk, a restaurant, an indoor swimming pool, a fitness centre, and parking.
The Four Points by Sheraton hotel in Docklands will form part of the Marina Tower Melbourne with 251 standard rooms and 18 suites, and is slated to open in January 2017.
“Parramatta has become a focal point of economic growth in Sydney, with significant investment in a range of building and construction opportunities and hotel occupancy levels reaching a new high,” Mr Taylor said.
“There is clear demand for a new high-quality international hotel with accommodation and facilities to support the growth of Western Sydney, and Four Points by Sheraton Parramatta will deliver this with its approachable design and stylish comfort brand positioning.”
To cater for the growth, which will see corporate tenants such as KPMG and PricewaterhouseCoopers, as well as Western Sydney University, the new Four Points by Sheraton will have conference facilities and a “brews bar” for all visitors to use.
“Hotels must generate income, not just from the rooms, but food and beverage and the growth in the corporate sector of Parramatta will need meeting areas and good food offerings,” Mr Taylor said.
“Overall, the hotel business is very strong with tourists and business travel and we will be looking to expand our presence in the capital cities and the regional hubs.”
Keep up with Commercial Real Estate news.