Melbourne, 26 August 2013-A new 175-room Sheraton hotel is set to open its doors in the heart of Melbourne – marking the brand’s return to the city since the rebranding of Sheraton Towers to the Langham.
The Melbourne-based Golden Age Development Group has struck a deal with Starwood Hotels to operate the luxury, five star hotel, which will be located at 27 Little Collins Street.
CBRE’s Zelman Ainsworth and Cam Taranto, who have been appointed to lease the hotel’s ground retail space, said the building’s central location would be a key factor attracting tenants.
“The Sheraton Melbourne Hotel will be situated in the tightly held Paris end of the CBD, which is occupied by several international luxury retailers including Gucci, Cartier, Prada, Dolce & Gabbana and Giorgio Armani,” Mr Ainsworth said.
“We have already received interest from a number of big name retailers and high quality hospitality operators looking to secure presence at the foot of this new hotel.”
The ground floor retail space being offered for lease comprises two shops measuring 135sqm and 115sqm.
“We are excited to work with Golden Age Development Group and Sheraton to find the right tenants for this exclusive retail opportunity,” Mr Ainsworth added.
Starwood Pacific Hotels and Resorts Regional Vice President Sean Hunt said the new Melbourne hotel was an exciting venture for the company.
“We are delighted to strengthen our presence in Australia with the signing of Sheraton Melbourne,” Mr Hunt said.
“Given Sheraton’s strong presence in Sydney, Queensland and Fiji, a Sheraton in the heart of Melbourne will be a great addition and will complement our existing hotels.”
The 32-storey hotel is due to open March next year.
News of the hotel’s opening comes after recent data showed hotel occupancy rates continue to rise nationally, with demand outstripping supply in capital city markets.
According to Deloitte’s Q4 Tourism and Hotel Outlook, occupancies are forecast to continue increasing over the medium term.
Deloitte Access Economics Director Lachlan Smirl commented: “Our forecast is for national occupancy rates to remain relatively stable over the next year, as supply increases in some key markets, before climbing to 67.1% by 2015.
“The overarching trend is one of demand outstripping supply, with room rates being driven up on the back of this.”
Occupancy rates nationwide reached 65.9% in 2012, up from 64.8% over the year prior.
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