Hipster hotels take over Melbourne’s lifestyle suburb

He plans to start construction on the structure designed by Cox Architecture early next year.

Close to Johnston Street in Collingwood, luxury developer Tim Gurner is building a 95-room hotel with ground-floor shops and 65 upscale apartments.

The project, which will be managed by fast-growing boutique brand Veriu, is based on New York’s famed Crosby Hotel. It will be finished in a little over a year.

The two developers are looking to hold onto their new assets and for Mr. Gurner this is the start of a long-term investment plan.

Meanwhile, for Goldfields, which has a joint venture partner in the Richmond project, it is the seed of an Australia-wide portfolio.

“We’re already looking at a few other sites,” Thompson said.

Mr. Harper said the new generation of hotels will need midweek and weekend visitors to be viable if they are to compete with the “huge” number of hotel sites – 16 buildings with 3,700 rooms – currently. under construction in the CBD and the fringes of the city.

Hoteliers, especially those in Australian capitals, have been hit hard by the pandemic and are showing only signs of a rebound.

“The market was showing strong signs of recovery before this latest lockdown,” Harper said.

Loading

The occupancy rate at five-star and luxury properties in the city hit over 90% on weekends, although on weekdays it was still around 50%, he said.

Existing hotels in marginal markets will find it difficult to compete. “In any recovery there is always a flight to quality, to shiny new hotels,” he said.

In serious Fitzroy, another developer – DealCorp – signed Los Angeles-based chain The Standard Hotel for a 127-room, $ 60 million Hecker Guthrie-designed venue on Rose Street.

Not to be confused with the popular Fitzroy The Standard Hotel, which has been serving drinks since 1865, the LA operator’s motto is “anything but standard”.

South of Melbourne’s CBD on Dorcas Street, British giant InterContinental Hotels Group is forging ahead with an upscale voco offering of 171 rooms.

The Voco Hotel, which is part of a mixed-use high-rise tower, will be completed in 2023 and will take advantage of its proximity to St Kilda Road and Melbourne’s new Anzac metro station.

The Business Briefing newsletter features important articles, exclusive coverage and expert opinions. Sign up to get it every morning on weekdays.