HOTEL SHORTAGE GIVES RISE TO CONSTRUCTION

Written on the 12 June 2014 by Laura Daquino

HOTEL SHORTAGE GIVES RISE TO CONSTRUCTION

BRISBANE’s crammed hotels may have to put away their no vacancy signs thanks to at least five new hotel projects of the four and five star calibre.

According to Stephen Pyman (pictured below), head of construction and infrastructure at Holding Redlich’s Brisbane office, a shortage in Brisbane hotel rooms has given rise to construction now taking place at pre-GFC levels.

The city is shaping up for the G20 summit and the new hotels will be dispersed throughout the CBD, two of which in proximity to the airport. 

“According to ABC Tourist accommodation data, hotel rooms in the Brisbane CBD have achieved an average of 82 per cent occupancy over the past four quarters,” says Pyman.

“Brisbane is said to be losing approximately $140 million annually over not being able to meet hotel room demand.”

Pyman says it seems to be a race to get the city G20-ready and also lay solid foundations to attract future events.

“It is a race to get the city ready for the G20 and confidence seems to be booming – there’s an interesting mix of hotels being developed with a couple of them set for the five star mark,” he says. 


“The level of construction activity taking place right now is helping rejuvenate the CBD and will ensure the city is even better prepared to host the big events.”

Pyman says construction is being spurred by the Brisbane City Council, which announced the incentivising of hotel developments in 2011. 

“A program that waived infrastructure charges for developers of four and five star hotels, as long as they commenced construction within two years of approval, has had a significant impact on Brisbane’s construction levels – it can save developers approximately $100,000.”

Holding Redlich is acting for the developer or builder in a range of current CBD hotel projects: Lennon’s Hotel, Emporium South Bank, Capri Albert Street and a new hotel precinct at Brisbane Airport.

The hotel projects are meeting the Queensland Government's long-term plan to grow the tourism and construction sectors into two of the four pillars of the State's economy. 
 

 


 


Author: Laura Daquino Connect via: Twitter LinkedIn

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