Hotels

MHG Perth raises hotel room glut concerns

Hannah Edensor

Minor Hotel Group (MHG) has announced its plans to expand its presence in Australia, with two new properties popping up in Perth.

Currently operating a portfolio of over 130 hotels and resorts, MHG is set to launch AVANI Hotel and AVANI Residences in the WA capital.

The announcement marks the AVANI brands entry into the Australian market with an investment of more than AU$110 million.

MHG currently operates 50 Oak Hotels and Resorts primarily in Australia, and predicts Perth will be a key strategic market.

But according to eTN, tourism bodies have warned there could be a hotel glut in Perth if the State Government doesn’t start promoting the city as a means of filling the new hotel rooms.

The concerns came about after Planning Minister John Day made the announcement of the two new Perth properties, as part of the Perth City Link project.

According to eTN, Tourism Council WA’s chief executive Evan Hall said it was imperative the Government invested in promoting Perth as a destination to attract visitors to the 1850 hotel rooms to be built in Perth in the next few years.

Australian Hotels Association WA’s chief executive Bradley Woods was also reported saying that if the government fails to properly invest in promoting the city, there will be an oversaturation of rooms and no people to fill them.

“If we don’t meet the new hotel builds with an effective and successful destination marketing boost that drives visitation, we will end up with a glut of hotel rooms,” he said.

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The Perth City Link project boasts a prime location directly adjacent to the Perth Arena within walking distance of the proposed new bus terminal and is well serviced by public transport.

The redevelopment of two Lots by MHG will help to enhance the city centre and is a major milestone for the AU$5 billion Perth City Link project, which is working to transform the city and align with the government’s vision to provide hotel and short stay accommodation in this precinct.

Lot 2 will be developed into an upscale AVANI Hotel, offering more than 250 keys and is set to wrap up in the last quarter of 2017.

Lot 3A will be transformed into AVANI Residences, offering more than 200 keys for sale, and comprising of serviced one and two bedroom apartments.

Minor International’s COO and MHG’s CEO Dillip Rajakarier said the new properties represented a significant investment for Perth.

“Minor Hotel Group is already well established in the country with the Oaks brand and we have been actively exploring opportunities to bring some of our other brands into the Australasia region,” he said.

“The Perth City Link Development will see the debut of AVANI, our dynamic upscale brand, and we are looking forward to working closely with the Western Australian government and the Metropolitan Redevelopment Authority of Perth to bring this exciting project to fruition.”

MHG’s properties will have a lifestyle focused environment embedded in the design of both the buildings and public spaces around it, with some facilities including a rooftop bar accessible to the public atop AVANI Hotel, in addition to a selection of alfresco bars and restaurants, and new amenities to support the Perth Arena.

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