Melbourne room glut concerns hoteliers

SETTING THE AGENDA FOR TRAVEL

News

Salary and Job Satisfaction Survey

Travel Pursuit

Australian Travel Awards

News

3/07/2009 12:24:15 PM

Melbourne room glut concerns hoteliers
Justin Wastnage

Melbourne could be faced with oversupply of hotel rooms leading to a depression of rates, a panel of hoteliers heard yesterday.

Speaking at the ninth annual Australian, New Zealand and Pacific Hotel Investment Conference (ANZPHIC) at Sydney’s Star City casino complex, Bruce McKenzie, chief operating officer for Australia, New Zealand and the Pacific at InterContinental Hotels said he was “extremely concerned” that too many rooms were coming on stream in the Victorian capital this year.

“Bringing in these kinds of room numbers is crazy. Look at Beijing, look at Shanghai, they now have occupancy in the forties [percent] in part due to over supply,” he warned. The InterContinental opened the renovated Rialto hotel on Collins Street earlier this year.

Hilton Hotels has added its new 396-room at the city’s convention centre in April and the latest Crown hotel, Metropole, will open early next year.

But Paul Fischmann, chief executive of boutique hotels chain Eight Hotels said Melbourne knew how to stimulate demand to fill the extra room stock. “Melbourne hoteliers are more comfortable than those in Sydney at keeping rates higher, because they know another big event is around the corner,” he said.

Paul Constantinou, chairman of Quest serviced apartments agreed, saying: “Melbourne has been planning for ten years. If anything I’d say we could be facing a shortage again in a few years because of the new convention centre.”

Marlene Poynder, general manager of the Park Hyatt Hotel Sydney said the New South Wales Government was “ten years behind Victoria” in events staging, but said “green shoots” were beginning to emerge, such as the recent Vivid light show.

Melbourne Hotels

3 July 2009

More News

Environmentalists kill hotel development (12-May-2006)
Environmentalists in Spain have won a major victory in their battle to control tourism development, with the southern region of Andalusia agreeing to demolish a 20-storey hotel constructed on fast-disappearing natural parkland. more

German hotel charges by the kg (12-May-2006)
A German hotel owner has defended his practice of charging guests according to how much they weigh. more

Dr Who battles daleks in the streets of Cardiff (8-May-2006)
A Welsh hotel has organised a pilgrimage around Cardiff for fans of the Dr Who television series. more

Dubai to build world's largest hotel (2-May-2006)
Dubai has unveiled plans to build the world's largest hotel as part of a USD27 billion tourism project. more

EasyHotels planned for India (1-May-2006)
EasyJet founder Stelios Haji-Ioannou has unveiled plans to introduce his easyHotel franchise in India. more

Fairmont and Raffles hotels in merger deal (20-Apr-2006)
Shareholders of Canada’s Fairmont Hotels & Resorts have approved a $US3.9 billion takeover bid by Saudi Prince Alwaleed bin Talal, the world’s fifth richest man, and Colony Capital. more

$1 billion Red Rock resort opens in Las Vegas (19-Apr-2006)
Las Vegas has upped the ante with the opening this week of its first $1 billion property off the strip, the luxury Red Rock Casino resort and spa. more

Accor moves into Mackay (13-Apr-2006)
Accor has announced it will be opening a new property in Mackay – Grand Mercure Suites. more

Touraust enters joint venture (10-Apr-2006)
Touraust Corporation has announced a joint venture agreement with Australian Residential Property Trust (ARPT) to build and operate a series of new hotels, the first due to open in Newcastle in April 2007. more

Investors buy Le Grand in Vanuatu (4-Apr-2006)
The four-star Le Grand Hotel and Casino on the Port Vila waterfront in Vanuatu has been acquired by investors in Iririki Island Resorts and Spa. more