WA’s hotel development pipeline remains robust despite border closures and lockdowns hurting the state’s tourism industry.
Perth hotels are still open for business and welcoming guests, although in numbers significantly reduced on those recorded pre-pandemic.
At the same time, the number of hotel rooms in the city’s inventory continues to grow, with about 250 rooms added to stocks in 2020.
Increased hotel capacity during the past year was provided by Rottnest Island’s Samphire Resort, owned by Prendiville Group, and Vibe Hotel Subiaco, owned by NSW-based hotelier TFE Hotels.
Those properties have entered the market despite widespread lockdowns and border closures significantly reducing the number of tourists visiting Western Australia over the past 18 months.
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Data from Austrade’s national visitor survey indicates annual visitation shrank by 18 per cent in the 12 months to March 2021, while research from Tourism WA shows hotel occupancy fluctuated between 20 and 50 per cent for much of 2020.
Nevertheless, confidence in hotel developments remains high, with several major mixed-use developments set for completion in the years ahead to feature hotels.
They include Curtin University’s $500 million expansion in Bentley, which will feature a 60-room hotel, ADC_ and Warburton Group’s $1 billion redevelopment of the Old Perth Girls School, and Adrian Fini and Victor Goh’s $385 million EQ West project.
Mr Fini, who holds a significant stake in several hotels, both privately and through his Hesperia outfit, said hotels continued to provide vibrancy and diversity to new developments, as well as substantial economic activity in the development phase.
“In the context of city regeneration projects, they act as catalysts for greater vitality in the areas that surround them,” Mr Fini told Business News.
“In new developments they can play a critical role in benefitting, establishing, and promoting the surrounding area, especially in regional communities.
“Essentially, hotels can help unlock the potential of a place.
“Above everything else, they enable us to share different parts of Perth and regional areas with visitors, and that spreads the word about WA.”
Mr Fini cited COMO The Treasury, which was redeveloped and opened by Fini Group (now Hesperia) in 2015 as part of a $580 million redevelopment of Cathedral Square, as an example.
He said the 48-room hotel had become a cornerstone in efforts to revitalise Perth’s easternmost reaches, with development of the nearby Westin Hotel and Hibernian Place adding to the development’s appeal to visitors.
Mr Fini’s approach will be tested further as he seeks to progress a 65-room hotel along Smiths Beach, near Yallingup.
That site, which was subject to several investigations stemming from failed attempts by previous owners to develop a residential subdivision there in the 2000s, already appears to have drawn the ire of community groups and local state representative, Libby Mettam.
And while community tension appears to again be simmering, Mr Fini is confident the project will allow visitors to experience the South West’s culture and heritage in a way that will be appealing to the community.
“My experience of developing the Bunker Bay Resort shows that hotel accommodation can be sensitively developed in the South West [region] in a way that is embraced long term by the community,” he said.
“We are going through a unique period where our hotel and accommodation sector is experiencing highs and lows because of various COVID restrictions.
“However, the long-term reasons for developing hotels remain the same, and we must focus on developing the next generation of world-class accommodation in WA.”
