SYDNEY, Australia—IHG (InterContinental Hotels Group) announced its first property in Australia with the signing of the Holiday Inn Express hotel in Perth. Developer Sunfire Asset has engaged IHG to manage the new-build, 224-room hotel which is expected to open in 2015.
The development addresses the growing demand for additional hotel rooms in Perth, which boasts Australia’s highest CBD hotel occupancy rates, sitting at 85.1 percent in December 2012 and forecasted to rise to 88.2 percent in the financial year to June 2015.
As a Holiday Inn Express hotel, the property will offer a “Grab & Go” breakfast, meeting spaces, self-service facilities including laundry, and complimentary Wi-Fi.
“There is real investment potential in Perth hotels at the moment, with the mining capital of Australia experiencing soaring room rates and a shortage of guest rooms,” said Ralph Nunis, head of Sunfire. “The CBD hasn’t seen a new hotel build for more than a decade, so we’re delighted to be working towards a solution for both business and leisure travellers to the city.”
Phil Kasselis, head of development, Australasia for IHG, said a Holiday Inn Express hotel—designed to deliver lower building costs, lower overheads and operational efficiencies—makes for a sound investment in a climate where adequate returns from new hotel construction are difficult to achieve.
“Holiday Inn Express’ efficient design and a modular, no frills approach represents a more rapid build proposition than an upscale or luxury hotel, and meets the need for an affordable alternative to full service hotels. It’s also a lower cost and higher yield model, which presents a faster road to profitability for owners,” he said. “We’ve seen Holiday Inn Express grow exponentially in international markets over the last two decades, pointing to strong demand for such a brand from both guests and investors. We’ve been looking for the right location and the right partner to launch the brand with here in Australia. We’re confident Holiday Inn Express will do very well in Perth, among both leisure and business travellers.”