Capital Alliance to build two new Docklands hotels and a convention centre
Domestic tourism is in full recovery mode according to Melbourne developer Mohan Du, who says there is only blue sky ahead.
On the back of this assumption, Du is building two new hotels and a 1000-person convention centre in Docklands, in what will be a two-tower $340 million project.
Following construction, the Du run Capital Alliance will have five hotels in Melbourne with a total value of more than $1 billion.
The two hotels designed by SJB Architects, a 200-room Collection hotel and 105-room A by Adina apartment hotel, will be operated by TFE Hotels.
They will open in 2026 and will feature two cascading towers of a maximum height of 26 storeys and a sky bridge connecting them. They will also be highlighted by the country’s largest rooftop infinity pool, a day spa, shops and restaurants.
Du told The Australian Financial Review there would be “ample demand” from travellers.
“Purpose-built hotels, which is our thing, have an advantage over the older, rundown hotels. These new hotels can also cater to what travellers need now and into the future,” Du said
Du said, the next four years will be all upside for the industry.
“The industry is coming back significantly faster than anyone anticipated. I believe we will get back to pre-COVID performance levels by late next year,” Du said.
Melbourne’s August occupancy rate was 59%, with metrics currently below pandemic levels. However, with summer approaching, this is expected to improve dramatically.
Du has been busy this year, cutting the ribbon on a 189-room Marriott Docklands and the 205-room AC Hotel by Marriott Melbourne Southbank.
TFE Hotels is a joint venture between Rich Listers the Vidor family’s Toga Group and Singaporean operator Far East Hospitality.
“For us, that journey starts with today’s announcement, and we are very much looking forward to breaking ground early next year,” said TFE Hotels Group chief operating officer, Chris Sedgwick.
Irit Jackson, 15th September 2022
