Rydges set for five-star revamp

The InterContinental Hotels Group will return to the top end of Perth's accommodation market in 2016 with redevelopment plans that will convert Rydges into a five-star hotel.

IHG has signed a management agreement with Rydges Hotel owner UNIR Hotels to transform the venue into a luxurious, 240-room InterContinental hotel.

Rydges, on the corner of King and Hay streets, will close in the third quarter of 2015 and the building reduced to a shell before it is fitted out to InterContinental's specifications.

With an opening scheduled for mid-2016, the new hotel will open its doors well ahead of its luxury market competitors - Ritz Carlton plans to open at Elizabeth Quay and the Westin Hotel will set up on the old FESA House site on Murray Street.

"We've been very focused on trying to re-enter Perth's five-star market and this opportunity presented six months ago," Matthew Tripolone, InterContinental's head of development for Australasia, said.

"The Rydges Hotel owners were looking for a more upscale product than they have and we came to an agreement."

Mr Tripolone said the hotel would cater for corporate visitors wanting to be based in the city centre.

"We believe Perth is driven by very strong corporate demand and there is enough to fill this hotel without any doubt," he said. "We are very confident of that. We are in a market-leading location and very confident that we will be able to drive a satisfactory performance."

InterContinental left Perth in 2012 when its joint venture ended at Burswood.

With the tendering process under way, Mr Tripolone declined to put a price on the redevelopment.

The project also rounds out InterContinental's presence in Perth, where it also operates the Holiday Inn Perth and Crown Plaza Perth.

"Long-term we are looking to shave leading products across all market segments - mid-scale, upper mid-scale and luxury brands - in Perth," Mr Tripolone said.

Source : The West Australian   Marissa Lague  November 29th 2014