The hotel construction boom throughout Perth is not slowing with Jaxon set to commence work next month on a 27-storey Mantra hotel. It is located just a stone’s throw away from three recently completed hospitality projects at the western end of the city.
Western Australian developer George Atzemis, is backing the $80 million project after purchasing the former Musgrove Music site at 900 Hay street in 2013.
Mr Atzemis said his plans have not altered since the shift in the market and the entrance of a number of new hotel players since the site was purchased.
“We had a significant amount of equity about developing a hotel on the site after we secured it, so it was clear the location was right,” he said in a statement.
“What we were proposing for the site was a 4.5 star, 250-room hotel, and we continued to view that as a fantastic opportunity and one that would occupy a space in the market that no-one else had their foot on.”
The new development follows the $25 million refurbishment of the nearby Holiday Inn on Hay street last year, which Mr Atzemis owns jointly with business partner Con Berbatis.
It follows after the opening of the Intercontinental Perth City Centre hotel, which followed the opening of Mantra’s 120-room Peppers Kings Square Hotel late last year.
The 126-room Tribe Hotel in West Perth, which opened in May is new and located slightly further away from the new development.
The Mantra Group will operate the hotel at 900 Hay Street and has been designed by Campion Design Group.
Jaxon Chief Executive David Dodds said the beginning of construction on the project was the culmination of an extended scoping and planning process, which had seen the builder work closely with the developer as well as the development manager Kish Consulting and Savills Project Management in order to finalise the design and contract.
“This was a logistically challenging site due to its location on Hay street, bordered by existing buildings and an operational laneway between Hay and Murray Streets to the adjacent multi-storey car park,” said Mr Dodds.
“We’ve worked very closely with the client from the initial concept phase in 2015, to ensure those challenges have been addressed and that the outcome for the project will be an attractive, iconic new building for the CBD, and a great new addition to the Perth hotel market.”
Jaxon won the construction contract after completing the Holiday Inn refurbishment.
“Jaxon were a good match for us - privately owned, responsive and able to move quickly to get things done,” Mr Atzemis said.
“We had a good working relationship with them so we were happy to move forward with them on another project.”
Kish Consulting Director, James Kish said the hotel was expected to open its doors to to guests in the last quarter of 2019 and will include a retail component of approximately 700sqm on the ground and first floors.
“We’ll be seeking the highest and best use of that space, but it’s likely to mesh with Hay Street’s profile and offer high end fashion and food,” said Mr Kish.
Mr Dodds and the Mantra Hotel contract cemented Jaxon’s position as one of the strongest performers in the Western Australian construction sector.
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Source: Business News.
