Kuwait-based Action Hotels has agreed a deal to develop its latest property in Australia, a $69 million four-star hotel at Melbourne Convention and Exhibition Centre.
Action Hotels said it had secured a 92-year lease on a plot of land at the exhibition centre on which to develop the new hotel.
The hotel will comprise 317 rooms and 14 apartments, making it the second largest hotel in Action’s portfolio, the company said.
It is its fourth property in Australia and third in Melbourne, and comes six months after the opening of Action’s Ibis Styles Elizabeth Street hotel in Brisbane in March.
The hotel is expected to open in the first quarter of 2018 and the total project cost is $69 million, which Action said it would fund partially through a new debt facility for the project and partially through existing resources.
The Melbourne Convention and Exhibition Centre is the largest convention centre in the southern hemisphere and accommodates more than 5,500 delegates.
Action said hotel demand in Melbourne continues to outperform supply but the majority of hotel accommodation in the city is upscale or above, leaving a gap in the market for its own brand of midscale accommodation.
Sheikh Mubarak Al Sabah, founder and Chairman of Action Hotels, said: The hotel is ideally positioned in an attractive market with extremely positive fundamentals and rising demand, in a location that is currently underserved by midscale hotels.
Action Hotels operates in Europe, the Middle East and Australia and is listed on the London Stock Exchange.