Action Hotels PLC Action Hotels announces new hotel in Melbourne (6592M)
October 17 2016 - 1:00AM
UK Regulatory
TIDMAHCG
RNS Number : 6592M
Action Hotels PLC
17 October 2016
17 October 2016
Action Hotels PLC
("Action Hotels", "Action", the "Group" or the "Company")
Action Hotels announces new hotel in Melbourne
Action Hotels, the leading owner, developer and asset manager of
branded three and four-star hotels in the Middle East and
Australia, is pleased to announce that it has secured a long-term,
92-year lease on a plot of land at Melbourne Convention and
Exhibition Centre for the development of a new four-star hotel.
The new hotel, which is expected to open in Q1 2018, will
comprise 317 rooms and 14 apartments, making it the second largest
hotel in Action's portfolio. The hotel will be Action's fourth
property in Australia and third in Melbourne. The approximate total
project cost is $69m(1) , which Action will fund partially through
a new debt facility for the project and partially through existing
resources.
The Melbourne Convention and Exhibition Centre is the largest
convention centre in the Southern hemisphere and currently
accommodates over 5,500 delegates, last year hosting 1,030 events
and attracting over 680,000 attendees.(2)
Centrally located, the hotel will also benefit from its
proximity to the growing Docklands precinct, Etihad Stadium,
Melbourne Central Business District and Melbourne South Wharf, a
highly sought-after leisure destination.
Hotel demand in Melbourne continues to outperform supply,
underpinned by increases in both international and domestic
tourism. Demand has increased by an average of 5.6% per annum and
has contributed to a 4% growth per annum in RevPAR between 2009 and
2015. Hotel accommodation in the city is predominantly made up of
upscale and upper upscale hotels, which make up 62% of the current
supply(1) and Action Hotels has identified an opportunity in the
market for the creation of midscale hotels to meet this increasing
demand. (2)
Sheikh Mubarak AM Al Sabah, founder and Chairman of Action
Hotels stated,
"I am delighted to announce the latest addition to our
Australian portfolio, with a plot of land in a highly sought-after
area of Melbourne. The hotel is ideally positioned in an attractive
market with extremely positive fundamentals and rising demand, in a
location that is currently underserved by midscale hotels."
(1) Conversion rate used: 1 AUD$ / 0.74 USD$
(2) Source: JLL Report, July 2016
For more information contact:
Action Hotels PLC Tel: +44 (0) 20 7907
9663
Alain Debare, Chief Executive Officer
Katie Shelton, Director of Corporate
Affairs
Zeus Capital Ltd (NOMAD & Broker) Tel: +44 (0) 16 1831
1512
Dan Bate / Jonny Sharp Tel: +44 (0) 20 3829
Adam Pollock 5000
Camarco (Press enquiries) Tel: +44 (0) 20 3757
4980
Jennifer Renwick/ Tom Huddart
Notes to Editors
Action Hotels PLC
Action Hotels is a leading owner, developer and asset manager of
branded three and four star hotels in the Middle East and
Australia. Established in 2005, Action Hotels currently operates 11
hotels with 2,030 rooms in aggregate across the Middle East and
Australia, with further properties in development in both
regions.
More information is available at
http://www.actionhotels.com/
This information is provided by RNS
The company news service from the London Stock Exchange
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