Accor to expand its Art Series brand with new $90m hotel in Perth
Hotel giant Accor is set to take over the management of a $90 million hotel in the Perth CBD, expanding its Art Series brand to Western Australia in the process.
The 250-room project is being developed by WA property investor George Atzemis, who purchased the site at 900 Hay Street for nearly $10 million in 2013.
It was the former home of the historic musical instrument shop Musgroves Music, which dates back to 1922.
While the 27-storey tower topped out in January 2019, internal fit-outs are being undertaken and the hotel is due to be opened in October.
An impression of the hotel’s restaurant and bar area. Image: Accor
It is the first Art Series Hotel to be established in WA, with eight across Melbourne, Brisbane and Adelaide.
The design concept of the hotels incorporates custom furnishings, original artworks and prints across the walls and halls. Each property is named after an artist and the overall style of the hotel reflects that artist.
The hotel will also feature a restaurant with terrace, bar and lounge, ground-floor café, swimming pool, gymnasium and a function room.
AccorHotels Pacific chief operating officer Simon McGrath said the move to gain a presence in WA represents the group’s strategy to grow the Art Series brand.
“This announcement reflects the continued expansion and evolution of Australia’s only boutique hotel brand creating art-inspired experiences for guests,” he said.
Mr McGrath added that the hotel will make an economic contribution to Perth by supporting the local tourism industry and create new jobs.
Mr Atzemis said the new Art Series hotel will be a “significant addition to the Perth city landscape”.
Despite the property’s 250 rooms, it has been given the label of a “boutique hotel” – indicative of shifting traveller demographics and a demand from discerning guests for accommodation that differs from the generic hotels of the past.
Boutique hotels are growing in popularity with travellers. Image: Accor
“The boutique hotels (are) becoming as important as the destination itself, because of their ability to immerse guests in the local surrounds,” according to Tourism Accommodation Australia’s Hotel Innovation Report.
Major operators are seeing this and are ramping up their market share of this burgeoning sector. Colliers International data shows 12 per cent of new rooms opening this year in Australia are classified as “boutique and lifestyle”.
The hotel occupancy rate in the WA capital fell by 1.8 per cent to 73.2 per cent in 2018, with pressure stemming from the bulk of supply that has been delivered since 2016, according to CBRE’s latest Hotel Marketview.
The Perth CBD’s hotel supply is projected to surge by 33 per cent by the end of 2024, but the market is not expected to deteriorate at the rate it has in the past few years due to a boost in business sentiment and corporate travel.
