Hotels and Retail Points to Economic Improvement
Investment in accommodation and retail construction is continuing apace in Western Australia as companies position themselves for growth in both tourism and the broader economy.
In the past year, at least seven hotels have opened across the Perth metro area and another 20 are scheduled to open in the next three years, most of them in and around the Perth CBD. These extra rooms and their associated hospitality facilities are providing much needed extra accommodation capacity that will allow the Government and tourism sector to confidently invest in marketing to attract visitors to WA.
Pindan has been involved in a number of significant hotel projects worth nearly $80 million. In October, the company was selected for the $22 million contract to build the Ibis Styles Hotel on Adelaide Tce in Perth CBD. Ibis is part of the bigger AccorHotels group and construction will commence by he end of the year.
The additional rooms in and around the city centre are opening at a point when there will be a ramp up in major event marketing to intrastate, interstate and international visitors with the opening of Perth Stadium in 2018. A range of major events, plus AFL, will ensure a steady stream of new guests seeking well-located modern accommodation across the city.
Significant sums of money are also being invested in major new retail developments or redevelopments in Perth and regional areas. This forward-looking investment is now being matched by a significant lift in the confidence of retailers as we near the end of 2017, with a new Commonwealth Bank survey showing that 33% of WA retailers have a favourable outlook for 2018, up from 25% at the start of this year.
Pindan has been very active in $60 million of recent retail developments, with a notable new success being the $20 million upgrade and extension to the Wanneroo Shopping Centre to accommodate a new ALDI supermarket and other tenancies.
Savills Australia State Director WA (Project Management), Graham Nash, said the decision to award Wanneroo Central to Pindan was based on a good customer experience in the past.
Pindan Director, David Pringle, said the significant amounts being invested into hotel and retail projects were an optimistic sign for WA because they indicated strong levels of confidence among both investors and the major brands that will be operators and tenants.
"Our clients would not be investing millions of dollars into the state unless they have a very good sense that they will get a strong return on their funds in a reasonable period of time. We are confident that our new hotel and retail projects are excellent signs that there is strength in the economy and an expectation that growth is returning," said David.
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