New Hotel Set For Perth CBD

New Hotel Set For Perth CBD

Western Australia Minister for Tourism Kim Hames

Hotel On FESA House Site A Step Closer

Victor P Taffa

  • BGC chosen as preferred proponent for Hay Street site
  • First incentivised site released by State Government
  • Accommodation would help overcome Perth’s hotel room shortage

Western Australian company BGC has been selected as the preferred proponent to develop a significant hotel and mixed-use development at the former FESA House on Hay Street in Perth’s central business district.

Tourism Minister Kim Hames said BGC was selected from a short list of highly credentialed national and international consortiums.

“This decision means BGC and the State Government enter into an exclusive working period of three months to commence design and contract negotiations to deliver the first incentivised hotel in WA.” Dr. Hames said.

“However, the final size and design of the hotel will be dependent on BGC and the State Government agreeing to terms during this exclusive working period.”

“The quality of submissions was extremely high with each proponent submitting a detailed analysis of their proposals, including architect drawings, full cost analysis, financial modelling, land tenure structure and proposed commercial terms.”

FESA House was the first Crown Land site released under the State Government’s hotel development incentive package announced in October last year.

“The severe shortage of hotel rooms in Perth is negatively impacting on WA’s ability to attract corporate and leisure visitors; major conferences and events; increase aviation capacity; and disperse travellers throughout the State.” the Minister said.

“Hotels are critical infrastructure for the State’s economy. Tourism WA is closely monitoring supply and demand to ensure a measured application of the development incentives.” 

Fact File

  • Liberal-National Govt is working to bolster WA hotel room numbers by offering incentives to developers in a widely-lauded program
  • This is one of two new hotels announced under this Govt, the other being the 500-room Crown Towers development
  • Perth has the highest hotel occupancy rates in Australia (average 85.23%)
  • Perth needs an extra 1,900 hotel rooms by 2020 to stabilise the hotel market