Fraser Hospitality has lodged a development application to convert 74 Albert Street / 89 Mary Street into a new a 4-4.5 star hotel facility.
The 19 level office building will come under the new ‘Capri by Frasers‘ hotel brand, which has three hotels in Singapore, Malaysia and Vietnam and planning more hotels in Frankfurt, Shanghai, Indonesia and Malaysia.
The development comprises of a ground level hotel restaurant, podium level function rooms, club lounge, pool and gymnasium.
Approximately 15,000 m² of existing commercial office space on levels 3 to 18 would be converted to between 230 and 250 short term accommodation (or hotel) units. Building signage is also proposed for the top of the tower.
Following a complete lack of hotel supply for over a decade, demand continues to grow. According to ABS Tourist Accommodation Data, on average hotel rooms within the Brisbane CBD achieved approximately 82.0% occupancy over the past four quarters (ending March 2013).
Occupancy rates in the CBD rarely fall below 75%. As occupancy rates are cyclical, Brisbane CBD hotels are at effective full occupancy for significant periods. A study for Brisbane Marketing estimates that 470,000 bed nights are deferred each year due to a supply shortage.
Occupancy of hotel rooms within the Brisbane CBD is cyclical; it peaks in the September quarter (up to 87% – this is close to effective full occupancy) and reaches it’s lowest in the March quarter (around 78%). This low occupancy period coincides with the Queensland school holiday period.
A report published in 2013 by Brisbane Marketing and the Queensland Government states that Brisbane has the capacity for an additional 300 plus hotel rooms a year to meet the current and forecast demand to 2022.
The refurbishment is not anticipated to be completed before next year’s G20 summit, with completion slated in 2015.