AccorHotels to build Vicinity Centres luxury hotel

Company News

by Kathy Skantzos

Retail property group Vicinity Centres (ASX:VCX) has announced that Australia’s largest hotel operator AccorHotels Group has been appointed as the operator of a $130 million hotel that it has a $65 million share in.

The 13-storey hotel, which will be built next to the Chadstone Shopping Centre, is expected to start construction early next year for 18 months, to be open in late 2019.

The 250-room luxury hotel will be branded under the MGallery by Sofitel brand, and will have conference and meeting room facilities, a 400-people ballroom, two restaurants, a lounge bar, as well as a health and wellness centre.

The company said strong demand for a premium hotel exists in the area, with business travelers travelling to the Monash region as well as tourists to Melbourne and visitors to the shopping centre.

The boutique MGallery by Sofitel brand has 88 hotels globally, with 10 across Australia.

Shares in Vicinity Centres (ASX:VCX) are trading 0.88 per cent higher to $2.85.
  

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.