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Accor COO hopes Melbourne hotel boom doesn’t stop

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Accor COO hopes Melbourne hotel boom doesn’t stop
Accor Pacific COO Adrian Williams is an unabashed Melburnian who commutes to the company’s head office in Sydney as needed. He is clearly proud of his latest offering in Melbourne: a brace of three bedroom penthouse suites a stone’s throw from Melbourne Convention and Exhibition Centre (MCEC).

Launching Accor’s Penthouse series at Shadow Play by Peppers, a two-minute walk from MCEC, Williams says it is targeted at the corporate market with rates from $1,100 a night.

“You get a lot of space for that – three bedrooms, bathrooms, kitchen, a wonderful lounge with floor-to-ceiling panoramic windows,” he says, as we talk 45 floors up with a 180-degree view of the city from one of the suites.

Williams describes Melbourne as a mature hotel market.

“We’ve got all segments from eco to upper luxe…and, yes, this penthouse series is probably targeted more for our corporate guests looking for something that is much more luxe, much more premium.

Its proximity to MCEC is also a factor, he says.

“Business events is a very important segment not just for this hotel but all of our hotels across Melbourne; business events generally is a really strong demand driver.

“We’ve just come through a wonderful event period in Melbourne in the first quarter but we’re now in that strong dynamic business events period and the convention centre has certainly been part of that demand driver.

“Melbourne has for a long time really been the leader of business events across Australia and is a true global destination.

“But it is important that this city has great quality accommodation across all segments to make sure that we’re targeting those international customers, that they get an experience they’re looking for…a brand that they are used to and comfortable with,” Williams says.

On Melbourne’s ongoing boom of hotel construction, Williams believes Melbourne might reach 50,000 hotel rooms.

“I hope it doesn’t stop – as a hotelier, the growth of the hotel sector is something we’re really excited and energised about, but it is not just the hotel nerds that get excited about new brands coming.

“What it does do is create a really rich dynamic, vibrant community where the locals of Melbourne get to experience the best of international hotels, great service, great food and beverage offers, restaurants and bars – amazing experiences. 

“But what it also does is open up new segments, particularly global segments.

“Asian inbound travellers these days are high yield and they are now looking for something that’s a lot more premium. For a long time, Australia has had hotel product that is skewed to eco and midscale, but over the past 10 years, and particularly in this last supply cycle, we have seen really good quality and luxury product coming into the city and that rounds us out. Now we’re starting to see lifestyle products come into the city as well.”

Williams does not think that having 46 hotel brands in Accor’s international portfolio is excessive. In fact, he expects to see more of those brands land in Australia.

“There are a lot of brands…we don’t think it is too many, And the reason for that is that the segment has evolved and diversified.

“In some cases, people are looking for big global brands they are used to and that they see in every city they go to, but in some cases they are looking for something much more bespoke and unique. By having 46 brands it does mean that we have a brand for every occasion.”

He also confirmed that SO Melbourne was definitely coming.

“SO is in the pre-construction phase at the market end of town,” he said.

It’s a design-led 288-room hotel on the corner of William and Franklin Streets near Queen Victoria Market, with an expected 2026 opening.

But it is not all about luxe brands. Williams also has the new ibis Styles and Novotel complex opening next month at Melbourne Airport on his mind.

“These are traditional brands, but there’s nothing traditional about the development we’re doing at Melbourne Airport,” he says.

“Almost 500 rooms combined, wonderful food and beverage, signature Italian restaurant and a taphouse.”

And it’s not only for travellers, he says – it will caters to “a mini city… a workforce of 20,000” at the airport, and will feature co-working and conference spaces and a wellness centre.