$3b hotel boom on its way
More than $3 billion in hotel developments are in the pipeline for Perth and Fremantle, representing the biggest investment in the local accommodation sector in the past 20 years and reminiscent of Sydney's hotel boom leading up to the Olympic Games in 2000.
Data compiled by the Australian Hotels Association (WA) shows that Perth is set to lead the nation on hotel establishment with 4000 new rooms to be brought on to the market over the next five years.
Topping the list is the $300 million Elizabeth Quay development, rumoured to include a Ritz-Carlton hotel.
Also on the list is a 40-storey development at 190 Adelaide Terrace valued at $280 million, a 154-room development at Woolstores in Fremantle and a nine-storey addition to the Duxton Hotel.
A $350 million hotel is also proposed at the Old Emu Brewery site, a $250 million property is earmarked for the former FESA building and the $568 million Crown Towers will be built at Burswood.
AHA (WA) chief Bradley Woods said the new rooms would not only help alleviate Perth's chronic hotel shortage but broaden the offering.
"It will mean more rooms in the mid-range level and some at the lower range level so on average we will see prices drop," he said.
"We will also see more high-end development - the old Treasury Buildings hotel will be one of the finest hotels in WA's history - it will offer a level of hotel accommodation not seen before in WA and possibly not seen in Australia."
