Starwood has confirmed its involvement in a new, 300-plus room hotel project in Perth that’s set to be built by BGC.

Len Buckeridge’s construction company BGC was recently selected by the Western Australian Government 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.

When contacted by HM yesterday (Jan 31), Starwood confirmed its involvement in the project, but would not elaborate further.

HM understands, however, that the hotel is expected to carry at least one of Starwood’s upper-upscale brands (Sheraton, Westin or W) and could potentially mark the return of the Sheraton master brand to Western Australia.

Starwood recently re-entered the Perth market with the Four Points by Sheraton Perth and the chain is seeing significant growth under the direction of the company’s Director of Acquisitions and Development for the Pacific Region, Andrew Taylor.

West Australian 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 2011.

“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.”

James Wilkinson

Editor-In-Chief, Hotel Management