Melbourne-based property investment firm SB&G Hotel Group has confirmed development plans for a new hotel property on its existing land asset in Canberra.
The planned AUD$50 million development will be a midscale offering with up to 250 guest rooms and will be built on the same site as the existing SB&G-owned Crowne Plaza Hotel on Glebe Park.
This will be the seventh hotel, across four cities for the Group, moving it closer to its stated target of AUD$1 billion.
A letter of intent has been signed with InterContinental Hotels Group (IHG) to manage the hotel under the Holiday Inn Express brand, which is focused on simple, smart, engaging travel and offers a midscale complement to the existing, upscale Crowne Plaza.
Having two IHG-managed hotels housed on the same site would allow SB&G to broaden its offering and further tap into both the corporate and growing leisure and tourism markets that travel to Canberra.
“We saw an opportunity to bring a differentiated hotel offering to the Canberra market and strengthen SB&G’s relationship with IHG, who manage our complete hotel portfolio across its multiple brands,” said SB&G Hotel Group Managing Director, Paul Salter.
“While the Canberra market has been strong over recent years, the majority of hotel supply that is planned is upscale, with the midscale market remaining under-serviced.”
IHG’s Managing Director – Australia & Japan, Leanne Harwood, added: “We are thrilled to build on our great partnership with SB&G, as we plan to bring Holiday Inn Express to Canberra. With faster check in and breakfast for everyone, Holiday Inn Express gives guests a simple, engaging place to recharge and get a little work done. We think it’s a great fit for Canberra’s savvy traveller.”
The Holiday Inn Express Canberra is scheduled to open in 2021.