Accor’s $700m hotel investment to kick-start Melbourne tourism recovery

Movenpick Hotel Melbourne on Spencer to open in June.

Melbourne is preparing to welcome a $700 million investment in its hotel sector as the city gears up for a leisure based recovery of its battered visitor economy.

“Melbourne is one of the world’s greatest cities and, over the next two years, we are bringing eight hotels and 1,583 rooms to the city, which is an investment of over $700 million by a variety of owners,” said Simon McGrath, Accor Pacific’s CEO.

“As well as the new Mövenpick hotel, which will open in June, we will be opening new hotels which include SO/, 25hours, Mercure and Peppers – before the end of 2023. These new properties will complement our current portfolio of 43 hotels in Melbourne, offering even greater choice for travellers.”

Whilst corporate, meetings and non-leisure travel to Melbourne has dipped over the past year, impacted by the closure of local and international borders, and is likely to remain subdued for the next 12 months, McGrath forecasts that leisure travel will see a V shaped recovery.

”People love to visit Melbourne for its world-leading events calendar, for its sport, arts and culture,” he said.

“Sporting events such as the Australian Open, the AFL and Formula One are also tourism events, attracting thousands into the city. Even without international travel, events can contribute to the city making a serious tourism comeback.”

Accor’s proposed hotel opening schedule:

  • Mövenpick Melbourne on Spencer, June 2021 (172 rooms)
  • Mercure Doncaster, 2022 (181 rooms)
  • Novotel & ibis Styles, Melbourne Airport 2022/23 (464 rooms)
  • SO/ Melbourne, 2023 (288 rooms)
  • 25hours Melbourne, 2023 (203 rooms)
  • Peppers Richmond, 2023 (83)
  • Mercure La Trobe, 2023 (192 rooms)