Accor places Brisbane Mövenpick Hotel on hold, searches for new site
Residential developer Keylin and hotel provider Accor have decided to go their separate ways after facing construction challenges on a planned conjoined-tower project in Brisbane’s inner-city.
The pair announced in November last year that the developer’s luxury art-deco styled apartment tower “Oria” in Spring Hill would be complemented by the city’s first Movenpick Hotel, which would overlook Victoria Park.
But the original design for a shared pool deck, gym and carpark facilities, proved increasingly difficult to deliver over the past six months, given the challenging construction landscape.
Keylin managing director Louis Cheung said the decision came down to simplifying the project because of the difficulties in securing builders, subcontractors and specialty engineers in the midst of trade and supply shortages, adding it was a mutual decision alongside Accor to uncouple the tower and would allow the residential developer to focus on its core business.
“Six months ago we had a choice to put the project on hold, refund the customers,” he said.
“Or, we manoeuvre around it, pivot, and do what we need to make the changes and deliver the project.”
Keylin will tender for a builder in the coming months for the apartment portion, with all demolition, ground and basement work already complete.
“We feel there are a lot of projects on hold in Brisbane, so builders’ pipelines aren’t as full as they appear to be,” Mr Cheung said.
Accor and Keylin will still partner to deliver the first Movenpick in the River City, with the duo looking for a site within 2km of the original location – likely to be in Fortitude Valley, the CBD or Spring Hill.
The 96-room Movenpick Hotel Brisbane Spring Hill was slated to open in 2024 and offer a restaurant and conference room alongside the international brand’s assortment of signature offerings, including a daily Chocolate Hour.
Mr Cheung believed the change would be beneficial for the hotel provider and likely give them more land to work with than the 1000sq m plot originally assigned.
The marketing campaign for the residential project Oria was put on hold six months ago to sort out the construction troubles, with the tower of the owner-occupier-styled apartments already nearly sold out. Buyers were told about the changes earlier this week.
All previously shared facilities will now be exclusive for residents, with the hotel allotment to be landscaped. A design amendment will be submitted to Brisbane City Council to accommodate the changes.
Oria’s delivery has been delayed by nine months, and is now anticipated to be completed in the fourth quarter of 2024.