Source: Urban Developer
After a brief departure from building residential projects, Jonathan Hallinan is back bigger and better than ever. And its clear he spent his time away working on new ways to maximise returns for his business. Its not new, but it may become more prevalent than it has ever been in the very near future. Even Little Projects is currently working on building a hotel in Downie Street in which he has reportedly done a deal with Hyatt for $150m.
Jonathan Hallinan’s BPM has listed a permit-approved off-the-plan hotel development at 33 King Street, Melbourne for $80 million.
The 350sq m site, on the corner of King and Flinders Lane, was purchased in 2016 for $12.35 million from Malaysian developers with an original permit for 120 one- and two-bedroom apartments.
BPM has since obtained a revised permit for a redesign into a 241-room luxury hotel over 30 levels including a cafe and rooftop bar.
The proposed hotel, designed by Elenberg Fraser, will now be put up for sale, targeted at international hotel operators.
In making the decision to move into hotel development Hallinan said that he saw a unique opportunity to bring the developer’s aesthetic to the sector.
Related reading: Hallinan Signals ‘Return’ to Melbourne Apartment Market
“Our experience developing for an aspiration owner-occupier in Melbourne’s most prestigious suburbs has allowed us to apply our learnings to an area of the market in which true luxury in design has been lacking,” Hallinan said.
Builder Maxcon has been appointed to deliver the construction contract with the project due to be completed in the fourth quarter of 2019.
Hallinan is also selling another 130-room, four star hotel on a small 168sq m site at 9-11 Exploration Lane in Melbourne’s CBD.
The surge in hotel rooms in Melbourne’s city is forecast to continue, as tightened planning controls and a softening inner city residential market driving developers towards the hotel sector.
Developer Caydon has also recently started construction on a hotel at the site of the former Fletcher Jones building on the corner of Flinders and Queen Streets.