Diversified Singaporean conglomerate Tuan Sing Holdings is close to announcing plans to redevelop its 550-room Grand Hyatt Hotel in Melbourne’s Collins St into a major mixed-use development triggered by the fact the long-held hotel management rights over the complex are drawing to a close.
Grant Hyatt’s contract over the hotel will cease in December but it is understood Hyatt will continue to operate the hotel for at least another year as Tuan Sing continues apace with its plans to demolish the existing hotel to create a mega office tower.
Industry sources close to the deal said the redevelopment would also include a smaller hotel and ground floor retail on the site which is arguably the best position for commercial offices in the country.
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A redevelopment of the Grand Hyatt deal would create a landmark property at the Paris end of Collins St.
But the hotel management contract is yet to be settled. “The Group is in discussion with various international luxury brand operators including the incumbent,” Tuan Sing said.
One industry player said the owners would likely be talking to Marriott and Hilton about their luxury brands. Luxury independent Asian brands could be brought in but sticking with Hyatt is favoured.
“There is always a risk in changing brands on such an iconic hotel and I understand Hyatt have done a very good job over the last 30 odd years. Therefore, Hyatt have to be favoured to hang onto the management,” he said.
Industry players said the Singaporean company called for submissions from agencies earlier this year on advice for pre-leasing a major office tower and finding a capital partner.
Grand Hyatt Melbourne set for mixed-use redevelopment
The Grand Hyatt Hotel in Melbourne’s Collins St could make way for an office scheme and a trimmed down hospitality offering.
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