Developer Caydon has started construction on a hotel at the former Fletcher Jones building on the corner of Flinders and Queen Street in Melbourne.
Caydon is adding a 24-storey glass-fronted tower to the 145-year-old building’s façade. The developer acquired the site in 2016 for $18 million as part of a syndicate including the Singapore-backed TFE Hotels.
The hotel will be operated by TFE Hotels under its Vibe brand and is set to open in late 2019.
TFE Hotels is a joint venture between the Toga Group and Singapore’s Far East Hospitality Holdings.
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It will feature 206 rooms, indoor heated pool, gym facilities and associated retail on the ground floor. It’s within walking distance of Flinders Street Station, the crown complex and Southbank.
The previous owners, Malaysian-backed investor Creative Wealth, had paid $11 million for the building at the end of 2012 and secured a permit for a 25-storey tower. The planning permit was gained following negotiations in the Victorian Civil and Administrative Tribunal after concerns about the tower’s possible overshadowing of the nearby Yarra River.
Fletcher Jones had occupied the building from the 1950s until 2012. It has since been occupied by streetwear retailer Culture Kings. The original two-storey building at 1-5 Queen Street was built in 1873.
Caydon Property Group has been backed by Development Finance Partners who provided an injection of funds of over $100 million for the group’s various projects which includes suburban Melbourne apartments and two developments in the US.
Caydon this week announced the appointment of construction firm Probuild to build stage one of the high-profile $1 billion Nylex Clock redevelopment at Cremorne.
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TFE Hotels launched the Vibe brand in 2003 and will this year grow to 12 properties.
Further hotel announcements for Melbourne this week include Australia’s first dual-branded hotel (Hotel Indigo and Holiday Inn) by Intercontinental Hotels Group at Bourke Street Mall. It will feature a total of 453 rooms under both brands.
IHG has announced it will be launching a 150-room hotel in Coburg, in Melbourne’s north.
PE Capital also announced its intention to launch a new hotel – a $50 million Hyatt Place hotel that will rise eight-storeys and offer 200 rooms.