South Australian developer Hines Property has received planning approval for a $55 million micro-hotel, set to be Adelaide’s first.
If realised, the hotel would comprise a frontage less than 8 metres smaller than the Ibis Adelaide, on the corner of Twin and Grenfell Streets, which on a slightly smaller block has a frontage of 15 metres.
The 274 North Terrace hotel, located on the corner of Frome Street in central Adelaide, will offer 253 high-end compact rooms ranging in size from 13 square metres to 28 square metres, designed for short-stay visitors and millennial travellers.
The 15-storey development, to be constructed on the site of an existing car park on Adelaide’s North Terrace, will be located opposite the former Royal Adelaide Hospital site, known as Lot Fourteen, which the state government plans to redevelop into a “creation and innovation neighbourhood”.
Micro hotels — popular in Europe, Asia and the United States — are affordable, minimalist and compact without sacrificing style.
“The micro-hotel trend is booming in cities across the globe, so we’re bringing the concept to Adelaide which is really exciting,” Hines Property managing director James Hines said.
“Micro-hotels are perfect for people who want a quality place to stay and are happy to trade excess room space for a lower room cost.
Hines has 15 years of experience developing and owning hotels like the Ibis Adelaide Hotel and Pullman Adelaide, which has made Hines Property the largest private owner of hotels in the city, as well as CBD apartments.
The 274 North Terrace development is set to bolster its hotel development portfolio to more than 1,000 hotel rooms.
The hotel is one of a number of hotel projects slated for central Adelaide including a 28-storey hotel to be operated by Hyatt and developed by Singaporean property developer Chip Eng Seng in the CBD, a 25-storey $180 million QT hotel on Currie Street and a $330 million expansion of the Adelaide Casino.
Construction of the 274 North Terrace hotel is anticipated to commence next year ahead of opening in 2021.
Hines said a worldwide search is already under way to select an operator for the hotel.