Armed with a preliminary operator agreement and development approval, Little Projects chairman Paul Little has announced plans to begin construction on a new 33-storey hotel in Melbourne.
The developer made the announcement at a breakfast to mark the completion of his Dux project, a 12-storey, 175-apartment project in Richmond.
The hotel will be located 9-27 Downie Street in Melbourne’s West End, just off Flinders Lane, and offer more than 270 hotel rooms across 33 levels as well as a rooftop communal area.
The retired Toll Holdings chief bought the Melbourne site for $28.6 million in 2017.
The developer has moved away from its core residential focus because of the current property market climate.
Little said the Downie Street project will be the first hotel development for Little Projects who has become “very cautious” about the sector at a time when foreign sales are slowing and tighter regulatory conditions are impacting project finance.
With a new permit for hotel construction Little Project then signed an agreement with a hotel operator who was unable to be identified.
The developer also spoke about plans for a new student accommodation project in the Melbourne CBD.
No solid information was formally revealed about the potential project, but the project will join Little Project’s hotel, Broadbeach “Signature” apartment development and a private jet terminal in the developer’s pipeline.
The Australian Financial Review reported that Little Projects had recently spent $19 million on a 28-hectare site in Cranbourne West.