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New economic analysis by Econisis consultants has uncovered significant untapped opportunities for hotel developers and operators in the city of Frankston, Victoria.
The research, commissioned by Frankston City Council, is the first report of a two-part series that will provide insights into the level of hotel demand in Frankston’s Metropolitan Activity Centre (FMAC).
According to Mayor Nathan Conroy, “We knew from what our businesses and events teams were telling us that there is demand for accommodation but until now we didn’t know what the extent of that demand was.
“This research will assist developers and accommodation providers prove-up their business cases and it will also help council understand how it can bolster hotel development and strengthen our visitor economy,” he said.
The modelling looked at demand for existing hotels in Frankston and benchmarked the city against other places with similar economic characteristics.
Econisis director Mark Wallace said, “We analysed population, business, and visitor economy drivers to establish the ‘core’ demand for hotel and service apartments in the area.
“But we knew that this was only part of the story for Frankston’s hotel market. So we also examined potential sources of demand from larger regional employers such as the Monash University and the Frankston Hospital (undergoing a $1.1 billion upgrade).
“This, coupled the economic potential for Frankston as a ‘gateway’ to the Mornington Peninsula—with its numerous popular wineries, galleries and attractions—significantly boosted need and underpins the Frankston’s attractiveness and competitiveness as a hotel investment destination in the short-term and long-term.”
Overall, the analysis uncovered a need for an additional 250 rooms by 2031.
The council has decided to prioritise the undersupply of tourism accommodation in the city, proposing a mixed-use project incorporating accommodation on its site at 79-83R Young Street.
That project, referred to as Sherlock and Hay, has undergone several rounds of community consultation as part of the draft FMAC Structure Plan, and is now out for expressions of interest.
A Frankston City Council spokesperson told The Urban Developer, “The council are seeking qualified property developers to transform its site at 79-83R Young Street, Frankston, into an iconic community focused development”.
The site is listed as a key part of Frankston’s Transport Interchange, Community and Education Precinct in the draft Frankston Major Activity Centre Structure Plan.
The expressions-of-interest campaign for the Sherlock and Hay development can be accessed at eTenderBox:: Details
To download part 1 of the economic analysis report or find out more about development opportunities in Frankston City, sign up for development updates at https://www.imaginefrankston.com.au/city-development-in-frankston or contact council’s Strategic Development Unit at development@frankston.vic.gov.au
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