Boutique hotel operator Veriu has announced its first Veriu-branded Melbourne offering at the city’s Queen Victoria Market.
The new-build hotel is scheduled to open in late 2022 as part of Melbourne-based developer PDG Corporation’s major $450 million renewal of the Munro development adjacent to the Queen Victoria Market Precinct.
“We see wonderful opportunities in the market currently to become a key amenity component to larger mixed-use developments like Queen Victoria Market, which brings much-needed community infrastructure and facilities to the neighbourhood,” Veriu chief executive Zed Sanjana said.
The Sydney based group, founded in 2016, will also open a 144-key apartment hotel in Green Square this July in a joint venture with Charter Hall.
Sanjana says partnering with top tier developers like Charter Hall and PDG Corporation has boosted the group’s expansion plans across Australia’s hotel markets.
Veriu’s Melbourne expansion plans also include a new 95-key hotel in Collingwood.
In addition to these two properties, Sanjana says there are also a further two hotel sites in the Melbourne pipeline.
Australia's accommodation sector will welcome 45,000 new rooms over the next six years, according to a recent Tourism Accommodation Australia figures, and its Melbourne that leads the growth with 10,208 rooms approved or under construction.
The group’s push into Melbourne’s market kicked off following the purchase of the Melbourne-based Punthill Apartment Group last year, which comprised fourteen hotel businesses in both Melbourne and Brisbane, adding 830 apartments to its portfolio.
To financially back the grand expansion plans Veriu will sell its Sydney Central property, appointing Colliers to manage the deal with the opportunity to lease the hotel back to Veriu.
“The sale of Veriu Central will enable us to free up capital to invest in our national expansion plans for both Punthill and Veriu over the course of the next five years,” Sanjana said.
“We have plans to focus on new-build hotel leasing opportunities in CBD, suburban and regional markets across Australia under both our Punthill and Veriu brands. It will also enable Veriu to focus on delivering its two development sites at 323 George St Sydney and 822 George St, Chippendale.”
The group says its plan is to add 500+ keys to the Victorian market across the next five years in neighbourhood locations such as Carlton, Prahran, Richmond, Windsor, South Yarra, South Melbourne as well as CBD Melbourne.