My Account Menu

CAPA Login

Register to trial CAPA Membership!

Report finds need for fourth major hotel at Melbourne Airport


Melbourne International Airport announced the findings of a

new report, which has found that Melbourne Airport has a clear demand for a

fourth major hotel on site. Currently three major hotels exist on site at the

airport: Hilton Melbourne Airport, Holiday Inn Melbourne Airport and Motel Formule


The report was commissioned by Melbourne Airport to assess demand for an additional hotel, taking into account passenger growth projections as well as the current and planned developments within the airport’s Business Park and nearby vicinity. The total market of hotels for the area in and around Melbourne Airport comprises less than 900 rooms, with an occupancy rate of over 75%, according to the report.

The report flagged the easily accessible location and curfew-free status of Melbourne Airport as important reasons for the establishment of an additional hotel, along with the need for capacity to serve recently increased on-site property developments as key reasons the airport would support an additional hotel development.

“The need for an additional hotel is a reflection of the major property development at Melbourne Airport over the past few years,” said Gerard Neylan, Melbourne Airport’s General Manager of Property Development. “Over 320,000 sqm of commercial property has been developed since 2001 in the Melbourne Airport Business Park alone. We currently have a further 100,000 sqm in construction or under negotiation. Melbourne Airport needs to provide the infrastructure – in this case accommodation, hospitality and conference facilities – to support this growth.”

The last 12 months at Melbourne Airport has seen the opening of a new sales and service centre for Mercedes-Benz, two on-site child care centres and a soon to be completed International Freight Facility for Australian Air Express. Recent arrivals in the airport Business Park include distribution and warehouse facilities for retailer The Reject Shop, outdoor label Kathmandu and logistics specialists Caterpillar. Further plans are in place for two new petrol stations, a 48,000sqm bulky goods retail precinct and a new office complex.

“By extending our development planning to cater to future needs of both the greater Northern region of Melbourne and the growing community of businesses and staff located on site, we will continue to build Melbourne Airport’s reputation as being more than simply a point of arrival and departure to Victoria.”

Expressions of interest are currently being sought from operators for the new hotel project.

Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.