Australian Property News

Severe shortage of hotel rooms in Perth

Posted on Tuesday, December 06 2011 at 1:55 PM

Hotels in the Perth CBD are on the Western Australian Government’s critical hit list of important economic infrastructure, according to WA Deputy Premier and Minister for Tourism Kim Hames.

Hames said despite a significant and sustained increase in occupancy and room rates, there has been minimal hotel investment in Perth and parts of regional WA since 2006.

“The severe shortage of hotel rooms in Perth, in particular, negatively impacts WA’s ability to successfully attract corporate and leisure visitors, major conferences and events, increased aviation capacity, and disperse travellers throughout the state,” he said.

The WA Government will support new hotel developments on a project-by-project basis by:

• Releasing Crown land for hotel development through expressions of interest;

• Granting longer term Crown leases for short-stay accommodation developments where appropriate;

• Determining concessional lease payments for Crown land on the Valuer General’s advice that specifically promote hotel accommodation developments;

• Discounting Crown land values for hotel developments on a case-by-case basis in consultation with the Department of Regional Development and Lands and other relevant agencies;

• Considering leasing Crown land for hotel use at a peppercorn rate;

• Designating the use of land under government control, Crown land, properties and/or buildings for future hotel use or conversion;

• Allocating funds for the provision of infrastructure upgrades to facilitate hotel accommodation development on a case-by-case basis; and

• Providing flexible plot ratio bonuses for hotel developments.