Central city tunes in for another 457-room hotel


Tune’s Singapore-based chief executive, Mark Lankester, told The Age and The Sydney Morning Herald the final structure will be occupied by two different hotel brands, one mid-scale and the other upper-scale.

Tune expects construction to start in 2020 or 2021.

“We will be developing and operating it, it just won’t be done under the Tune Hotel brand,” Mr Lankester said.

“We’ve got the permit. Now the hard work begins.”

The budget hotel operator runs 11 Tune-branded venues in Malaysia and has a similarly branded hotel in Gujerat, India, and another in Liverpool in Britain.

A wave of new hotels are being proposed or built in central Melbourne as developers switch focus from the struggling apartment sector which has seen plummeting sales.

Parts of Flinders Lane are home to some of Melbourne’s hippest restaurant, cafe and music venues. The once-grungy, late-developing, west end is experiencing a renaissance with boutique office makeovers and hotel conversions.

Nearby to Tune’s project, developer Paul Little last year struck a deal with Hyatt Hotels to occupy a 280-room Hyatt Centric hotel at 9-27 Downie Street off Flinders Lane in the south-west corner of the CBD.

Little’s Architectus-designed venue will be the first Hyatt Centric in Melbourne and only the second in the country.

Industry data provider STR’s January figures show Melbourne’s hotel supply grew 4.2 per cent during the first month of the year. Demand also rose, up 1.5 per cent, but occupancy was down 2.6 per cent to 78.6 per cent.



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