Mirvac To Manage Sebel Pier One Hotel
Sydney Morning Herald
Wednesday October 3, 2001
Amid a weakening hotel sector, Mirvac Hotels has been appointed manager of the Pier One hotel at Walsh Bay.
It will be rebadged as the Sebel to carry on the name and, management hopes, the reputation of the original Sebel Townhouse at Potts Point, which closed a year ago to be converted into a residential tower.
Hotel experts have forecast that profitability for some hotels could drop by as much as 50 per cent over the next few months.
Mr Alistair Bell, head of hotels for Knight Frank Expotel, said the Australian hotel investment market reached a peak in 1998.
However, he said, the current trend to convert existing hotels into apartments would be a plus for the four and five star hotels in the coming year.
``Hotels sold for residential re-development in 2000-01 will reduce supply of bedroom stock by about 10 per cent, with more being considered," Mr Bell said.
The five-star Pier One has 159 rooms and sits on Walsh Bay, where Mirvac, in a joint venture with Transfield, is managing a $650 million commercial, cultural and residential redevelopment.
The head of Mirvac Hotels, Mr Andrew Turner, said that despite the terrorist attacks in the US last month and Ansett's demise, Mirvac was confident about its future in hotel management.
``The Sebel Pier One Sydney is our 21st hotel in Australia and New Zealand, 19 of which are under management contracts," Mr Turner said.
``Because our business mix is even across all segments, particularly corporate, leisure and entertainment, we believe we are in a strong position to withstand the events of September."
The Pier One Sebel joins Mirvac's existing Sebel hotels at Chatswood, one up the Hawkesbury River, St Kilda Road in Melbourne, Brisbane, Noosa, Palm Cove out of Cairns, Perth and Auckland.
© 2001 Sydney Morning Herald
