Quest Apartment Hotels Set for 221 Room Docklands Development
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Quest Apartment Hotels has partnered with property developer MAB to build its biggest apartment hotel complex.
The $71 million developer at NewQuay in Melbourne’s Docklands represents the first transaction for the $500 million strategic partnership established by Quest and Ascott, the world’s largest serviced apartment owner-operators.
The Ascott Limited is a subsidiary of SGX-listed CapitaLand, one of the largest real estate companies in Asia.
The partnership was established between the companies to invest in new Quest developments across Australia’s eastern seaboard.
MAB will design and develop the property, which will begin construction early next year and open in 2019.
It will offer 221 rooms.
Quest chairman Paul Constantinou said this deal represents the blueprint for how the partnership will operate in the future.
“We established this $500m strategic partnership with Ascott to provide our development partners with greater certainty of return through certainty of property take-out,” he said.
“We expect this to enable Quest to accelerate its network rollout particularly across CBD and suburban Sydney, Brisbane and Melbourne.
Constantinou suggested that whilst the domestic accommodation market remains strong and has continued its growth for over a decade, supply of new rooms has lagged in most markets.
“This is mainly as a result of the lack of support from domestic institutions in the sector.
“Investment from large scale Asian groups like Ascott, will enable the sector locally to meet the demand.”
It’s the first of what will be many development under Quest’s collaboration with Ascott.
Quest continues to actively seek opportunities within the suburbs and CBD’s of Melbourne, Sydney and Brisbane, particularly with blue chip development partners with a strong track record of delivery.
Quest is the largest and fastest growing apartment hotel operator in Australasia with over 150 properties located across Australia, New Zealand and Fiji.