Perth seeing surge in hotel sector, with Diploma's Adelaide Terrace deal

Perth’s hotel market is expected to see a surge in development over the next five years, with a tranche of five-star hotels slated over the coming years including the Ritz Carlton, Como, Sheraton, Intercontinental and the Westin. 

Very recently, the Diploma Group has committed to one of the city’s newest projects – signing the contracts for the $42 million sale of Quest Adelaide Terrace (upon completion of the project). 

Located in Perth’s CBD, the latest Quest development at 176 Adelaide Terrace will comprise a 19-level building at the rear of the 903 sqm site. 

The entry to the tower is via a quaint heritage listed, freestanding, stone church building, which has been refurbished to provide a new reception office.

The 4.5 star hotel will comprise 98 apartments, 130 keys, a conference room, gymnasium, guest laundry and onsite car bays. 

CBRE Hotels’ David Kennedy said developments such as this are raising the bar in Perth’s accommodation sector. 

“Perth’s landscape is rapidly evolving, with projects such as Elizabeth Quay, Perth CityLink, Perth Cultural Centre, Cathedral Square and the Burswood Stadium, elevating Perth to a global city status,” Kennedy said. 

“While office and retail continue to feel the brunt of the mining investment slowdown, the hotel sector is still the best performer in Perth’s commercial market at present. Predictions of an economic rebound over the next five years will support a revival in local tourism."

“This commitment from Diploma Group is another sign of growing confidence in the market, with investors compelled by the opportunities a young and growing Perth hotel market has to offer.” 

The new Quest Adelaide Terrace is surrounded by a number of existing high-rise residential towers, office buildings and several major hotels.