Hotel developments surge in South Australia as events and economy boost investor confidence

The unprecedent demand for accommodation in Adelaide is encouraging hotel investors to look to South Australia now more than ever before.

Globally recognised hotel brands, such as Marriott International, are investing in the CBD and metropolitan Adelaide, with three additional hotels opening their doors to the public since the start of the year.

A key construction milestone for South Australia's first Marriott Hotel is being celebrated today, as development of the 5-star luxury hotel now rises above Adelaide's historic General Post Office (GPO) building.

The development of the GPO Hotel is a major vote of confidence in the South Australian tourism industry and will provide a significant boost to the state's economy. The luxury hotel is expected to employ more than 600 people during construction and create a further 250 ongoing jobs after opening.

The progress on the iconic 150-year-old GPO site follows three new hotel openings this year and adds to a strong pipeline of hotel investment in Adelaide in recent years - with hotels having opened or commenced construction since 2020 worth nearly $1.2 billion.

Construction of the $200 million Marriott Hotel has reached Level 4, with the hotel on track for completion in the first half of 2024.

It will be the first hotel operated in South Australia by the world's largest hotel company, Marriott International.

The property will incorporate 285 large guest rooms, including a Presidential Suite, Club Lounge, signature restaurants and bars, swimming pool and fitness centre, plus function and conference rooms.

Today's hotel construction milestone follows the opening of the La Loft Hotel in Tonsley in January, and the Vibe Hotel and TRYP by Wyndham hotel in the CBD just this month.

Hotels opened or commenced construction in Adelaide since 2020:

Minister for Tourism, Zoe Bettison said tourism in South Australia is in an exceptional position, with hotel bookings over recent months reaching record highs.

"We've seen Adelaide accommodation have its strongest week ever during Mad March with an average 9,140 of the 10,521 rooms available sold each night, and regional South Australia now at nine consecutive months of record-breaking occupancy rates," Minister Bettison said.

"This incredible demand for accommodation in Adelaide and South Australia is exactly what makes hotel investors look to our state, and why globally recognised hotel brands like Marriott International are investing in our city.

"Today's construction milestone marks a huge vote of confidence in the future of tourism in our state and forms part of an impressive pipeline of hotel investment in Adelaide in recent years of nearly $1.2 billion."

BESIX Watpac CEO, Mark Baker said is is exciting to be delivering the landmark 5-star accommodation to support economic growth and tourism for South Australia.

"Construction is now rising up above the original GPO building which is a reflection of more than 120,000 hours worked on site, and 3,100 cubic metres of concrete poured to date," Mr Baker said.

"The new build sits on the site of what was an office tower addition to the original post office in the 1920s. The remainder of the building, constructed in the late 1860s and early 1870s, will remain with some sections being incorporated into the new hotel.

"Currently, new structural and seismic upgrades are taking place between the basement and the roof to ensure structural integrity of both old and new buildings - a major milestone to allow commencement of fit out."

Greaton Regional Manager for South Australia, Wendy Liang said Greaton is excited by the project's progress and is grateful for the strong support of the South Australian Government.

"The project certainly has reached an exciting stage and the skill and talent of our consulting and construction team has been demonstrated. Heritage works to strengthen and integrate the new hotel with the former GPO are almost complete," Ms Liang said.

"Greaton is very proud of this new hotel that will benefit the State's economy for many years to come. A special thank you also to the project team, the consultants, the trades and everyone on the site for their contribution to the project and to a safe workplace."