25 Feb 2024
Words Staff Writers Australian Property Journal

Hotel boost in regional Vic

Construction will start on a $30 million luxe apartments and hotel development in regional Victoria’s Shepparton, with the developer looking to take advantage of the growing demand for and low supply of quality accommodation in the Goulburn Valley.

Developer IDS Developments, which reimagined the 4.5-star R. Hotel in Geelong, expects the sold-out Eden project to open its doors in the September quarter next year.

“There’s a drastic shortfall in Shepparton’s premium business and leisure accommodation market. Good quality hotels are lacking in Shepparton with the situation set to get worse,” says Phil Petch, managing director of IDS Developments.

“I can’t believe there is so little quality accommodation in Shepparton given the size of the population and strong, diversified economy. Shepparton has so much character and great prospects for future growth.”

The apartments didn’t even hit the market before being sold out off the market to mainly local buyers.

Eden is located on Maude Street in Shepparton’s CBD, one block from Lake Victoria and parklands. Shepparton, a two-hour drive north of Melbourne, is the commercial centre and largest city of the Goulburn Valley, one of Australia’s most productive agricultural areas.

A 2023 Urban Enterprise report showed 84% of Shepparton’s business travellers stay overnight, compared to Victoria’s state-wide average of 67%, but are under-accommodated by existing stock. By 2025, Urban Enterprise forecasts a shortfall of 164 rooms in Shepparton, representing 20% of the current supply, of which 50% is aging three-star hotels or motels.

IDS Developments is aiming to cater to Goulburn Valley’s burgeoning SME and government sectors with the inclusion of three conference rooms at Eden.

“Eden Hotel Apartments will capitalise on Shepparton’s booming high-end visitor market,” Petch said.

“There is currently no other offering of this calibre in Shepparton’s premium accommodation space. We are delighted with how the development has been embraced, evidenced by our pre-sales being at capacity.”

A cafe will open within the development at street level.

ResortBrokers director Alex Cook, who handles the sale of the accommodation business, said, “Eden Hotel Apartments will dominate Shepparton’s high-end business and leisure market.”

“It will enjoy exceptional star ratings, the town’s highest room rates and robust occupancy.”