TITLE: The evolution continues – a new $130 million Chadstone hotel

As part of the continual evolution of Chadstone - The Fashion Capital, Vicinity Centres (Vicinity) today revealed AccorHotels as the chosen operator of Chadstone's new $130 millionˆ hotel.

AccorHotels, Australia's largest hotel operator, will manage the luxury hotel under its MGallery by Sofitel brand with construction commencing in early 2018.

Construction and management of the new 250-room hotel will create more than 1,300 new jobs, including 1,250 jobs in construction and 120 ongoing roles in the operation of the hotel, boosting employment in the Monash area.

Part of a world-class retail, dining and entertainment destination, the hotel will be situated on Princes Highway between Chadstone and the fully leased commercial office tower. Guests will enjoy views of Melbourne's cityscape, Port Phillip Bay and the Dandenong Ranges.

Vicinity Centres Executive General Manager, Development, Carolyn Viney said: 'The hotel development is a key element of Chadstone's masterplan. Our vision is to build upon Chadstone's iconic status, and for the shopping centre and hotel to become one internationally-recognised lifestyle, entertainment and tourism destination.'

As Australia's number one retail destination, Ms Viney said the hotel would capitalise on the 23 million visitors that visit Chadstone each year, including the estimated 350,000 international tourists.

'We expect demand for the hotel will be driven by business travellers, tourists and visitors to both Chadstone and offices of the 17 international and national businesses located on site, as well as the nearby Monash precinct employment hub which employs 75,000 people,' Ms Viney said.

'Importantly, the hotel will create new jobs and drive local tourism, further contributing to the economic and social viability of a new CBD hub for the Chadstone-Monash corridor.'

Reflecting the world's most liveable city's reputation as Australia's tourism capital, Melbourne's growing tourism sector welcomes 11.3 million domestic and international visitors per annum, and retail spending estimated is at approximately $2.4 billion per annum.

Designed by leading Melbourne-based architects, Bates Smart, it will be the first hotel to target a 5 Star Green Star rating using the new generation Green Star - Design/As Built v1.1 rating tool.

Features of the hotel will include:

• 250 guest rooms including a selection of suites over 13 storeys
• health and wellness facilities, including a day spa, pool, gym
• conferencing and meeting rooms
• a ballroom capable of hosting functions for up to 400 people, and
• two restaurants and a lounge bar.

AccorHotels will operate the hotel under its boutique accommodation brand MGallery by Sofitel. The appointment follows an international search for a leading tourism operator which included a select group of tier one international, emerging national and Asia Pacific accommodation leaders. MGallery has 88 hotels globally, with the Chadstone hotel being the tenth in Australia. The hotel will be operated under a management agreement.

'We're delighted to be partnering with AccorHotels through its MGallery by Sofitel brand to deliver superior boutique accommodation, dining, wellbeing, lifestyle, and conference amenities while also leveraging Chadstone's premium customer experience across shopping, dining and entertainment.

'MGallery by Sofitel hotels offer bespoke, unique consumer experiences that reflect local character which aligns with Chadstone's brand and how we're continuing to evolve the centre,' Ms Viney said.

With an estimated 18-month construction, the hotel is expected to open in late 2019. The hotel infrastructure, car park and podium were completed as part of the commercial office construction in 2016.

Chadstone's continued development also includes further expansion of the luxury precinct and new dining options to meet growing consumer demand for unique food experiences.

The centre is Australia's largest centre by sales volume. In the 12 month period post the launch of the major redevelopment, total centre sales are up 29.1% exceeding $1.85 billion at September 2017.

Chadstone is co-owned by Vicinity Centres and Gandel Group.

ˆ100% interest. Vicinity's share is 50%.

For further information please contact:
Ali O'Shea
T +61 427 373 857
E Ali.O'Shea@vicinity.com.au

Kat Rellos
T +61 411 245 099
E katherine.rellos@vicinity.com.au