The Holiday Inn and Resorts Australia has been forced to scrap plans to move its flagship hotel in Melbourne’s east, saying it would have to do “something else” to survive.
Key points:Hospitality company Holiday Inn has announced plans to shut its Melbourne flagship hotel, leaving residents with no other choiceHoliday Inn announced plans in February to move from its iconic Sydney hotel to Melbourne, which has been criticised for overcrowding and the “crowding” of roomsThe company said its new location would provide a “unique and modern” settingHoliday said the move would not result in any changes to its existing Sydney locationHoliday has been hit by criticism over overcrowding, including of its Sydney location, which is still struggling with long lines at the doorThe Holiday Inn is one of the world’s biggest hotel chains and has been the subject of a number of high-profile controversies in recent years.
The Australian Business Traveller newspaper reported in February that the hotel was in financial difficulties and that the move to Melbourne was the only solution to its troubles.
But the Herald Sun reported in March that the company had decided to move to a new location in Sydney’s west and said that while the move was a “positive step” it would not affect its existing Melbourne location.
“Hospitalitians are concerned about the overcrowding issues and the disruption of travel in Melbourne,” the company said in a statement to the Herald.
“Holiday will be a new hotel location in the CBD which will provide a unique and modern setting for our guests to enjoy a holiday experience at a time when the city is undergoing a massive redevelopment process.”
While we are confident that this move will help us maintain our core hospitality services and continue to deliver a comfortable and memorable experience for our clients, it is the right decision to make at this time.
“Holiday told the Herald that its Melbourne location would be a “natural” and “modern” place to be.”
We will not be changing our hotel location and will be able to provide our guests with a unique, modern, modern experience in the City of Melbourne and across the state,” it said.”
Our guests will have a unique experience with a view to a return to the Gold Coast, a new home and a vibrant future.
“Hospitalities in Melbourne are increasingly facing pressure to cut costs as a result of a property boom, particularly at luxury properties such as the Melbourne Park Hotel.
But Holiday said it would provide the same service as it had in Sydney, while also making a “different” and better-suited choice for Melbourneers.”
At this time, we have a new accommodation partner in the Sydney area and will look to provide an integrated and highly-specialised hospitality experience,” the statement said.
Hospitalis Melbourne Park, which had been owned by the company since the 1950s, is one part of the Melbourne Entertainment and Entertainment District.
It has recently been transformed into a boutique hotel which is popular with tourists from around the world, with rooms costing $4,000 per night.
The company has faced criticism from Melbourne’s tourism body, the Melbourne Tourism and Convention Authority, for the way it has handled the crisis.
The organisation’s chairman, Nick Waugh, said it had been “fraught” by overcrowding in Melbourne and was not doing enough to improve the situation.”
This is a huge issue for us and we are going to have to work with Holiday Inn to address this,” he said.
Holiday’s move comes after the Victorian Government announced it would impose a moratorium on the sale of private accommodation for three years, starting in September 2019.
It will also give a $10,000 rebate to anyone who buys their own property, including in hotels.