Industry Update
Press Release18 May 2021

$700 Million Hotel Investment To Kick-Start Melbourne Tourism Revival

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A new era of hotels opening in Melbourne will drive the revival of city tourism prior to the re-opening of international travel, predicts Simon McGrath, Chief Executive Officer Accor Pacific, Australia’s largest hotel operator.


Whilst corporate, meetings and non-leisure travel to Melbourne has dipped over the past year, impacted by the closure of local and international borders, and is likely to remain subdued for the next 12 months, Mr McGrath forecasts that leisure travel will see a V shaped recovery.

“Melbourne is one of the world’s greatest cities and, over the next two years, we are bringing eight hotels and 1,583 rooms to the city, which is an investment of over $700 million by a variety of owners. This will create around 600 jobs, whilst boosting the appeal of the city and the quality of accommodation available,” said Mr McGrath.

“As well as the new Mövenpick hotel, which will open in June, we will be opening new hotels which include SO/, 25hours, Mercure and Peppers - before the end of 2023. These new properties will complement our current portfolio of 43 hotels in Melbourne, offering even greater choice for travellers.”

Mr McGrath continued, ”People love to visit Melbourne for its world-leading events calendar – for its sport, arts and culture. Sporting events such as the Australian Open, the AFL and Formula One are also tourism events, attracting thousands into the city. Even without international travel, events can contribute to the city making a serious tourism comeback.”

Accor is Australia’s leading operator of hotels, and is set to unveil the second of its Mövenpick branded hotels in Australia next month, in a prime location in the Melbourne central business district. Mövenpick Hotel Melbourne on Spencer follows the debut of the brand in Hobart earlier this year and brings to the Victorian capital a design-focussed hotel that captures the vibrancy of Melbourne’s dining and fashion district.

The Mövenpick opening follows the addition in 2019 of the lifestyle-focused Hotel Chadstone, part of Accor’s MGallery collection. The Melbourne hotel was developed adjacent to the country’s largest luxury retail precinct, and boasts a wide variety of restaurants and leisure facilities, including the Holism Retreat Day Spa.

The development of its lifestyle and luxury hotel portfolio has been at the heart of Accor's expansion strategy in recent years. Through organic growth of its well-established MGallery and Mama Shelter brands, and acquisition of internationally-renowned brands such as SO/, 25hours, Hyde and Mondrian as well as the locally developed Tribe brand, Accor has seen exponential growth.

Accor Pacific CEO, Simon McGrath, said that personality and great service were the key success factors of a hotel, and the new Mövenpick in Melbourne would offer both.

"Travellers, whether they are leisure or corporate, want hotels that offer authentic style and outstanding guest service," said Mr McGrath.

"We are no longer travelling, consuming or working the way we did before the health crisis, and people want experiences, authenticity, meaning and emotion. We are investing and growing our exciting new hotel portfolio in city centres and in leisure locations. We expect these hotels to contribute significantly to the revival of the travel sector in the next two years, until corporate, conference and international travel returns to pre-pandemic levels."

Accor operates a complete range of hotel brands in Australia, from luxury to economy, with more than 340 hotels, resorts and apartment hotels under brands such as Sofitel, MGallery, Art Series, Pullman, Swissôtel, Mövenpick, Grand Mercure, Peppers, The Sebel, Mantra, Novotel, Mercure, Tribe, BreakFree, ibis, ibis Styles and ibis Budget.

Proposed hotel opening schedule

  • Mövenpick Melbourne on Spencer, June 2021 (172 rooms)
  • Mercure Doncaster, 2022 (181 rooms)
  • Novotel & ibis Styles, Melbourne Airport 2022/23 (464 rooms)
  • SO/ Melbourne, 2023 (288 rooms)
  • 25hours Melbourne, 2023 (203 rooms)
  • Peppers Richmond, 2023 (83)
  • Mercure La Trobe, 2023 (192 rooms)
Related Brands


Born in 1967, Novotel is a 4-stars International midscale brand for business & leisure travelers, with hotels located in the heart of major international cities, business districts and tourist destinations.
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Mercure is the only midscale hotel brand that combines the strength of an international network with a strong quality commitment, and the warm experience of hotels, all different, rooted in their local community and managed by enthusiastic hoteliers.
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Mövenpick Hotels & Resorts, an international upscale hotel management company with over 16,000 staff members, is represented in 24 countries with 80 hotels, resorts and Nile cruisers currently in operation.
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From the first iconic property in the Hunter Valley, the Peppers brand has become synonymous with a sense of refined indulgence, an attention to detail and excellent personal service. Today, whether they are international or domestic, Peppers’ guests expect to be the focus of attention, in a property that offers more than the usual accommodation experience.
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At 25hours, we create individualized, made-to-measure hotels with personality in vibrant cities. Every unique, playful 25hours hotel has a soul inspired by its location and shaped by the art, culture, gastronomy and stories of its surroundings.
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A vivid cocktail of luxury, sophistication and style. An audacious burst of local energy with an unmistakable playful twist. An edge that sets the experience apart. Fashionable and social, it’s the place to be and be seen, connecting the like-minded.
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Other Brands by Accor
21c Museum Hotels
Adagio / Adagio Access
Art Series Hotels
Emblems Collection
Grand Mercure
Hyde Hotels & Residences
ibis budget
ibis Styles
MAMA Shelter
Mantis Collection
Orient Express Hotels
Originals (by Morgans Hotel Group)
Suite Novotel
Thalassa sea & spa
The Sebel

About Accor

Accor is a world leading hospitality group consisting of more than 5,200 properties and 10,000 food and beverage venues throughout 110 countries. The group has one of the industry"s most diverse and fully-integrated hospitality ecosystems encompassing more than 40 luxury, premium, midscale and economy hotel brands, entertainment and nightlife venues, restaurants and bars, branded private residences, shared accommodation properties, concierge services, co-working spaces and more. Accor"s unmatched position in lifestyle hospitality – one of the fastest growing categories in the industry – is led by Ennismore, a creative hospitality company with a global portfolio of entrepreneurial and founder-built brands with purpose at their heart. Accor boasts an unrivalled portfolio of distinctive brands and approximately 260,000 team members worldwide. 68 million members benefit from the company"s comprehensive loyalty program – ALL - Accor Live Limitless – a daily lifestyle companion that provides access to a wide variety of rewards, services and experiences. Through its Planet 21 – Acting Here, Accor Solidarity, RiiSE and ALL Heartist Fund initiatives, the Group is focused on driving positive action through business ethics, responsible tourism, environmental sustainability, community engagement, diversity and inclusivity. Founded in 1967, Accor SA is headquartered in France and publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States. For more information visit, or follow Accor on Twitter, Facebook, LinkedIn, and Instagram.

Claire Haigh
Accor Director of Communications, Pacific
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