- The upscale hotel will be located in the "Paris end" of Adelaide
- Adelaide hotel market has remained resilient due to its historical reliance on domestic tourism
- MaxCap has about $5B under its management
Australian real estate financier MaxCap Group has announced a $29.3 million first mortgage construction facility to a new major hotel in Adelaide.
The upscale Vibe Hotel Adelaide falls under the final stage of the 10-project Flinders Street Precinct, in the “Paris end” of Adelaide.
The 18-storey glass-fronted hotel will be designed by Loucas Zahos Architects with the development managed by GuavaLime. Upon completion, it will feature 123 luxury rooms.
In an Australian-first, a ‘pool bridge’ will connect Vibe Hotel Adelaide to the neighbouring ONE Apartments.
Toga Far East Hotels (TFE) will operate the hotel, which will be located near the Rundle Mall, Adelaide Casino, the Convention Centre and Victoria Square.
Resilient Adelaide hotel market
Knight Frank research has found strong resilience to the Adelaide hotel market throughout Covid due to its historically greater market reliance on domestic tourism in relation to eastern seaboard hotel markets.
Given a general lack of quality hotel stock, the research supports a luxury project would benefit the Adelaide hotel market.
“GuavaLime is a reputable sponsor with a sound track-record and highly experienced management team,” said MaxCap Group chief investment officer Bill McWilliams.
“MaxCap is pleased to be providing funding to them for this well designed hotel managed by a leading operator in Toga Far East, as we continue to increase our market share in the Adelaide market”.
Con Zahos, GuavaLime director, noted the speed and professionalism with which MaxCap has taken up and supported the project. Upon completion, the project will allow for the finalisation of the street activation phase.
Since its inception in 2007, MaxCap has $5 billion under its management, having invested over $13.5 billion during that period of time.
