The landmark General Post Office site is situated in the centre of the retail and corporate precinct of Melbourne.  Now listed on the National Trust Register, the building is considered a Melbourne icon.

Whilst the building currently has approval for hotel development, a A$45 million retail an office complex is now proposed by the new owners.

This will be good news for the central Melbourne hotel market which has had a number of major hotels, predominately five star, open in recent years and still has two mid-market hotels under construction.  The three star Travelodge at SouthBank, totalling 275 room and the second Crown Casino Hotel, comprising 469 rooms of a 3.5 star grading, are due to open early 2003.

�Whilst there are numerous sites mooted for new hotel development in Melbourne�s CBD, we anticipate most will now not get off the ground in the foreseeable future, given the current operating environment� said Mr Durran.  

However, according to Mr Durran, strata title serviced apartments projects are an exception as they are typically funded by the pre-selling of apartments to retail investors.  �Whilst retail investors� appetite continues for such stock, we may see some of these projects go ahead.� 

�In the coming year we may see increased activity in the conversion of older properties in Melbourne to residential usage.  It is a trend that has been prolific in Sydney and Brisbane in recent times and would be positive news for Melbourne�s hotel investment market.�
 
Jones Lang LaSalle Hotels, the world�s leading hotel investment services group, provides clients with value-added investment opportunities and advice.