The Dubai-based Najibi Investments announced today that its Australian development arm, SANAD Capital, currently developing the AED1 billion ‘Active Lifestyle’ project, code named ACTVE, on Australia’s Sunshine Coast, is set to submit phase two of the project, which comprises of a 200 room, upscale family hotel.
The Sunshine Coast Council recently approved phase one of the project and bulk earthworks are set to begin within the coming months.
“The strong market fundamentals of the Sunshine Coast suggest a favorable market environment to support the development of our hotel offering,” said Fredrik Jonsson, Managing Partner of MEREHA an experienced senior player in global hospitality development, asset management, and strategic advisory field.
With over 20 years of experience in the hospitality sector, Jonsson, who prior to establishing Mereha, served as Senior Vice President at the Investment Corporation of Dubai, where he established and led the asset management function of its hospitality division. Prior to that Jonsson oversaw the companywide asset management function of Qatari Diar, the sovereign development arm of the Qatar Investmetn Authority (QIA), including its hospitality division.
“Our research shows that the comparably limited supply of hotel rooms and high growth in visitation numbers provides for a positive trading environment for the hospitality industry on the Sunshine Coast in the years to come.”
According to research studies of the hospitality market in the Sunshine Coast conducted by SANAD Capital, hotels have witnessed unprecedented growth over the past five years, achieving record high annualized occupancy levels above 70%. The solid annual average daily rate (ADR) growth of 5% CAGR over the past years reached ADR’s over $200 in 2016. The research suggests that ADR trends are expected to see a continued strong growth in the years to come.
“Hotel accommodation is a vital tool in the Sunshine Coast’s growing tourism arsenal, and we aim to provide top notch services and amenities to help in attracting tourists to visit and stay longer in the area,” said Talal Y. Najibi, Executive Chairman of Najibi Investments.
SANAD Capital announced the ACTVE project after purchasing the 25-hectare plot in January 2016. Phase 1, will be built over 17 hectares and will consist of a state of the art waterpark, a great lawn for major events, an outdoor adventure tower, and a 6,000 square meter retail zone set to attract leading local and global brands along with a superb choice of restaurants.
“Our decision to work with Fredrik was based on his extensive experience from having worked with international hotel management companies, as well as blue chip development and ownership groups in the hospitality industry,” said Bradley P. Sutherland, SANAD Capital CEO.
After collaborations with leading global companies such as Thinkwell Group from the United States, WhiteWater (Canada), Jones Day, EY (Ernst & Young) and others, phase one of the development was approved by the Sunshine Coast Council in February 2017.
“From a design perspective, the hotel is envisioned to provide a seamless integration with the overall development and yet have its own identity to cater for both leisure and business guests,” Sutherland concluded.
Subscribe to our monthly newsletter
Keep a pulse on the latest business news in the Middle East. Subscribe now.