Recent News Items
The well known t shirt slogan “Shop ‘til you drop” is a reality with shopping, dining, entertainment and now luxury accommodation, all part of extending the leisure experience within the new generation shopping centre re‑developments. Locating international high profile accommodation brands in iconic shopping centres is not a new concept. Pacific Place and New World Centre in Hong Kong have been ahead of the curve for many years, however the merits of the concept have been overlooked in Australia during the past decade.
Launching into the concept here in Australia is CFS Retail with the inclusion of a major luxury hotel in their re‑development plans of its market leading Chadstone Shopping centre. “This will bring new markets to Chadstone and benefit extended shopping hours with hotel customers on site 24x7.” The fabulous “Mall of the World” in Dubai will take the concept to the next level by including a major luxury resort with a theme park in their re development plan. Retail is the prime tourism driver for Dubai and the inclusion of a luxury resort within the mall is aimed at increasing customer convenience of a retail experience.
“The resort concept is ideal and we encourage customers to shop smart, drop the shopping back to the resort, have a swim, a spa, a rest before you continue your exploration of the best shopping experience in the world.”
Essential Service Hotels (ESH) have completed a comprehensive report for QIC on the potential of including hospitality accommodation within their shopping centre re developments at Castle Towers in Sydney and Eastland in Melbourne. “The accommodation components need to match the 5 Star profile of the centre’s re‑development aspirations, a perfect match would be a 5 star hotel. The investment warrants that the profile of both components compliment each other” commented ESH. To combat the increasing emergence of on‑line sales competing with “bricks and mortar” retailing, the owners of “big gun” precincts are in the process of redesigning their icon locations from the austere mall to exciting town centres with an array of shopping, entertainment and dining villages. The aim of the new generation re-developments is to “retain and entertain” the customer and are designed around the tangibles with dining and entertainment as focal points. These exciting new facilities, convenience and security are the ideal locations to add the additional facility of international standard accommodation, an all round winner for consumers and the tenants within the centre. Lifestyle is a major driver of consumer spending with shopping, dining, entertainment and accommodation at the top of spending drivers. Strategies to retain the consumer are a priority to centre owners who are actively looking at the synergies that adding accommodation components would deliver. The availability of accommodation within the convenience of a shopping centre will open new markets such as domestic and international tourism. With market dynamics in favour of demand the financial benefits of hospitality accommodation add value to the asset. Research presented by Deloitte reported domestic leisure travel grew 6.6% nationally in 2014 with significant increases in Melbourne 11.8%, Brisbane 16.1% and Sydney 21%. International arrivals from China increased by 14.2%. Attracting these markets and as well the lucrative business traveller, conference, function and meetings business is a must for shopping centre owners. Increased visitations and customer retention through on‑site accommodation is a smart strategy with excellent synergies all round.