Hotel developer Estilo Group has been announced as the operator for Richmond Club’s 114 room hotel project.
In an ASX statement made yesterday (February 13), developer Axiom Properties announced it had signed a conditional agreement for a long term ground lease with Estilo Group over the hotel site.
“Axiom entered into a conditional agreement to purchase a strategic portion of land on the site of the Richmond Club, one of Australia’s oldest Serviceman’s Clubs with in excess of 22,000 members,” the statement said.
“Axiom’s purchase agreement with the club was conditional on the company entering into a binding agreement with an appropriate hotel operator to develop boutique accommodation on the site.
“After an extensive search conducted by Knight Frank’s Mark Litwin and Arland Domingo, the company chose Estilo Group as the preferred hotel operator. The Estilo Group is one of Australia’s only end-to-end hotel developers, hotel management and technology savvy companies providing unitized construction and technology solutions to provide a point of difference in the hotel accommodation market.”
The club released a statement this morning (February 14) saying the announcement was a major step forward in the development and construction of the hotel commencing.
As part of the agreement, Estilo will undertake the construction, commissioning and management of the hotel. Once construction is underway, the club will also begin a $2.8 million refurbishment fit out of function rooms that will link through to the hotel, complementing local conference, corporate and business facilities.
“Once the conditions have been met, The Richmond Club intends to proceed with a multi-million dollar refurbishment program which will include the creation of new state of the art conference and function room facilities, which will link through to the new hotel,” club chief executive Kimberley Talbot said.
.“The greater north west has been experiencing major growth for some years and this development in Richmond is ideally placed to capitalise upon this growth.
“The Hawkesbury has been desperately missing this style of integrated concept that successfully operates in many other major inner and western Sydney regions.
“The board’s directive to make the club and Richmond a true destination in its own right is really in the making.
“The 20-year journey to bring a hotel to the Richmond CBD has been brought to life by Axiom, and is exciting for local economic growth, employment and tourism in the Hawkesbury and is a vision which is overwhelmingly shared by many local business leaders.”
Axiom has agreed to lease the entire 2,212 sq.m site to Estilo Group for 99 years, and Estilo Group will be obliged to seek all approvals and construct the proposed 114 room hotel under the terms of the agreement.
Axiom Managing Director Ben Laurance said the company was delighted to have entered into the arrangement, as the Estilo Group “share our enthusiasm for the growth of the Western Sydney corridor and the surrounding areas”.
“Together with Estilo, we aim to deliver a unique and exceptional result for the Richmond Club and the wider Richmond area with the provision of a much-needed quality boutique hotel offering,” he said.
Estilo Group’s CEO for Estilo Management Clifford Olson, said the company was excited to be working on the project.
“Our decision to choose this location was predicated on the strong local drivers and recent developments in the local market,” he said. “We believe the style and flair of the proposed construction, coupled with an internationally recognized brand will net strong results for our investors and the local economy.”