MELBOURNE (June 13): S P Setia Bhd today announced that Shangri-La Hotels and Resorts will be the operator for the hotel component of its landmark luxury mixed development on Exhibition Street in the central business district (CBD) of Melbourne, Australia.

S P Setia chairman Tan Sri Wan Mohd Zahid Mohd Noordin and Shangri-La Asia Ltd chief executive officer (CEO) Lim Beng Chee formally inked the arrangement at a signing ceremony here today.

Wan Mohd Zahid said the appointment of Shangri-La supported the project’s vision to deliver an iconic development that increases capacity, creates local economic development opportunities and sets a new benchmark for five-star luxury in Melbourne.

The five-star Shangri-La Hotel, Melbourne will be housed in one of the two towers at the development. It will feature over 500 guest rooms with three levels of amenities, including a sky lobby, restaurants, spa, fitness centre, pool and ballroom.

The second tower will have 345 luxury apartment units as well as office space. A sky bridge will connect both towers, while the retail space will occupy the lower levels of the development.

“S P Setia is honoured to appoint Shangri-La, an iconic global brand that represents the highest standards of quality, as the hotel operator to this development,” said Wan Mohd Zahid.

“From the design and construction phases and for many decades to come, the economic benefits of this luxury residence, retail and hotel project, will be significant for Melbourne,” he said in his speech before the signing ceremony.

Wan Mohd Zahid added that the development will make a significant contribution by attracting total investments of A$480 million (RM1.54 billion) and creating more than 1,000 job opportunities.

“Shangri-La is privileged to be selected as the hotel operator for this world-class S P Setia development, which will be an architectural masterpiece and an iconic part of Melbourne’s skyline for decades to come,” said Shangri-La Asia’s Lim.

“We look forward to bringing Shangri-la’s hallmark ‘hospitality from the heart’ to Melbourne, Australia’s event capital,” he said. Shangri-La Melbourne will be the hospitality group’s second hotel in Australia after Sydney.

S P Setia president and CEO Datuk Khor Chap Jen said Shangri-La is the first hospitality partner that “came into mind for the development”.

“When we started [in Melbourne], we have said that we want to be in Melbourne for the long haul. We’re delighted that Shangri-La feels the same way [when we proposed the partnership],” he said at a press conference after the signing ceremony.

Located on a 44,562 sq ft plot at 308 Exhibition Street in the upper east end of Melbourne's CBD, the two-tower development overlooking the city’s 160-acre UNESCO World Heritage-listed Carlton Gardens is scheduled for launch by end-June, said Khor. The project is designed by Cox Architects and Fender Katsalidis.

According to S P Setia Melbourne CEO Choong Ka Wai, the residential component of the development will have a gross development value of about A$475 million.

The development is scheduled to be completed in 2022, as construction is expected to commence by this year-end.