City's new five-star hotel will push the luxury limits, says operator

The operator of the luxury Garema Place hotel, which is now under construction, plans to extend its five-star rating to make it the best offering in Canberra.

Canberra developer TP Dynamics has teamed with the relatively new and innovative Crystalbrook Collection chain founded by Ghassan Aboud of GA Group, one of the biggest family businesses in the Middle East with operations across automotive, retail, hospitality, food, logistics, catering, media and healthcare.

Speaking after a ceremony in Garema Place announcing to the partnership, Mr Aboud said it would not take much to go to six or seven stars like hotels in Dubai.

He said Crystalbook’s focus would be on its connection to the Canberra community and its immediate environment and the service it would offer in the long term.

It would also strive to provide high-end international retail, Michelin-star restaurants, and the best Canberra has to offer.

“We will try to show that this is the best hotel in this city, at least for the next 25 years,” Mr Aboud said.

He said Canberra, with its sizeable diplomatic community, would be a good market.

Crystalbrook was founded in 2018 and now operates hotels in Cairns, Brisbane, Byron Bay, Newcastle and Sydney, and soon Adelaide.

Mr Pan said Crystalbrook, with its commitment to innovation and sustainability, was the perfect match for the new Canberra hotel.

He bought the 1500 sqm site between Garema Place and Bunda Street from Geocon last year for $30 million, along with the approved development application for the 10-storey project. He expects to complete the project in early 2027.

It will encompass the current Garema Arcade building and features 238 hotel rooms, multiple restaurants and bars (including on the rooftop), a central skylight atrium and gardens, a wellness centre with day spa, pool and gym facilities, function rooms, and a ballroom.

Mr Pan said the Crystalbrook deal would be worth $200 million when the hotel, which will cost $130m to build, is completed.

He said the Fender Katsalidis design, which originally included 202 rooms, two levels of offices, and only two basement levels, would be modified.

The offices had been converted to hotel rooms, while the basement will now have four levels to provide extra parking, the lack of which raised eyebrows in the original plans.

“We understand that in the city, parking is always an issue, so let’s do it once, let’s do it right,” he said.

Mr Pan is awaiting approval of the amended DA.

He said the site was well-positioned to deliver a high-profile hotel to assist in transforming the whole area.

“This world-class hotel will strengthen the vibrant hospitality industry in Canberra,” Mr Pan said.

City Renewal Authority plans to upgrade Garema Place, which will complement the hotel development. This will include increased green space, improved pedestrian flow, better accessibility, enhanced lighting, and more outdoor dining opportunities.

Chief Minister Andrew Barr said the announcement came as the ACT enjoyed a record tourism spend of $3.8 billion in 2023.

“We thought we would reach $4 billion in tourism expenditure in about 2030,” he said.

“So we’re going to get there, I imagine, at least five years earlier, off the back of nearly 6 million tourists.”

Mr Barr said the five-star Crystalbrook hotel would help diversify the hospitality offering in Canberra.

“It’s been one of the areas that has held back part of our tourism sector,” he said.

“We have a significant supply of three and four-star hotels, but we don’t have many at the upper end of the spectrum.”

Mr Barr said it was essential to find the right hotel partners, and Crystalbrook was a national network that offered high-end sustainable hotel experiences.

He said the hotel would be good for Garema Place.

“There will be private sector owners who will look at this as a catalyst investment, and I’m sure we will see some further renewal in the CBD,” Mr Barr said