IDS Developments managing director Phil Petch says he “can’t believe” the lack of quality accommodation in Shepparton given its population and economy, and believes the city has “great prospects for future growth”.
IDS Developments is building the $30 million Eden Hotel Appartments at 317 to 321 Maude St in the city.
Located a block from Victoria Park Lake, opposite the Parklake Hotel and within walking distance of the CBD, construction is due to start in the coming months, and doors to its 4.5-star accommodation are scheduled to open in the September quarter of 2025.
“We really want to set the benchmark,” Mr Petch said.
“The apartments are about 20 to 25 per cent bigger than you would see with a typical serviced apartment. High ceiling, European finishes. Beautifully furnished. It’s something Shepparton hasn’t seen before.”
The project, consisting of 33 apartments, three conference rooms and a ground floor café, was granted approval and a planning permit after being deemed in accordance with the City of Greater Shepparton’s planning scheme.
Mr Petch said the company did its due diligence on Shepparton before committing to the Eden development and was surprised by what it found.
“We actually commissioned a report by Urban Enterprise, an economics consultancy, to do a full review of Shepparton’s accommodation market, and they’re saying Shepparton needs another 164 rooms by 2025, and that represents about 20 per cent of the current stock of apartments,” he said.
The research also found that 84 per cent of business visitors to Shepparton stayed overnight compared to the Victorian average of 67 per cent.
“There is no high-end, premium, short-term accommodation in the city, so there’s a real gap in the market,” Mr Petch said.
“Something else they identified as well is that of the current stock, 50 per cent is really ageing, three-star accommodation, so the city desperately needs some better high-end accommodation.”
A signature project of IDS Developments is the 4.5-star R Hotel in Geelong, which has 110 apartments for short-term accommodation.
Mr Petch said he saw Shepparton having certain parallels with Geelong and other growing regional cities around the country.
“To me, it smells like a mini-Toowoomba,” he said.
“It’s still got that manufacturing base, but it’s far enough from Melbourne to have its own life.
“The connections to Melbourne are fantastic, so you can really see Shepparton becoming a major logistics base.
“It feels different to a Ballarat or a Bendigo because it’s got some real industry.
“I think the city is really going places. It’s really flying under the radar.”
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