Melbourne’s luxury hotel market is booming as the sector works to cater better for families and insists people are turning away from Airbnbs. Located opposite Parliament Gardens, Lanson Place is the latest luxury hotel to open its doors, marking the 22nd hotel to open in the CBD and surrounds since January 2020. General manager of Lanson Place Marcus Packham toasts the hotel’s opening with staff after cutting the ribbon on Friday, September 20.

Demand for hotel rooms in the city is continuing to grow and could suggest a shift back to formal accommodation as the government prepares to introduce its 7.5 per cent short-stay levy . The $80 million “luxury boutique” hotel at 502 Albert Street is in a historic building that housed the Salvation Army’s former printing press.

The hotel has tried to appeal to families or people who would ordinarily stay in an Airbnb for the amenities: of the hotel’s 137 rooms, many are interconnecting and 57 are apartments with kitchen and laundry facilities. Loading “It’s the concept of a home away from home,” general manager Marcus Packham said. Packham said there was still room for new hotels in Melbourne, despite the opening in the past year of the Ritz Carlton, Le Meridien and The Standard X .

“There’s enough special events to hold it up, but you have to have a good quality product,” he said. “There’s the grand final, horse racing, then the Boxing Day test, January is tennis, Chinese New Year, in February corporates co.