Mantra Group will manage the 108-room Peppers Silo Hotel when Errol Stewart’s $25 million redevelopment is completed next year.
The ten-storey hotel will overlook Seaport, Royal Park, the Tamar River Basin and Cataract Gorge.
It is the third management agreement signed between Mantra Group and developer Stewart, Morris & MacLagen Group, joining Peppers Seaport Hotel, Launceston and Peppers York Cove, Tamar Valley.
Mantra Group chief executive Bob East said the “high-performing hotel market in Launceston” was attractive to the company.
“This acquisition comes at an opportune time in the Tasmania tourism market, with the state currently enjoying record domestic and international visitation,” he said.
“Based on supply and demand forecasts, this strong performance is set to continue with further uplift projected.
The Peppers Silo Hotel will be the first hotel development to open in Launceston since Mantra Charles Hotel was developed in 2010.
Developer Errol Stewart was confident the property would “operate with great success”.
“With a broad target market of intrastate and interstate tourists, corporates and locals, we felt it was important to represent the original silos to ensure the history of the site was not lost,” he said.
Inside the hotel historic photography and key pieces from the original silos will be displayed throughout the building.
The project is expected to create 100 jobs during construction and long-term hospitality roles at completion.