Hospitality group ERDI has expanded its Victorian footprint with Accor to four properties with the launch of its newest hotel, Novotel St Kilda.

The opening marks the anchor investment of the broader St Kilda Collective renewal of Fitzroy Street, a partnership between Fortis, ERDI and Ondas, supported by the City of Port Phillip, which includes more than AUD$196 million poured into revitalising Fitzroy Street through hospitality, placemaking and community-focused developments.

Novotel St Kilda joins ERDI’s growing portfolio, which includes Pullman Melbourne City Centre, Novotel Geelong and Mercure Melbourne City Centre.

The opening marks ERDI’s second major Victorian hotel investment to progress this year, with an eleven-storey tower expansion under construction at Novotel Geelong to add 134 rooms, which will become the largest hotel in the city when completed.

“This is a significant moment for ERDI and the beginning of an exciting new chapter for this landmark St Kilda property,” ERDI CEO and Executive Director Ricky Jeffs said.

“This transformation represents a significant investment in both the hotel and the future of this iconic location, and it builds on the successful partnership we have developed across our broader hotel portfolio with Accor.

“Our vision has been to completely reimagine the hotel and create an experience that feels connected to the character, energy and lifestyle of St Kilda. From the redesign of the guestrooms and public spaces through to the new restaurant and expanded events offering.”

The investment comes as Tourism Research Australia data shows the state’s visitor spend was increased to $48.6 billion in the year ending March 2026, with international visitor spend topping $10.5 billion.

Novotel St Kilda General Manager, Christos Pavlidis, was appointed ahead of the opening, bringing more than 25 years of experience in hotel operations and pre-openings. He joins from Ovolo, where he was Area General Manager across its Melbourne properties, with previous senior roles at Lancemore Hotels, Accor Sydney Olympic Park, Westin Brisbane and the pre-opening of COMO The Treasury in Perth.

“Reopening a property in a destination as iconic as St Kilda is a fantastic opportunity,” Pavlidis said.

“With the strength of the Accor brand and the vision and support of ERDI behind us, we have a great opportunity to create something really special.”

Novotel St Kilda will also launch Urban Kitchen and Bar, a stand-alone all-day dining venue featuring Italian and modern Australian cuisine. The restaurant centres on a wood-fired oven imported from Verona, Italy, alongside a significant wine list that purely focuses on Victorian producers.

Featuring 80 redesigned rooms and suites, each includes 75-inch televisions with Foxtel, Nespresso machines, local minibar products and bathtubs in select rooms, alongside 24-hour reception, self-check-in, secure parking and a light-filled internal garden atrium. The property also includes meeting and event spaces catering for up to 150 guests.

“We are absolutely thrilled to open the doors to Novotel St Kilda and see this iconic Melbourne address begin such an exciting new chapter,” Accor Chief Operating Officer in the Pacific region, Adrian Williams said.

“St Kilda is one of Australia’s most distinctive neighbourhoods, and this hotel captures that spirit brilliantly.”

The hotel’s redesign was led by Rory Sheppard of Forum Architects, with public spaces by Rebecca Trenorden and the VERSA team, and guestrooms and corridors by Mike Watson and the Dezign team.