It's already Australia's largest shopping centre by a long shot, and yet Melbourne's Chadstone continues to grow, unveiling plans to incorporate a $130 million luxury hotel.

Vicinity Centres, the property group behind the monster retail destination, has announced that work will begin on the MGallery by Sofitel hotel within a matter of months. Once completed, the site will be managed by the country's biggest hotel operator, Accor Hotels.

It's no small project either, with the 13-storey hotel set to feature 250 rooms, a 400-capacity ballroom, two restaurants and a bar. With acclaimed Melbourne architects Bates Smart heading up the design, the aim is for this to be Australia's first five-star Green Star-rated hotel.

Located close to Chadstone on the Princes Highway, the development will also boast views of the city skyline, and across to the Dandenong Ranges and Port Phillip Bay.

According to Vicinity Centres' Executive General Manager of Development Carolyn Viney, the hotel will reap the benefits of Chadstone's annual 23 million visitor count, which is thought to include a huge 350,000 international tourists.

"Importantly, the hotel will create new jobs and drive local tourism, further contributing to the economic and social viability of a new CBD hub for the Chadstone-Monash corridor," Viney said.

MGallery by Sofitel is expected to open in Chadstone in late 2019.

Published on January 02, 2018 by Libby Curran