Accommodation operator Qube is set to build a 162-room ‘modular’ hotel near Perth’s domestic airport with an investment of $20m, in an effort to offer cheap accommodation targeted at the fly-in fly-out market of Western Australia.

Claimed to be the first hotel of its kind in the country, the modules will be constructed in China and then shipped to the city.

The project will be located at Ascot , approximately 1.2km from the airport.

Construction of the first phase of the project is expected to be completed in three months and is likely to be opened by June 2013, reported The West Australian.

"The modules will be constructed in China and then shipped to the city."

Qube sales general manager Lynne Jackson was quoted by the publication as saying that modular hotels could transform the hospitality industry as they can be built in just three months.

Modular construction to build hotels and offices is growing increasingly popular in Asia and Europe as it is believed to be cost-effective and quicker; in contrast, it takes up to three years to build a hotel in the traditional way.

The new hotel will also mark the company’s long-term plans to expand into the mining regions in the northern part of Western Australia to capitalise on acute accommodation shortages.

The hotel will feature an eight-hour rate option in order to provide flexibility to mining firms.

Meanwhile, Qube’s separate project near the airport, Aurum Hotel & Residences featuring 52 serviced apartments, is set to open in March 2013.

Perth has the highest hotel occupancy in the country, with an average rate of 86%.

Many new hotel projects are underway in the city such as a $16m serviced apartment complex, and a 300-room hotel that will be operated by international hotel group Starwood Hotels and Resorts.