A developer says the state government will need to consider subsiding hotels if it wants more of that style of accommodation in South-East Queensland before the 2032 Olympics.
Kenneth Wagner, a director of KPAT, which is building a 182-room hotel at Mooloolaba, made the comment in light of the Sunshine Coast Council’s recent adoption of a hotel incentive package.
The incentive package includes a waiver of the application fee and a 50 per cent discount on infrastructure fees for code-assessable applications, parking relaxations and height relaxations of three to five metres for eligible developments.
The package, designed to encourage the development of more upmarket hotels on the Sunshine Coast, will apply to hotel applications lodged for certain sites in certain areas before the end of September 2026, and work must begin before the end of June 2028.
Mr Wagner could not see the council’s hotel incentive package making enough of a difference to the viability to entice more hotel projects.
“If the state government is serious about hotels for the Olympics, they have to look at subsidy program. That’s the only way of growing the offering of hotels in Queensland,” he said.
Mr Wagner, part of the Wagner family that built Wellcamp Airport, said KPAT had chosen to go down the owner-builder route to make its Mooloolaba hotel a viable project.
He said the company had intended to go down the traditional route of awarding a contract to a mid-tier builder but the changing construction environment meant the necessary margins were not there.
“We had no choice but to do things differently on this job,” he said.
He said the company had been fortunate in finding excellent and reliable local employees, tradespeople and contractors who were bringing the project to fruition.
Mr Wagner said the first pile was driven on the hotel in 2023 but construction had ramped up in June this year.
The podium levels are now built and people could expect to see the hotel climb next year.
“As soon as we get back from holidays, we’ll start going up in the tower,” he said.
“We’re on track for completion in late 2025 and opening in 2026,” he said.
The 12-storey hotel complex will have a rooftop pool, as well as retail and restaurants, and undercover ground-floor space for members of the public to sit or mingle.
The hotel was to have been 13 storeys but a rooftop restaurant and bar have been moved to the 12th level.
“Everything is per our understanding with Sunshine Coast Council and the development approval,” Mr Wagner said.
The project is a completely vertical model for KPAT, which is not only the builder and developer but will also operate the hotel under Minor Hotels’ Avani brand.
Mr Wagner said the vertical integration had made the project possible and “we’re finding some efficiencies in that model”.
KPAT opened its first hotel in 2020 and has a total of 500 rooms in hotels in Toowoomba an Townsville.
Mr Wagner expected the Avani brand, popular in Asia, would work well for the Sunshine Coast, and said there were opportunities for more hotels in the region to lure more international travellers.
“I like to think we were the first into it but the market is really steady on the Sunshine Coast,” he said.
“I would certainly encourage anyone else interested in developing hotels to the Sunshine Coast.”
The Brisbane Road entrance to the existing multi-storey car park has been in use during the hotel construction but will be open for the holiday period from December 18.
