Council planning officers have recommended approval of a taller version of a major hotel development despite it exceeding the current height allowance.
The recommendation is contained in a report to councillors ahead of the August 20 Sunshine Coast Council ordinary meeting, where the amended proposal for the Crowne Plaza will be considered.
Felix Capital has applied to increase the Crowne Plaza at 15-19 Ocean Street from the approved 13 storeys and 47m to 14 storeys and 55.25m.
Sunshine Coast News previously reported the developer’s proposal to increase the $150 million Crowne Plaza from 13 storeys to 14 storeys and from 47m to 56.65m.
The council agenda now lists the revised proposed height as 55.25m.
The additional storey would accommodate six more multiple dwelling units, increasing the number from 24 to 30.
The hotel would retain its approved 180 short-term accommodation rooms.
The development was approved for 13 storeys and 47m in December 2025, after earlier applications for the site had proposed smaller developments.
The council’s development history shows a 12-storey, 40m mixed-use development was approved in July 2024, followed by a 13-storey, 47m proposal for 153 short-term accommodation rooms and nine multiple dwellings, which was withdrawn in April 2025.
The Crowne Plaza is part of IHG Hotels & Resorts’ premium portfolio and construction started earlier this year.
The project is planned to include more than 900sqm of meeting and event space, including a 600sqm ballroom, as outlined in the previous development proposal.
The council report acknowledges the revised building would exceed the cumulative height allowances under the Temporary Local Planning Instrument’s accommodation hotel provisions.
As a result, the proposal does not strictly comply with the relevant height provisions and has been assessed through the impact assessment process.
Council officers have nevertheless recommended approval with conditions, saying the increased height would result in some additional visual prominence and incremental amenity impacts, but that these would generally be moderate and would not create unacceptable adverse outcomes in the context of the existing approval.
The assessment says the proposal remains within the approved building footprint, maintains a high level of design quality and continues to provide an acceptable level of amenity for surrounding properties.
Officers also point to the site’s location within the mixed-use Ocean Street precinct and its relatively large land area as a basis for accommodating additional height.
The report says the intended pattern of taller buildings throughout Ocean Street and further north and south means the proposed built form would not be out of place with surrounding development.
The assessment acknowledges the additional height would make the building more prominent from some public viewpoints, including along Aerodrome Road and Duporth Avenue.
However, officers say those views are not identified as Significant Views under the Maroochydore/Kuluin Local Plan Code and the visual impact would not conflict with the strategic intent for the City Core precinct.
The report also assesses the effect of the increased height on shadows.
It says there would be no increase in the number of residential buildings experiencing substantial sunlight loss, with most additional shadowing affecting streets and commercial rooftops.
There would be some additional shadowing of part of the balcony of one eastern-facing unit during summer mornings, but officers say this impact would be limited in duration.
No meaningful increase in privacy or overlooking impacts is anticipated because the additional storeys are accommodated within the established building envelope, according to the report.
Another factor in the assessment is the proposed new Sunshine Coast Planning Scheme, which contemplates a height of up to 60m for the site.
Officers say the proposed development would remain below that height and is consistent with the longer-term planning direction for the area.
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The site is also covered by council’s Temporary Local Planning Instrument, which was adopted to encourage hotel development and address a shortage of internationally branded hotel accommodation ahead of the 2032 Olympic and Paralympic Games.
The instrument includes incentives for increased building height and reduced car parking, and the Crowne Plaza proposal meets the eligibility criteria for an international hotel with more than 140 rooms.
Council’s assessment identifies a need for additional hotel accommodation on the Sunshine Coast and cites a forecast demand for about 2450 additional hotel rooms by 2033, including between 545 and 755 rooms in Maroochydore.
The report estimates the development would generate about $324 million in economic benefit and 676 full-time-equivalent jobs, including 419 construction jobs and 257 ongoing operational positions.
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Among council’s requested conditions, the report says there would also be an additional public safety measure, with eight CCTV cameras proposed that would monitor on-site areas as well as sections of the Ocean Street footpath and roadway.
The system would be provided at no cost to council, with footage available to Queensland Police Service on request.
The applicant must also make a monetary contribution toward the future construction of public toilet facilities in the Ocean Street precinct, and plant five new coastal-hardy street trees with protection cages.
The amended plans increase car parking from 132 to 134 spaces, while other aspects of the existing approval, including the hotel room numbers, food and drink outlet, setbacks, vehicle access and pedestrian connections, remain unchanged.
The application received 35 submissions, including 26 properly made submissions. Of those, 21 supported the proposal and five opposed it.
The objections included concerns about the proposed height exceeding the current planning framework and the potential precedent for future developments.
Council officers concluded the proposal would achieve an appropriate balance between increased development intensity and maintaining the character, amenity and identity of the locality.
