New hotel development at Shell Cove moves forward to address accommodation shortage

Shellharbour City Council has taken a major step toward boosting tourism, business, and healthcare accommodation by approving next steps for a new hotel adjacent to The Links golf club.

Councillors voted on Tuesday night (25 February) to support seeking expressions of interest (EOI) from hotel developers for a proposed 150-room hotel on an undeveloped lot of land on Golf Drive in Shell Cove to help address the region’s short-term accommodation shortage, particularly with the upcoming $680 million Shellharbour Hospital set to increase demand nearby.

It comes after the high-profile nature of the project resulted in a request for quote (RFQ) process being undertaken for hotel consultancy services and a contract awarded to progress the project.

Councillor Rob Petreski said he supported the strategy of taking the lowest risk option, by looking for the market to come back to council to tell them what was feasible and what could be achieved at that site in keeping with its plans.

“It’s very important that we’re setting the master plan here and we’re letting the market come to us,” Cr Petreski said.

“I’ve been in Shell Cove from day one, and I’ve seen it grow from a tiny little land release to a booming suburb.

“It was designed to be activated. It was designed to create jobs. It was designed to diversify our economy, and it was designed to make sure our residents have both a place to stay and a place to play.

“And I think this is in keeping with all of those things, and it will be of benefit to all of us in the end.”

Council obtained a preliminary feasibility study, which found a significant undersupply of quality short-term accommodation in the area, with existing options primarily limited to holiday parks and small motels.

It also identified that a potential hotel could include 150 rooms, with options for a restaurant, bar, wellness facilities and gymnasium, and event spaces.

Mayor Chris Homer said much of what was proposed was born out of local government assisting the State Government.

“We have been exploring the potential of a hotel on the land near The Links golf course,” Mayor Homer said.

“It’s a strategic location that should increase the supply of short-term overnight accommodation, especially near the future Shellharbour Hospital, The Links and nearby tourist attractions.

“We’re going to have a $680 million hospital built in Shellharbour, and it’s going to be a quantum leap from the hospital that’s already here.

“When that hospital is up and running, apart from offering more accommodation in Shellharbour City, key workers are going to be needed for this hospital as well.”

In fact, the council report said the hotel was aimed to cater to a growing mid-week demand from visiting medical professionals, patient families, and corporate travellers, while also providing much-needed weekend accommodation for tourists enjoying Shellharbour’s coastal attractions and golf facilities.

Councillor Lou Stefanovski said the only concern he had was having 150 rooms but only 71 parking spaces.

“I would like to encourage our operational staff to strongly look into providing just as many parking spots, even if we do go underground,” Cr Stefanovski said.

“There’s nothing worse than coming into a hotel and not being able to find a place to park.”

Councillor Homer said in relation to parking and future traffic management concerns, council was still working closely with the State Government to ensure proper access and egress to the site.

Councillors Kellie Marsh, Moira Hamilton and John Davey also spoke of the positives the development would bring to the region, in boosting the economy, providing key worker accommodation, assisting commercial, medical and education uses, and enhancing Shell Cove’s appeal as a regional holiday destination.

“Council, for many years, has discussed one day we will look into providing some short-term accommodation like this, at this location, to support visitor numbers, expenditure and job creation,” Cr Marsh said.

“Well, I’m proud to say that day has come.”

It is expected the design will be refined through the development process with a concept design plan available through the EOI.