Development application to build 12-storey international hotel submitted

An application to develop a 12-storey, 160-room hotel on a Coast town’s main street has been submitted for council assessment.

The proposed Holiday Inn and Suites Caloundra at 51-55 Bulcock Street would include retail and hospitality tenancies at the ground level, a restaurant with bar and hotel amenities on level one, 160 suites over levels two to 10 and a rooftop level 11 with a restaurant and bar, outdoor dining and function rooms.

The hotel amenities would include a pool area, gym and kids’ club and recreation space. Accommodation would comprise studios and one- and two-bedroom suites.

The proposal was submitted to Sunshine Coast Council by Adams and Sparkes Town Planning on behalf of Felix Capital and IHG Hotels and Resorts.

“The proposed development will be Caloundra’s first international hotel, offering a modern, affordable and convenient accommodation option,” the town planning report submitted with the application states.

Felix Capital CEO Michael Maroun told Sunshine Coast News he was drawn to Caloundra by its ideal location, beachside beauty and growth prospects.

He said the hotel, located about 300 metres north of Bulcock Beach, would fill a gap in the market for short-term accommodation options and be an enticing travel and business destination.

“It is within close proximity to Brisbane; it has something to offer everyone; there is growing demand in businesses setting up shop in the town, as well as a spike in Australians moving away from major cities to towns like Caloundra.

The town planning report states the proposed development would help address a significant undersupply of new short-term accommodation units in the market, and help the council reach its target for new hotel offerings in the region in time for the 2032 Olympics.

“According to the 2021 Sunshine Coast Hotel Demand Study, at least 1800 additional rooms were targeted to be delivered by 2032 in order to meet forecasted growth in visitor nights,” it says.

The 1999sqm site is currently occupied by a two-storey commercial complex that was sold for close to $10 million in 2022.

Mr Maroun said initial discussions had been carried out with current tenants explaining the future of the area.

He said some community consultation had already been undertaken regarding the proposed development and that the plan had received mostly positive encouragement and endorsement by community members.

Adams and Sparkes managing director Cameron Adams said there had also been some initial consultation with the council.

The proposed development would be constructed over 12 storeys to a height of 47.45 metres, which exceeds the height limit for the site of 30 metres.
But the town planning report points out that the Caloundra town centre has at least six other nearby buildings of 12 to 14 storeys that were constructed prior to the commencement of the current planning scheme.

It would include 86 car parking bays, three motorcycle parking bays and 10 bicycle spaces, which the planning report concedes is not enough to comply with requirements.

Some elements of the rooftop level would also not comply with the definition for ‘prescribed rooftop uses’, as at 74 per cent the area exceeds 50 per cent of the floor area of the storey directly below.

The proposed development would maintain the same road access from Carter Lane, and it would include plaza-style pedestrian building entrances to the hotel lobby and through the block between Minchinton and Bulcock streets.

Caloundra Chamber of Commerce president Michael Shadforth said the proposed hotel would help the town flourish.

“This development and its level of investment is a catalyst development for Caloundra. We will see Caloundra transform to not only one of the best cultural, retail and hospitality locations on the Sunshine Coast, but we believe it will be one of the most visited browsing streets in South-East Queensland – a rival even to James Street (in Brisbane).

If approved, construction is believed to be commencing from February 2026 and would take about two years for completion, creating hundreds of jobs during the construction phase and thereafter.

The development application for material change of use to establish short-term accommodation, shop and food and drink outlet is impact-assessable, meaning it will go to public consultation. It also triggers State Assessment and Referral Agency approval due to it including short-term accommodation for 300 people or more.