Holiday Inn, Pelligra join forces in $60m Mawson Lakes hotel

It’s sat unused years – but finally, an Adelaide construction site will be transformed into a $60m hotel.

Construction of a $60m hotel in Mawson Lakes has commenced, breathing life into a construction site that has remained stagnant for four years.

The Holiday Inn hotel will feature more than 130 rooms and suites, restaurant, bar and conference facilities, a gymnasium, more than 3000sq m of office space and 1400sq m of retail outlets.

At eight storeys, the building has been designed at a similar scale to a previous proposal by local developer Barbaro Builders and Developers to build apartments on the Metro Parade site.

Melbourne developer Pelligra Group, which took over the development late last year, is banking on nearby defence projects and growth in the hi-tech manufacturing sector to create heightened demand for accommodation in Adelaide’s north.

Artist's impression of $60m Holiday Inn being built at Mawson Lakes. Picture: Supplied by Pelligra Group

Pelligra Group chairman Ross Pelligra said the project itself would stimulate economic activity in the area, with more than 450 jobs created during construction and about 55 ongoing roles once the hotel opens in 2024.

“The development will represent a catalyst for northern-suburbs employment and tourism economies, a strong incubator for business growth, a flagship mixed-use development in the northern suburbs,” he said.

“It’s a commitment by Pelligra and ONE7 Developments (joint venture partner), complementing strong public and private investment in the local property, defence and technology sectors.”

The development has been branded ‘The Heroic’, in a tribute to explorer Sir Douglas Mawson, who led expeditions during The Heroic era of Antarctic exploration.

Pelligra took over the site from Barbaro Builders and Developers, which had already commenced construction of an apartment project known as Emperor Living.

Barbaro suspended construction at the site in April 2018 amid a Consumer and Business Services (CBS) investigation into concerns the company was acting outside of its licence conditions.

It had completed two-to-three levels of structural work before abandoning the site and leaving an eyesore on one of the major gateways into Mawson Lakes.

The original plans included an eight-storey building with nine retail shops, six offices and 63 apartments.

Mr Pelligra has been on a property buying spree in Adelaide since acquiring the former Holden factory in Elizabeth in 2017. He owns the Adelaide Giants, Adelaide 36ers Arena and a bulging portfolio of commercial and industrial properties across Adelaide.