Kite shelves Wright St hotel project, puts CBD site on the market

A 17-storey high-rise hotel project in the CBD has been shelved, with its developer looking to offload the site near Whitmore Square.

Plans for a 17-storey hotel development in the CBD have been shelved, with the developer looking to offload the site after a series of delays.

The Hotel on Wright Street project, near the north-eastern corner of Whitmore Square, secured planning approval in 2020, and was to include a $10.9m tower with 100 hotel rooms, a gym and rooftop terrace.

Construction had been expected to commence in October, two years after initially planned, but the 490sq m site has now been put on the market by developer Kite, which is looking for another developer to take over the project.

Kite managing director Damon Nagel said the property came with development approvals, and buyers also had the option of taking on an agreement with operator Punthill Apartment Group.

Mr Nagel said a restructure of his company last year meant the focus was now on other projects, including two major housing projects in Adelaide’s inner north and at McLaren Flat.

“It’s more of a situation rather than a project thing,” he said.

Artist's impression of the Hotel on Wright St development. Picture: realcommercial.com.au

Kite managing director Damon Nagel. Picture: Mark Bake

“I still really like it and we’ve got an agreement that if it doesn’t hit a certain hurdle mark then I’ll probably buy it, but I will shelve it for probably about 18 months.

“We’ve got two new really cracking sites as well. There’s a lot of big companies out there all pitching for these big masterplans, and we’ve flown under the radar and just picked up these little 50, 70 (allotment)-type scenarios.”

Approved plans for the hotel project allow for the partial demolition of a set of bluestone row cottages at 134 and 136 Wright St, including one built in 1880 and listed on the Adelaide City Council’s local heritage register.

The development was one of several CBD hotel projects delayed as a result of Covid-19, as developers revised their plans amid the uncertainty surrounding the return of interstate and international travel.

Construction of a Hyatt hotel on Pirie was pushed back to the second half of this year, but is still yet to start, while a $48m Travelodge on Bentham St has also been delayed several times.

However, several new hotels are currently under construction, including the $45m Vibe hotel on Flinders St, the $200m Marriott hotel at the GPO site and the $35m TRYP by Wyndham hotel on Pulteney St.

Kite is currently overseeing several housing projects including its Hamilton Hill development at Woodforde and Dock One at Port Adelaide.

Expressions of interest in the Wright St site close on December 23.