Whyalla Foreshore Motor Inn owners negotiate with Pelligra Group over planned $45 million hotel

The owners of Whyalla’s Foreshore Motor Inn, which once catered for the queen in 1986, are in negotiations with the Pelligra Group for the site of the new $45 million 4-star hotel.

• Plans unveiled for giant steel mill and 4-star hotel

The owners of Whyalla’s Foreshore Motor Inn, which once catered for the queen in 1986, are in negotiations with the Pelligra Group for the site of the new $45 million 4-star hotel.

Barbara and Tom Derham have owned the motel for 33 years and Pelligra chairman Ross Pelligra told The Advertiser their waterfront property was a preferred site for the new hotel.

“It’s a positive time for us and probably early next year we’ll make the announcement of what we’re doing and how, but the intention is a 4-star hotel with a resort feel,” he said.

“We’re looking at a four to five storey facility and this is one of the preferred sites.

“What we’re intending is to bring a major brand here and we’re in conversations with a number.”

Foreshore Motor Inn owner Barbara Derham and Pelligra chairman Ross Pelligra, who is interested in building on the site. Picture: Tom Huntley

The Whyalla Motor Inn as it looks today.

Mr Pelligra said the hotel would have conference facilities to hold up to 600 people, with the business also investigating other opportunities in Whyalla, including housing and office space.

Accounting firm William Buck’s SA managing director Jamie McKeough welcomed plans by British industrialist Sanjeev Gupta, announced on Monday, to build one of the world’s largest steelworks in Whyalla.

“This is exactly the kind of foreign investment that South Australia – and Australia – needs,” he said.

“Foreign investment which creates jobs and brings innovation is vital to building economies and is the kind of investment that needs to be encouraged.

“The multiplier effect of the steelworks will be enormous and will also have a positive impact on nearby towns and South Australia broadly.

“It is exciting when people think big. Mr Gupta saw an opportunity when others could not and its likely all of us will benefit from his vision.”

An artist’s impression of the pool at the planned 4-star hotel.

However, the plans also expose a potential skills shortage as the steelworks expansion competes with major defence and mining projects and growth generally in other sectors for appropriately qualified workers.

“Unemployment in SA is currently at a relatively low level.

“The challenge now for educational and training institutions will be to produce enough appropriately skilled workers to meet the demands of a state-of-the-art steelworks, a submarine construction project, major new and expanded mining operations and general growth in other sectors”.

Family’s high hopes for steel city

Dan and Mandy Schmidt with sons Jonathan, 10, and Luca, 9, at Hummock Hill in Whyalla. Picture: Tom Huntley

The Schmidt family toyed with the idea of leaving Whyalla two years ago when the city’s steelworks were in administration and facing an uncertain future.

But they are glad they stuck it out and are now full of confidence that steel magnate Sanjeev Gupta will deliver on his promise to provide long-term security to the region.

Dan Schmidt, who has worked at the steelworks for 11 years, said Mr Gupta’s plan to build one of the world’s biggest steel mills in Whyalla was a surprise.

“This was beyond what we expected for the town and the community,” Mr Schmidt said of Monday’s announcement.

“There’s certainly been excitement within the steelworks but we’ve been unsure how real it all is, so by making the announcement public gives more credibility to it.

“The term that’s being used is that it’s a generational investment, and it’s definitely what it looks like becoming.”

Mr Schmidt, his wife Mandy and their two children, Jonathan, 10, and Luca, 9, had considering leaving Whyalla before Mr Gupta took over the steelworks from Arrium in 2016.

“We had a plan for A, B, C and D, and we had difficult conversations about what we might face and what we might do,” Mrs Schmidt said

“Once Sanjeev’s takeover was announced the relief was tangible.”

Mrs Schmidt hoped the steelworks expansion and potential new plant would bring back businesses that closed during the administration period, as well as new companies.

“I’m not just excited for our children but all here, just to see the possibility for the town to expand in terms of cultural influences and adding flavour.”