Hyatt development delayed again due to Covid

Major city projects are facing lengthy delays due to Covid, including the new $160m Hyatt, which is now expected to open much later than originally planned.

Major hotel developments, including a new $160m Hyatt in the CBD, are facing lengthy delays due to Covid, with developers eager for the return of interstate and international travel before committing to projects.

Construction of the Hyatt will start in the second half of next year, the company and the project’s developer say, with the hotel due to open in 2025, two years later than first anticipated.

Artist’s impression of the Hyatt Regency Hotel on Pirie St, which has faced delays due to Covid.

Plans for a 17-storey hotel on Wright St have also been pushed back by developer Kite to October next year, close to two years after initially planned, while a $48m Travelodge on Bentham St secured a second 12-month extension to its development approval in July.

Artist’s impression of the Travelodge hotel on Bentham St.

A spokesman for Hyatt, which is marking its return to Adelaide with a new 285-room building on the corner of Gawler Place and Pirie St, said demolition works would begin in the second half of 2022.

The state’s planning authority gave the 21-storey five-star hotel, which will replace an existing local heritage-listed bank building, planning consent in August 2020.

Project director Robert Lee of CES Pirie Hotel had previously anticipated site works would begin in the first half of 2021.

But in a joint statement Mr Lee and Hyatt said the development timeline had been reworked due to Covid. Instead they are aiming to secure final development approval with Adelaide City Council in the first half of next year paving the way for demolition of the existing bank building.

“CES Pirie Hotel and Hyatt remain committed to launching Hyatt Regency Adelaide which will mark Hyatt’s return to the city when the hotel opens in 2025,” the company’s statement said.

Artist's impressions of the $200m GPO Hotel development, which began earlier this year. Picture: Supplied by Greaton

Despite the uncertainty caused by the pandemic, construction of several new hotels has begun in recent months 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.

Last week Canberra-based developer Doma Group took over the Metters building site on North Tce, between Oaks Horizons and Oaks Embassy, with plans to launch its Little National Hotel network into Adelaide.

The project is still in the design phase, but it is expected to include about 200 rooms, an exclusive gym, library and lounge for guests, and a rooftop bar open to the public.

A development application is expected to be lodged early next year ahead of the commencement of construction by September.

A redevelopment of the Marine and Harbours building in Port Adelaide is expected to begin by July.

Adelaide developer Kite, formerly Starfish Developments, is also expected to start work on its 93-room MH Hotel project in Port Adelaide’s Marine and Harbours building by the middle of next year, and is planning to add an additional 60 rooms in a second stage.

Kite managing director Damon Nagel said the area was in need of extra hotel accommodation given the shipbuilding projects ramping up at the nearby Osborne shipyards.

“We’re in documentation now, we’ll go out to tender in February and we’re looking to start work in July on the main building,” he said.

“And then we’re in planning for another 60 rooms in a separate building right next door. We’ve designed it with a vibe of the old wool stores – it’s a warehouse-style looking building.”

Mr Nagel said plans for the Wright St hotel, which would be operated by Punthill Apartment Group and would include about 100 rooms, would restart after Easter with construction expected to commence by October.