Push for financial inquiry into Adelaide Oval management over $42m loan for hotel

Adelaide Oval management is facing calls for an inquiry into its finances, in the wake of the State Government’s announcement of a $42 million loan for a hotel attached to the eastern grandstand.

• 128-room Oval hotel — read the Sunday Mail’s exclusive report
• … but there’s been a mixed reaction from the public

Adelaide Oval management is facing calls for an inquiry into its finances, in the wake of the State Government’s announcement of a $42 million loan for a hotel attached to the eastern grandstand.

The State Opposition wants a parliamentary inquiry into the Stadium Management Authority’s coffers, to determine where its revenue is being spent.

Hotel operators say it is unfair for the Government to fund a private competitor, with one hotel chain flagging a possible legal challenge.

Adelaide City Council claims it would set a dangerous precedent for private development of a public asset.

An artist impression of a planned integrated hotel at Adelaide Oval.

Some nearby businesses say a hotel would deliver a spin-off benefit.

Labor treasury spokesman Stephen Mullighan said an inquiry might shed light on why the Stadium Management Authority needed a taxpayer-funded loan to build the hotel.

“Why should taxpayers be called on again to finance another $42 million for a private hotel, when we’ve already contributed $535 million for the oval itself,” he said.

Eoin Loftus of Majestic Hotels, which is building its third Adelaide hotel in North Adelaide on the former Channel 9 site in Tynte St, said it was an “anti-competitive” move by the State Government.

How the hotel’s interior could look.

Mr Loftus said Majestic Hotels believed the SMA was in breach of the legislation governing use of the oval precinct, and was seeking legal advice.

The State Government and SMA told The Advertiser the hotel would be in the precinct’s “core area” and therefore allowed.

Lord Mayor Sandy Verschoor, whose council was briefed on the hotel proposal only on Saturday, said the design was complementary to the oval complex but it would set a “concerning precedent” for other parklands sites occupied by the State Government.

An SMA spokeswoman said the organisation took its “responsibility to maintain the Adelaide Oval to the highest standard very seriously” and the hotel would help it remain internationally competitive.

Treasurer Rob Lucas said the Government would consider an inquiry.

Nearby businesses are fans of the hotel idea.

Cathedral Hotel manager Kym Bond said it would be “really positive for tourism in North Adelaide”.