$60m Hilton standstill as city’s hotel managers accuse council of lack of transparency

The $60m Hilton development is at a standstill as paid builders wait idly by after waiting weeks for the mayor to officially break ground on the project. But another hurdle is also standing in its way.

Exterior render of the Hilton Garden Inn Townsville. Its proponent led by director Michael Graham said it would be a fantastic boon for the region having such a global brand. Picture: HHNQ.

The $60m Hilton Garden Inn project is at a standstill as paid builders wait idly by after waiting weeks for the mayor to officially break ground and the final green light to be given by a council in chaos.

As the developer also waits for the final tick of approval from the Townsville City Council, a disgruntled group of Townsville hotel managers have accused the city council of covering up the project details.

The Townsville City Council refused to comment on the subject and would not confirm if it would be discussed in the confidential section of Wednesday’s council meeting.

The project is to be built on state owned land in the stadium precinct and was expected to have shovels in the ground this week, following an opening ceremony that was meant to happen weeks ago to respect traditional owners in the presence of hotel representatives, elected officials and foreign guests.

The Townsville Bulletin understands that Mayor Troy Thompson cancelled his attendance, before he was put on leave by his councillors who voted they had no confidence in him.

Townsville Mayor Troy Thompson, who has been put on leave. Premier Steven Miles has urged for Mr Thompson to stand down as he was holding the city’s leadership to ransom. Deputy mayor Paul Jacob leads in his place. Picture: Evan Morgan

The hotel project could possibly proceed after today’s council meeting under the leadership of acting chief executive and acting mayor, but it depends on if a confidential agenda item titled ‘North Queensland Stadium Precinct’ involves the final approval of the Hilton Garden Inn.

Developer Focus Pacific Australasia director Michael Graham hoped “fingers crossed” the decision would be resolved in the council meeting, and that construction could begin within days following the council’s go-ahead.

“We are just awaiting approval of a generally in accordance application to reflect our shift to modular, as well as a date and representative for our groundbreaking event,” Mr Graham said.

Focus Pacific chief executive Michael Graham at the site of the future Hilton Garden Inn, next to Queensland Country Bank Stadium. Picture: Leighton Smith.

The groundbreaking ceremony was significant to the hotel chain as it sought to recognise traditional owners in the presence of hotel representatives and elected officials before construction formally began.

Mr Graham said the group of hotel managers had not asked him to clarify their concerns before they published their letter to an email chain of political leaders and that he felt “blindsided”, but he understood the council’s delays and the pressure it was under internally.

“They have always maintained their support for this project and I sincerely trust they are just following due process,” he said.

Interior render of the Hilton Garden Inn Townsville. Picture: HHNQ.

“I think the council has to follow due process and that’s what they’re doing.”

He said bringing a global brand such as Hilton to Townsville was of enormous significance to the region and that it was known for its high standards in quality as well as a place of employment.

He said there had been numerous checks of the project’s feasibility with the Hilton, and local and state governments completing detailed reviews.

City Oasis Inn general manager Brendan Carter leads the charge of hotel owners critical of the use of the precinct for the Hilton Garden Inn. Picture: Matt Taylor.

City Oasis Inn Townsville’s general manager Brendan Carter and four other hotel managers submitted a letter of their concerns of the project to the council in early May.

He said that 40 days later the council had not yet responded to these concerns, and believed it had an obligation to be transparency about projects being built on public owned land, before approvals were voted on by councillors.

“I know council has been preoccupied in unprecedented times, but surely, we could have received something there more than just the acknowledgment that they’ve got it,” he said.

Mr Carter referred to the Townsville City Deal supported by three levels of government, announced in April 2017, which emphasised areas of economic growth, including the North Queensland Stadium precinct.

But he said the scope of such a city deal had changed with the inclusion of a hotel, and that because it was publicly owned, there could be government incentives that could give the developer and hotel owner unfair advantages over competitors.

“We don’t like it because it’s a dumb deal, and primarily it’s on public land, the community own it, and the community, all of them, have been locked out of any understanding because of the secrecy of how they’ve gone about it,” Mr Carter said.

“We are not opposed to competition … we are keen capitalists.

“We understand the hustle and bustle, the tos and fros of business, but what we don’t like is an uneven playing field.”

The Townsville City Council was asked if the council would discuss the Hilton in the confidential section of the council meeting, whether those concerned would be getting any response to their questions, and if the council believed the development was the best use of public land.

Twenty-six hours after the questions were sent, and after several phone calls, a council spokeswoman said the “council is not able to make comment at this time”.

Originally published as $60m Hilton standstill as city’s hotel managers accuse council of lack of transparency