Major revamp planned for empty Grand Chancellor in Palm Cove

Speculation about the future of the languishing Hotel Grand Chancellor has ended with the announcement of a major renovation and a deal with an international hotel brand.

Renovations of the pool began at the former Grand Chancellor at Palm Cove in March, 2024. Picture: Peter Bon

Speculation about the future of the languishing Hotel Grand Chancellor has ended with the announcement of a major renovation and a deal with an international hotel brand.

The sprawling Palm Cove hotel set on 3.67ha includes 140 rooms, a restaurant, bar, meeting and function rooms, retail shops and a nearby convention centre.

But the cornerstone of Palm Cove’s accommodation offering has been closed since 2022 after fund manager Tyche Capital acquired the property for $10.88m in 2021.

Hilton has announced a management agreement with owners of the old Grand Chancellor Hotel at Palm Cove. Picture: Supplied

The lobby of the new hotel Picture: Hilton

Hilton has confirmed long-held rumours of the group managing the hotel, which has a rich history dating back to the 1990s when it operated as the Novotel Palm Cove.

On Tuesday Hilton announced the signing of a management agreement with Tyche Asset Management for the newly named Hilton Palm Cove Cairns Resort and Spa.

Joining the waterfront Hilton on Trinity Inlet and DoubleTree in Cairns the hotel will be fully refurbished ahead of a reopening slated for the first quarter of 2026.

The refurbished hotel will feature modern amenities including an outdoor pool, two

dining outlets, one all-day dining restaurant, two bars (one being a pool bar), a kid’s club,

fitness centre, spa, and 450sq m of function and meeting space.

The redeveloped accommodation will be called the Hilton Palm Cove Cairns Resort and Spa. Picture: Supplied

Hilton Australasia regional director of development Tushar Raniga said Palm Cove’s growing tourism sector and vibrant local economy represented a “significant market opportunity”.

“And we believe Hilton Palm Cove Cairns Resort and Spa is set to become a standout resort, attracting both domestic and international travellers to this beautiful region,” he said.

Palm Cove local Peter Bon said the hotel complex has been fenced off for years and there was a lot of work to do before the reopening.

“But it’s great to see it happening,” he said.

“I think maybe what happened is that they have not been in a rush to get things happening because of the state of tourism and the Covid thing.”

The refurbished hotel is expected to reopen in 2026.

Hotel and Tyche Investments owner Diana Ren said the deal with Hilton would bring great benefit for the Far North region.

“We are excited to partner with Hilton to launch Hilton Palm Cove Cairns Resort and Spa. Hilton’s world-renowned reputation and expertise will elevate the local tourism market, increasing Palm Cove’s national and international recognition which will certainly benefit the local economy,” she said.

The deal with Tyche Investments marks Hiltons fourth new hotel signing in Australasia this year. The cost of the makeover and whether the hotel would reopen as five star accommodation has not been revealed.

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Originally published as Major revamp planned for empty Grand Chancellor in Palm Cove