Ramada by Wyndham Playford falls flat after developer’s collapse – what’s next for Elizabeth’s CBD vision?

Ambitious plans for a multimillion-dollar suburban hotel have fallen flat. Here’s what it means for the vision to revitalise Adelaide’s north.

Artist's impression of the Ramada by Wyndham Playford. Picture: Wyndham Destinations

An ambitious plan to build a $70m hotel in the heart of Elizabeth has fallen flat following the collapse of its developer.

Administrators have been appointed to Playford City Hotel – a private company that was set up to oversee the project – four years after a groundbreaking ceremony where it promised to deliver a new 205-room Ramada by Wyndham Playford hotel.

According to minutes of the first creditors meeting, Playford City Hotel owes creditors close to $3.8m, with Melbourne-based Chinese financier Zank Income Fund claiming it’s owed $1.1m, and Adelaide construction company Mossop Group left close to $850,000 out of pocket.

Playford Council has secured control of the development site on Playford Boulevard, buying back the land as part of a settlement of a legal claim brought by the council after the developer failed to commence work on the project within an agreed time frame.

In a statement, Playford Mayor Glenn Docherty said the council was now looking at alternative development options for the site.

Pelligra Group says it remains committed to building an ice arena and sports hub at Elizabeth. Picture: City Collective

“Council’s focus is on securing the best possible outcome for the site and the broader community,” he said.

“As identified in the state government’s Greater Adelaide Regional Plan, Elizabeth is the regional centre of northern Adelaide. A hotel is a key part of any regional centre and there is ongoing interest from private investors and hotel brands to have a presence in northern Adelaide.

“This interest comes off the back of increasing demand for quality hotel and hotel-like accommodation. The Lyell McEwin Hospital is the largest teaching hospital in northern Adelaide, creating strong demand for nearby accommodation from patients, families, specialists and health staff.

“Defence activity is growing, with RAAF Base Edinburgh and the new deep maintenance and modification facility at Penfield bringing a mobile, rotating workforce that needs reliable, short-term places to stay.”

The vacant site is located opposite the Elizabeth City Centre shopping centre, next to a multistorey car park the council built to service a pipeline of projects it hoped would revitalise Elizabeth’s CBD.

Artist's impression of an office and innovation hub Pelligra Group is planning for Elizabeth. Picture: City Collective

Two other projects earmarked for the precinct – a sports hub and ice arena, and an office building for start-ups and high-growth companies – have also failed to get off the ground.

But developer Pelligra Group, which is spearheading those two projects, said it remained committed to the projects.

Pelligra director Steve Wren said the developer was in talks with tenants for the office building, while final designs for the ice arena and sports hub were still being worked through.

“They’re 100 per cent live projects,” he said.

“We’re probably behind schedule from a planning point of view … but we’ll definitely be building, either last quarter of this year or first quarter of next year.

“Owning the old Holden factory – the Lionsgate development – as we do, and having invested very heavily in Playford itself, we’re committed to Playford, we’re committed to those projects.”

About 200 jobs had been promised at the Ramada by Wyndham Playford hotel, which was to feature a swimming pool, gym, restaurant and sports bar with conference and events spaces.

Playford City Hotel owner Andrew Russell-Price and administrator Hamish MacKinnon did not return calls from The Advertiser.

Travel + Leisure Co., which runs the Wyndham hotel chain, declined to comment.