Nauru rebuild to cost more than luxury hotel

THE development cost per room for reopening the centre would be far more than the average for a top-of-the range US full luxury resort.

IF Australian taxpayers are to get value for money, the 750 asylum-seekers who would occupy the Department of Immigration and Citizenship's vision of a detention centre would have to enjoy unsurpassed luxury.

A crunching of the numbers in DIAC's estimates presented to Immigration Minister Chris Bowen shows that the development cost per room for reopening the centre would be far more than the average for a top-of-the range American full luxury resort.

And DIAC's estimated cost per room per night for housing each detainee would be about 15 times the average for guests staying at four- and five-star luxury Meridien, Sheraton and Westin chain resorts in the Asia-Pacific region.

A survey by US hotel and resort consultants HVS found that, in 2010, the average development cost for US budget hotels was $US52,700 ($50,115) per room.

For middle- to upper-range full-service hotels, the median cost was $US156,000 per room, and for top-of-the-range luxury hotels and resorts -- the sort that have private spas in each suite or villa, swimming pools, 24-hour room service and top-flight restaurants -- the development cost per room was $US538,200.

The department anticipates it would cost $316 million in capital costs to rebuild a detention centre catering for 750 detainees, based on two per room.

That works out to 375 rooms at a development cost of $843,000 per room.

DIAC estimates the operating costs of the Nauru detention centre would be $1.7 billion over four years, or a bit over $400m per year. That works out to about $3000 per room per night.

According to the 2010 annual report of the massive US-based Starwood international hotel and resort group, whose gems include, for example, super-luxury tropical resorts on Maui and the Fijian island of Denarau, the average daily room rate for its Asia-Pacific hotels and resorts is $US202.99.

Tony Abbott slammed the estimate as "completely fanciful".

"I think they got the same people to do those costings as did the costings for the school hall program and pink batts program," the Opposition Leader said.

Immigration spokesman Scott Morrison said the government has gone for a "hyped-up, electrified Alcatraz alternative".

The briefing note released by Mr Bowen, compiled by immigration officials after a January 3-4 visit, says that both centres have fallen into disrepair.

The smaller facility, known as Topside, has no water supply, no washing facilities, no shade and no recreational facilities. Most rooms have had electrical fittings removed. It is being occupied by the Nauru Rehabilitation Corporation.

The larger facility, State House, is home to a primary school, a women's refuge and other government agencies.