Brisbane’s Hilton Garden Inn Spring Hill development stalls amid uncertainty over funding

Work on a stalled $50m Hilton hotel in central Brisbane - which has sat idle and not progressed past the three-level carpark - is ‘weeks away’ from restarting, according to its developer.

Work on a stalled $50m Hilton hotel in central Brisbane is “weeks away” from restarting, according to its developer.

The 129-room Hilton Garden Inn at Spring Hill was launched in 2022 by then-Tourism Minister Stirling Hinchliffe with promises it would generate more than 145 jobs.

As well as the Hilton hotel, the building was set to include a 19-apartment residential component called The Gatsby and was due to open late last year.

The stalled construction site. Photo: NewsWire / John Gass

Instead the site has been idle and not progressed past the three-level carpark.

This week the site was overgrown and silent, with all signage about the project and its developer removed.

The project was under way by Spring Hill Property Group, part of Rocklea-based Image Developments at 24-30 Hartley St and 30-32 McConnell St.

Rupert Wen-Kuan Yang, 49, who is sole director of both companies, said work had stopped to enable an update to the development application.

Council records show changes to the 10-storey project were approved in December last year, adjusting the ratio of hotel rooms to apartments to 110 and 28 respectively.

“The project is only weeks away from restarting,” he said.

“We are actively updating our construction documentation, the certifier has confirmed the project is restarting.”

An artist’s impression of Hilton Garden Inn at Spring Hill

Mr Wang said the company was working through the usual process to obtain finance for the next stage.

“As soon as the bank send the approval for the loan, the project starts again.

“Hilton is still our hotel manager, we are still going with Hilton, they have supported the project.”

Another of Mr Yang’s companies, TTD Contractors, is building the development and is licensed for maximum revenue of up to $30m a year.

Artist impressions of Hilton Garden Inn Spring hotel and adjoining Gatsby apartment.

QBCC records show the company’s open builder licence was granted on March 13.

Mr Yang said his building certifier had confirmed his company was fully licensed to complete the Hilton project.

Before the Hilton signed on, the site was set to be a Wyndham Hotel via the same developer.

It was slated for a September 2021 launch which failed to eventuate.

Director for Image Developments, Rupert Yang, former Minister for Tourism, Innovation and Sport, Stirling Hinchliffe, Hilton's Area VP APAC-Head of Australasia, Paul Hutton and Director of development, Hilton Australasia, Tushar Raniga at the groundbreaking ceremony to mark the commencement of construction of Hilton Garden Inn in 2022.

The Spring Hill stall comes after Hilton opted out of a management deal on its landmark CBD hotels in Adelaide and Brisbane after 40 years in each location.

Thai hotel group Amora Hotels and Resorts will invest $40m into the Adelaide property, which at 377 rooms is the city’s largest hotel, after Hilton vacates it in June.

Hilton Brisbane closed at the end of March after the apparent failure of negotiations to extend its lease with landlord ISPT, which is planning a major redevelopment of the site.

Hilton's Area VP APAC-Head of Australasia, Paul Hutton at the groundbreaking ceremony to mark the commencement of construction of Hilton Garden Inn Brisbane City Centre North.

A spokeswoman for Hilton declined to comment on the Spring Hill project, but said the chain was not scaling down its Australian presence.

“Hilton remains focused on strategic, organic growth – placing the right brands in the right locations with the right partners,” she said.

“We continue to build on our strong presence in Australia, with 29 hotels and nine more in the pipeline including the introduction of our luxury brand Waldorf Astoria, which promises to deliver unforgettable experiences for our guests.

The Hilton construction site. Pic: John Gass

“Hotel property transactions, such as those recently seen in Brisbane and Adelaide, are a normal part of our industry and reflect a buoyant and dynamic market, driven by strong investor confidence.

“In recent deals, other owners have converted their hotels into Hilton properties, such as Next Hotel Melbourne, Curio Collection by Hilton and The Motley Hotel Richmond, Tapestry Collection by Hilton, which has enabled us to expand our estate and create new opportunities for Team Members as well as new memories for guests.”

Originally published as Brisbane’s Hilton Garden Inn Spring Hill development stalls amid uncertainty over funding