Inside plans to overhaul Proserpine’s Palace Hotel, Metropole Hotel

Two of Proserpine’s oldest pubs will be given a new lease on life ahead of an expected resurgence in the Whitsunday town as Airlie Beach property prices rise.

The Palace Hotel on Main Street, Proserpine. It has just sold for $400,000. Picture: supplied

Moves afoot to redevelop two of Proserpine’s oldest hotels could launch the Whitsunday town “out of the dungeon” as it quietly prepares for a resurgence.

The Palace Hotel, which has remained shut and in limbo since Cyclone Debbie tore through in 2017, sold for $400,000 on December 6.

Prince of Wales Hotel owner Russell Hutchinson, whose hotel is across the road, admitted he was surprised the property sold for such a low price.

“It’s about the land value,” he said, pointing to its central location.

Mr Hutchinson said the deal was a “major investment” for the new owner.

The Palace Hotel (centre building) in Proserpine, which was just sold. Picture: PRD Whitsunday

The hotel has 25 bedrooms upstairs with 55 beds, shared bathrooms, lounge, kitchen and covered verandahs but Cyclone Debbie’s wrath left it in ruins.

Whitsunday Regional Council voted unanimously at an ordinary meeting in March to remove the Palace Hotel from the Local Heritage Register.

The new Palace Hotel owners could not be contacted before publication.

Palace Hotel through the years

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Mr Hutchinson bought his hotel 18 months ago and in that time saw The Metropole Hotel up the road also change hands; now with Brisbane-based Waymark Hotels.

Cafe on Main diners will soon have to turn elsewhere after the Whitsunday council ticked off on The Metropole owners’ expansion plans for the neighbouring site.

The Metropole Hotel at Proserpine. Picture: Supplied

A development application, filed by Brisbane-based urban planners Reel Planning, showed the extension work would be internal only; largely an expansion of the lounge and gaming area but with no plans for extra poker machines.

Staff at the cafe and pub were unaware of the plans but confirmed the site had been sold.

Palace Hotel through the years

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Records show the cafe last sold for $210,000 in October 2019 after it was initially listed for $225,000 a month earlier.

It is unclear if a further sale has taken place.

The applicants noted the 207sq m cafe site was subject to the council’s heritage code given its position between two historic buildings – the Foxlee Building and The Metropole.

Mr Hutchinson said the deals reflected what needed to be done to the town.

“Proserpine needs to be brought out of the dungeon,” he said.

“It needs big money from government.”

He also predicted Proserpine could benefit if high property prices forced residents out of neighbouring Airlie Beach.

Main Street in Proserpine with the Prince of Wales Hotel at right. Picture: Contributed

A Propertyology report earlier this year identified 59 locations across Australia where total annual advertised rents are expected to rise by $5000 or more this year. Airlie Beach is among them.

An exodus to Queensland post Covid-19 resulted in a massive triple digit spike in demand across beachside suburbs, with prices rising as much as 49.2 per cent year on year.

Beachside suburbs outside of Greater Brisbane had the biggest jump in demand for houses last year with eight places posting triple digit jumps in demand: Mandalay in the Whitsundays (168.5 per cent), South Mission Beach (157.4%), Mission Beach (123.3%), Boonooroo (121.1%), East Innisfail (120.0%), Wonga Beach (119.9%), Poona (105.9%) and Wongaling Beach (104.3%).

Apartments were also extremely popular, with five star beachside suburbs showing triple digit rises in demand led by one in Greater Brisbane, with units in Redland Bay recording a massive 123.8 per cent spike in demand.

It was followed by four outside the capital region with triple digit rises: Cannonvale (up 113.8%), Pimpama (110.4%), Airlie Beach (110.0%), Agnes Water (100.0%).

Originally published as Inside plans to overhaul Proserpine’s Palace Hotel, Metropole Hotel