Delay on Crowne Plaza hotel for city centre, with opening pushed back to 2019

THE opening of a $45 million hotel slated for the city centre has been pushed back to the start of 2019, 18 months later than officially planned.

PROJECT: Artist’s sketch of the Crowne Plaza above Myer.

THE opening of a $45 million hotel slated for the CBD’s Myer site will open at the start of 2019 — 18 months later than officially planned.

A year almost to the day of the Hobart Rivulet wall collapse, which devastated the site on July 27 last year, the Mercury can reveal developers have been forced to push back the deadline for the much-anticipated Crowne Plaza hotel.

An InterContinental Hotels Group spokesman confirmed the plan remained on track and the hotel would “open in the first quarter of 2019”.

Described as a “once-in-a-decade” opportunity by Hobart Lord Mayor Sue Hickey to help the city overcome a severe lack of rooms, the Crowne Plaza was due to open in October.

Tourism Industry Council Tasmania chief executive Luke Martin said with Hobart’s tourism sector booming, getting the Crowne Plaza opened was important.

“We want to see it open as soon as possible. Obviously they have had some issues with the Myer site and no doubt that hasn’t helped,” Mr Martin said.

“When it is opened it will be a great addition to the city.”

Hobart general manager Nick Heath said the council was pleased to see progress made at the Myer site despite the setbacks, and looked forward to the finishing touches on the Crowne Plaza.

In 2015, hospitality giant the InterContinental Hotels Group signed a management deal with Tasmanian-based Kalis Group to build a Crowne Plaza hotel in the Icon Complex in Hobart’s Liverpool St.

Originally slated for 187-rooms, the Hobart City Council approved a proposal for it to have an extra two storeys, which would allow for 78 more rooms.

This would mean that the Icon Complex would stand at 52.7 metres, making it one of Hobart’s tallest buildings.

But the progress of the $100 million development has been delayed following the devastating flood in the basement level of the flagship Myer store, when walls holding back the Hobart Rivulet collapsed.

This pushed back Myer’s stage 2 completion date, with its new Liverpool St store having to be closed just eight months after its grand reopening.

Mr Heath said there had not been any compensation payments to Myer as a result of missed turnover targets because of the flooding.

The Myer deed agreed to by the council provides for payments of $875,000 in each of the first four years in which gross sales are less than an agreed threshold, starting August 1 after occupation of the Liverpool St Myer store.

Mr Heath said there had been no discussions with Myer about the deed.

“As in the past, any payments under the agreement with Myer will be publicly disclosed in the council’s annual report.”

Attempts were made to contact the Kalis Group, Hutchinson Builders — who are contracted for the development — and Myer.