Halim family in last-ditch plan to redevelop Windsor Hotel

In a last-ditch attempt to redevelop Melbourne’s Hotel Windsor, Indonesia’s Halim family will begin compulsory mediation with the Victorian government on ­December 1.

Victorian Planning Minister Richard Wynne recently knocked back the Halim Group’s plea to extend the completion time of a 27-level tower behind the Hotel Windsor out to September 2018, claiming the family was granted planning permission five year’s earlier.

But the Halims, who are prepared to pour $330 million into redeveloping the hotel, including restoring its facade, refurbishing the ballroom, and renovating the suites, have a back-up plan ­according to documents obtained by The Australian.

Recent legal advice reveals they do not need planning ­permission to convert the hotel at 103-137 Spring Street and 1-17 Bourke Street into a backpackers lodge.

The 1883-built Windsor Hotel could be run as a backpackers lodge by simply moving in the necessary furniture such as bunk beds according to advice from Norton Rose Fulbright.

However, if the mediation with the Victorian government fails and the Halims opt to convert the hotel into private dwellings they would need a planning permit to subdivide the property, including converting the hotel rooms into individual apartments on separate titles, lawyers said.

Meanwhile, an independent economic assessment commissioned by Heritage Victoria supports the argument the site is doomed as a decent hotel unless the 27-level tower behind it is built increasing rooms from 180 to about 300.

The report, obtained under freedom of information laws, reveals that while room occupancies have been increasing this is not sustainable in the long term given the likelihood of building services breaking down.

“The loss of the 5-star rating will be the first step in a rapid and inexorable decline in occupancy, average room rate and revenue,” the report said.

Source:  The Australian - 29th October 2015