Landbridge to build luxury hotel in Darwin
In the end, the controversy around the Chinese owning the Port of Darwin might have a good outcome.
At the time, the $500 million 99-year leasehold sale of the Port of Darwin to Landbridge had raised US government concerns.
And so the Northern Territory government has sorted it out.
It’s negotiated a deal that will see Chinese port and logistics operator Landbridge building a luxury $250 million hotel at the Darwin waterfront.
Construction work on the 2.9 hectare site starts next year. At this stage, it’s scheduled to be finished by 2020.
The hotel will be run by global hotel operator Starwood Hotels & Resorts under the Westin brand. The government won’t be tipping in any money for the hotel’s operations.
Northern Territory Chief Minister Adam Giles said the hotel will actually give Darwin what it badly needs: top end accommodation.
"The agreement will deliver the government's objective to meet unsatisfied demand for luxury accommodation in Darwin," Mr Giles said.
"The development is set to boost the economy, act as a drawcard for increased high-end business and leisure visitors, and give Darwin a significant edge in the lucrative business conference market.
"Commencement next year will surpass the government's target three years early to build a $2.2 billion visitor economy by 2020."
As part of the deal, the government will provide up to $10 million connecting services to the site.
It has also offered Landbridge an 18-month call option over an additional 1.5 hectares of the former Toga site which had been put back into the hands of government after 18 months of negotiation.
Mr Giles said the hotel could transform the Top End
"The luxury hotel development is expected to provide a significant economic boost and generate more than 500 jobs during the construction phase and hundreds of ongoing jobs when it opens," Mr Giles said.
"It will be the anchor tenant to drive increased growth in Asian tourism to the Northern Territory."
by Leon Gettler, August 10th 2016
