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Plan for Rotto five-star resort on Mt Herschel gains traction

Six groups have put up their hands to build a five-star hotel on the controversial Mt Herschel site on Rottnest Island, despite two spectacular failures to get the project off the ground in recent years.

Rottnest Island Authority chief executive Paolo Amaranti confirmed renewed interest in the 4ha site that overlooks Longreach Bay on the northern side of the holiday island.

Mr Amaranti said negotiations were under way with two groups but there was no timetable.

He would not disclose the identity of the companies.

Two previous attempts to secure a hotel developer for the site — in 2006 and 2010 — failed despite preferred developers being announced.

The first attempt collapsed after two years of talks with a consortium led by Broadwater Hotels and Resorts.

The second floundered after a 20-month process when Pinctada Hotels and Resorts withdrew, saying the resort was financially unviable.

Shortly after taking on the role as RIA chairman in 2012, John Driscoll said that despite the previous failings, a hotel on Mt Herschel was “something that is worth considering”.

At the release of the island’s 20-year strategy this year, he said Mt Herschel was still a preferred site for a luxury hotel.

The strategy advocates private operators taking over half the island’s accommodation.

In addition to the Mt Herschel hotel, the RIA will soon call for expressions of interest to build a marina on the site of the army jetty in Thomson Bay.

In exchange for building and running the marina — and to improve the economic appeal of the project — the private operator would get access to beach land north of the jetty to develop short-stay holiday units, a restaurant or licensed cafe, and charter or cruise operations.

In another recent boost to island accommodation, a heads of agreement was signed earlier this year to allow the Rottnest Lodge to be virtually rebuilt on nearly 5ha around one of the island’s salt lakes as part of a $20 million plan.

Included in the development would be 80 units, a restaurant and bar, gymnasium, spa, therapy pool and open-air cinema.

The new 4½-star resort will be the first new accommodation on the island in more than 30 years. It will also be the biggest infrastructure investment on the island by the private sector.

 

Source: The West Australian, Kent Acott, July 26th 2015
Originally published as: Plan for Rotto five-star resort on Mt Herschel gains traction