The City of Karratha is looking to test market interest for a hotel development at The Quarter.
The site, at Lot 7078 Sharpe Avenue, forms part of the wider Quarter precinct and was acquired by the City from DevelopmentWA in 2018, under the condition the site be used for a hotel development.
After acquiring the land, Council reached agreement with a developer to proceed with the construction and operation of a 100-room, four-star hotel.
However, despite strong early interest, escalating construction costs, labour shortages, and the broader impacts of COVID-19 ultimately prevented the project from proceeding.
With the construction market stabilising, improved investor sentiment, and ongoing demand for quality short-stay accommodation, Council will now re-test the market seeking to deliver a hotel that advances the strategic activation of the City Centre.
City of Karratha Mayor Daniel Scott said the decision supports the City’s growth and vibrancy.
“Lot 7078 is in a prime location, and we are interested in re-testing the market to gauge interest and viability of a landmark hotel,” Mayor Scott said.
“Importantly, issuing the Request for Proposals does not mean the City has made a financial commitment to building a hotel.
“However, by conducting this process we can ensure a transparent, competitive pathway to identify the best proposal for our community while protecting ratepayer interests.
“Once the Request for Proposal process is closed, the responses will be evaluated and then presented to Council for consideration.”