Economy slows major hotel reconstruction project

The first stage of the reconstruction of the Walloon Hotel is complete but the planned second stage may undergo significant changes if the Ipswich council planners support a new proposal.

Three years ago, Gibson Hotels Pty Ltd, successfully sought a development permit to amalgamate the three allotments into two, the construction of a drive-through bottle shop and a carpark.

That was stage 1, which was completed 12 months ago.

Stage 2 was also approved by council. It involved the demolition of the existing hotel and the construction of a new, larger building.

Over the time since the initial council go ahead, minor changes to the development permit were approved. And in May 2025, the developer was successful in gaining approval to reduce the size and raise the level of the floor area of the new building.

But just before Christmas, the developer lodged a ‘change application’ with council with the aim of restructuring the second phase of the project.

“The construction of approved Stage 2 of the development, as approved, is unviable in the current economic climate,” town planning agents for Gibson Hotels Pty Ltd stated.

“In addition, and considering the extent of the existing hotel and the current population of Walloon, the applicant is of the view that the construction of a hotel at the current Stage 2 scale is not warranted for at least another 10 to 15 years (maybe longer).

“This is on the basis of how the existing hotel trades in the context of the existing population growth that has occurred in Walloon over the past five or so years.”

However, significant changes to the building are still proposed as, according to the applicant … “there is a need to redevelop the existing hotel to a degree to ensure that it can appropriately service the locality (given the growth in population) as well as achieving relevant building code requirements”.

The changes proposed in the new application include an interim redevelopment involving the retaining of the majority of the existing hotel.

The portion of the building that is proposed to be removed would be replaced by a dining terrace, an enlarged, modern kitchen, additional bar area and enlarged gaming area.

Also, the beer garden would be relocated to an area adjacent to the carpark and the verandah of the existing hotel would be opened up.

The existing service area on the western side of the hotel is proposed to be retained while another service area is proposed to be constructed on the eastern side of the building.

According to the applicant, the variations to Stage 2 don’t mean the initial plans for reconstruction have been abandoned.

“What was approved as Stage 2 will now become Stage 3,” it was noted in the ‘change application’.

“There is still a desire to ultimately construct what was approved by council when the market conditions, both in terms of economics and catchment area, are appropriate.”

Council planners are currently reviewing the application.

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