An application to develop a 12-storey, 160-room hotel on a Coast town’s main street has been submitted for council assessment.
The proposed Holiday Inn and Suites Caloundra at 51-55 Bulcock Street would include retail and hospitality tenancies at the ground level, a restaurant with bar and hotel amenities on level one, 160 suites over levels two to 10 and a rooftop level 11 with a restaurant and bar, outdoor dining and function rooms.
The hotel amenities would include a pool area, gym and kids’ club and recreation space. Accommodation would comprise studios and one- and two-bedroom suites.
The proposal was submitted to Sunshine Coast Council by Adams and Sparkes Town Planning on behalf of Felix Capital and IHG Hotels and Resorts.
“The proposed development will be Caloundra’s first international hotel, offering a modern, affordable and convenient accommodation option,” the town planning report submitted with the application states.
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Felix Capital CEO Michael Maroun told Sunshine Coast News he was drawn to Caloundra by its ideal location, beachside beauty and growth prospects.
He said the hotel, located about 300 metres north of Bulcock Beach, would fill a gap in the market for short-term accommodation options and be an enticing travel and business destination.
“I believe that Caloundra has tremendous potential and is one of the Sunshine Coast’s most beautiful hidden gems,” he said.
“It is within close proximity to Brisbane; it has something to offer everyone; there is growing demand in businesses setting up shop in the town, as well as a spike in Australians moving away from major cities to towns like Caloundra.
“These are just a few of many reasons Caloundra is a desirable location to see our vision come to life.”
The town planning report states the proposed development would help address a significant undersupply of new short-term accommodation units in the market, and help the council reach its target for new hotel offerings in the region in time for the 2032 Olympics.
“According to the 2021 Sunshine Coast Hotel Demand Study, at least 1800 additional rooms were targeted to be delivered by 2032 in order to meet forecasted growth in visitor nights,” it says.
“Since the study, Sunshine Coast Council have increased this figure to actively seek 2450 new-build internationally branded hotel rooms by 2032.”
The 1999sqm site is currently occupied by a two-storey commercial complex that was sold for close to $10 million in 2022.
Mr Maroun said initial discussions had been carried out with current tenants explaining the future of the area.
“We have been in discussion with tenants, who are all aware of our plans,” he said.
“Some of them are staying, or we have offered for them to stay, with the existing tenants having first option on the proposed tenancies as suited.”
He said some community consultation had already been undertaken regarding the proposed development and that the plan had received mostly positive encouragement and endorsement by community members.
Adams and Sparkes managing director Cameron Adams said there had also been some initial consultation with the council.
“We’ve met with a number of different departments of council to discuss the project in detail, to ensure all voices were listened to,” he said.
“The consultation with the community groups provided ideas that generated change in the design and allowed any concerns to be voiced, including impacts on the business community during construction.”
The proposed development would be constructed over 12 storeys to a height of 47.45 metres, which exceeds the height limit for the site of 30 metres.
But the town planning report points out that the Caloundra town centre has at least six other nearby buildings of 12 to 14 storeys that were constructed prior to the commencement of the current planning scheme.
It would include 86 car parking bays, three motorcycle parking bays and 10 bicycle spaces, which the planning report concedes is not enough to comply with requirements.
Some elements of the rooftop level would also not comply with the definition for ‘prescribed rooftop uses’, as at 74 per cent the area exceeds 50 per cent of the floor area of the storey directly below.
The proposed development would maintain the same road access from Carter Lane, and it would include plaza-style pedestrian building entrances to the hotel lobby and through the block between Minchinton and Bulcock streets.
“The development contains a contemporary, coastally inspired design, which integrates with and enhances the existing centre through providing a vibrant and active streetscape that will stimulate further development along Bulcock Street,” the report states.
“The development provides employment opportunities and is a significant improvement to the current underdevelopment of the site.”
Caloundra Chamber of Commerce president Michael Shadforth said the proposed hotel would help the town flourish.
“This development application is proof that the confidence in the growing population of the southern Sunshine Coast is where investors see the brightest future,” he said.
“This development and its level of investment is a catalyst development for Caloundra. We will see Caloundra transform to not only one of the best cultural, retail and hospitality locations on the Sunshine Coast, but we believe it will be one of the most visited browsing streets in South-East Queensland – a rival even to James Street (in Brisbane).
“This development will help to supply and support a more vibrant and entertaining night-time economy. Caloundra locals tell us they have a strong desire to see more high-quality food and entertainment offerings. This pent-up demand, changing demographics and increasing population is only going to drive this unmet demand more – products like this are exactly what Caloundra locals tell us they want.”
If approved, construction is believed to be commencing from February 2026 and would take about two years for completion, creating hundreds of jobs during the construction phase and thereafter.
The development application for material change of use to establish short-term accommodation, shop and food and drink outlet is impact-assessable, meaning it will go to public consultation. It also triggers State Assessment and Referral Agency approval due to it including short-term accommodation for 300 people or more.
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