The redevelopment of the Ocean Beach Hotel in Cottesloe will proceed despite the budget ballooning by $100 million, with the total cost now estimated at $300 million.
Project Overview
Originally approved in 2019, the project involves demolishing the existing hotel and constructing a new six-storey building featuring a 100-room hotel, 40 apartments, and ground-floor retail and dining spaces. The developer, Ocean Beach Hotel Pty Ltd, cited rising construction costs and design changes as key factors behind the budget increase.
Community and Council Response
The Town of Cottesloe has expressed support for the project, noting that it will revitalise the beachfront precinct and create local jobs. However, some residents have raised concerns about the scale and potential impact on the area's character. The developer has committed to maintaining public access to the beach and ensuring the design complements the surrounding environment.
Construction is expected to commence in early 2025, with completion slated for late 2027. The project is anticipated to generate approximately 300 jobs during the construction phase and 100 ongoing positions once operational.
Economic Context
The budget blowout reflects broader trends in the Western Australian construction industry, where material costs and labour shortages have driven up project expenses across the sector. Despite these challenges, the developer remains confident in the project's viability, citing strong demand for premium accommodation and residential properties in the area.
The redevelopment is part of a larger wave of investment in Cottesloe, including upgrades to the nearby surf club and public amenities. Local businesses are optimistic that the project will boost tourism and economic activity in the coastal suburb.
