In a significant boost for the Illawarra's tourism sector, Kiama Council has granted approval for a major expansion of the Mercure Hotel in Gerringong. The development will add 23 new guest rooms to the existing 49, directly addressing what local leaders have described as a desperate shortage of tourist accommodation in the region.
Details of the Gerringong Hotel Expansion
The approved plans, submitted by owner Stephen Bartlett, involve a two-part construction strategy. Twelve brand new rooms will be built, while the hotel's existing function room will be converted into an additional 11 accommodation units. Mr. Bartlett informed the council that the current function space was "not fit for purpose," describing it as old, dilapidated, and poorly located.
"The idea was to turn the current function room into 11 accommodation rooms with access from the rear," Mr. Bartlett explained. The overhaul doesn't stop at new rooms. The project will also see the demolition of the existing reception building, function area, tennis court, and swimming pool. These will be replaced with modern, purpose-built facilities to enhance the guest experience.
Rebrand and Regional Accommodation Context
Alongside the physical upgrades, Mr. Bartlett revealed intentions to rebrand the establishment to a "more prestigious brand," signalling an uplift in the hotel's market positioning. This expansion comes at a critical time for the Illawarra's hospitality landscape.
Just north in Wollongong, the city faces the potential loss of 42 hotel rooms with the proposed redevelopment of the ageing Boat Harbour motel site into apartments. This contrast highlights the pressing need for new investment in tourist accommodation. Last year, Wollongong City Council's tourism accommodation strategy starkly identified the shortage, with Lord Mayor Tania Brown calling the current number of hotels and motels "appalling."
A Strategic Boost for Illawarra Tourism
The council's strategy actively seeks to incentivise new hotel construction, including measures like reducing developer contributions. The approval of the Mercure Gerringong expansion on December 30, 2025, is a tangible outcome of this push, delivering a net gain of much-needed rooms to the regional inventory.
For visitors and the local tourism economy, the development promises more options in a constrained market. For Gerringong, it represents a substantial upgrade to its hospitality infrastructure, positioning the coastal town to better capture tourist dollars and support the broader Illawarra tourism strategy aimed at sustaining and growing the visitor economy.
