Stirling to Lease Scarborough Site for New West Coast Highway Hotel
The City of Stirling is on the verge of leasing a prime coastal site in Scarborough for hotel development. This follows years of discussions regarding the future use of the 2,984 square meters of land located at 273 West Coast Highway.
Lease Agreement Overview
The City administration plans to enter a long-term ground lease with Lofte Property, a Western Australia-based developer. The recommended lease is projected to commence at an annual rate of $370,000.
Site Significance
This strategically located site is near Scarborough Beach foreshore and has been identified as one of the top investment properties due to its zoning, allowing for eight to 12 storey developments. The location is recognized for its potential to enhance Scarborough’s attractiveness as a premium beach destination.
Economic Benefits
City officers expect that the construction of the hotel will provide significant economic boosts. This includes:
- A direct economic stimulus during construction.
- Ongoing benefits to the local tourism sector.
Projected estimates indicate that a $72 million non-residential project will create:
- 195 full-time jobs during the hotel’s construction.
- An additional $63.6 million in supply chain and consumption effects.
Long-Term Financial Impact
The proposed lease is expected to generate approximately $18.5 million for the City of Stirling over a 50-year period, alongside anticipated additional rates revenue. In the past, residents had urged the council to establish a temporary car park at this site. However, the council rejected this idea in February 2024, citing concerns over costs and broader parking issues.
Next Steps
The officers’ recommendation will be presented during the upcoming planning and development committee meeting. A formal vote by the councillors is expected at the next ordinary council meeting on February 10.
This hotel development is seen not only as a financial opportunity for the city but also as a catalyst for further investment in the area.
