A further setback for Wollongong tourism with another hotel set to close for luxury unit development
Already struggling with an undersupply of tourism accommodation, Wollongong is facing another setback with news that the iconic Boat Harbour Motel overlooking Wollongong Harbour is set to close
Already struggling with an undersupply of tourism accommodation, Wollongong is facing another setback with news that the iconic Boat Harbour Motel overlooking Wollongong Harbour is set to close.
The ‘No Vacancy’ sign is shining brightly outside the motel this week, as the thousands of visitors to the Illawarra clamour for the limited number of beds available.
So dire is the tourism accommodation situation, Wollongong City Council is offering special incentives in a concerted effort to bring new players to town. But there’s been only limited success to date with one hotel set to open in the city in 2027 while other ageing hotels continue to close, making way for equally highly sought-after new housing accommodation.
The Boat Harbour Motel has sweeping views over Osbourne Park and dates back to the 1960s. The existing motel buildings will be demolished to make way for more than 30 apartments. Photos: Jeremy Lasek
$24 million price tag
A development application currently on exhibition by Council is seeking public comment on plans to demolish the Boat Harbour Motel to replace it with two residential towers. The developers, ADM Projects Australia Pty Ltd, have put a $24 million price tag on the development.
Losing the 42-room Boat Harbour Motel is more bad news for Council and Destination Wollongong, which is pulling out all stops to bring new tourist accommodation to the city.
The lack of accommodation was highlighted when the city struggled to provide enough beds in recent years while hosting major events, such as the 2022 UCI Road World Championships and the 2025 World Triathlon Championship Finals.
A development application currently on exhibition is seeking public comment on plans to demolish the Boat Harbour Motel to replace it with two residential towers. The developers, ADM Projects Pty Ltd has put a $24 million price tag on the development.
Losing the Boat Harbour Motel follows closely on the recent closure of two other popular 3-star hotels, the Normandie and the Beach Park Motel, located in North Wollongong. Both are currently being redeveloped for luxury unit accommodation.
L to R: Demolition of North Wollongong’s Beach Park Motel and the Normandie Hotel, another casualty in the rush for new housing in the Illawarra. Photos: Jeremy Lasek
The newest proposal before Council will see the consolidation of several allotments; one involves the Wilson Street motel, an adjoining car park and a neighbouring residential home.
Once the site is cleared, it is proposed to build two residential apartment towers above underground parking. One of the towers will include a ground floor grocery store facing Osborne Park. While the public will benefit from the new shop, gone will be a popular cafe and the new Lu Mare Italian restaurant.
Affordable housing bonus
The developers are hoping to take advantage of the NSW Government’s affordable housing bonus, which will allow a 30 percent increase in the floor space ratio and a 4.5 metre increase in the height of the development. This would see six-storey and seven-storey apartment blocks standing side by side overlooking Osborne Park and Belmore Basin. In its application, the proponents say the buildings will begin shading Osborne Park in the early afternoon in mid winter but the shading would be no more than from a large Norfolk Pine which stands immediately to the east of the site on the edge of the park.
The proposal includes 36 apartments of 1, 2, 3 and 4 bedrooms with 58 basement car parking spaces.
“The proposed development is in keeping with the changing built form of the surrounding area of Wilson Street and the foreshore area surrounding the Belmore Basin precinct of Wollongong,” the development application says. “Medium density apartment buildings of similar size and scale to the proposed development have been constructed on properties nearby the proposed development site.”
The house full signs right now at the popular motel. A new Italian restaurant will be replaced by a convenience store adjacent to Osbourne Park. Photos: Jeremy Lasek
History dates back 65 years
The Boat Harbour Motel had its beginnings as 56 ‘bachelor flats’ when constructed in 1960 to support single men working at the Port Kembla steelworks. More than a decade later, in the early 70s, the flats were converted to 45 motel units with adjoining car parking.
In 1980, when upgraded, the Boat Harbour Motel with its spectacular harbour views, was regarded as the premier tourist accommodation in the region.
That mantle was taken several years later with the opening of the North Beach International Hotel, now the Novotel. Despite its days being numbered, the Boat Harbour Motel has stood the test of time and remains as popular today as ever, especially with its many regulars.
Council is seeking public feedback on the redevelopment plans with a closing date of 9 February 2025.
