Indigo-slow: Developer of Torquay hotel will wait until tourists return

THE proponent of Hotel Indigo in Torquay says he is not rushing to get the five-storey project built and will assess the best timing even if the contentious hotel gets planning approval later this year.
Barnes Capital is scheduled to argue at the Victorian Civil and Administrative Tribunal (VCAT) in November why the Surf Coast Shire council was wrong to refuse a planning permit for the 128-room hotel, which would be built at 2-4 Geelong Road and 48 Bell Street.
Martyn Barnes, managing director of Barnes Capital, said his company had “prepared for the VCAT hearing and have a case that we believe will succeed”.
International and domestic tourism on the Surf Coast has plunged during the coronavirus pandemic, and likely contributed to The Sands Resort in Torquay entering voluntary administration last week.
Mr Barnes did not directly answer a question about whether The Sands’ financial difficulties had altered his confidence in the multi-level Hotel Indigo proposal being viable.
“We have reviewed our strategy in terms of timing, taking into account the impacts of COVID-19 as clearly the asset is considerably dependent on tourism to the region,” he said.
“The project is a significant investment and we will not put our stakeholders at risk until such time as we believe there is sufficient accommodation traffic to the region for the project to be sustainable.”
The planning application for the hotel met with immediate community backlash when it was publicly exhibited in 2018, including 133 objections, and the council refused to grant the permit in May 2019.
Mr Barnes said there was more work to do if the council’s refusal was overturned.
“Considering the significant number of direct and indirect jobs created by the project during and after completion if approval is granted by VCAT we will then conduct an economic and viability assessment to determine the appropriate timing to commence.”