The new leaseholders of Rottnest Lodge have detailed their final redevelopment plan, with an increase in the number of rooms but construction costs held to around $40 million.
The new leaseholders of Rottnest Lodge have detailed their final redevelopment plan, with an increase in the number of rooms but construction costs held to around $40 million.
The project includes the construction of 46 new rooms overlooking the island’s salt lakes and development of a new restaurant, bar facilities and function space.
The redevelopment is being led by property consultancy Place Development Australia in conjunction with Peter Fogarty, who is the major investor in the project.
They have signed up Miles Hull and Graeme Dick of Social Grounds Hospitality to operate both the accommodation and food & beverage offers.
The consortium will take possession of the ageing property today after signing a 25-year lease, with an option to extend, with the Rottnest Island Authority.
The main financial backer is Mr Fogarty’s Pendulum Capital.
“Pendulum has put together a group of investors led by our family,” Mr Fogarty said.
“Its basically our family and some close associates and friends, all from WA.”
The Atzemis family company GPA, which was named last year as part of the consortium, remains a minor shareholder.
Sirona Urban was also part of the original consortium, brought in to assist with funding, but is no longer involved.
To be known as The Lodge Wadjemup, the redeveloped property will be pitched as accessible, inclusive and laid-back.
It will have 109 rooms, seven more than previously announced.
PDA director Rob Bates-Smith said the resort will have three accommodation categories, each with their own price point.
The 31 refurbished rooms in the former Boy’s Reformatory, which forms the core of the existing buildings, will provide simple, basic accommodation priced around $300 per night.
The refurbished Lakeside villas will have 32 rooms at a higher price point.
The premium accommodation will be 46 newly-built rooms, which are described as equivalent to a suite but with more space.
The developers said the new resort will provide flexible options, including overnight stays and linked rooms for families.
The redevelopment includes demolition of the swimming pool inside the Lodge and Gov’s Bar, a run-down but popular venue for workers on the island.
They will make way for the new ‘dining yard’ and bar, which will have views of the salt lakes.
Mr Bates-Smith emphasised the restaurant and bar would be open to all.
“We want this to be accessible for all visitors to the island,” he said.
The resort will also feature a public space, to be known as the Gathering Ground, and a dedicated function space for weddings and conferences, in place of a previously announced wellness centre.
Mr Dick said unlike other accommodation on Rottnest, the resort will be designed for comfort in colder weather.
“All the common areas are wind protected and have underfloor heating,” he said.
“You can have people sitting around in the food and beverage space and actually be warm and cozy.
“We are extremely confident we will get a strong winter trade to the island.”
Despite the sharp escalation in construction costs generally over the past 18 months, the consortium members say their capital costs are unchanged from the original proposal submitted early last year.
“Just over $40 million is the investment in the development,” Mr Fogarty said.
One reason is that the consortium will spend less than expected on remediation of the existing buildings.
“As we have been getting closer to site and understanding the building condition, we have had some wins,” Mr Bates-Smith said.
“The actual built-form condition is fantastic.”
The seven extra rooms will come from the conversion of existing spaces rather than new construction.
Mr Bates-Smith also highlighted the benefits flowing from the early involvement of its unnamed construction contractor.
“If you consider your design and construction methodology, you can save a lot on that assumed Rottnest loading rate,” he said.
“What we did to get in front of it was to sign up a contractor for an early contractor involvement phase, where they sit alongside the architect and make sure they design a very construction friendly methodology.
“Early contractor involvement, as a methodology, has been critical to bringing this project in on budget.”
The redevelopment is expected to commence this month and take 19 months.
