The troubled Hargreaves Mall hotel site has hit the market, almost four years since development plans for a major hospitality/accommodation venue were lodged.
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Located at 306 Hargreaves Street, commercial real estate company CBRE Hotels has listed the "prime central Bendigo site", which has City of Greater Bendigo planning approval for a 110-room Mantra-operated hotel and associated food, beverage and meeting facilities.
"Bendigo has experienced significant uplift in demand through the shift to regional travel and popularity of the short stay market," CBRE's Scott Callow said.
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"The combination of corporate and leisure demand sees Bendigo ready for a major hotel development to be undertaken.
"There is firm interest from an experienced hotel operator to operate under the Mantra brand."
Construction costs paused project
The listing came after developers at Bendigo Hotel Investments said in August they were committed to the project, but construction had been postponed due to costs.
"It's just on hold at the moment," Bendigo Hotel Investments' Ben Tzirkas said at the time.
"We're waiting for construction costs to level off as they have spiked in recent times.
"The other half of the equation is the amount of funding we can secure."
According to the City of Greater Bendigo's recently adopted Hargreaves Mall Action Plan, money for a shade structure to be built alongside the hotel was redirected to landscaping as developers told the City the project would not be proceeding "for the foreseeable future".
City seeks ideas for mall improvements
City of Greater Bendigo strategic project manager Wonona Fuzzard said the City was taking a "multi-pronged approach" to improving the mall.
"We are also seeking improved stakeholder engagement to renew guidance on improving the city centre," she said.
"One of the priorities is to engage a business attraction broker. The role is to identify gaps in the retail and hospitality sector and then target specific businesses.
"While it is disappointing this hotel is not going ahead, a planning permit is still in place for the site until 2025 for a hotel."
Construction on the hotel was originally planned for June 2021, postponed due to the COVID-19 pandemic.
Developers then said construction could start in January 2022, before the timeline was pushed out to sometime in 2023.
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Still hope for development
According to CBRE Hotels, the site would still appeal to potential buyers.
Agents listed attractive hospitality retail, Bendigo's potential to host major sporting events and art festivals, Bendigo being a popular tourist destination, and the site's proximity to Bendigo Station as investment highlights.
Mr Callow was taking expressions of interest, with applications closing at 2pm on Thursday, November 23.
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Jonathon Magrath
Jonathon has been living and working in Bendigo since March 2021, currently working as a general reporter. Contact him on jonathon.magrath@austcommunitymedia.com.au.
Jonathon has been living and working in Bendigo since March 2021, currently working as a general reporter. Contact him on jonathon.magrath@austcommunitymedia.com.au.
