The Quarter Hotel Development

The land at The Quarter was acquired from DevelopmentWA in 2018 at a significant discount. As part of that agreement, a restrictive covenant was placed on the site requiring it to be developed specifically for a hotel.

The EOI process allows the City to test whether the market is now ready for a viable hotel development that would meet this covenant. 

The City has not committed any funding to constructing a hotel at The Quarter. The purpose of the EOI is to understand market interest, with a strong preference for proposals that are fully self‑funded by the developer. If a proposal requires some form of City contribution, Council will consider negotiating commercial terms that provide value to the community.

The City currently has roughly 1,200 short‑stay accommodation beds (excluding FIFO/transient worker accommodation). This includes caravan park cabins, backpacker facilities, Airbnbs, and motel/ hotel operators. With major industry investment expected over the next decade — and increased tourism linked to the Murujuga Cultural Landscape World Heritage Listing — the City anticipates a growing demand for short‑stay accommodation, particularly further high‑quality premium options that contribute to the visitor experience of Karratha and it’s surrounds.

Lot 7078 Sharpe Avenue is subject to a restrictive covenant requiring the land to be used for the purpose of a hotel. If the City wished to pursue an alternative use for the site, it would need to negotiate with DevelopmentWA to remove the covenant, which may require payment of the market value of the land.

Following the Expression of Interest process, Council has endorsed a preferred respondent and authorised the commencement of negotiations to explore the delivery of a premium hotel on the site. As part of those negotiations, the City will seek to retain an appropriate level of area as part of the public realm to maintain community amenity and complement the hotel development and surrounding commercial uses.

Council's endorsement of a preferred respondent does not guarantee that a hotel will proceed. If negotiations are not successful, or Council ultimately decides not to proceed with a land transaction, Council may consider the available options for the future of the site, including whether to negotiate the removal of the restrictive covenant.
 

The City owns Lot 7078 in freehold, meaning development proposals may incorporate a freehold transfer, or a long-term lease, for all or part of the site. 

The City aims to further activate The Quarter precinct while addressing the gap in premium short‑stay accommodation. Preferred proposals should ideally include:

• Minimum 4star standard  
• Circa 100 keys, potentially combining shortstay and serviced apartment offerings  
• Street level activation integrated with the existing precinct (e.g., food & beverage, retail)  
• Integration with the existing town square  
• Retention of some public green space 

Not specifically. While the previous DA included desirable features – such as a4‑star rating and 100 keys – the site plan, layout and façade do not need to be replicated.  Developers are free to propose designs that best align with feasibility, their commercial objectives, and the City’s aspirations. 

Given the City’s capital intensive Community Infrastructure Plan for the next decade, preference will be given to proposals that are financially self sufficient.

However, the City recognises current market feasibility challenges and is willing to consider:

• Financial support where it enables a desirable outcome
• Nonfinancial or in kind support such as discounted land access or rates concessions 

Council has endorsed Centurion Properties Pte Ltd as the preferred respondent and authorised the City to commence an exclusive negotiation period.

The next steps are:

1. The City and the preferred respondent will undertake commercial, legal and technical due diligence. 
2. The parties will negotiate the terms of a potential land transaction and any associated commercial arrangements. 
3. If negotiations are successful, any proposed land transaction, financial assistance or other commercial arrangements will be presented to Council for consideration. 
4. If required under the Local Government Act 1995, the City will be required to prepare and publicly advertise a Major Land Transaction Business Plan, providing the community with an opportunity to make submissions before Council makes a final decision.

When The Quarter precinct was originally developed, this lot was specifically earmarked for a future hotel development. As a result, the site is already serviced with all essential utilities to the lot boundary, ensuring a strong foundation for development.

All Expression of Interest submissions were assessed against the criteria approved by Council. 

The evaluation considered each respondent's:

• Value for Money – including the commercial proposal, financial model, funding requirements, risk allocation and overall value to the City. 
• Strategic Fit – alignment with the City's vision for The Quarter Precinct, Council's strategic objectives and broader planning framework. 
• Relevant Experience – demonstrated capability and experience in delivering and operating comparable hotel or mixed-use developments. 
• Methodology – the proposed approach to delivering the project, including governance, project delivery, innovation and program. 
• Capacity to Deliver – financial strength, available resources, delivery capability and the ability to successfully complete the development. 

The Evaluation Panel also considered clarification information provided by respondents where required before making its recommendation to Council.

Before approval to proceed, any development will require:

• A Development Application (DA) in accordance with the local planning scheme
• Compliance with relevant State planning policies
• Engagement with the City’s planning team to confirm design expectations 

During the exclusive negotiation period, the preferred respondent may elect to undertake early community and stakeholder engagement to help inform the development of the proposal. This may include discussions with local residents, businesses, key stakeholders and the broader community to better understand local priorities, refine the proposed design and build awareness of the project.

Any engagement undertaken during this stage would be at the preferred respondent's discretion and would help inform the ongoing development of the proposal. It does not form part of the City's formal decision-making process.

Should negotiations result in a proposed land transaction requiring approval under the Local Government Act 1995, the City will undertake any required statutory public consultation before Council considers the matter. Depending on the final proposal, additional public consultation may also be required as part of the planning and development approval process.

This ensures the community has an opportunity to provide feedback before Council makes any final decisions.