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development update

Sunshine Coast Council’s luxury hotel plan moves forward
Sunshine Coast set for tourism boost with new hotels in Maroochydore and Caloundra.

In a Media Statement released 20 March 2025, Deputy Premier Jarrod Bleijie has approved Sunshine Coast Council’s request to encourage hotel development in Maroochydore and Caloundra, paving the way for new hotel projects in both CBDs.

This approval aligns with the Temporary Local Planning Instrument (TLPI) first tabled at a Council meeting in August 2024, but was initially held back to allow Council to undertake community consultation.

TLPI is a statutory tool designed to address urgent or emerging planning issues which would temporarily prevail over the Planning Scheme for up to two years.

Part of the draft TLPI (Accommodation Hotel Incentive Measures) proposed new height allowances in areas of Maroochydore, Alexandra Headland, Mooloolaba and Caloundra. However, notably, the proposal for increased building height in Mooloolaba and Alexandra Headland was rejected. Other approved items include reduced car parking rates for Hotel uses.

Bleijie emphasized the balance between fostering tourism opportunities and preserving the region’s lifestyle, highlighting the economic potential of Maroochydore ahead of the 2032 Olympics. This investment in tourism infrastructure is expected to drive long-term economic benefits, supporting tourism growth and job creation whilst preserving the unique lifestyle of the Sunshine Coast.

ADAMS + SPARKES Town Planning have been heavily involved and invested in the outcome of this approval and Council’s Accommodation Hotel Incentives Package as a whole. We’d like to thank and commend the Council and the Minister for getting this done.

With proposed hotel development already in the pipeline for our client Felix Capital, including voco Maroochydore and Holiday Inn & Suites Caloundra (both of which are being backed by IHG Hotels & Resorts, one of the world’s leading hotel companies), it means both of the projects can move forward through the approval process and onto construction.

voco Maroochydore artists impression – DBI Architects (Source IHG Hotels & Resorts)

Next step: Sunshine Coast Council must decide to adopt and proceed with the proposed TLPI at a Council meeting (date TBD) and publish a public notice for the TLPI to take effect.

Additional Council Resource: Learn more about the proposed TLPI

ADAMS + SPARKES will continue to keep tabs on any progress and provide future updates, however don’t hesitate to get in touch with any questions or to discuss further.

Cameron + Pete

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