Redland City Council says its focus is on attractions over hotel incentives
PRESSURE is mounting to secure a major hotel development in the Redlands, with business and tourism leaders warning the region is losing visitors — and valuable tourism dollars — to Brisbane and Ipswich due to a shortage of accommodation.
But Redland City Council says its priority is building tourism experiences first to drive overnight stays before attracting large-scale hotel investment.
A council spokesperson said the city continued to engage with the accommodation industry while planning for future development.
“Redland City Council continually engages with the hotel industry through relevant forums and supports broader collaborative south-east Queensland hotel advocacy and attraction efforts,” the spokesperson said.
“In late 2024, Council commissioned a Hotel Accommodation Investment Analysis.”
The study projected the city may require an additional 40 to 80 hotel rooms by 2030 and identified opportunities for premium accommodation within mixed-use precincts at waterfront locations and in Capalaba.
“This year, Council is preparing a Hotel Accommodation Investment Plan that will consider the outcomes from the analysis and further identify how Council can provide support for and build a compelling proposition to encourage interest and investment in hotel development,” the spokesperson said.
The debate comes as Ipswich recently secured a $53 million Hilton Garden Inn hotel for its city centre through a partnership between Ipswich City Council, developers and the Hilton brand.
Ipswich Mayor Teresa Harding said council had actively facilitated the project.
“Council had been facilitating negotiations with our project partners for around two years,” she said.
While the Redlands represents a potential future market for hotel operators, developments are typically initiated by private investors who bring forward sites, funding and development proposals.
At present, there is no indication that a formal development proposal for a major hotel has been submitted for the Redlands.
Council officers say attracting hotel investment has long been a priority, but demand must exist before new accommodation is built.
General Manager Infrastructure and Operations Chris Isles told councillors the economic development team had been “chasing hotels for many, many years”.
“It’s one thing to build a hotel — you’ve got to have people who want to stay in it,” he said.
“Our focus through the legacy work and economic development is finding the things for people to do here — and then the accommodation will come.”
A council spokesperson said while the Brisbane 2032 Olympic and Paralympic Games could increase interest in accommodation development, investment decisions would still depend on commercial factors.
“Any potential investment opportunity would still consider issues such as cost to construct, visitor access and experience, accommodation demand and occupancy rates, and seasonality and length of visitation,” the spokesperson said.
Redland Investment Corporation is also exploring hotel opportunities tied to redevelopment projects in the Cleveland CBD and Capalaba Town Centre.
Council previously offered incentives to attract accommodation development between 2014 and 2018, including concessions on infrastructure and development application charges.
But some operators say demand already exists and is being lost to surrounding cities.
Ashley Scott, owner of Bay Island Lifestyle, said large sporting and recreation groups regularly bypass the Redlands due to a lack of accommodation.
“We’ve got a group coming down in a couple of weeks — about 60 or 70 people — and they’re staying in the city,” he said.
“Mainly because there’s nowhere here that could put up 30 people at one time.”
Mr Scott said there were only about 1,000 hotel beds across the Redlands, making it difficult to host major events.
“For something like a major sporting event, most of them stay in the city,” he said.
He rejected the view that attractions must come before accommodation.
“That old saying — build it and they’ll come,” he said.
“Our business is one of the biggest water sport equipment providers in Queensland.
“We get big groups, but they can’t book enough rooms in one establishment on a weekend.”
Redland City councillor and Economic Development portfolio representative Cr Peter Mitchell says Cleveland, Capalaba and North Stradbroke Island are well placed to attract a new boutique hotel, pointing to growing visitor demand and increasing support from government and industry.
“Cleveland and Capalaba, along with North Stradbroke Island, present strong opportunities for a new boutique hotel of around 80 rooms,” Cr Mitchell said.
“Current visitation data for sporting and cultural events, business travel and family visits already demonstrates a compelling case for hotel investment — and that demand is only increasing.
“With Council’s maturing economic and investment strategies, the strong interest of the State Government and our State MPs, and the support of local industry leaders, the momentum is clearly on our side.
“I’m confident that a proactive and coordinated approach by all three — supported by a suite of investment incentives and the potential use of suitable Council or State land — can turn long-standing aspirations into a real, deliverable outcome.
“I’m ready to lead the development of a unified strategy, working closely with State colleagues and the business community to bring much-needed hotel accommodation to our city.”
Division 9 councillor Jason Colley said the region was already missing out economically.
“As Sport and Recreation portfolio councillor I have been working with organisers of multiple new sporting events which will take place in our backyard this year, but there’s nowhere here for participants and their families to stay,” Cr Colley said.
“That’s tens of thousands of dollars which won’t go into our local economy but will go to surrounding local government areas.”
Redlands Coast Chamber of Commerce President Suzie Tafolo said the region faced a “chicken-and-egg” dilemma.
“Do we wait for visitation to grow, or act on the demand that already exists?” she said.
Division 1 councillor Wendy Boglary said council had long discussed the need for more accommodation.
“I have spoken for years about the need for accommodation to support our tourism industry and our local sporting clubs when they host major carnivals,” she said.
She also suggested smaller options such as designated RV parking areas at sites like Wellington Point Reserve could help meet short-term demand.
