The hospitality group which runs the Novotel Northbeach and Towradgi Beach Hotel will own and operate the new hotel complex at The Waterfront, Shell Cove.
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Oscars Hotels has been named the successful bidder for the accommodation hotel, the plans for which include pools, bars, restaurants and communal spaces.
The as-yet-unnamed, $70 million to $80 million hotel will be located on the harbour edge, and include 117 rooms, 32 serviced apartments and 42 residential apartments over 11 levels.
Pending DA approval next year, Bill Gravanis, managing director at Oscars Hotels said they were hoping construction would start in October 2020.
He estimated construction would take 18-20 months, with a view to be up and running before Christmas 2022.
The hotel will include two pools, including one for hotel guests on level five of the complex, and another pool for residents at the very top of the complex on level 11.
It will also include a gym, sauna, ballroom/conference facility for up to 300 guests as well as three restaurants. A recreation deck on level two will provide an open, communal space.
Oscars Hotels has purchased the hotel site.
Oscars Hotels owns and operates 30 venues across NSW. These include Novotel Northbeach, Towradgi Beach Hotel and the Pioneer Sands at Towradgi.
Mr Gravanis said the new hotel represents a huge opportunity in a growing area.
"There really is no other community with the mix of marine infrastructure, dining options and other amenities that Shell Cove has south of Sydney, so we see the new hotel as filling a growing need in the greater Illawarra and Shellharbour region," he said on Wednesday.
"With the hotel overlooking the marina, we've reflected boating in the design to create something truly representative of the area."
Architecture firm DBI Design has been appointed to deliver the design vision for the hotel.
DBI's design for the hotel is awaiting development approval.
The tender for construction of the hotel is expected to be open in early 2020.
Simone Dyer, Development Director - Shell Cove, Frasers Property Australia said the hotel will complement Shellharbour Marina and The Waterfront restaurant and promenade precinct to draw visitation to the region.
"The hotel is an extremely important part the overall masterplan for Shell Cove, and Oscars Hotels are precisely the type of visionary and committed operators with local expertise and presence that will help deliver the vision for this important component of the new community," Ms Dyer said.
Shellharbour City Council and Frasers Property Australia made the announcement on Wednesday.
Shellharbour Mayor Marianne Saliba said the hotel will play a key role in further elevating Shellharbour's profile and attractiveness as a leisure and business destination.
"It will create opportunities to help the city attract more visitors and boost business tourism through conferences and events due to its facilities, which ultimately, means new jobs," she said.