Perth-based Saracen Properties and Security Capital Australia are advancing their $138-million tourism precinct at Gnarabup.
The development, known as the Gnarabup Project, would comprise the Westin Margaret River Resort & Spa, a 121-room, five-star hotel to be operated by Marriott Group under a 20-year management contract.
It would also be home to Gnarabup Beach Village, which would include 51 beach houses, four townhouses, 25 apartments and a general store/cafe.
Project manager Luke Saraceni told media “feelings were high” around the site during the latest environmental review process, which wrapped in November 2024.
The proposal is under assessment by the EPA Western Australia at the Public Environmental Review (PER) level, with public comment closed.
“A lot of time and resources have gone into this process,” Saracen Group project manager Joel Saraceni said.
“The project is needed now more than ever and will help release existing housing supply by providing dedicated and purpose-built tourist accommodation.”
The 6.9ha site spans lots 783, 501, 502, 503, and 504 on Wallcliffe Road and has been zoned for tourism since 2007.
Construction of the hotel is expected to take 24 months once approvals are granted, while the village will be delivered over three stages spanning about 46 months.
According to the planning report, the total construction value of the development is anticipated to be $118 million, with a total investment cost of $138 million.
Saraceni anticipates all approvals will be in place by early 2025, with construction to begin that year.
The timeline represents an adjustment from earlier projections when Marriott signed on as operator in June 2020, with completion originally targeted for mid-2023.
The project has a lengthy planning history. A 118-bed hotel was approved in February 2016 but expired in January 2019.
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Approvals for 57 short-stay villas and 16 unrestricted stay apartments with commercial tenancies were granted in June 2009 but expired in June 2015.
Despite the opposition from environmental groups, Saraceni is confident about the project’s prospects.
“There is actually a strong level of community support for the project from businesses and locals alike,” he told media.
“Our development plans haven’t changed, and while the delays over the past three years have definitely been frustrating, tourism demand and housing pressures in the region have only kept growing during this time.”
An economic benefit study estimates the project will contribute $27.5 million a year to the Western Australian economy and create 161 ongoing jobs.
In South Australia, Adelaide-based Strategic Alliance has signed global hotel giant IHG Hotels and Resorts to operate a $100-million luxury resort in the Barossa Valley. The 150-room InterContinental Barossa Resort & Spa is scheduled to open in 2028, subject to planning approvals.
