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Ritz-Carlton Hotel in Perth, Australia DelayedApril 8, 2016
The ongoing development of Perth, Australia's Elizabeth Quay seems to be hitting a snag. While the public spaces have opened, construction on the private development—which would include a Ritz-Carlton hotel—is now not expected to begin until July, five months later than originally planned.
Planning Minister Donna Faragher told Parliament the Far East Consortium's apartment and hotel development construction is expected to take three years. Faragher also told Parliament that the government had already received money for the Far East development site even though construction had not started. "The state received $25 million, excluding GST, from the sale of the land in December 2015," she said.
The $440 million waterfront project opened to the public in January, but without the private developments that were planned for the inlet.
Labor's planning spokeswoman Rita Saffioti said the delayed start to the Far East development meant the Government's timeframe for the quay's construction was looking increasingly dubious. "They promised a very active area with a lot of commercial buildings, a lot of restaurants and a lot of activity and that is not happening," Saffioti said.
The Ritz-Carlton Hotel Company and Far East Consortium, an Asian residential apartment developer, signed the agreement for the Ritz-Carlton, Perth, in early 2014. The deal marked the return of the luxury hotel operator to Australia, and the hotel was set to be the first international luxury hotel in the city.
On the development's website, a notice indicates that, "under certain circumstances," including default, the deal could be terminated, leaving whatever hotel is built at Elizabeth Quay without a brand.