Wollongong City Council is a step closer to achieving a major objective for the city centre after resolving to amend planning controls to allow the first 5-star hotel proposed in the Wollongong CBD to be up-scaled.
Increasing hotel supply and accommodation options with the Wollongong LGA is a top priority for Council, with objectives in our Tourism Accommodation Review and Economic Development Strategies aimed at addressing the current shortage to strengthen Wollongong's tourism and economic growth.
In October 2025 Council resolved to prepare and exhibit a Planning Proposal to increase the permissible maximum height for the development known as the 'Globe Hotel' at the corner of Crown and Church Streets in the Wollongong CBD.
Existing approvals for the site allowed for a mixed-use development including a 236-room hotel and 114-room motel, with an approved building height of 55 metres. The exhibited Planning Proposal sought a site-specific amendment to the Wollongong Local Environment Plan to increase the permissible building height of the "old DJs" site to 80 metres which will allow consideration of a 262-room hotel.
The proposed changes to building height would also allow for the motel to increase to 172 rooms and more commercial floor space in the proposed office building.
The Proposal was exhibited from 9 December 2025 to 9 February 2026, with 16 submissions received. Eight supported the amendment, including a submission from Destination Wollongong citing the potential tourism and economic benefits of the proposal.
Supportive submissions from the business community cited the city's existing shortfall of hotel rooms and the need to support visitor growth, the economic benefits of increased foot traffic for surrounding businesses, and the role additional hotel capacity can play in attracting larger events and conferences to Wollongong.
Submissions opposed expressed concerns about over-shadowing of MacCabe Park due to the increased building height. Detailed analysis included in the Planning Proposal indicates the park will retain acceptable sunlight during key use periods, while increased height and density is consistent with the anticipated future character of the city centre near major transport links and civic spaces.
The potential benefits of the development align with Council's broader strategic direction for the CBD.
Council has been granted a Gateway Determination from the Department of Planning, Housing and Infrastructure to exhibit a separate Planning Proposal for the City Centre to give consideration of a 30 per cent bonus to building height and/or floor space for developments offering additional hotel rooms – in particular 5-star or equivalent hotel developments.
Other amendments to planning measures to incentivise hotel development include lowering the development contributions levy for hotel developers from 2 per cent to 1 per cent, and deferring payment from Construction Certificate Stage to Occupation Certificate stage.
Council has also resolved that these incentives be considered for developments such as cinemas within the city centre to support Wollongong's night-time economy and cultural vibrancy.
"Through the large international events we have hosted in recent years, we know how important the tourism sector is when it comes to driving investment and economic growth," Lord Mayor of Wollongong Councillor Tania Brown said.
"In recent years, events like the UCI World Championships and World Triathlon Championships have showcased what Wollongong has to offer on the international stage. It's also highlighted a gap when it comes our hotel and accommodation offering.
"If we want to continue hosting major events that boost our local economy and build on our reputation as an attractive tourism destination, we need to look at ways we can incentivise hotel development, particularly in the city centre.
"It's what progression of the Planning Proposal does, and we'll continue looking at ways to encourage hotel and mixed-use development to drive the ongoing transformation of our CBD and boost the night-time and visitor economy."
