Potential blowout on Silo Hotel | Photos

An artist's  impression of the Silo Hotel planned for Launceston.
An artist's impression of the Silo Hotel planned for Launceston.

AN alternative Silo Hotel plan may need to be considered or its developer may revert to the original plan due to the potential cost blowout to $30 million.

Developer Errol Stewart said yesterday that the hotel planned for the Launceston site could now cost as much as $25 million, plus a further $5 million to fit it out.

Early last year Mr Stewart revealed plans to redevelop the disused silos into a $10 million, 64-room hotel.

This has since grown to a $25 million, 140-room hotel, with half of the rooms in the silos and the remainder to be located in a new building on the Lindsay Street side of the development.

Plans include conference facilities for up to 400 people, a bar, restaurants and a gym with an indoor swimming pool.

Mr Stewart said he was in the process of going over the costings of the plan as it looked to be ``a fair bit more than I envisioned''.

``I'm at the point where we decide if we go ahead or if it's more than we can do and we have to come up with an alternative,''  he  said. ``If we think it's going to kill us, we will have to look at the original option.

``We'll do the numbers and if we think it's not sustainable, we'll go back to a smaller hotel, but one way or the other, we'll build a hotel.''

The proposed rectangular addition to the hotel had to be able to accommodate about 8000 tonnes of weight.

Mr Stewart said he had expected the groundworks to cost between $400,000 and $500,000 but this alone was now looking in the vicinity of  $2 million to $3 million.


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