Potential redevelopment, additional rooms or alternative uses can attract buyer interest in an accommodation property.

They can also create problems when marketing language goes beyond what can actually be delivered.

For Wollongong hotel and motel owners, the strongest approach is to separate what exists today from what might be possible in the future.

Wollongong City Council's Economic Development Strategy 2025–2035 identifies increasing hotel supply and attracting additional tourism infrastructure as strategic priorities for the city.

That broader strategy may create investment interest, but it does not amount to approval for development on an individual property.

Start With Existing Planning Information

Before describing development potential, establish the property's current zoning and planning position.

Relevant information may include the current planning controls, development consents, site area, existing improvements and any previous development applications or approvals.

Where specialised interpretation is required, use a qualified town planner.

Separate Existing Approvals From Concepts

There is an important difference between an approved project and an idea.

If a property already has a valid approval, buyers should be given accurate documentation and advised to independently verify its status and conditions.

If no approval exists, concepts such as adding rooms, increasing building height, changing use or redeveloping the property should be clearly presented as potential only and subject to all necessary approvals.

Do Not Turn Planning Controls Into a Guaranteed Yield

An accommodation site may appear capable of accommodating more floor space or rooms.

However, planning controls are only one part of development feasibility.

Design, access, parking, servicing, heritage, environmental considerations, construction costs and numerous other matters may affect what can ultimately be delivered.

Marketing should therefore avoid turning a theoretical calculation into a promised development outcome.

Let Buyers Undertake Their Own Feasibility

Different buyers can see different opportunities in the same property.

An experienced hotel operator may prefer to improve the existing business.

A developer may examine a more substantial redevelopment.

Another investor may favour retaining the current asset.

Providing accurate base information allows each buyer to undertake their own feasibility work rather than forcing the property into one speculative future use.

Consider Whether Planning Work Before Sale Is Worthwhile

In some cases, commissioning a planning review or obtaining concept work before marketing may improve buyer understanding.

In other situations, the expense and time may not be justified.

The decision should depend on the property, likely purchaser group and sale strategy.

Market Potential Credibly

Wollongong's current economic strategy supports growth in overnight visitation and additional accommodation infrastructure.

That creates useful regional context.

For an individual seller, however, credibility comes from providing accurate site information and qualifying future possibilities appropriately.

Norton’s Resort Brokers can assist accommodation owners with positioning existing business performance alongside genuine property potential while targeting operators, investors or developers appropriate to the opportunity.

Frequently Asked Questions

Can I advertise that my motel can be expanded?

Potential expansion can be discussed where there is a reasonable basis, but any future development should be clearly stated as subject to relevant planning and other approvals.

Should I obtain a town-planning report before selling?

It can be useful for some properties, particularly where development potential forms an important part of the campaign.

Is development upside included in a valuation?

The appropriate valuation treatment depends on the property and should be assessed by a suitably qualified valuer.

Disclaimer: General information only and not town-planning advice. Development outcomes depend on the individual site and applicable laws, policies and approvals. Obtain independent planning, legal, valuation and financial advice.