The Greenwell Point Hotel is set for a $5 million redevelopment, plans have been submitted for a new motel and serviced apartments.
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The development will include a 34 room motel and eight two-bedroom serviced apartments. Both combined will provide accommodation for around 120 guests.
The existing pub will also see a facelift.
The bottle shop will be extended and a beer garden constructed out the back. The exterior of the building will be updated and inside there will be new paint, carpets, lights, fixtures, fittings and furniture.
Greenwell Point Hotel licencee Scott Still said the hotel was in a tired state and in need of a refurbishment.
"We also wanted to fully utilise the land. With the population growth down the South Coast, Greenwell Point is becoming a very attractive proposition," he said.
"Existing infrastructure, caravan parks and motels are running at basically 95 per cent occupancy rate so there is a demand for holiday rentals and short-term accommodation."
The plans to expand the accommodation have been in the works for two years, with the development application lodged with Shoalhaven City Council on Tuesday, September 1.
The construction is expected to take up to 18 months and will employ an addition 5-8 staff once complete.
Scott is confident moving forward with the development despite coronavirus and a recession.
"We're very positive about the spend," Scott said.
"Whilst we are in a recession, coronavirus has basically ended international travel but people still want to go on holidays.
"We've seen an upgrade of the roads and more people are wanting to come down here."