The Chinese-owned company constructing the luxury hotel at the Darwin waterfront says that COVID-19 “and related economic impacts” have affected the feasibility of the project, as concerns continue that the major project will not proceed.

Landbridge Group confirmed construction of the proposed luxury Westin Hotel on the waterfront has been suspended and the site will be cleared for pedestrian access to the foreshore over the next couple of months.

A Landbridge spokeswoman told the NT Independent a 12-month extension was granted by the NT Government while “we consider the feasibility of continuing with the hotel development”.

If the project does not start by next June, it will not be happening, the spokeswoman said.

“Regrettably, COVID-19 and related economic impacts have fundamentally impacted the feasibility of the project,” she said in an email.

“If we don’t resume work by end of June 2021 Landbridge will not continue with the project.

“Over the next couple of months, the site will be tidied up to allow pedestrian access to the foreshore whilst we are carrying out our review.”

Luxury hotel flagged as ‘major project’ in the NT and bright light during economic downturn; Opposition calls for more to be done to make it happen

Chief Minister Michael Gunner has repeatedly touted the $200 million luxury hotel as a major project for the Northern Territory, that he said would supply an estimated 150 much-needed and ongoing jobs after construction.

It was originally hoped the luxury hotel would be completed by 2022, but Westin’s parent company, Marriott International, pushed the completion date back to 2023. Landbridge was announced as the winning bidder to build the hotel back in August 2016.

The company was also granted the 99-year lease of the Darwin Port in 2015 that has recently come back into the spotlight following the Morrison Government’s move to enact new legislation that would kill state and territory government deals with foreign countries that are deemed not to be in the national interest.

Federal Labor leader Anthony Albanese called for the port deal to be reviewed as part of the new legislation, but it’s understood that is not planned as the deal was between the NT Government and a private commercial company.

The NT Government gifted the prime waterfront land for the hotel to Landbridge with an estimated value of $21.8 million. In addition to the prime land, the NT Government also offered $10 million for infrastructure works and $7.3 million for a skywalk to connect the hotel to the CBD.

A 2019 Auditor General’s report found the NT Government had committed more than $40 million all in for the project which the government initiated without any cost estimate undertaken. By early 2019, the government had spent more than $1.1 million on the project.

Updated figures were not available.

In June, Mr Gunner said the project was delayed by “significant months” due to a contractual dispute around a proposed seawall, but assured that it would go ahead. He had flagged it as a major job-creating project.

Opposition leader Lia Finocchiaro said the Gunner Government has dropped the ball on the hotel project.

“They need to get better at facilitating large scale investments like the luxury hotel, because their record on major projects is appalling,” she said.

“All we ever hear from the Gunner Government are excuses when it comes to major projects. The Chief Minister needs to lift his game, because the Territory needs jobs and investment.”

Mr Gunner’s office was contacted for comment.