Perth Voice Interactive

EARLY signs of new life for the long-closed Savoy Hotel are echoing through Perth city council’s planning department.

The Hay Street hotel was built by John Talbott Hobbs, and in 1916 it was advertised as “The Ritz of Australia”.

But it’s been closed since the 1980s, with just a shoe store operating out of the ground level.

It’s currently owned by Singaporean investment firm Starhill Global, which has entered preliminary discussions with PCC planners about restoring the Savoy as a hotel.

The owners believe the development may cost too much to be financially viable, as it’d cost about $18 million to restore at the cheaper end. That’s $400,000 per room, twice the base-level figure of $200,000 per room hoteliers usually aim to spend for a stock-standard joint.

However the council has several sweeteners it can use for historic buildings to talk them around, including rates relief and allowing owners to transfer “plot ratio bonuses” to other sites, meaning the company could add extra storeys to another project.