Work to begin soon on 'world-class' Garema Place hotel

Fences have been installed around the development site and the businesses that once occupied the Garema Centre - including the historic Gus' Place cafe - have closed down.

In their place, local developer TP Dynamics plans to build a 10-storey hotel, boasting bars, restaurants and a luxury shopping precinct.

If all goes to plan, the hotel will be completed by early 2027, the developer says.

Tony Pan, managing director of TP Dynamics, said he was passionate about bringing a five-star hotel in Civic, particularly as tourism to Canberra was booming post-COVID.

"I have a Canberra heart," he said.

"I know Bunda Street, eventually, it's going to be a world-class street.

"We want a luxurious hotel on Bunda Street. It's the right thing to do."

The grand hotel plans were first proposed by Geocon, which received planning approval for the $120 million project in 2020.

In March 2023, Geocon sold the hotel site, which covers two blocks between Bunda Street and Garema Place, for about $30 million.

TP Dynamics is now seeking approval for a number of changes to the original development application.

The amendments, which are still under consideration, include changes to the facade, converting two levels of office space to additional hotel rooms and adding more car parks.

"Parking is always an issue, so we want to do it once and do it right," Mr Pan said.

The rooftop swimming pool will also be relocated to level nine and a central atrium added.

A "world-class" restaurant will take up the top level instead, offering views to the lake.

The hotel will include 238 rooms, multiple restaurants and bars, a ballroom for events and three levels of basement car parking.

The group envisions high-street shops on the Bunda Street side and restaurants, with outdoor dining options, facing Garema Place.

Much-loved Bunda Street cafe Gus' Place closed in January after 57 years of trade.

While the cafe is heritage listed, the status refers to its "intangible heritage" rather than the "physical fabric of the building".

Nonetheless, TP Dynamics wants to see Gus' return to the Garema Place hotel.

"We want to keep them, we just haven't had the discussion yet," Mr Pan said.

Mr Pan has spent recent months looking for an established brand to operate the hotel.

Negotiations with a "five-star" operator were well-progressed, he said.

The brand was not a "traditional" hotel brand, Mr Pan said.

"As the new NCA CEO says, Canberra is 'innovative, dynamic and young'," he said.

Demolition work is expected to begin in March, with an estimated completion date of early 2027.

Mr Pan said the group was committed to delivering the project on time to minimise disruption caused by the construction.

"We understand Bunda Street is a busy street, we will try to cause as less inconvenience as possible," he said.

The developer said he was "very proud" of the project.

"I've been here for 20 years and I can see Bunda Street is changing and improving and I know we can be part of it," he said.