1980s Redevelopment
The Commonwealth Banking Corporation purchased the property sometime around 1972 with an announcement that it planned to redevelop the site as high-rise offices. Soon after, a public campaign developed, with a group known as The Palace Guards becoming a strong lobbying force, focussing on the state government and heritage organisations and pushing for the building's preservation. The group's inaugural meeting was held on 27 March 1973 at the Hotel.
J.M. Freeland, professor of architecture at the University of New South Wales wrote at the time:
This is a most important building for the history of Australian architecture, being an extreme example of High Victorian architecture. There were never many hotels of its standard in Australia and to my knowledge this is the last of them.
The campaign opposing the demolition culminated in a condemnation of the plan from the National Estates Committee and an appeal from the bank for the Australian Government to acquire the property. Bond Corporation ultimately purchased the property and the adjacent Terrace Arcade in 1978 and in 1980 unveiled plans (which had been pre-approved by the Perth City Council) for a modern office block and the demolition of parts of the existing building and adjoining properties. The developers had successfully sought modification of the original planning approval by the Council to allow the use of the Palace Hotel as a bank, rather than remaining as a public hotel. The development plans were summarised in the Trust News, the journal of the National Trust of Australia as:
The erection of a multi-storied, multi-use tower block on the North East corner of the site; retention of the Palace Hotel structure on the South West corner; development of a covered concourse between the two structures linking William Street with St George’s Terrace. This will require: demolition of the structure housing the Terrace Arcade; demolition of the eastern accommodation wing of the hotel; dismantling and reconstruction of the northernmost portion of the William Street façade; dismantling and reconstruction of the dining-room.
The tower project and restoration of the hotel were carried out as a joint venture between Bond Corporation and the R&I Bank, with the first demolition tasks commencing in August 1981. The hotel closed in June 1986 amid demolition works and construction—by August 1983 construction had completed on the tower's foundation and three levels of underground parking. The project was completed in 1988 and officially opened in August 1989 by premier Peter Dowding.
The redevelopment entailed demolition of much of the interior wallspaces of the old hotel, however, the exterior façades facing the two main streets are largely intact, if slightly shortened on the William street frontage. A glass covered atrium joins the tower on the former hotel so that the tower entrances double as undercover access to the building.
Read more about this topic: Palace Hotel, Perth