The Government Could Be About To Back Out Of Its Loan For The Adelaide Oval Hotel, Says Penbo

Dec 12, 2018

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The state government could be looking for “an out” from the loan it made to the Stadium Management Authority to build a hotel at Adelaide Oval, reports David Penberthy.

“This is looking like a multi-faceted headache now for the government and a problem that’s not going to go away,” Penbo told FIVEaa breakfast on Wednesday.

“Yesterday Will and I attended the Australian Hotels Association Christmas lunch and we think it’s worth recording the sentiments that were expressed by the new president of the AHA in his speech, David Basheer…

“They’re not against the hotel, but they’re against the manner in which this loan has been crafted. In their view it’s not a level playing field. Why is it one hotel operator will be able to access a loan through a government and enjoy a commercial edge?

“It’s increasingly looking like this is a friendless proposal by the Marshall government. I think what might end up happening is the government might say to the SMA, you guys need to go back to the market see if you can find a loan yourself…

“If there’s a way they can do it, they might look for an out in the new year.”

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