The now-defunct Bay Waters Hotel was damaged by fire in June 2023. Photo: Lucy Cartwright.
Transport for NSW (TfNSW) has given limited details about the future of a State Government-owned site, nearly three years after it was damaged in a fire.
In response to questions from Region, a TfNSW spokesperson confirmed that the government still owned the Bay Waters Hotel in Batemans Bay.
The state bought the site for $4 million in 2018 as an ongoing motel business as part of the Batemans Bay bridge works.
A spokesperson said the property was acquired to facilitate roadworks.
As only a portion of the land was required, the balance — which included the motel building — remained under licence to the operator.
However, the building sustained material fire damage in June 2023 and has been the target of vandals since.
The spokesperson said TfNSW was considering how it could be utilised in the future.
“Transport is working with other NSW Government agencies to provide access to the property to explore future uses for this property.”
Region also understands that TfNSW took back possession of the property in 2025, with the site now secured.
However, the spokesperson did not provide further details about the site’s condition or the plans for the location.
As of late 2023, it was being used as accommodation for about 20 homeless people.
After TfNSW received advice that the building’s structure had been compromised, a decision was made to end a month-to-month lease arrangement with the third-party operator leasing the site.
Two months after the June 2023 blaze, the property gradually became unsafe to live in, meaning the tenants had to be evicted.
Region understands that at the time, the private operator was still in possession of the property and was completing end-of-lease work required to hand it back to TfNSW.
Member for Bega Dr Michael Holland said he helped with the process of relocating the tenants.
“I understand all residents have now been supported to find alternative accommodation,” he said.
Region contacted Dr Holland with questions, including about how he thought the site should be used, but did not receive a response by the given deadline.
