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Located at the south-west corner of Bourke and Exhibition Streets, Australia’s first modern American-style, international-class, five-star hotel was built on the site of the former Eastern Market for Southern Cross Properties Ltd, which included Pan American World Airways and their subsidiary Intercontinental Hotels and the Australian sharebrokers Potter Partners.
Pan Am had been attracted to business and property investment in Melbourne following the success of the 1956 Olympic Games and the vigorous marketing of Melbourne by the Victorian Promotions Committee, led by Sir Bernard Evans. Pan Am wanted either the Western or the Eastern Market sites. National Mutual already had the option for the Western Market site and another company held the Eastern option. Pan Am Vice-President Clarence Young was on his way home, saying they would have to build in Sydney, when the company that held the Eastern site withdrew. Young was telegraphed in Hawaii with the news and flew straight back to Melbourne. The freehold of the property remained with the City Council and was leased to SCP for 99 years.
The 426-room hotel cost £5.25 million and included an underground car park, a shopping arcade and a bowling alley. Opened on 24 August 1962 by Prime Minister Robert Menzies, its guest list included The Beatles in 1964, Judy Garland, Rock Hudson, John Wayne, Marlene Dietrich, and Sammy Davis Jr. For many years the hotel hosted the annual Logie and Brownlow Awards and was Liberal Party headquarters for election night functions. Over the years it was the Southern Cross that was responsible for reviving a part of town that had become very neglected.
Pan Am sold its interests in the hotel in 1977, leaving it in Australian ownership until the site was sold to the Republic of Nauru in 1994. The hotel was closed on 1 April 1995 (an appropriate date, as it proved) and partially demolished in order for it to be extensively remodelled. The plan was to close for 18 months, strip the façade and replace with glass curtain walls, extend the floors, and build a 27 floor executive apartment suite tower behind the hotel, eventually making up a 527 room hotel renamed the Grand Southern Cross costing some $250 million. Features would include the country’s largest hotel lobby, a **** lounge, a 3000 capacity ballroom, and a convention center.
However, this project was never completed. Somebody out there neglected to ensure that Nauru would be able to meet their future financial obligations, and when they couldn’t the ruined building stood derelict until finally being resold to another company and completely demolished in 2003 to make way for an office development.
From an historical point of view, it would be interesting to know what became of the Eastern Market’s foundation stone which was reset into the Bourke Street wall of the Southern Cross, the many bricks from the Market which were re-used in the downstairs Club Bar, and the 1878 Market time capsule which was discovered under the foundation stone by Whelan when the complex was demolished in 1960. It was suggested at the time that the capsule be re-buried in the foundation of the hotel.
_________________ George Nipper, Esq.
Its not the destination; its the journey.
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