In a significant response to the growing accommodation shortfall in regional Victoria, the Royal Automobile Club of Victoria (RACV) has unveiled plans for a multi-million-dollar expansion of its Inverloch Resort.
The development will add thirty-six premium rooms, addressing a critical supply gap that has seen thousands of potential visitors turned away during peak travel periods.
With Victoria’s regional destinations experiencing record visitor numbers post-pandemic, accommodation providers across areas like the Bass Coast are struggling to keep up.
The RACV Inverloch Resort is no exception, operating at near full capacity during peak seasons and booking out months in advance.
The expanded resort is expected to welcome up to 20,000 additional guests annually, injecting an estimated $6.5 million into the local economy each year.
The project will also generate 120 jobs during construction and fifteen ongoing roles once operational.
The Victorian Government has thrown its support behind the project, with RACV receiving a grant from the Regional Tourism Investment Fund 2024.
RACV Executive General Manager Leisure, Craig Peachey said RACV is proud to partner with the government to deliver infrastructure that supports sustainable tourism growth.
Architectural plans reveal a striking new two-level wing designed by acclaimed firm GHD, featuring panoramic views over Andersons Inlet and built with sustainable materials that complement the coastal landscape.
The expansion will specifically cater to three high-demand market segments that are currently underserved in the region: the conference and events sector, with new facilities designed to accommodate larger functions and business tourism; premium leisure travellers seeking luxury coastal experiences; and families.
Currently hosting over 55,000 guests annually, the 4.5-star resort plays a critical role in the region’s tourism infrastructure.
It offers a variety of accommodation options, the locally focused Radius Restaurant, and event spaces that support local businesses, artists, and producers.
Construction of the new wing commenced last month, with the first guests expected in December 2026.
“As demand continues to rise, it’s essential we invest in infrastructure that ensures visitors can stay and explore regional Victoria,” said Peachey.
“This expansion is about meeting that demand, while delivering long-term economic and cultural benefits to the region.”
For local hotels, the RACV Inverloch Resort expansion is both a challenge and an opportunity.
While it raises the bar for premium accommodation and may compete for high-end guests, it also signals strong regional growth, increased tourism spending, and the potential for broader economic uplift.
How other providers respond will shape how well they ride this next wave of regional tourism growth.
