Premium hotel in the works for busy waterfront town in Ontario

One of Ontario’s best-known waterfront towns is about to be home to a hotel with a restaurant, convention facilities, spa area, shops and more. 

Recently, the Town of Wasaga Beach, a popular hotspot at the southern end of Georgian Bay that tourists often frequent during the warmer months, announced that hotelier Sunray Group of Hotels plans to build a “premium hotel” on town-owned land near Beach Area 1–a 5.18 acre portion of waterfront land between 1st Street and 3rd Street.

According to the town, Wasaga Beach is home to the longest freshwater beach in the world and attracts approximately two million visitors annually. 

The hotel is part of a larger development plan that was unveiled last fall that will see the beachfront area welcome a mixed-use development with a range of residential and commercial spaces.

Earlier this month, demolition company Roy-Mar Demolition shared an update on the project on social media, confirming it was in the process of demolishing the South Beach Restaurant to make way for the new Stonebridge Building Group project. 

 

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In the post, the company said the restaurant was “part of the community for years and once a home to a bar, rooftop patio, and multiple retail stores.” Prior to that, the area set to be redeveloped was part of Funland, a summer park with waterslides. 

“We understand that seeing these buildings come down is emotional for many. Places like south beach, Bananas Beach Bar, a well-known landmark, The Dardanella, (built in 1927) hold stories that span generations. They were landmarks where people gathered, celebrated, and made lifelong memories,” Roy-Mar wrote on social media. 

“While these spaces have served their time, their history remains.” 

The overall redevelopment project will include open spaces, a public park and “live-work town homes” with ground floor commercial space. Once complete, the five-phase project (set for completion within three years) is expected to include over 150 residential units and 31 commercial units.

As for the hotel, the town says Sunray is investing over $45 million in the project, which will create over 100 jobs. 

“The Town and Council of Wasaga Beach are thrilled to welcome this over $45 million investment in our community by the award-winning Sunray Group of Hotels,” Mayor Brian Smith said in a news release. 

“Sunray Group will build a premium-brand hotel and other amenities near our iconic beachfront. Sunray’s investment represents over 100 local jobs, higher-value tourism and multi-day visits to our community, which will support our small businesses. It also represents a growing commercial tax base, which takes pressure off of our homeowners. Wasaga Beach is excited to partner with Sunray, as we continue to redevelop our beachfront commercial area and unlock our community’s potential to become a thriving, year-round destination. ” 

The town also said the hotelier will invest $1.5 million to design and build a Festival Square near the beachfront. Once complete, the square will be used for “outdoor entertainment and special events.” 

In a news release, the town said it has also entered into an agreement with Sunray for three additional phases of development, which are expected to include additional hotel buildings, shops, restaurants, and other amenities near Beach Area 1.

The brand that will operate the hotel has not yet been announced, but the hotel is expected to include a “high-quality” restaurant, convention facilities, a fitness, spa or pool area, shops and wedding facilities. 

The town said it expects the hotel to elevate the municipality’s profile and turn Wasaga Beach into a year-round tourist destination. 

Construction is anticipated to begin no later than Sept. 1, 2026. 

“Sunray Group of Hotels is proud to be investing in the community of Wasaga Beach – the longest freshwater beach in the world. I believe we have found a good balance between the vision of the community to become a different kind of tourism destination, and the needs and desires of the Town’s full-time residents,” Ray Gupta, president and CEO, Sunray Group of Hotels, said in a statement. 

“Sunray Group looks forward to delivering a hotel experience that will elevate the Town’s tourism brand, and delight its residents and visitors alike.”