A controversial $100 million hotel planned for the Darwin waterfront has been abandoned after Larrakia Elders consistently raised concerns it would disturb an ancient Aboriginal sacred site.

First proposed in 2024 by Singapore-based SH Hotels, the development was promoted by the NT Government as a major tourism boost. However, Larrakia custodians opposed the project, arguing it would disrupt the Dreaming of the tawny frogmouth. According to Larrakia Dreaming, it is a sentinel guarding the entrance to Stokes Hill Wharf; surveying the land and sea, keeping country and people safe.

Two Larrakia Traditional Owners — Bill Risk and Helen Secretary — were revealed earlier this week to have lodged an application with the federal government under the Aboriginal and Torres Strait Islander Heritage Protection Act to secure protection for the site, with Northern Land Council Chair Matthew Ryan saying the hotel "sets a dangerous precedent that puts all sacred sites in the NT at risk".

On Tuesday, the ABC reported that SH Hotels and its parent company, SingHaiyi Group, had decided the project would not proceed.

"After receiving the development approval in July 2024," Executive Director Robert Lee said in a statement, "we were advised of a concern relating to the development".

"To address the concern, we explored various changes to the development but [were] unable to come to a result that would make the development feasible. We extend our sincere appreciation to the Northern Territory Government for their support, collaboration, and guidance throughout the process."

NT Treasurer Bill Yan said that although the government was disappointed the hotel would not proceed, it respected the group's decision.

Mr Ryan told the ABC the decision was "very good news for the Larrakia people".

"This shows that you cannot ignore the importance of sacred sites and meaningful engagement with Traditional Owners," he said.

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'Disrespect' to Traditional Owners

The 47-metre proposal had been dogged by accusations that the CLP Government changed sacred sites legislation to enable the project.

In applying for the Federal Environment Minister to intervene, before the cancellation was announced, Bill Risk said Stokes Hill Wharf has "particular responsibility in looking out for Larrakia people".

"A part of the responsibility is to watch and look out for approaching strangers, to look out for any danger, or any disturbance that is unnatural coming across the waters," he said. "And the lookout on the Sacred Site is very important because the site must maintain visual line-of-sight over all the harbour. The site has to care for our people."

Several leading Indigenous organisations have claimed the government pressured the Aboriginal Areas Protection Authority (AAPA) Board — which safeguards Territory sacred sites — to amend a 2004 certificate to include the Darwin Waterfront Corporation and SH Darwin Hotel Pty Ltd.

The amendment, made possible under new legislation, would allow the hotel to proceed without new consultation and require AAPA to grant approval. The move led AAPA board member Rachel Perkins to resign "effective immediately", while Larrakia Traditional Owners publicly voiced concern.

This week, Helen Secretary said the change to the legislation is "affecting our sites" and argued, "We no longer have the protection we had".

"The Act has been protecting all our significant sacred sites, burial grounds and traditional areas for over 50 years - this is going to affect all Indigenous mob in the NT and their sacred sites," she said.

"The NT government has shown disrespect to Traditional Owners, custodians and other Indigenous people."

In September, Larrakia Development Corporation (LDC) Chairperson Mark Motlop said the corporation had been required to obtain an AAPA certificate for the Larrakia Cultural Centre — due for completion next year — and to follow strict height limits to preserve the sacred site's outward and inward views.

He said the hotel would "sit directly opposite the sacred site" and interfere with both aspects of the Dreaming story.

"If it is good enough for the Traditional Owners of this Land to comply with the AAPA Sacred Sites Certificate — then it should be good enough for everyone else," Mr Motlop said.

Larrakia Nation said custodians had "consistently objected" to the hotel design and warned of serious cultural and spiritual impacts.

"The Northern Territory Government would never contemplate constructing high-rise developments in front of the Darwin War Memorial or other nationally significant sites cherished by non-Indigenous Australians. Sacred Larrakia sites deserve the same level of respect and protection," they said at the time.

Mr Ryan told the ABC the hotel's cancellation "does not change the fact that the NT government can still make changes to sacred site certificates without consultation".

"Sacred sites and Aboriginal heritage must be properly protected by the laws of the Northern Territory," he said.