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Home » Wasaga Beach » New Hotel Coming to Ontario’s Waterfront Community
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Wasaga Beach

New Hotel Coming to Ontario’s Waterfront Community

February 24, 20264 Mins Read
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New Hotel Coming to Ontario’s Waterfront Community
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One of Ontario’s most popular waterfront towns is set to welcome a hotel featuring a restaurant, convention space, spa area, shops, and more.

Recently, the Town of Wasaga Beach, a well-loved destination at the southern end of Georgian Bay that attracts many visitors in the summer, announced that Sunray Group of Hotels plans to develop a “premium hotel” on town-owned property near Beach Area 1-a 5.18-acre stretch of waterfront land located between 1st Street and 3rd Street.

The town highlights that Wasaga Beach boasts the longest freshwater beach in the world and draws around two million visitors each year.

This hotel is part of a larger development initiative revealed last fall that will transform the beachfront area into a mixed-use site with various residential and commercial offerings.

Earlier this month, demolition company Roy-Mar Demolition provided an update on social media about the project, confirming they are currently demolishing the South Beach Restaurant to pave the way for the new Stonebridge Building Group development.

In their post, they mentioned that the restaurant was “part of the community for years and once a home to a bar, rooftop patio, and multiple retail stores.” Before this redevelopment, this area was known as Funland, a summer amusement park featuring waterslides.

Screenshot 2026 01 30 at 1.55.02 PM

“We understand that seeing these buildings come down is emotional for many. Places like south beach, Bananas Beach Bar-a well-known landmark-and 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 plan will feature open areas, a public park along with “live-work town homes” incorporating ground floor commercial space. Once completed within three years through five phases of construction, it’s expected to include over 150 residential units and 31 commercial units.

Regarding the hotel itself, Sunray is investing more than $45 million into this 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 along with other amenities near our iconic beachfront. Sunray’s investment means over 100 local jobs created while boosting tourism with longer stays in our community-this helps support our small businesses. It also enhances our commercial tax base relieving some pressure from homeowners. Wasaga Beach looks forward to partnering with Sunray as we continue improving our beachfront commercial area and unlocking our community’s potential as an exciting year-round destination.”

The town added that Sunray would invest $1.5 million toward designing and constructing Festival Square by the beachfront which will be used for “outdoor entertainment and special events.”

A recent news release indicated that an agreement has been made with Sunray for three additional phases aimed at adding more hotel buildings as well as shops and restaurants close to Beach Area 1.

The specific brand managing the hotel hasn’t been announced yet but it’s expected to feature high-quality dining options along with convention facilities plus fitness areas like spas or pools alongside retail spaces for weddings.

The town believes this new hotel will enhance its profile significantly turning Wasaga Beach into an attractive year-round tourist spot.

Construction is projected to start no later than September 1st, 2026.

“Sunray Group of Hotels is proud to be investing in Wasaga Beach-the longest freshwater beach globally. We believe we’ve found an excellent balance between realizing community aspirations for diverse tourism opportunities while addressing residents’ needs,” Ray Gupta president and CEO of Sunray Group stated in his comments regarding the project.

“Sunray Group looks forward to delivering an exceptional hotel experience designed to elevate tourism branding while delighting both residents and visitors.”

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