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Phillip Island Hot Springs Project

Oceanfront Thermal Springs, Arriving 2026

Aerial view of a oceanfront thermal springs with multiple pools, surrounded by trees and pathways

Phillip Island Hot Springs Project
An oceanfront thermal springs experience - opening 2026

Where we’re up to

Stage 1 of the Phillip Island Hot Springs Project is now under construction, with opening anticipated in mid to late 2026.

This website is the home for project updates. As the thermal springs take shape, we’ll share dated progress updates here, along with key milestones and news. You can also subscribe to receive updates direct to your inbox.

We’re looking forward to sharing more as the project unfolds – and to welcoming you to the thermal springs in 2026.

FREQUENTLY ASKED QUESTIONS

  • The Phillip Island Hot Springs Project is on the south coast of Phillip Island in the Bass Coast Shire, just 101km from Melbourne. The site address is 1215 Phillip Island Road, Newhaven.

  • Local companies VSF and Onsen Investments are leading the Phillip Island Hot Springs Project. With over 60 years of combined experience in hospitality and property development, they share a commitment to creating a meaningful, long-term wellness destination for the community, inspired by the healing power of the sea.

  • The project sits on 35 acres of coastal land with expansive ocean views.

    It is designed as a place for people to connect, rejuvenate and feel close to nature, blending geothermal bathing with the island’s coastal landscape and relaxed atmosphere.

    Planned experiences include:

    •  A network of outdoor pools with different wellbeing features, including cave-style bathing, reflexology walks, and accessible and family-friendly areas.

    •  Thermal contrast experiences with saunas, steam rooms, cold plunges and spaces for outdoor movement and relaxation.

    • An apothecary space showcasing products inspired by marine minerals and Australian botanicals.

    •  A range of healthy food and beverage options onsite, including a reimagined ocean-view dining area.

    Additional stages are proposed to expand wellness, spa and accommodation offerings over time, subject to approvals.

  • The hot springs experience is planned to draw on a combination of naturally mineral-rich geothermal water, seawater and fresh water. Each source will be used for specific bathing and wellness experiences -for example, geothermal water for its natural heat and minerals, seawater for its trace elements and marine connection, and fresh water for balance, cooling and contrast pools.

  • Yes. Phillip Island sits over a deep granitic aquifer that naturally heats groundwater. Geological investigations, rock-core inspections and pump-testing confirm an active hot-water zone at approximately 570–610 metres below ground, with water temperatures reaching up to 70°C—meeting the definition of a geothermal resource.

  • Accessibility is a key consideration in the design of the Phillip Island Hot Springs Project. Current plans include accessible paths, selected pools and accessible amenities. More detailed accessibility information will be shared closer to opening as designs are finalised.

  • Yes. The Phillip Island Hot Springs Project is planned as a three-stage development:

    Stage 1 – The outdoor hot springs experience, currently under construction, will establish the core outdoor bathing and wellness spaces.

    Stage 2 – Subject to future approvals a day spa with treatment rooms and additional indoor wellness experiences.

    Stage 3 – Subject to future approvals, a 120-room hotel is envisaged to complete the broader vision for the site.

  • Following a redesign process, construction for the current Phillip Island Hot Springs Project commenced in 2024 and continues to evolve in line with growing interest in wellbeing tourism and the aim of creating a year-round destination.

  • Stage 1 is anticipated to open in mid to late 2026.

  • Booking details, session times and pricing will be released closer to opening. Subscribers to our project updates will be among the first to receive this information.

  • The total cost of Stage 1 of the Phillip Island Hot Springs Project will be approximately $50 million.

  • Yes. In 2022, the Victorian Government announced $5.2 million in support of the Phillip Island Hot Springs Project. This included $4.7 million from the Regional Tourism Investment Fund to expand the hot springs development with additional pools and enhanced coastal bathing experiences, and $500,000 from the Enabling Tourism Fund to support planning for the proposed lodge and wellness centre.  This investment recognises Phillip Island as one of Victoria’s key visitor destinations and supports the creation of new, year-round wellness experiences and local jobs in the Bass Coast region.

  • The project is designed to bring long-term benefits to the local community. Stage 1 alone is expected to create jobs across construction, operations, guest services, spa and wellness, food and beverage, and grounds. Over time, the hot springs will support local businesses by encouraging visitors to travel outside traditional peak periods.

    The project also has a strong focus on regenerating the landscape, with more than 100,000 indigenous trees and shrubs already planted and will create a new coastal space for people to slow down, connect with nature and enjoy the region year-round.

  • The project supports the Phillip Island & San Remo Visitor Economy Strategy 2035 by helping position the island as a leading year-round wellness destination. The new oceanfront hot springs experience will broaden the island’s visitor offering, encourage longer stays and attract new markets seeking nature-led wellness experiences, strengthening the overall visitor economy across the region.