In theory, the world’s first floating hotel should have been a great success. Providing direct access to some of the world’s most spectacular marine attractions, the seven-story, five-star resort initially known as the Barrier Reef Resort had nearly 200 guest rooms, a nightclub, spa and gym facilities, bars and restaurants, a tennis court, and a helipad. It was supposed to be a home base from which to snorkel around in the warm Australian waters, gazing down at an incredible array of sea creatures. But the project was plagued with problems from the start, and today, it’s moored off the coast of North Korea and set for demolition.

The lifelong dream of Australian developer Doug Tarca and his son Peter, the hotel blew past its budget during construction by a Singapore-based company, ultimately costing in excess of $40 million. Tough environmental regulations required expensive upgrades like non-toxic paint on the hull, on-site sewage and liquid waste treatment, and solid waste incineration. Once the hotel was finally complete, it was towed from Singapore to a prime location off the coast of Townsville, with views of the John Brewer Reef. Before it even had a chance to open, it was struck by a cyclone, which damaged the swimming pool and delayed opening for two months. That meant missing Australia’s prime tourist season, which should have brought a lot of revenue.
In March 1988, the hotel welcomed its first guests ferried 43 miles from shore in water...