$380 million Castle hotel and apartments opening in Sydney
A new hotel and apartment complex is opening in Sydney’s central business district with views to Hyde Park and the Harbour.
Chinese developer Shanghai United has partnered with Accor Hotels to build a $380 million mixed use development creating Castle and The Porter House MGallery on the corner block of 110-118 Bathurst and 203 Castlereagh Streets.
The development will create a new-build 36-storey tower with a 121-room hotel over levels 1-9. The $120 million hotel will be managed by AccorHotels, marketed through its luxury Sofitel brand.
There will also be 131 residential apartments on levels 10-34.
The 1870s Heritage-Listed Porter House next to the tower will be part of the Porter House Hotel, MGallery by Sofitel and residential apartments.
The site has been standing empty for some time and there are hopes it could revitalise that end of Sydney.
All this is added to Shanghai United’s five developments in Sydney. The group has also recently bought a site in Melbourne.
Shanghai United chief executive Mr Yangdong Xu said Sydney was a good market with its growing population, increased business events and undersupply of hotel rooms.
"Looking at the supply and demand equation, there is still not enough supply in Sydney," Mr Xu told the Sydney Morning Herald.
"We see Australia as an important market in our global strategy."
AccorHotels Pacific chief operating officer Simon McGrath said the Sydney hotel market had a lot of room for expansion with 12-14 per cent growth in Chinese tourism to Australia’s largest city.
"The Sydney hotel sector is the strongest in Australia with consistent occupancy levels in the mid-high 80 per cent range and average rates growing sharply. This new MGallery by Sofitel hotel will stand to greatly benefit from the tourism and infrastructure boom we are currently seeing with projects such as the International Convention Centre and light rail development," Mr McGrath told the Sydney Morning Herald.
"A new boutique hotel such as this will provide both business and leisure travellers with a new luxury boutique experience in Sydney, whether they visit for conferences, events, cultural or sporting events. The Porter House Hotel, MGallery by Sofitel, is set in prime position to take advantage of the brand's growing global presence backed by AccorHotels powerful distribution, digital platforms and growing loyalty program."
by Leon Gettler, May 30th 2017
