A new hotel for Hyde Park in Sydney
Dexus Property Group is planning to build a $426 million hotel and apartment project near Sydney’s Hyde Park,
Plans have been lodged with Sydney City Council for a 50-level, 350-room luxury hotel, retail and apartment block.
The site will include four levels of basement parking fronting 201-207 Elizabeth Street plus a pedestrian connection to Museum Station.
An initial proposal for a possible connection to Pitt Street North Metro Station has been scrapped following community concerns.
The new plan requires Dexus to provide increased setbacks to Park and Castlereagh Streets plus a revised location of the tower component of the building envelope to reduce the impact of the development on private view.
Dexus has also revised residential layouts to maximise privacy for both existing and proposed residential apartments.
Once approved, the complex will replace the existing 38-storey office block owned by Dexus and billionaire Stan Perron.
This is an important development because besides the Sofitel at Darling Harbour, there have been no other new major hotel openings.
Andrew Taylor, managing director of Creative Property, said the focus is on “who can drive the highest average room rates, which are continuing to climb, year after year.”
After the Sofitel, this new development was needed, he said.
“The new wave of hotels will at best satisfy demand being generated by the new International Convention Centre at Darling Harbour, but beyond that there is a desperate lack of supply,” Mr Taylor told realcommmercial.com.au.
“There’s a strong argument that several luxury hotels are still required and critical to the city’s tourism future.”
He said the Dexus hotel would be in addition to hotels proposed in Haymarket and Chinatown on Sussex Street around the corridor between Barangaroo and Darling Harbour.
“That corridor is hot at the moment,” Taylor told realcommercial.com.au.
In addition to that, operators are looking for CBD fringe locations like Potts Point, King’s Cross and Surry Hills.
The bottom line is that the availability of sites and land continue to be a problem for future supply.
by Leon Gettler, November 30th 2017
