Laundy Hotels invests $3 million in Watsons Bay Hotel upgrade
Laundy Hotels has started a $3 million renovation of Watsons Bay Hotel, with works underway to convert the venue’s top and mid decks into a dedicated events space.
Watsons Bay Hotel was jointly acquired in 2012 by Laundy Hotels and Fraser Short from the Doyle Family, who had operated the site for 125 years. In 2023, Laundy took full control following Short’s divestment of his stake in their shared venues.
The redevelopment draws design cues from the beach club and bar on the lower deck, aiming to deliver a Hamptons-inspired venue with panoramic views and a relaxed yet elevated atmosphere.
Director of Laundy Hotels and daughter of Arthur Laundy, Danielle Richardson, is leading the renovation.
“The $3 million renovation of the top and mid decks at Watsons Bay Hotel is about reimagining how Sydneysiders and visitors celebrate by the sea,” she said.
“With Etic Design’s fresh take on our signature Hamptons-inspired aesthetic, the upgrade will transform this iconic waterfront location into one of Sydney’s most sought-after event destinations. We’re creating a versatile, elevated space that brings together stunning harbour views, effortless coastal luxury, and the vibrant social spirit Watsons is known for.”
Etic Design’s director Emilie Delalande says the project was guided by a shared vision to both elevate the venue and preserve its coastal charm.
“Designing the Hamptons-style renovation for Watsons Bay Boutique Hotel was a collaborative and creative journey. Working closely with the owners, we really had a shared vision – to elevate the hotel’s offering while honouring the iconic coastal charm that has made Watsons Bay so beloved.
“I drew inspiration from the soft, natural palette of the bay itself – sun-bleached timbers, crisp whites, layered textures, and subtle nautical touches. We are incorporating organic materials, custom detailing, and generous open spaces to celebrate light, air, and connection to the water.
“The result will be a space that feels fresh and elevated yet completely grounded in its surroundings. It is important to us that returning guests still feel at home, while also discovering thoughtful new layers of luxury and comfort,” Delalande continued.
Richardson expects the project to bolster the hotel’s event bookings and strengthen customer loyalty.
The hotel’s popular beach club, sunset room, front bar, and accommodation will remain open throughout construction. The upgraded events space is scheduled to open in October, marking a year since the reopening of sister venue The Mona, which underwent a substantial redevelopment in 2024.
Jonathan Jackson, 2nd June 2025
