St Kilda hotel redevelopment proposal draws community opposition
A plan to demolish and rebuild a rundown St Kilda hotel has divided the local community, with residents pushing back against a proposed seven-storey development they say is out of scale with the neighbourhood, even as the site's owners argue the project is essential to revitalising the area.
Meydan Group, described on its website as a "diversified high net worth family investment group," has applied to state Planning Minister Sonya Kilkenny to replace the existing Cosmopolitan Hotel on Carlisle Street with a 204-room property featuring food and drink premises, a rooftop bar, function rooms and basement parking. Two heritage-significant houses adjoining the site — also owned by the Cosmopolitan — would be partially demolished to accommodate suites.
Because the proposal exceeds current planning controls, ministerial approval to amend the planning scheme is required. Public consultation closed this week, with more than 300 residents having signed a petition calling on the minister to reject or significantly scale back the development.
Local resident Jane Briese says the neighbourhood accepts that the existing hotel needs to go — but not at any price.
"We'd like to see it demolished and rebuilt. Most of the neighbourhood agrees that it's time for something to be done there, but what they're proposing is just too big," Briese told The Age.
"We know we're right next to Acland Street and the residents aren't opposed to that sort of vibrant lifestyle, but this is just too big; it encroaches on the amenity."
Nearby Galleon Cafe owner Andrew Skoullos echoed the concern about scale, noting that construction activity and parking pressures already strain the precinct.
"Carlisle Street and the surrounding area have a real village feel with heritage buildings, light, and character that people are drawn to. That's a big part of why local businesses like mine work," he said.
"I think most people just want to see development that respects what makes St Kilda special and doesn't lose that identity."
The current building reaches five storeys along Albert Street and three storeys along much of its Carlisle Street frontage. Community submissions have called for any new development to be capped at five storeys on Carlisle Street and three storeys on surrounding residential streets. Residents have also raised concerns that rezoning the site could set a precedent for even taller buildings nearby, and that a rooftop bar and function rooms would generate noise and traffic issues.
"We do not want to lose our residential neighbourhood character," Briese said.
Meydan Group managing director Moshe Meydan has defended the proposal, saying the project was designed to comply with government guidelines and that the economics don't stack up at anything less than seven storeys.
"It's very easy to just complain against it and to complain against any development," he said.
"But this one will bring some more tourism to the area, it will improve the commercial activity in the area."
"It will improve the value of the area, of the properties, and it will bring more people and bring St Kilda to what it was a long time ago."
Port Phillip Council has no decision-making role over the site, though local ward councillor Serge Thomann has signalled he will stand with residents in opposing the proposal.
The minister is expected to rule on the planning scheme amendment in June.
Jonathan Jackson, 6th April 2026
