Tycoon to create 914-room complex in Darling Harbour
Singaporean tycoon Michael Kum has today (17th October) announce his $160 million plan to create the nation's largest hotel complex - expanding his Four Points by Sheraton hotel in Sydney's Darling Harbour by 231 rooms via a 26-level tower on the southern end of Sussex Street.
On completion, the four-star property will total 914 rooms and will compete against Lend Lease's 650-room, yet-to-be-built hotel on the other side of Darling Harbour for delegates attending the new convention and exhibition facilities due to open in mid-2016.
The redeveloped Four Points is expected to generate about 1400 guests and conference attendees each day, given Mr Kum is also significantly expanding the hotel's convention, exhibition and function space by a further 4810sq m.
"It's a clever play," said veteran hotel analyst Dean Dransfield yesterday.
An artist's imptression of the new Sheraton Four Points 25-storey hotel tower at Sydney's Darling Harbour.
"It's balanced because Mr Kum is supporting the extra room count with more meeting facilities: it's arguable that his hotel is better located for the conference market than some of the other Darling Harbour hotels, particularly for the mid-sized conference markets. It will be the biggest hotel in Australia."
With a net worth totalling $US750 million ($787.5m), according to Forbes, the executive chairman of M&L Hospitality has been a dominant owner of Australian hotels for some time; he paid $185m for the Four Points by Sheraton in 2009, later acquiring the Travelodge Docklands in Melbourne for $54m and Sydney's Swissotel for $90m in 2010.
Mr Kum continues to consider bundling the Australian hotels into a property trust that may be floated in Singapore or Australia.
At the Sheraton Four Points, Mr Kum plans to create a new waterfront landmark and spearhead the revitalisation of Darling Harbour as a convention destination with his expansion.
But gaining planning approval for the hotel has not come without bureaucratic wrangling over whether Sydney City Council or the Sydney Harbour Foreshore Authority is eligible for the $1.485m developer contribution.
It appears the SHFA has won out. According to planning documents obtained by The Australian, the $1.485m will be spent on improving Darling Harbour's public domain and will be determined in conjunction with the SHFA.
Apart from the 231 new rooms, Mr Kum plans to upgrade retail frontages on Sussex Street, expand the Four Points Sheraton meeting and conference space and reconfigure the ground level lobby, reception and bar area.
He also proposes 5775sq m of new commerical space. Mr Kum and architect Philip Cox will announce the plans today.
Source: The Australian, 17 October 2013
