New hotel tower proposed above Sydney's heritage-listed Shelbourne Hotel
Plans for a 26-storey hotel tower to be built above Sydney's heritage-listed Shelbourne Hotel are now on public exhibition, with the state significant development proposal set to add 140 new rooms near Darling Harbour.
The proposal, located on the corner of Sussex Street and Market Street in the Sydney CBD, involves a 79-metre tower rising above the historic Federation-era hotel, which dates back to 1902. The design is being led by Bates Smart, with landscape design by Dangar Barin Smith.
Under the plans, the existing four-storey heritage building would be retained and refurbished, with its facades restored. The pub on the first floor would remain, alongside a new restaurant and function space on the upper floors, plus an outdoor deck at ground level and a terrace behind the building's parapet.
Bates Smart's design report notes that a new core and structural frame would be inserted into the heritage building to support the tower above, which will house 15 floors of hotel rooms topped by a rooftop bar and terrace.
"The [redeveloped] Shelbourne Hotel will be a unique blend of historic charm and modern affordable accommodation, perched above a redbrick heritage building," the architects said in their design report. "Our vision is to create a captivating destination where the rich history of Sydney meets the vibrant energy of the city's future."
The proposal also includes a Connecting with Country strategy, featuring Aboriginal artwork inspired by the local shoreline's fishing and sea creature patterns, to be carved into the tower's textured concrete soffit. The facades will feature dark-red rendered masonry and coloured precast concrete.
The plans are on exhibition on the NSW government's major projects planning portal until 2 September.
Jonathan Jackson, 12th August 2026
