Dexus tweaks plans for $426m Sydney hotel
Dexus Property Group is forging ahead with plans for a $426 million hotel and apartment project near Sydney’s Hyde Park as developers continue to scour the city and fringe for more hotel sites.
Dexus has lodged amended plans with Sydney City Council for the construction of a 50-level, 350-room luxury hotel, retail and residential apartment block including four levels of basement parking fronting 201-207 Elizabeth St.
If approved, the project would replace an existing 38-level office block owned by Dexus and billionaire Stan Perron.
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Under the plans the hotel and residential complex will also sport a pedestrian connection to Museum Station but a proposal for a possible connection to the planned Pitt Street North Metro Station has been scotched following community concerns, according to the new plans.
Dexus has been asked to provide increased setbacks to Park and Castlereagh streets under the new plan before Sydney City Council. It was also told to draw up a revised location of the tower component of the building envelope to reduce the impact of the development on private views. It has revised the residential layouts to maximise privacy for both existing and proposed residential apartments.
Hotel analysts say Sydney undoubtedly needs more development.
Besides the Sofitel at Darling Harbour there have been no new major hotel openings
“We are all well aware that the Sydney hotel market continues to trade at occupancies well over 90 per cent,” says Andrew Taylor, managing director of Creative Property.
There was a focus on “who can drive the highest average room rates, which are continuing to climb, year after year,” Taylor says.
“There’s a strong argument that several luxury hotels are still required and critical to the city’s tourism future.”
Taylor says a number of hotels are being proposed in Haymarket and Chinatown on Sussex St, particularly in the corridor between Barangaroo and Darling Harbour.
“That corridor is hot at the moment,” he says.
Operators were still interested in finding CBD fringe locations like Potts Point, Kings Cross and Surry Hills for hotel developments and the availability of sites and land continued to be a problem for future supply.
“Besides the Sofitel at Darling Harbour there have been no new major hotel openings,” he says.
“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.”
– with Ben Wilmot
This article originally appeared on www.theaustralian.com.au/property.
