Double Bay hotel to make way for precinct where an apartment will cost you $30m

The prime Double Bay position of the iconic InterContinental Hotel in Sydney

Sydney’s exclusive Double Bay village is set to be transformed as the sprawling ­InterContinental Hotel is demolished and converted into lavish $1bn residential apartments, a boutique hotel, office, wellness, restaurant and cinema complex dedicated to the suburb’s wealthy ­residents.

Having purchased the InterContinental Hotel in March for $215m, ­developers Allen Linz and Eduard Litver are now planning to develop 29 apartments on the site with a price tag of $30m apiece.

They are also planning a 40-room boutique hotel, a full level of office space, another level of wellness facilities, including medical, spas, saunas, gyms, and a cinema complex.

The dowager property is world famous for having played host to the likes of Princess Diana, former US president Bill Clinton, former prime minister Bob Hawke and INXS frontman Michael Hutchence.

But in a new chapter, much of the hotel will be demolished – except for its carpark – under the plans before Woollahra Municipal Council.

The apartments will be constructed on the seven upper levels and priced at about $100,000sq m each. Construction will take about 2½ years to three years.

An artist impression of the development planned for the site of the InterContinental Hotel in Double Bay, Sydney

The apartments, many of which will be high enough to overlook Sydney Harbour, will each comprise about 300sq m of space, under the plans outlined in the 33 Cross Street, Double Bay development application.

The developers are expected to attract more investors to complete the project, designed by COX Architecture, and are hopeful of winning Woollahra Municipal Council approval next year. If achieved, construction will start by 2026.

It is understood there are people already queuing for the apartments, which are likely to be offered to the market on an invitation-only basis.

The proposal for 33 Cross Street was designed and planned with the ageing Double Bay community in mind.

“This is the largest privately held site in Double Bay Village, and over the past 25 years there have been numerous concepts, schemes, ownership changes and refurbishments in an attempt to revitalise the site without sustained success,” said Eduard Litver, managing director of the Capitel Group.

“Our focus is to deliver the next evolution of this Sydney icon – a truly mixed-use lifestyle destination of enduring quality that inspires local pride and garners global recognition, and aligns to Woollahra council’s vision for Double Bay Village.”

Rebel Property managing director Allen Linz said almost half of the proposed development had been dedicated to non-residential uses, including cinemas, landscaped open spaces, retail and dining, commercial suites and community-accessible services.

It’s understood that the apartments will be offered to the market on an invitation-only basis

“Since the early 1990s, 33 Cross Street has served as a landmark hotel with limited civic connection beyond one street frontage, while the harbourside community has been transforming into a vibrant cosmopolitan precinct that we know people want to preserve and enrich,” Mr Linz said.

“Our design creates an inviting, permeable street-level experience for all to enjoy, while preserving the site’s history with a new right-sized luxury boutique hotel.”

It is understood the manager of the new boutique hotel is yet to be ­identified but the site’s owners have a good relationship with IHG, the ­operators of the existing InterContinental Hotel.

It is understood the developers believe the project will breathe life into the Cross Street precinct – now that Woolworths anchored one part of Double Bay and Neil Perry’s ­restaurant, Margaret, anchored another.

The developers will also maintain control over as much of the project’s non-residential areas such as its retail, 40-room boutique hotel and office space as possible to ensure quality.