Green light for AU$200 million Sydney CBD hotel

by Ruth Hogan

A former warehouse in Sydney’s CBD that dates back to circa 1916 is set to be transformed into a 17-storey lifestyle hotel after property group Mulpha Australia received development approval for the AU$200 million project.

The site at 355-357 Sussex Street will be redeveloped as a 272-room hotel with a ground floor restaurant and bar facilities. The existing 5-storey building will be retained as will many of the original elements including its heritage façade. “We are thrilled to receive approval for this new age hotel that will contribute to the ongoing rejuvenation of the southern CBD into one of the most vibrant areas of Sydney for visitors, residents and workers,” said Mulpha CEO Greg Shaw. “With the strong rebound in both domestic and international tourism, it is vital that we have shovel-ready projects to grow accommodation capacity and meet demand.
355-357 Sussex St Sydney
“Sydney is leading the way in the Australian accommodation industry with strong occupancy levels set to increase further as the international market exceeds pre-Covid levels in 2024 and beyond. As the gateway to Australia, more quality hotels will reinforce Sydney’s status as a global centre for business, finance and education, while supporting the construction sector and broader economy.” Mulpha’s existing Australian hospitality portfolio includes InterContinental Sydney, InterContinental Sanctuary Cove Resort, InterContinental Hayman Island, Bimbadgen Winery Estate and the upcoming Palmers Lane Retreat in the Hunter Valley, which is due to open in October 2023. Shaw said the latest investment continues the group’s long-term commitment to acquiring and developing high quality tourism and hospitality assets in key Australian destinations. “We are advancing negotiations with global hotel operators to introduce new innovative hotel product for the Sydney market,” he added. Construction is set to commence in the first half of 2024 with the project estimated to be completed in mid-2026.