Property developer Billbergia has submitted a development application to the North Sydney Council for a $122 million hotel and office building.
A 35-storey tower, which will sit above the existing heritage Firehouse hotel in North Sydney, will straddle two sites at 86 and 88 Walker Street and comprise 224 hotel rooms and 4504sq m of commercial space.
The 1895-built Firehouse hotel at 86 Walker Street will be retained, with an existing nine-storey building on 88 Walker Street demolished to make way for a 35-storey tower. Sydney-based architecture firm Fitzpatrick + Partners will design the project.
Development heavyweight Billbergia, who are currently developing Brisbane’s tallest residential tower, the “Brisbane Skytower”, have put forward the proposal to the City of North Sydney.
The site was last acquired for $20 million by real estate group Marprop in early 2017.
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After nearly two decades of weak hotel development in Sydney, its hotel stock levels are forecast to grow nearly 4 per cent in 2018, with several major residential projects converting to include hotels or short-term accommodation.
Meriton’s 32-storey 230 Sussex Street development is the latest project to apply for change of use, eliminating all units from the mix, with levels 17 through to 32 to be converted into hotel rooms.
According to the latest STR hotel data for last month, the average daily rate and revenue per available room is the highest on record for the month of May .
Billbergia is the latest in a line of developers to capitalise on North Sydney’s office tower boom, with its Walker Street project neighbouring Dexus’ $600 million-plus 100 Mount Street tower and Winten’s $1 billion 1 Denison Street.
According to the development application, Billbergia’s 123 metre tower will cantilever over the Firehouse Hotel and include more than 4500sq m of office space across levels 24 to 31.
No hotel operator has been announced for the hotel component of the project.