Capella Sydney in Heritage Landmark Renaissance

It opened to rapturous applause last month after a seven-year restoration and renovation process. 

Now Capella Sydney is fast-becoming a mainstay in Sydney’s inner-city hotel market following an impressive adaptive reuse of the the early 20th century building designed by NSW government architect George McRae.

Pontiac Land restored the former Department of Education sandstone building and reimagined it as a luxury accommodation, which chief executive David Tsang said would contribute to a “vibrant and rejuvenated Circular Quay precinct”.

“Capella Sydney was an ideal opportunity for us to sensitively repurpose this culturally significant landmark in the heart of downtown Sydney and transform it into a more public offering as a leading luxury hotel for everyone to be able to experience,” Tsang said. 

▲ Capella Sydney was a seven-year adaptive reuse and restoration project in a former Department of Education building.

The 192-key hotel is set across nine levels. 

It is the Capella Hotel Group’s debut in Australia and president of the hotel brand Cristiano Rinaldi said it was a “milestone moment in the company’s global expansion”.

“This launch represents a significant opportunity for Capella to showcase its refined and curated offerings to Sydney and its visitors, and we look forward to amplifying the stories, culture and experiences of the city through a uniquely Capella lens,” Rinaldi said. 

The hotel features a number of commissioned and acquired art pieces, including work by Judy Watson, Otis Hope Carey and Georgia Bisley. 

Make Architects architectural designer Michelle Evans led the adaptive reuse of the former government building. Evans is presenting a case study on this project at The Urban Developer’s one-day virtual summit on Hotel Property Development this week. 

Evans said the sensitive restoration retained the internal and external heritage features, including the Florentine Palazzo-style facade and marble-clad vestibules. 

▲ A four-storey extension is set back off the main facade, while a pool was also included in the upmarket hotel.

Existing rooftop additions were replaced with a four-storey extension set back from the existing sandstone facade.

The hotel sector has been touted as one of the hottest investment asset classes this year following a busy year of transactions in 2022. 

There were more than 50 transactions valued at more than $10 million—a record number of deals, which was 39 per cent above the 10-year average.

The deals have continued to flow in 2023 with the recent sale of the first Australian Waldorf Astoria hotel to mining billionaires Nicola and Andrew Forrest’s private Tattarang property company Fiveight.
 

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