Dare Seeks Hotel Build in Softening Residential Market

Dare Property Group is seeking an amendment to a shovel-ready five-storey project in Melbourne’s trendy inner north, hoping to take it from a 15-apartment building to a 43-room boutique hotel.

Yarra City Council approved plans for an apartment block on the 397-sq-m site in the centre of Fitzroy in January this year.

However, last month Dare lodged an amendment seeking to change the use of the previous approval from dwellings to a residential hotel, with food and beverage offerings.

Dare’s founder and director Danny Avidan told The Urban Developer weakening residential sales in Melbourne had influenced the decision.

“Victoria, and Melbourne in particular, is a very soft market right now and softening up as we speak,” Avidan said.  

“So it made good sense to reconsider.” 

The Sydney-based developer acquired the site at 235 Napier Street in March last year for $4.56 million.

Under the new proposal the exterior of the SJB-designed five-storey and two basement level building will remain largely the same.

▲ Plans call for on-site electricity generation with photovoltaic panels, as well as power reduction features.

Some balconies will disappear, there will be an additional hotel entry and commercial food and drink facilities will be added to a roof terrace.  Internally, the layout will be revised to remove apartments, convert them to hotel suites and add two restaurants, a bar, café and hotel lobby.  Hotel rooms will range in size from 22sq m to 67 square metres.

There will no longer be basement car-parking.

The site has three street frontages—Napier Street, a Carriageway and St David Street.  Because of the latter, the proposed hotel will be called The Saint.

Town planning documents, now on public exhibition, say the development will be carbon-neutral in operation.   Plans call for on-site electricity generation with photo voltaic panels, as well as power reduction features.

“The inner-city suburb of Fitzroy has a long association with hotels, with many of its corner sites dotted with venues showcasing the varied history of the area,” planning documents stated.

“However, in present day, accommodation has largely vacated these spaces leaving short-term private rentals to fill the gap.

▲ Under the new proposal the exterior of the SJB-designed five storeys and two basement levels will remain largely the same.

“This project seeks to return this sense of hospitality to the suburb while offering the discerning traveller an establishment which minimises its carbon footprint and demonstrates how even a modest scale infill project can contribute to our collective sustainability.”

Avidan said his company would retain the completed asset.  They had not yet decided who would manage the boutique hotel.

“There are several options, and we're talking to people,” he said.  “But, you know, clearly we're not going to make any strategic definite decisions until we are authorized to build what we want to build.”

The developer made the move into property development after 25 years as one of Australia’s most successful fashionistas who built a rag trade empire that included top fashion brands such as Charlie Brown, Howard Showers and Hollywood Fashion Tape.