Landmark Double Bay Hotel Heads to Market

A landmark Sydney hotel frequented by Princess Diana, David Bowie and Sir Elton John will go on the market next month.

The InterContinental Double Bay hotel will be the subject of an expressions of interest campaign as joint-venture owners Fridcorp and Piety Group move to offload their respective stakes in the landmark hotel “to pursue separate projects”.

It is expected to fetch in the vicinity of $230 million.

CBRE and Colliers have been appointed to manage the campaign, “providing an opportunity to secure a prominent Sydney hotel with significant future development potential (subject to council approval)”.

Built in 1991 and originally launched as The Ritz-Carlton, the Bates Smart-designed 140-room property at 33 Cross Street has been managed by IHG Hotels & Resorts for the past eight years and is being offered with the potential for vacant possession.

Fridcorp and Piety Group acquired the hotel with the view to returning the hotel in the eastern suburbs harbour precinct to its once famed prestige and luxury.

Upgrades during the past 12 months, including transforming the bar and restaurant under the expertise of restaurateur Maurice Terzini, of Bondi’s Icebergs Dining Room & Bar fame, have helped the hotel reclaim its former glory.

The hotel bar, called The Bar, was recently named the Best Hotel Bar in Australia at the annual Hotel Management Awards and featured in Sydney’s Top 20 Bars.

Now ranking among Sydney’s highest hotels in terms of Revenue Per Available Room (RevPAR), with The Bar and restaurant channelling the glamour of some of the world’s best bars, the joint venture believe it is a commercially astute decision to sell at this time.  

Colliers national director for residential Guillaume Volz said the InterContinental Sydney Double Bay benefitted from its major site area of 3674sq m in the heart of Double Bay’s sought-after retail and residential precinct.

“In the medium term, and subject to council consent, the property provides the opportunity to be redeveloped into a premium mixed-use project comprising a hotel, residential apartments and retail,” he said.

“We anticipate very strong interest from a wide range of local and international developers and hotel owners.”

CBRE chairman, residential projects, Justin Brown, said Double Bay was Sydney’s premier luxury “village” locale.

“It is perpetually under supplied for luxury residential stock. This opportunity is not only Double Bay’s but arguably Australia’s best mixed-use opportunity coming in 2023,” he said. 

CBRE hotels managing director Michael Simpson said interest in the campaign would be underpinned by the continued rebound in international tourism and the rising global popularity of hotel-branded residences.

“Sydney is emerging as a favoured Asia Pacific destination for luxury hotels with branded residences, offering apartments for sale within a hotel-led development,” he said.

“Prominent examples include the Crown Residences at One Barangaroo, 1 Hotel in Melbourne and Mondrian Gold Coast Hotel and Private Residences in Burleigh Heads, with residents afforded access to the same five-star services and amenity as hotel guests.”