Owners of Sydney's recently closed Bounce Hostel have sounded out plans for a new 16-storey hostel at a new site on George Street in Sydney's Haymarket.
It is understood that Fuqiang Investments is seeking approval with council to build a new five-star backpacker hostel designed by Sydney-based MKD Architects.
The new five-star backpackers building will provide 291 dorm beds and 10 private rooms accomodating up to accommodate 311 guests with early concepts also including a swimming pool.
If realised, the $10.8 million George Street development will sit within a suburb fast becoming known for its hostels and student accommodation properties
Fuqiang became the owners of Bounce Hostel, not far away at 28 Chalmers Street, Surry Hills, after buying it for $18.3 million in September 2015.
The hostel was then sold to the NSW government for $30 million to be demolished to make way for a new eastern entrance to Central Station.
The new underground concourse, set to be completed by 2022, will act as a direct interchange connecting Central Station to Surry Hills and the future CBD and South East Light Rail.
Fuqiang then purchased the Haymarket building, known as Segraves House, from a private family, who had held the property for 45 years, for $14.65 million.
The newly-proposed Bounce Hostel will be in close proximity to Chinatown and Central Station and will also include a ground-floor bar and cafe.
The development will be for a single slender tower emerging from a three-storey podium fronting George Street.
The building's height will exceeds the 50 metre limit for the area by just 2.2 metres. The developers have requested for an exception due to the sloped topography of the site.