Melbourne developer Steller has unveiled first glimpses of its luxury Continental Hotel redevelopment as it commences construction on the 143-year-old building.
In a joint venture with former director of the Melbourne Pub Group Julian Gerner, the five-star seaside project will be delivered across two stages.
Three interconnected buildings are proposed as part of the $80 million redevelopment which will offer luxury accommodation and wellness facilities, with the goal to become an entertainment and dining destination.
Steller chief executive Simon Pitard said the Continental Hotel, which has an estimated end value around $150 million, "will re-establish Sorrento as the heart of the Mornington Peninsula".
“Steller recognises the need to provide an iconic, mixed-use accommodation and lifestyle precinct in this sought-after location,” Pitard said.
The developer has a project pipeline of more than $4.2 billion across Melbourne’s south eastern corridor. While joint venture partner Gerner is responsible for refurbishment of properties such as the Albert Park, Middle Park and Newmarket hotels.
The property was put on the market last year for around $20 million, however Gerner secured Stellar group as a JV partner to realise the full scale of the development.
The project, said to be the largest tourism investment in the area, will create up to 200 jobs for the local economy once fully operational.
Upon completion the team will retain the hotel with plans to operate the venue.
Construction of the hotel's first stage will be finalised in September next year.
Subject to approvals, stage two of the redevelopment will be completed in Spring 2020.