Linzhu Australia managed to pre-sell its Hotel development in Pitt Street Sydney to Platinum Hotels, transferring the site for $91.3M late last year, prior to the Corona Virus Pandemic impacting the sector.
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Privately owned Linzhu acquired the 1202-square-metre site vacant car park site from Ausgrid in 2014 for $36.9M and obtained a planning permit in late 2017 for a Hotel and tourist accommodation building. The proposed building’s tower is made up of 15 levels of visitor accommodation comprising 306 hotel rooms, 2 levels of retail facilities and 4 basement levels.
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Linzh Australia signed up IHG as its operating partner and the property was originally slated as a Holiday Inn in 2017, however as the need for quality accommodation in Sydney CBD have increased in recent years, it became clear that an upscale hotel with a very distinctive character would be successful enabling IHG to move to its new upscale voco brand.
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The sale of the site late last year to Platinum Hotels suggests that the project was ready to commence construction. The hotel is estimated to cost $90m and is now scheduled for completion in 2021, however COVID19 may delay completion to 2022.
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Prior to COVID19, Sydney was experiencing an under supply of Hotel rooms, prompting a boom in Hotel developments with about 4600 Hotel rooms planned to be added to the Sydney hotel market by the end of 2022.
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With international and domestic borders now closed in Australia and across the globe, it will now take several years for tourist numbers to return to post CV levels.
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