Announced today, a new luxury hotel will become the landmark for the State Government’s $2.5 billion international convention, exhibition and entertainment precinct at Darling Harbour.
Announced today, a new luxury hotel will become the landmark for the State Government’s $2.5 billion international convention, exhibition and entertainment precinct at Darling Harbour.
Principal of Schwartz Family Company, Dr Jerry Schwartz, has signed a conditional agreement to purchase the ICC Hotel which will be developed by Lend Lease and managed by Accor. The new hotel will be operated under Accor’s luxury 5-star Sofitel brand. The deal was brokered by Michael Simpson of Savills.
Principal of Schwartz Family Company, Dr Jerry Schwartz, said “our company has played a significant role in the development of Sydney’s tourism and hospitality sector over the past decade, and we are now operating some 2,000 rooms across the city. Most of our existing hotels are major conference hotels, which makes owning and operating the ICC Hotel a natural progression for us. This is our first new-build hotel and our investment will play a key role in building Sydney’s reputation as one of the world’s premier cities for hosting conventions, exhibitions and events.”
Michael Simpson, Savills Managing Director Hotels Australia and New Zealand, said “with an acute under supply of new luxury hotels, robust performance and continued demand growth, the delivery of this new hotel is a landmark deal not only for the Sydney market but for the Australian hotel industry. The luxury hotel market remains highly attractive and, with Sydney’s rising prominence as a global city, it highlights the growing demand for quality 5 star hotels.
“Sydney has not had a new luxury hotel built in over 15 years. The Sydney market has experienced robust and continued growth over the last 5 years, with performance for year to December 2013 up 7.9% over the year to December 2012. Performance this year to July is up another 7.6% compared to the previous corresponding period.”
Dr Schwartz added, “As a proud Sydney-sider, I believe the re-energising of Darling Harbour has long been overdue and the NSW Government deserves credit for taking hard decisions based around a long-term vision for Sydney’s future development.”
Accor Pacific Chief Operating Officer, Simon McGrath, said, “Accor has been at the heart of tourism development of Darling Harbour since opening the precinct’s first hotel in 1991. We are proud that Dr Schwartz has entrusted Accor to manage his most significant hotel investment in Australia and we look forward to operating a world class Sofitel luxury hotel to complement the ICC Sydney and fulfil the Government’s vision of a truly international tourism destination. Sofitel Sydney Darling Harbour will become a flagship luxury hotel for the region and Accor is extremely proud to manage the landmark hotel among our growing luxury portfolio.”
Construction of the new 35 storey hotel is expected to start in late 2014, and it is due for completion in the first half of 2017. The hotel will have circa 600 rooms to support the new ICC Sydney and Sydney’s growing accommodation demand.