Sydney’s iconic InterContinental Double Bay hotel for sale by CBRE and Colliers on behalf of joint venture owners Fridcorp and Piety Group. Built in 1991 and originally launched as The Ritz-Carlton, the Bates Smart-designed 140-room property at 33 Cross Street, Double Bay, has been managed by IHG Hotels & Resorts for the past eight years and is being offered with the potential of vacant possession.

Fridcorp and Piety Group acquired the hotel with the view to returning it to its once famed prestige and decadence in the eastern suburbs’ harbourside precinct.

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

The Bar was recently named the ‘Best Hotel Bar in Australia’ at the prestigious annual Hotel Management Awards and featured in Sydney’s Top 20 Bars. These coveted accolades will help position the hotel to continue to outperform for a new owner, while ensuring its unique legacy.

Now ranking among Sydney’s highest hotels in terms of Revenue Per Available Room (RevPAR), with The Bar and restaurant channeling 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.  

CBRE and Colliers have been exclusively appointed to manage the Expressions of Interest campaign, providing an opportunity to secure a prominent Sydney hotel (often referred to as the jewel of the East) with significant future development potential (subject to council approval).

CBRE Hotels Managing Director, Michael Simpson said the hotel was well positioned to take advantage of the sector’s strong future growth prospects, with domestic leisure underpinning the strength of the recovery and demand returning across all segments.

“The Sydney hotel market had enjoyed well over a decade of occupancies in the mid 80 per cent to 90 per cent range fueled by a number of factors including the substantial uplift in office space across the city and the subsequent increase in white collar employment, the re-opening of the International Convention Centre and a rise in both domestic and international leisure demand,” Mr Simpson said.

“The hotel’s ability to attract a broad range of markets, as a function of its unique harbourside location and iconic status, has ensured it has maintained high occupancy levels and a strong rate growth post-covid.”

Colliers Head of Hotels Karen Wales 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, whereby for sale apartments are included within a hotel-led development,” Mr Wales 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.”

Currently managed under a Hotel Management Agreement with InterContinental Hotels Group, the opportunity exists to acquire the hotel with vacant possession, potentially enabling an incoming investor to establish a new brand within an exclusive Sydney locale.

Colliers National Director for Residential, Guillaume Volz, said the InterContinental Sydney Double Bay benefitted from its major site area of 3,674 square metres 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. We anticipate very strong interest from a wide range of local and international developers and hotel owners,” Mr Volz said.

CBRE Chairman, Residential Projects, Justin Brown, said “Double Bay is 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.”

Expressions of interest close on Wednesday, April 5th at 12pm.

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.