The InterContinental Hotel, Sydney is to undergo a $200 million-plus facelift at a time when the hotel sector is on a strong upward trajectory.
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Owned by Mulpha Australia, it is the first time in three decades the property has been upgraded, and will add to the city's conference space with a proposed grand ballroom, complete with a glass wall, giving guests view of Circular Quay and the Sydney Harbour Bridge.
It will be one of the final pieces in the revamp of the northern end of the City, where AMP is undertaking a $1 billion redevelopment of its nearby 50 Bridge Street office tower to add a new retail and apartments.
The City of Sydney is also planning a new-look wharf area, while around the corner in Pitt Street the Sydney Harbour Marriott has put the finishing touches to its $15 million renovation of the ground-level reception and lobby, plus a new food and beverage concept.
According to Colliers International there has been a "marked turnaround" in demand for hotel rooms, prompting many new developments to enter the market.
The opening of the new International Convention Centre Sydney, which has the adjoining Sofitel Hotel, managed by AccorHotels, has boosted the need for hotel rooms, in what has been described as an undersupplied market.
The head of hotels Australia at Colliers International, Gus Moors added that the Asian influence on the local tourism market "will be profound and with broader impacts the economy".
"Looking forward, an increase in the supply pipeline is expected across all Australian cities through to 2022. This new supply is considered to be an overall positive for cities with strong overall market fundamentals such as Sydney and Melbourne and will further help to revitalise these cities," Mr Moors said.
Mulpha Australia chief executive Greg Shaw said the redevelopment will "preserve and enhance the position of the InterContinental Sydney as the city's best located five-star property", as well as boosting Sydney's international tourism infrastructure and appeal to host major events.
"With the proposal expected to go on public exhibition shortly, Mulpha will continue consultations including with heritage, tourism, community and planning stakeholders to progress its application," Mr Shaw said.
InterContinental Hotels Group Australasia & Japan chief operating officer Karin Sheppard said: "This is an extraordinary opportunity for InterContinental Sydney and a boon for future travellers to Sydney."
Included in the upgrades will be all existing public areas, functions rooms, restaurants and 509 guest rooms and a new, 900-square metre grand ballroom.
Mulpha's plans are contained within its Stage 1 State Significant Development application recently lodged with the NSW Department of Planning and Environment and are expected to go on public exhibition for comment shortly.
