Sydney's hotel market is set to welcome two more assets with the development of a Veriu property at Alexandria and the opening of the Four Points by Sheraton, which is the latest addition to the multi-stage $2 billion Central Park development, a joint venture between Frasers Property Australia and Sekisui House Australia.
The new Four Points by Sheraton will offer 297 guest rooms, including two luxury suites, an al fresco bar, modern restaurant and over 553 square metres of function space.
The $45 million Veriu Green Square hotel development started construction this week. It is set to bring 144 rooms to Sydney’s thriving hotel market when it opens in late 2019.
The hotel is located at 18 O’Riordan Street, Alexandria, within the $13 billion, 278-hectare Green Square Urban Regeneration Area. It is 120 metres from the Green Square Train Station which is on the same line as the Sydney Airport domestic and international terminals.
Development of the hotel is a joint venture between Veriu Hotels & Suites, one of Sydney’s dynamic new boutique hotel brands, and Folkestone, an ASX-listed real estate funds manager and developer.
The joint venture pre-sold the hotel in November 2017 to the Folkestone Green Square Hotel Fund, which intends to own the hotel long-term. Construction and fitout group, FDC, are undertaking the construction of the hotel.
Veriu Green Square is the first new-build hotel for the Veriu group, which has created a growing network of bespoke hotels by converting former warehouse spaces and heritage buildings. It will be the fifth hotel in Sydney for Veriu, with city-fringe hotels already located in Broadway, Surry Hills, Camperdown and Randwick.
“This is an exciting development for Veriu and for this growing precinct. As Sydney’s infrastructure continues to develop there is a need for a quality accommodation option in this area to service business and leisure guests in close proximity to the CBD, sporting and entertainment facilities and the airport,” Rhys Williams, co-director of Veriu Hotels & Suites, said.
Folkestone’s managing director, Greg Paramor said his group was ''delighted to have started construction of this hotel which will no doubt add to the vibrancy of the Green Square area and offer guests an inviting stay experience in a highly convenient location”.
It is Folkestone’s second hotel investment in Sydney following the acquisition of the Mercure Sydney International Airport Hotel in 2017.
Mick Caddey, project director at Frasers Property Australia, said the Four Points by Sheraton at Central Park would allow visitors to experience Sydney ''through a local lens and is just minutes away from Chinatown, Darling Harbour and the Sydney CBD''.
Bernhard Langer, general manager at Four Points by Sheraton Sydney, Central Park, said the hotel would offer a street-level malt bar to enjoy a selection of craft beers, spirits and wines, paying homage to the nearby heritage-listed Kent Brewery.
There are at least another three hotels earmarked for Darling Harbour with the W Hotel, a planned Ritz-Carlton at The Star casino and the Crown resort at Barangaroo.
Carolyn Cummins is Commercial Property Editor for The Sydney Morning Herald.