Privately owned APH Holdings has snapped up one of the last major development sites in the northern corner of the Melbourne CBD and unveiled plans to build a high-rise hotel as well as a mix of ground-floor hospitality offerings.

The busy developer, whose other Melbourne projects include a $1 billion suburban office park  and a $1 billion health precinct in the city’s eastern suburbs, paid more than $40 million for the neighbouring sites of 441-445 Elizabeth Street and 447-451 Elizabeth Street, as well as an adjoining site, 139-141 Franklin Street, that include the 1858-built Royal Saxon Hotel and another historical property, the brick and bluestone Menzies International building.