Parramatta Hilton hotel’s future in doubt

It was billed as Parramatta’s first five-star hotel but doubts have been cast over a luxury chain establishing itself in the booming CBD, especially with more plush digs planned nearby.

Construction on Parramatta’s first five-star hotel, the Hilton, was slated to start in March but delays on the $200 million project have cast more doubts on whether the 245-room building will be built.

Workers in Parramatta’s CBD have been told the hotel - which was first discussed in 2016 and earmarked to house a hospitality training school, ballroom and a health and wellness centre - has been axed for the corner of Macquarie and Marsden streets.

However a spokesman for Ledrae, which owns the building to be demolished for the Hilton, said construction was delayed but still proceeding.

He blamed the lag on Covid lockdowns and Parramatta light rail construction but said demolition works would begin next March and the hotel would open in 2025.

He said some tenants had signed to lease floors allocated for commercial premises.

“We’ve been in this process for five years so it’s been a while,’’ he said.

“I have heard (about it not proceeding) but we are definitely going ahead.

“We’re going to build it. It’s a huge undertaking. It’s much bigger than Parramatta Square.’’

He said there would be presidential and honeymoon suites.

A development application had not been filed with Parramatta Council until the winner of the design competition had been selected, he said.

Others have said Parramatta could not support two high-class hotels with the 32-storey InterContinental on the same street.

Developers Holdmark plans to open the accommodation at 197 Church St in 2025 when there will be 200 rooms, a rooftop bar, swimming pool and gym, and a 23-level commercial tower.

However, Business Western Sydney executive director David Borger said Parramatta’s growth could sustain the two hotels.

“The interest of world-class hotels in Parramatta is a vote of confidence in our growing visitor economy,’’ he said.

A possible design for the Hilton, which could be canned.

“Parramatta is a city on the move and we are going to need a stronger accommodation offering that could very well include two five-star hotels.

“The Powerhouse Parramatta, the redevelopment of the Riverside Theatres and the opening Western Sydney Airport will see a significant boost to the number of people visiting and staying in Parramatta over the coming years.’’

The InterContinental’s plans have progressed faster than the Hilton’s despite first announcing plans four years later.

A Holdmark spokeswoman said the hotel was working through heritage issues encountered after the Sydney Central City Planning Panel rejected an application to start demolition in June.

“We will continue to engage and collaborate with government agencies to work through site challenges including with council and heritage consultants,’’ she said.

“There is no doubt that once complete, the precinct will attract tourists and business travellers alike and help anchor Parramatta as a leading Australian business, entertainment and cultural centre.’’

The hotel is being built atop the Murray Bros building. The department store was built in 1926 and while the heritage facade will be retained, the hotel’s development means the end of Parramatta institution Peter Wynn’s Score.

The InterContinental will dwarf but retain the Murray Bros building.