City of Sydney approves $41m hotel development at fire-ravaged Hendersons Hat Factory site

Just over a year after it was destroyed in one of the largest Sydney building fires in recent years, the historic hat factory in Surry Hills is set to be transformed, thanks to the approval of a multimillion-dollar development plan.

A historic hat factory, reduced to rubble in a massive Sydney inferno, is one step closer to being turned into a multimillion-dollar hotel.

The City of Sydney has given the green light to a nine-storey development that will replace the former Hendersons Hat Factory, 16 months after a fire ripped through the Surry Hills site.

At the time of the blaze, the building was unoccupied but hundreds of people living and working in surrounding buildings had to be evacuated

Many residents of surrounding buildings remained locked out of their homes for several days after the fire due to safety concerns. 

Two 13-year-old boys were later charged over their alleged involvement in the fire.

A concept image of the development.

The development will include new restaurants and a bar.

The $41.4m redevelopment of the site will include a 123-room hotel along with two restaurants, a bar and a cafe.

The development, at 7-15 Randle Street, will also incorporate fire-ravaged remains of the hat factory, including charred wood and brickwork which were able to be salvaged from the inferno.

The City of Sydney – in approving the plans – found the development was “consistent” with the desired future character of the area and will reinstate elements that are “important to the heritage significance of the site”.

A concept image of the development.

The development has been given the green light by the City of Sydney.

The approval is expected to be welcome news for the site’s owners, whose previous plans to redevelop the hat factory came to an abrupt halt due to the fire.

At the time of the fire, construction works on the earlier redevelopment plans had been just two weeks away from commencing.

Approved plans for the site show the new development will incorporate a public art strategy and interpretative digital artwork to recognise the history of the 112-year-old hat factory.

A photo of the fire-damaged site.

The fire engulfed the building in May 2023.

Other features of the development include landscaping works, pedestrian links and streetscape improvements.

Charred timber posts and beams will be incorporated, as will an original fire bell that was able to be salvaged.

Before the fire, the factory had been recognised for its connection to the Australian production of felt and straw hats, which were sold throughout Australia as well as exported overseas.

The hat factory was built in 1912 for ladies hat manufacturer R. C. Henderson, and traded for about 40 years.

The factory closed in the 1950s, marking a broader decline of Sydney’s millinery industry.