Fridcorp snaps up InterContinental Sydney Double Bay in near $180m deal

The luxury Sydney hotel linked to the death of Michael Hutchence could be turned into apartments, after its sale to developers.

The InterContinental Sydney Double Bay. Picture: Mark Evans

Sydney’s residential property boom is getting into full swing with developer Fridcorp swooping on the luxury InterContinental Sydney Double Bay in a deal worth close to $180m that sets it up for an apartment conversion in the future.

The property, best known for its association with the late INXS rocker Michael Hutchence, who was found dead in a room in the hotel in 1997, could be converted to luxury units.

The 140-room Double Bay hotel — previously the Stamford Plaza and the Ritz Carlton — underwent a lavish $100m renovation by Singapore’s Royal Brothers and two partners who purchased the property in 2013.

The high-end residential market is booming with mansion sales regularly topping $20m and interest spilling over into top end apartments. Sydney eastern suburbs developers are reaping record sales, while city precincts like Barangaroo and Circular Quay are also hitting new highs.

The InterContinental Sydney Double Bay deal was brokered by Steven Chen of The Agency, who declined to comment.

In a statement Fridcorp confirmed it would redevelop the five star hotel it has bought in joint venture with the Piety Group, into residential apartments capitalising on the site’s spectacular Sydney Harbour views.

Woollahra Council granted permission to demolish the existing hotel and build an eight level residential block and retail development on the site, a decade ago.

The acquisition is one of the most significant hotel deals since the pandemic and Fridcorp and Piety said they envisaged returning the property back to its former prestige.

The sale by Chinese groups Shanghai United and Zobon Real Estate Group also signals the return of local investors to the hotel sector after a wave of Chinese buying around five years ago.

Chinese buyers netted key properties including the Hilton Sydney and the Sheraton Grand Sydney Hyde Park but now local groups with the capacity to undertake apartment conversions are putting their stamp on the market.

Fridcorp is one of the leading developers in Melbourne and Sydney, with a focus on both residential and commercial projects and has capacity to both own the hotel while working up redevelopment plans.

The Chinese groups picked up the hotel, one of the best known in Sydney’s wealthy eastern suburbs, in 2017.

The property was bought by the Chinese multinationals for about $140m, so their exit from the high-end Sydney enclave will be profitable.

Shanghai United, set up by 10 of China’s top property firms, including Zobon, said four years ago it had $2bn to spend over the following five years, but like many Chinese players it has since been quiet.

Chinese-backed Golden Age Development Group was an early mover and undertook a 37-apartment project on New South Head Road. China’s SJD Property Group also paid $55m to buy a complex on nearby Cross Street from the wealthy Roche family and is undertaking a luxury project.

At the height of the Chinese investing boom, Shanghai United struck hotel deals across Sydney, where it controlled five projects. It also announced a partnership with French giant ­AccorHotels Pacific.