Sheraton has big plans for Sydney - The Daily Telegraph

SYDNEY'S newest tower is set to mask a motorway, with the expansion of Sydney's biggest hotel Darling Harbour's Four Points by Sheraton Sydney to stretch over the freeway.

Worth $160 million, the 230-room redevelopment, includes ballrooms and seven-floors of boutique offices with water views that cannot be built out, after it's planning proposal warned Sydney's four and five star hotels were filling up and could not meet demand.

High land prices, high construction costs and increases in hotel operating costs, coupled with limited real increases in room rates, had resulted in reduced financial viability for new hotels, the planning documents said.

Four Points Hotel at Darling Harbour / Picture supplied by the NSW Department of Planning Source: Supplied

"At these occupancy levels any new convention business attracted to Sydney will have difficulty finding accommodation," Four Points planning proposal said.

NSW Deputy Premier Andrew Stoner said the NSW Government was building a world-class convention, exhibition and entertainment facilities at Darling Harbour as part of the biggest redevelopment of the area in a generation.

"The NSW Government has set an ambitious target of doubling overnight visitor expenditure by 2020 and, together with the new premium International Convention Centre hotel at Darling Harbour, the Four Points expansion will help us meet that goal by addressing the shortfall of hotel accommodation in Sydney," he said.

"The Four Points is already the largest hotel in Sydney with 683 rooms, and the construction of a new tower with 230 additional rooms will bring the total number of rooms to more than 900."

Four Points by Sheraton planning documents said $550 million redevelopment of the Sydney Convention Centre would significantly increase convention delegates.

"A key factor in ensuring that the planned additional conventions are attracted to Sydney is the provision of adequate high quality accommodation," it said.

"Organisers of large conferences, in particular, are likely to view the provision of a 1,000 room Four Points Sheraton pas a major advantage as the majority of the delegates can be accommodated in one location."

It will create 2,250 direct and indirect jobs during construction and a further 92 when operational as a full service hotel with work to begin early next year and to be completed within two years.

M & L's Hospitality bought the hotel in 2009, but were keen to use the air rights, CEO Neil Maxwell yesterday said.

"Since M & L Hospitality's ownership of the Four Points by Sheraton Sydney in 2009, we have been committed to bringing out the hotel's full potential through investment. The refurbishment of all 683 existing rooms is now complete and the development of the new tower will solidify the Four Points' standing as an affordable but exceptional hotel experience in the heart of Sydney," he said.

Mr Maxwell said it would open new walking connections from the city to Darling Harbour through Sussex St, with the heritage space on Sussex to be revitalised with small restaurants.

M & L Hospitality, backed by Singapore-based Kum family, said it will also address the shortage of event space during the remake of Sydney's International Convention, Exhibition and Entertainment Precinct.