Sydney Backpackers up for sale with plans for hotel
A hospitality group has listed an inner city backpackers in the heart of Sydney with development potential.
The Sydney Backpackers building at 7-9 Wilmot Street has approximately 127 beds and DA plans for a 58-room boutique hotel.
It is being sold by Jonathan Yeh through his Yeh’s Hospitality Group, which own a number of sites across Australia including a hotel on Liverpool Street.
The backpackers is located inside a former warehouse.
The former warehouse is being offered to buyers via an expressions of interest campaign, with expectations that it could sell north of $15m.
Yeh’s Hospitality Group acquired the building in 2017 for $11m, with intention of converting it into the a hotel. After receiving approval for an eight-storey boutique hotel, the company have instead opted to list it.
The plans include approval for 58 rooms across 1100sqm and ground floor retail.
JLL Hotels & Hospitality Group senior vice president Andrew Langsford said the offering is expected to be popular with entry-level investors.
“It presents investors an entry level Sydney CBD freehold opportunity with an experienced tenant, in a prime central location, and the potential to develop into a boutique hotel or explore alternative uses with holding income,” he said.
Located in proximity to a number of new developments and the new Pitt Street Metro Station, the building could also be used for co-living, co-working and student accommodation.
The former warehouse currently has a rooftop terrace, a ground floor restaurant, communal kitchen and shared bathrooms.
There is a rooftop currently.
Artist impression of the new foyer.
The listing comes at a time when the tourism industry has been one of the hardest hit sectors during the coronavirus pandemic due to border closures.
Expressions of internet for the listing are due to close next month on November 12.
This article from The Daily Telegraph originally appeared as “Yeh’s Hospitality Group list Sydney CBD building of Sydney Backpackers with DA for hotel”.
