$186 Million Hotel Tower Approved in Sydney CBD Amid Opposition: What This Means for Urban Growth, Planning Pressure, and Commercial Confidence

The City of Sydney has officially approved a $186 million hotel tower on Pitt Street in the CBD — a landmark decision that signals renewed confidence in the city’s visitor economy, despite vocal opposition from neighbouring property owners.

Proposed by Singapore’s Well Smart Group, the development features a 60-storey high-rise hotel, complete with guest amenities, activated street frontages, and panoramic views of the harbour skyline. The tower is expected to generate 570 construction jobs and create 400 ongoing roles in hospitality, tourism, and building operations.

While objections were raised regarding overshadowing, privacy, and long-term disruption, the City of Sydney’s planning panel ruled the development met all zoning requirements and aligned with the city’s broader economic strategy. For the commercial property sector, the project represents a strong vote of confidence in Sydney’s post-pandemic tourism future and the continued viability of large-scale vertical development in the CBD.

The development at a glance

Here’s what’s included in the new hotel project:

• Estimated value: $186 million

• Height: 60 storeys

• Location: Pitt Street, central Sydney CBD

• Developer: Singapore-based Well Smart Group

• Function: High-density hotel with amenity floors, lobby-level activation, and rooftop feature

• Jobs created: 570 in construction, 400 permanent

This tower joins a growing pipeline of hotel, office, and mixed-use high-rises planned for central Sydney, many of which are tied to tourism resurgence, Olympic planning, or international investment strategies.

Why this approval matters

Sydney’s hotel market was one of the hardest-hit sectors during the pandemic, with many international operators pausing or shelving projects due to uncertainty in tourism, business travel, and large events.

This approval signals a shift in sentiment — and a tangible belief that Sydney’s global visitor numbers are rebounding.

Here’s why it’s significant:

• Confidence from international capital: Well Smart Group’s decision to push ahead signals foreign investor faith in Sydney’s economic resilience

• Support from planning authorities: The City of Sydney backing a 60-storey project underlines the continued support for density in core areas

• Long-term economic benefit: Hundreds of jobs and millions in tourism-related revenue are expected to flow from the project’s completion

• Urban renewal opportunity: Projects like this replace ageing or under-utilised CBD stock, injecting modern design, efficiency, and value

• Signals to the market: Other stalled or proposed hotel developments may now re-enter planning with renewed confidence

For developers, architects, and commercial real estate professionals, this project shows that high-density tourism infrastructure is not only back on the agenda — it’s being prioritised.

Navigating the opposition

As with many major inner-city developments, this proposal met with opposition from neighbouring building owners, residents, and body corporates.

Objections focused on:

• Overshadowing of adjacent residential properties

• Loss of privacy due to building height and window orientation

• Disruption from prolonged construction timelines and increased traffic

• Concerns about infrastructure strain, particularly on footpaths and roads

Despite these concerns, the City of Sydney’s independent planning panel deemed the application compliant — citing proper urban design, appropriate street interaction, and strong alignment with height and floor-space zoning.

For other developers, this approval provides valuable insight:

• Strong planning submissions win out — with proper heritage, shadow, wind, and pedestrian impact studies

• Transparent community consultation is essential — even if opposition is expected

• Panel decisions favour economic benefit and compliance — not emotional objection

This outcome sets precedent for other large-scale proposals in Sydney’s CBD, particularly those dealing with tightly held sites and close neighbours.

Why hotels are making a comeback

There are strong underlying fundamentals supporting the return of major hotel development in Sydney:

• Tourism is back: Sydney Airport passenger traffic has surpassed pre-COVID levels in early 2025, driven by international education, tourism, and events

• Major infrastructure support: Metro lines, public space upgrades, and event precinct development support inner-city accommodation

• Tight supply: Many existing hotels are undergoing refurbishment or conversion, limiting room availability

• High-yield potential: Well-positioned CBD hotels can outperform commercial offices on a per-square-metre basis

• Olympic momentum: The 2032 Games are reviving investor appetite for Sydney hospitality assets

As capital returns and cap rates stabilise, hotel development once again offers long-term returns aligned to tourism and lifestyle demand — especially in gateway cities like Sydney.

Strategic takeaways for commercial property professionals

This project sends a broader message about how to navigate Sydney’s commercial development landscape in 2025:

• International capital is active again — expect more offshore-led acquisitions and approvals

• Height is still viable in the CBD — despite community resistance, compliant tall towers remain achievable

• Mixed-use potential is growing — hotel, office, co-working, and residential combinations offer flexibility for developers

• Tourism-linked development is attractive — particularly when supported by events, infrastructure, and urban foot traffic

• Panel-backed planning offers consistency — developers who prepare comprehensive DA packages are well-positioned to succeed

This approval also demonstrates the value of working with experienced consultants and visualisation teams who can prepare DA-ready renders, view studies, and marketing rollouts that mitigate planning risk and improve stakeholder communication.

How we help launch large-scale city projects

We work with developers, architects, and property groups to bring high-rise and inner-city developments to life visually and strategically.

Our services include:

• Photorealistic DA renders for council and public submission

• Aerial and pedestrian perspective studies to support urban design claims

• View impact analysis, shadowing visuals, and height context

• Full marketing rollout for pre-leasing or pre-sale — brochures, 3D, branding, and signage

• Stakeholder engagement materials for consultation and placemaking

Whether you’re preparing for planning approval or seeking pre-commitments, we help shape your project for success.

Let’s talk about your next inner-city project

If you’re developing, pitching, or repositioning a tower, hotel, or mixed-use project, we can support you with end-to-end visualisation, narrative, and marketing.
From early-stage DAs to full campaign launch, we’re the team behind the visuals and strategy.