One of the most keenly awaited new hotel builds in the country, part of the flurry of new tourism ventures resulting from the post-pandemic travel revival, is now to be sold to the highest bidder.

Construction is part-way through on Australia’s first 25hours hotel on a landmark site at the gateway to Sydney’s Paddington. Developer Central Element has now put it on the market with an expected price tag of more than $100 million.

The hotel, behind the heritage-listed facade of the old West Olympia Theatre – most recently the Academy Twin Cinema – on Oxford Street, will sit within a new cafe, restaurant, wellness and entertainment precinct, a rooftop bar plus a central courtyard for events. It’s planned to open early next year.

“We decided to sell because, at the end of the day, we are a development company, and that’s our skill set,” said Dean LaVigne, head of lifestyle precincts at Central Element of the joint venture with Boston Global Group. “The best window to sell a hotel is right at the beginning to yield the best results. “The hotel contract remains in place, so they’re not impacted by this decision at all. We are fully committed to delivering this project and we’re pretty proud of what we’ve achieved. We think there’ll be a great deal of interest in this.” The 25hours hotel is part of the upscale Ennismore lifestyle brand within the Accor portfolio. It’s hoped that it will help transform that quiet part of Paddington into a hospitality and lifestyle destination.

Nearby developments include the proposed SOHO House on nearby Crown Street, and the recently approved redevelopment of the adjacent Verona Cinema site into a $100 million office complex with retail and rooftop dining, with that cinema now transferring to the Entertainment Quarter at Moore Park.

The expressions-of-interest sale of the 25hours hotel precinct is being advertised both locally and internationally. It is being taken on an Asian roadshow to approach other possible buyers in Japan, Thailand, Singapore, and elsewhere. “We’re expecting a great deal of interest in this project,” said Gus Moors, managing director of the sales agents, JLL Hotels & Hospitality. “It’s very difficult to break into the Sydney hotel market, so this is a unique opportunity.

“This is a premier location with a lot of demand drivers, like the nearby St Vincent’s Hospital, the top shopping strips of Paddington itself, the Allianz Stadium, the Sydney Cricket Ground, and the proximity to the CBD. In addition, they are creating a beautiful hotel with a fantastic facade and brand-new interiors. So, we feel it will really appeal to a lot of domestic and offshore groups. Australia is a top destination for offshore capital, and Sydney is number one.” Moors believes the Sydney hotel market is currently the most sought-after. He said that in 2023, the city achieved record revenue per available room levels at $247, occupancy rates at 79 per cent, and average room night rates surging above $300. Tourist arrival numbers are still increasing.

“We just think this is a very exciting opportunity and we’re keen to show it to the market,” he said. “We see it as a very good prospect.” Central Element also recently put another well-known site up for sale, the redevelopment of Kings Cross art deco theatre the Metro-Minerva, just weeks after receiving the go-ahead from planners. That followed a three-year battle against locals who wanted it restored as a 1000-seat theatre instead of a hotel and a series of smaller entertainment spaces.

LaVigne said his company’s recent projects and acquisitions, such as Ballamac House in Coogee, Bianca in Drummoyne, and Sandridge Street in Bondi, had persuaded directors that developing luxury residential was more a direction for the company.