Claridge House in prime Darlinghurst position sells

Claridge House sells for $19 million in Darlinghurst.

$19 million sale signals ongoing appetite for inner-city hospitality sites

Emily Hutchinson|3 hours ago

A landmark inner-city accommodation building in Darlinghurst has sold for $19 million, demonstrating continued investor demand for well-located hospitality opportunities in Sydney’s inner city.

Claridge House is one of the more well-known buildings within Darlinghurst at 28-30a Flinders Street, near Taylor Square in the heart of the Oxford Street precinct. Comprising nine stories across a substantial 2,160 square metre existing gross building area, the property has the potential for 63-room accommodation, plus activated ground-floor retail, food and beverage operations, or cultural use.

Universal Hotels acquired the property following a campaign that drew more than 250 enquiries, with 62 qualified groups accessing the data room and 17 offers submitted across two EOI rounds.

“This was a complex asset that required a capable buyer with both operational expertise and balance sheet strength. The result demonstrates that well-located hospitality opportunities continue to transact, even in a more selective market,” said James Cowan, Head of New South Wales | Investment Services at Colliers who handled the sale alongside Colliers managing director Matthew Meynell and Colliers head of hotels, Karen Wales.

The space offers scope for 63 rooms.

The asset was offered in a cold-shell condition, allowing buyers to reposition the building for a range of alternative uses following council approval.

While no specific plans have yet been confirmed, Universal Hotels is expected to explore a boutique hotel or alternative accommodation repositioning, capitalising on the site’s zoning flexibility and its location in the Oxford Street precinct.

“Claridge House presented as an excellent opportunity for our continued growth and diversification. It’s an asset with enormous potential located within a precinct that we know very well – it’s a really good fit for us,” said Harris Kospetas, Universal Hotels chief executive.

The transaction also reflects the ongoing evolution of Darlinghurst and the Oxford Street precinct, which is re-emerging as one of Sydney’s most dynamic lifestyle and hospitality corridors. Once defined by nightlife, concentrated on the Kings Cross strip, the area is now attracting renewed investment and adaptive reuse, driven by demand for boutique hotels and urban renewal.

Hotel sites are becoming increasingly rare in Sydney's inner city.

It’s not only Claridge House that has sent waves through the hospitality investor market; other high-profile projects, such as the newly opened 25hours Hotel The Olympia at 1 Oxford Street, have enticed savvy buyers looking to make their mark in the Sydney CBD hotel market.

The listing of 25hours Hotel The Olympia has been described by agents as one of Sydney’s rarest hotel opportunities, highlighting how difficult it has become to deliver new accommodation stock in the city’s inner ring.

“Sydney’s accommodation sector continues to rebound strongly, supported by tourism recovery, major events and infrastructure investment,” said Wales.