A new Bounce Hostel for Sydney is on the cards
Private owners of the former Bounce Hostel in Sydney’s Surry Hills have lodged plans to recreate the hostel at a new site on George Street after selling the previous backpackers accommodation to the NSW government on a compulsory acquisition.
Family investor Fuqiang Investments is seeking approval with council to build a new 16-storey backpacker hostel at 810-812A George Street.
The new tower will have 291 dorm beds and 10 private rooms. Located close to Chinatown and Central Station, it will also include a ground-floor bar and cafe.
It will accommodate 311 guests and plans for the new tower include a pool.
Fuqiang is committing about $11 million to the construction of the property, following its purchase of the landholding for $14.65 million last year.
The group’s previous Bounce Hostel at 28 Chalmers Street was sold to the NSW government for close to $30 million to be demolished to make way for a new entrance to Central Station.
A purchase of a replacement asset following a compulsory acquisition is likely to afford Fuqiang with capital gains tax relief.
It is understood the near entry and corresponding underground concourse will serve as a connector between Central Station to Surry Hills and the new Sydney light rail.
The new site for the hostel comprises a commercial building, known as Segraves House. Another private family sold it to the Bounce owners after holding it for 45 years.
The area around it has a slew of hostels and student accommodation properties.
