The great Melbourne, Sydney hotel boom enters stylish new era​on January 21, 2025 at 6:00 pm

Australia’s two biggest cities are finally addressing a shortage in visitor beds, with serious design credentials to boot.

​Australia’s two biggest cities are finally addressing a shortage in visitor beds, with serious design credentials to boot.   

By Julietta Jameson

January 22, 2025 — 4.00am

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Melbourne has undergone a hotel boom in recent years. The city has added about 9000 rooms since 2020 in response to a critical deficit, identified well before the pandemic sparked the urgent need to address the shortage. The growth represents a rise of 32 per cent in Melbourne’s stocks, and the city is not done yet, with a few significant hotels due to swing open their doors in coming months.

Josh and Julie Niland have added 14 beautifully considered rooms above their three-hatted restaurant, Saint Peter.
Josh and Julie Niland have added 14 beautifully considered rooms above their three-hatted restaurant, Saint Peter.Credit: Christopher Pearce

Sydney, too, is amid its own mini-growth spurt. Some remarkable hotels came onto the market last year, including the W Sydney, and Josh and Julie Niland’s 14 beautifully considered rooms at the Grand National in Paddington, above their restaurant, Saint Peter, are available to book from January 31 (saintpeter.com.au/stay).

The much anticipated opening of The Eve Hotel Sydney (theevehotel.com.au) is scheduled for February 13, as the centrepiece of the new Wunderlich Lane retail and hospitality precinct on the Redfern side of Cleveland Street.

The Eve Hotel in Sydney.
The Eve Hotel in Sydney.

In keeping with its inner-city locale – Surry Hills’ Crown Street begins just across the road – The Eve has serious design credentials. A trio of top practitioners – Adam Haddow of Australian firm SJB and the president of the Australian Institute of Architects, landscape designer extraordinaire Daniel Baffsky of 360 Degrees, and award-winning interior architect George Levissianis – contributed to the property for TFE Hotels, the Sydney-based end-to-end hotel developer.

The Eve has serious design credentials.
The Eve has serious design credentials.

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Other notable openings in Sydney include the re-emergence of Adina Sydney Town Hall (adinahotels.com). Another TFE hotel, it was shut completely in early 2024 for a “major repositioning”. Architect firm Bates Smart, with glamorous hotel projects aplenty to its name, has directed the design, which is aimed at making the 27-storey property worthy of its valuable Kent Street location.

25Hours The Olympia (25hours-hotels.com) is another high-concept hotel waiting in the 2025 wings. It is one of the hip Ennismore (an Accor collaboration) brands, and the playful-style hotel debuts in Australia, taking over a heritage-listed building on Oxford Street in Paddington, in Sydney’s inner east.

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In Melbourne, a hotel with a cool as a cucumber name will make its Australian entrance in May. 1Hotels exemplifies eco-conscious luxury, and Victoria’s version, 1 Hotel Melbourne (1hotels.com) is within the Seafarers development on the Yarra.

The rooftop deck and pool at The Eve Hotel in Sydney.
The rooftop deck and pool at The Eve Hotel in Sydney.

Another TFE property, the Hannah St Hotel (tfehotels.com), is scheduled to welcome guests in September to Melbourne’s Southbank, where the surrounding arts precinct is undergoing a major transformation and set to be finished in 2028.

Back in Sydney, the Moxy Pitt Street, and the ritzy Waldorf Astoria on the old Goldfields House site at Circular Quay were intended for 2025 but now look more like 2026 openings.

It’s not like they’ll miss the boat. Pandemics and other unforeseen disasters aside, the need for hotels next year will continue to increase.

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Tourism in Australia is thriving again, with both international and domestic travellers contributing to the industry, meeting or surpassing pre-pandemic levels on various markers.

The reasons for this range from the simple local effect of mega tours by the likes of Taylor Swift and Coldplay performing in Australia, to the butterfly effect of international economic change such as the rising disposable income of new middle classes in emerging countries. New airline agreements and services are other contributors.

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