Developments

Barangaroo Hotel Axed?

The luxury hotel to be built over Sydney Harbour as part of the $6 billion Barangaroo project is doomed after a review of the development ordered by the state government.

The findings of the review into Barangaroo, which will be considered by cabinet today, include a recommendation that the developer Lend Lease be urged to move the hotel to another part of the Barangaroo site as a ”demonstration of goodwill”. The landmark hotel, a cornerstone financial project, was not part of the original concept plan for Barangaroo but was included in Lend Lease’s amendment in August last year.

A decision to locate the hotel over the harbour should be reviewed according to the report. ”It is the view of this review that the decision to select Lend Lease’s non-conforming bid with the hotel in the harbour was consistent with good commercial practice and probity guidelines,” the report says. ”But it looked and felt like an ambush to a number of those who had invested in the process leading up to the concept plan.”

The hotel, Sydney’s first international premium hotel for more than a decade, was described by Lend Lease as being integral to the vibrancy of Barangaroo.

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