Developer is building upscale hotel in South Yarra

Melbourne developer Oreana Group is banking on a strong recovery in the city’s hotel sector and plans to host a $250 million project on Toorak Road alongside South Yarra Station, which it hopes will it will welcome 50,000 national and international customers per year.

Oreana, run by brothers Tony and Steven Sass, went to the 2,480 sq m site between 169 and 177 Toorak Road in May last year, paying around $35 million.

The site is home to South Yarra Square, a five-storey sandstone retail and office building with a European-style plaza overlooking Toorak Road featuring ground-level retail and upper-level office space.

Once owned by the Hubay and Kornhauser families, South Yarra Square was subdivided into strata in 1996 and sold to individual owners in 1998.

Oreana has now revealed plans that will incorporate the existing building into its project.

The upscale mixed-use development, designed by architectural firm Fender Katsalidis, includes offices with end-of-trip facilities and a 116-key hotel with balconies overlooking Toorak Road.

The building will extend over more than 30,000 m², including 9,300 m² of rental offices, 1,400 m² of shops and 4,200 m² for the luxury hotel, above four levels of underground parking.

▲ Oreana plans to retain the facades of the Italianate and Tudor Revival buildings under a new 17-storey building rising above. Picture: Fender Katsalidis

It will include a day spa and wellness center with city views from the level eight pool deck.

The existing facades of the Italianate and Tudor Revival buildings, which have heritage significance, will be preserved as part of the development. The building will also include retail stores, reception and event spaces, as well as bars and restaurants. Oreana also plans to redevelop and revitalize the existing plaza.

“The hotel will be one of the only luxury hotels in South Yarra,” said Oreana Group Managing Director Steven Sass.

“We expect it to attract 50,000 local, interstate and international hotel guests annually. This will inject millions into the local economy.

Sass said Oreana carefully reviewed the design of the project to ensure it met and exceeded community expectations.

“The site has a rich heritage, which we intend to honor,” he said.

“We are convinced that [South Yarra] the community will respond positively to the plans and have worked hard to create a development that has something for everyone and will become an iconic location in South Yarra.

▲ The existing property’s European-style piazza facing Toorak Road will be retained and redeveloped. Picture: Fender Katsalidis

Oreana has a solid track record of over two decades in initiating and delivering innovative projects in Melbourne as well as on the highways of Western Australia.

Its diverse portfolio of projects includes planned housing estates, shopping malls and child care centres.

Pending approvals, construction on its South Yarra development is expected to begin in early 2024, with hotel guests and office tenants being welcomed in by 2026.

Hotel occupancy has gradually improved in Melbourne with nearly 60% of rooms now occupied at an average daily rate of $207.00.

Oreana’s project will in future feed Melbourne’s burgeoning hotel pipeline, which exceeds more than 5,000 rooms and is the largest in the country.

Other hotels under development in Melbourne include a 277-room Hotel 1 on the north bank of the Yarra, due to open in 2024 and a 500-room Shangri-La due to open in Melbourne’s CBD next year. next.

A 210-key Four Seasons hotel will also be part of the city’s tallest project, Sth Bank by Beulah International, and Steadfast Capital’s 450-key twin hotel project, Melbourne Walk, in the Bourke Street shopping district.

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