Plans for a $529 million Ritz-Carlton hotel at The Star Sydney have been rejected for a second time.
Star Entertainment Group were seeking planning approval to demolish part of the The Star complex at Pyrmont to make way for the new 237-metre tower.
The plans included a 220-room six-star Ritz-Carlton hotel, as well as 204 residential apartments, basement car parking and a neighbourhood centre.
The NSW Independent Planning Commission refused the modification application, based on the Department of Planning, Industry and Environment’s conclusion that the tower is “inconsistent with current strategic planning for the site and locality and fails to promote the orderly use and development of land”.
The department added the proposed Ritz-Carlton Sydney would “result in unacceptable visual impacts due to its scale, isolation and visual dominance”.
The decision comes after the project was initially rejection by the department in July this year.
A spokesperson from The Star Entertainment Group said they hope the decision doesn’t prove to be a “lost opportunity” for Sydney.
“This development would create around 1000 jobs, provide opportunities for suppliers and deliver significant other economic benefits,” they said.
“Given we had no prior notification of the decision we are still digesting the full findings before we announce next steps.”
Industry reacts
Tourism & Transport Forum Australia has labelled the decision a “tragedy for tourism in Sydney”.
“This is a sad day for Australian tourism,” said CEO Margy Osmond.
“After four long years and millions of dollars invested on extensive consultation with the government, the community and stakeholders, for an unelected planning body to arrive at a decision like this is simply short sighted.
“The city is crying for out for more hotel accommodation and we can’t get enough luxury beds built. Today’s decision by the Independent Planning Commission sends a message to local and international investors that Sydney, the Gateway to Australia is closed for business.”
The Accommodation Association of Australia said it is extremely disappointed by the decision.
CEO Dean Long said it demonstrates the planning system is “not working to support the NSW Visitor economy”.
Tourism Accommodation Australia CEO Michael Johnson agreed, saying it is a “lost opportunity, especially in the midst of the revitalisation of the Sydney CBD with light rail and the proposed removal of the lockouts.”
