The Schwartz Family Company (SFC) will add another two floors.
Construction of the two floors – 38 rooms in total – is expected to begin in April 2016, with completion scheduled for the end of 2016, in time for the opening of Sydney’s new International Convention Centre (ICC).
The extension of the Rydges hotel follows a complete makeover of Schwartz’s Rydges World Square and will complement the building of the Sofitel Sydney Darling Harbour, which will be owned by Schwartz Family Company on its completion in 2017.
The announcement of the extension of the Rydges Sydney Central follows a record nine months of operation with the hotel recording REVPAR growth of 15%, and with occupancy for 2015 predicted to average 93%, up from 84% two years ago when the hotel was rebranded to Rydges.
The REVPAR growth mirrors the average growth rate across the Schwartz hotel portfolio in Sydney, with the company’s five hotels recording record performances in 2015.
“The extension to the Rydges Sydney Central is a very clever use of unused space, which will make the construction cost effective and cause relatively low disruption,” said SFC director, Dr Jerry Schwartz.
“New constructions in Sydney are relatively difficult because of the cost of land, and Sydney is crying out for new rooms. Our architects were able to identify space on top of the existing low-rise part of the hotel, and by using lightweight construction, guests in the rest of the hotel will barely know that 38 rooms are actually being built.
“The hotel’s location between Central and Surry Hills has made it very popular for business, conference and leisure travellers and while it will be hard to sustain occupancy levels at current levels with so much new supply scheduled to come into the market, with the addition of demand-drivers like the International Convention Centre we see Sydney’s hotel market remaining very strong for many years to come.
“Rates have increased in Sydney over recent years, but then so have the quality of hotel facilities and standards. We have invested significantly in upgrading rooms and public areas across the SFC hotels, and the new rooms to be added at the Rydges Sydney Central will be both spacious and deluxe in style,” he said.