Fridcorp and Piety Group have acquired the InterContinental Double Bay from Shanghai United with plans to return the building to its former prestigious standards.

It is understood the joint venture purchased the Sydney property for about $180 million including the land and associated business at 33 Cross Street, 4km east of the CBD.

Bates Smart designed the refurbishment of the InterContinental Double Bay, which reopened 2014.

This included function and conference facilities, two bars, rooftop pool bar and the 156 underground car park, equating to more than 19,545sq m of gross building area.

The building was then sold for $140 million in 2017 by Singapore’s Royal Group to the Chinese-backed developers, which at the time was believed to be a record for a non-CBD hotel.

A spokesperson on the latest deal said the joint venture was “honoured to have acquired the iconic property with an incredible history” and was “excited for the opportunity to ensure the hotel’s legacy”.

“The acquisition is one of the most significant hotel deals since the pandemic, and Fridcorp and Piety envisage returning the property back to its former prestige,” they said.

In 2011 Woollahra Municipal Council granted a permit to demolish the existing hotel, and add an eight-storey residential building and retail offering, taking advantage of the harbour views.

The deal comes despite predictions Australian hotel values would decline by up to 10 per cent to the end of 2021.

Property players including Tim Gurner and Jerry Schwartz are more optimistic, leveraging funds to make moves in the sector.

This sentiment is further bolstered by the recent Rydges Sydney Airport Hotel listing which is expected to fetch upwards of $270 million.