Meriton is converting an under construction hotel in Sydney Olympic Park into residential apartments as low levels of tourism impact the hotel sector.
The hotel forms the fourth stage of its Carter Street Precinct development at 11A and 13 Carter Street, Lidcombe on the corner of Uhrig Road.
The other Meriton buildings within the block include two residential towers and two mixed-use towers totalling 1,067 apartments.
Meriton bought the former industrial site from Goodman Group for $250 million in 2015, its biggest purchase up to that time.
Related: Sydney Housing Market Insights
An application for 340 serviced apartments across two buildings up to 13-storeys was approved in 2019 along with retail tenancies and a supermarket.
The City of Sydney approved to change the serviced apartments in one building into dwellings in 2020 and the additional application was made for the remaining 196 rooms this year.
Meriton said this will result in the entire phase of the development designed by SJB Architects being converted from serviced apartments to residential.
“As a result of the coronavirus outbreak the entire tourist industry has collapsed both economically and socially,” the application said.
“The site is currently under construction, to keep people employed and local business, it is imperative that the approved serviced apartments be converted to residential.
“Final conversion of the development to full residential is a result of Covid-19 depressing the international, interstate tourism and business stays.”
Capital city accommodation assets are expected to take up to three years to return to pre-Covid levels, according to ResortBrokers managing director Trudy Crooks, who will be appearing at The Urban Developer's Hotel vSummit on 25 March.