Decision Time for Melbourne CBD’s Waterside Hotel

Hospitality group Sand Hill Road’s ambitious plans to revive the Waterside Hotel in Melbourne’s CBD will go under the microscope later this week. 

The Future Melbourne Committee will review the group's plans to renovate the pub at the corner of King and Flinders Street at 508-514 Flinders Street, and add a further four floors of commercial space.

Plans included in the application listed Sand Hill Road as the developer of the project, which includes the renovation of the existing internal space and the construction of several more storeys above it while the facade and other historic features would be retained.

Planning officers have recommended that the Future Melbourne Committee approve the application with some conditions at its next meeting on February 21.

The council documents stated that the project was estimated to cost $27.2 million.

Two objections were received by the council during the advertising period, one from Melbourne Water who cited flood risks and the other from the community concerned with daylight access and views.

The site is close to the Yarra River, diagonally opposite the Sea Life Melbourne Aquarium and near the King Street Bridge and other high-rise buildings such as the Rialto Towers.

The 613sq m block has accommodated a hotel since 1853 with the current existing building dating back to the inter-war period, featuring a corner tower.

▲ A render of what the proposed renovation will look like from the street without the intended planting.

Much of the interior will be demolished with some excavation to create a basement area before seven new levels are constructed with planting along balcony and terrace edges. 

The ground floor will have a beer garden, public bar and bistro with back of house and amenities on the basement level.

A function room is planned for the first floor with a restaurant on the second floor, a rooftop bar on the third floor, a cocktail bar on the fourth floor and another function room on the fifth floor. 

Techne Architects designed the plans with the application listing King Flinders Pty Ltd as the owners of the site and Midtown Hustle Pty Ltd as the applicant.

Midtown Hustle Pty Ltd is listed on Sand Hill Road Group’s website as an entity that they often operate and run their venues through.

According to ASIC documents Sand Hill Road Group's founders Douglas Martin Maskiell, Andrew James Paget Larke, Andrew James Mullins, Thomas Butler Birch and Matthew Michael Mullins are also shareholders in King Flinders Pty Ltd.

Sand Hill Road also recently completed a deal with Australian Venue Company, first raised in 2020, to transfer its Melbourne-based assets except for The Esplanade at St Kilda and the Waterside Hotel in August 2022.

The Cohen family then bought The Esplanade hotel in December for $64 million.

Sand Hill Road Group was unable to comment in time for publication. 

Hotel transactions dominated the sector in 2022 with many now expecting international investors to enter the market in 2023.