Hotel & HospitalityClare BurnettTue 04 Aug 26
Billionaire Sydney Hotel Owners Lose Fight to Block Sir Stamford Revamp
In a battle between giants, Metrics Credit Partners has come out on top after a neighbouring hotel owner sought to put the brakes on the non-bank lender’s redevelopment of an iconic five-star Sydney hotel.
Metrics became embroiled in a legal battle with Mulpha—a real estate vehicle of the Malaysian billionaire Lee family—over its plan to redevelop the Sir Stamford Hotel building as a 16-storey apartment tower.
Mulpha, which owns the nearby InterContinental Sydney, filed a case with the NSW Land and Environment Court in September 2025, challenging the approval of the project by the City of Sydney.
The court’s decision was released late last week.
During a hearing, which involved 2000 pages of documentary evidence from both sides, the LEC was told that the crux of Mulpha’s argument centred around an underground road that allowed access to the InterContinental, as well as “incorrect” building height calculations.
Big stakes were riding on that seemingly small issue.
The development has a $183-million construction cost, and holdings costs on the prime Sydney address would be stacking up as the project was held up.
A source told The Urban Developer that Mulpha was interested in either buying the site or preventing a competing project setting up next door—especially as reports now suggest Metrics will establish a hotel on the site rather than its planned apartment project.
Mulpha’s case before the LEC
Mulpha operates the 500-room InterContinental Hotel at 117-119 Macquarie Street, which has a right of carriageway through the Sir Stamford Hotel building.
The Sir Stamford has five levels of secure parking and vehicle access under the hotel, including a ramp network that allows access to the adjacent InterContinental Hotel courtyard and plant rooms.
Mulpha asked the court to invalidate the approval by the City of Sydney, arguing that the planning authorities acted unreasonably and failed to consider the impacts of construction work on its right of way.
Mulpha’s argument centred around the carriageway issue—it contended that the route was an “integral component of vehicular access to and from the InterContinental Hotel site” used by guests and service vehicles.
It also argued that Metrics’ height variation request had been approved based “on an incorrect calculation”.
According to the LEC, Mulpha had made its objections known in 2024, raising concerns withthe city that the development would adversely impact hotel operations through the removal of the through-site link, especially during construction.
But Metrics’ development arm countered that it was clear what would be required throughout, and that it had attempted to preserve the right of way to the InterContinental under its demolition plans.
Metrics said that the council acted “proactively” to manage the risk to Mulpha’s property, seeking consultant engineering advice and imposing “appropriate” conditions.
LEC Justice John Robson sided with Metrics, saying that the evidence before the court showed that council had taken into consideration Mulpha’s concerns and acted accordingly and reasonably.
The court also preferred the extrapolation methodology for height, which holds that ground level means existing ground level, rather than basement levels, nullifying Mulpha’s arguments about building height calculations.
The court concluded that Mulpha had not established any grounds for its complaints, and dismissed the proceedings.
It ordered Mulpha to pay Metrics’ costs, unless an application otherwise is made within seven days.
A spokesperson for Mulpha said it was still working through the next steps.
Metrics Credit Partners made no comment.
Sir Stamford hotel redevelopment history
This latest chapter in the Sir Stamford Hotel redvelopment saga may not be its last, if history is anything to go by.
The 19th-century building that features 18th-century antique furnishings and a large private art collection closed its doors in September of 2025 to make way for Metrics development, but it had already undergone considerable upheaval.
Metrics took the project off JDH Capital’s hands in 2025. It was a lender to JDH and had previously appointed receivers to another JDH project, the $300-million Nautique development at Rushcutters Bay.
JDH Capital had acquired the Sir Stamford Circular Quay hotel in 2022 for $210.5 million and filed redevelopment plans in 2024.
JDH Capital is led by Jean-Dominique Huynh and is perhaps best known for its Sirius development, the redevelopment of an iconic modernist housing commission next to the Sydney Harbour Bridge.
After it took control of the Sir Stamford site, Metrics announced it would fund and deliver a 16-storey apartment tower and hospitality venue at 93-97 Macquarie Street, as part of Stage 2 of the project.
While it is unclear whether Mulpha will take its challenge further, that project can now proceed.
