Central Element Hotel Debut Spearheads Oxford Street Renewal

On the eve of its debut in the sector, Central Element is not ruling out another foray into the world of hotels. And while the Sydney developer may indeed sink its teeth into the asset class again, the move hasn’t been without its challenges. Construction delays and water tunnels that weren’t where they were meant to be were among the hurdles. But fortune favours the brave and Central Element will open the doors to its first hotel this week, transforming what was a dormant site for more than a decade at Paddington into a vibrant new precinct. The building first opened as West’s Olympia Theatre in 1911 offering German-style apartments above ground-floor retail. Over the years it has undergone several transformations, including becoming the Academy Twin Cinema in the 1980s, which split the single theatre into two smaller venues. ▲ The renewal of the former theatre has reinstated an iconic lantern on the corner entry point to the hotel. Now the site has been reimagined as the first 25Hours Hotel in Australia. The German hotel brand focuses on storytelling, heritage and creating neighbourhood connections. Central Element managing director Nathan Chivas says it is a good fit for what they want to achieve at Paddington. Chivas travelled to Florence to meet with one of the founders, Christoph Hoffmann, and experience the Dante’s Inferno -inspired 25Hours Hotel in the Italian city. And it was an experience that stayed with the second-generation developer. Following that stay, Chivas decided storytelling was key for the Paddington play, where the developer wanted to create a neighbourhood hotel harking back to the golden age of cinemas along Oxford Street. Creating a neighbourhood hotel “The brand focuses on sharing the history of the buildings but, also, creating community within the neighbourhood. So they’re really a neighbourhood hotel brand,” Chivas says. “We thought with our building because of the heritage character and also the connection with the arts and the film and the local community, we thought this would be a perfect brand for this asset.” The development delves into the history of the arthouse cinema and pays tribute to the rebels and dreamers who were part of its story. ▲ The reception area harks back to the age of the video store, helping to spin the narrative of the golden age of movies. Chivas says it is “quite playful” in its approach to honouring the building’s heritage and “represents the true character of what the asset deserves and also the local area as well”, creating a legacy asset for Paddington. “We’ve brought that [cinema history] through the building. There’s storytelling throughout, from the reception area where it’s like a VHS video store where you’re checking in, right through to if you’re exiting or entering the lift there’s an applause through a screening on the wall down in the lobby. “We’ve also really played to the West Hollywood vibes with Monica Rooftop based on Santa Monica in LA. It ends up being quite authentic in a way ... it’s not pushing it too hard.” Chivas says the design is about creating experience and “Instagram moments” that people will share and connect with. That was something project architects Tonkin Zulaikha Greer’s Tim Greer was mindful of when designing how the building would interface with its community. Historic restoration reveals site legacy While the project included the restoration of the building’s iconic façade, it also reinstated an active ground plane for retail and hospitality venues, created an internal tiered courtyard that referenced Paddington’s garden terraces. It also reinstated the southern façade openings that formed part of an original passive ventilation system. “We were able to take the façade back to its original character. Historically, it’s a very interesting façade. When they built this cinema in the early 1900s, it was a much, much bigger building than anything that had been built on Oxford Street,” Greer says. “So it was originally sleeved in an apartment building with ground-floor retail. “[The apartments] were advertised as apartments in the German style ... but their significant feature was the rooftop.” The historic rooftop has been reinstated with consideration for its positioning away from the Rose Street Terraces to minimise noise impact, Greer says. ▲ Rooftop bar Monica was created in homage to West Hollywood and Santa Monica in LA. London hospitality group joins the fold The hotel also brings in the expertise of London outfit Paskin Group, which has exported versions of its highly successful venues to Australia. The 25Hours Hotel will feature three such venues, including The Palomar restaurant, which has held an esteemed Michelin Bib Gourmand award since it opened in Soho in 2014. Cocktail and wine bar sibling The Mulwray will also move in, as well as Notting Hill’s mainstay coffee and bakery concept, Jacob the Angel. Central Element, known for its residential developments, has applied its living sector expertise to the hotel project. Chivas says his team focused on floor plans and how guests would experience the hotel in fine-grained detail, down to the placement of furniture. “But what was key for us was like any residential development, it’s about opening up solar access and natural light,” he says. “It is key in Sydney and there aren’t many hotels that have good natural light but we know this is such a great opportunity with our hotel because it’s a corner site and we’ve got the north-facing aspect.” ‘Won’t be the last hotel’ Chivas says his team will look to combine its hotel and residential experiences, and may consider adding branded residences to the Central Element portfolio. “This definitely won’t be our last hotel,” Chivas says. “What would be ideal for us is to look at a development where there could be a branded residence-style approach, where there’s a hotel with residential apartments. “It’s very successful overseas and that’s something that we believe strongly about, that it’s a missing market here in Australia.” ▲ Central Element brought its high-end residential development experience to the development, focusing on how guests would experience the layout of the rooms. But putting your foot on a site fit for a hotel and branded homes is a tall order at the moment, according to Chivas. While land values continue to surge Chivas says finding a hotel site is “very rare”. “Residential build-to-sell is probably the highest and best-use thematic in Sydney, and to unlock other hotel sites, you need to achieve quite a significant uplift.” Chivas says planning reforms are enabling some uplift in NSW at the moment through the Housing Delivery Authority pathway and transport-oriented development sites. The developer has been pursuing project approvals through the Land and Environment Court recently, which Chivas says has been a successful process. Chivas says there are five projects under way for the builder-developer, which is mining the market for further LMR sites to develop across the Lower North Shore. Chivas says the move to in-house construction has been a positive one, enabling Central Element to “control that destiny”. Chivas says the business model now is to undertake all construction internally, which allows the team to control the quality and deliver ahead of program and on budget. “You don’t often get to say that. It almost feels like it’s 10 years ago,” he says. 25Hours Hotel to activate precinct The 25Hours Hotel The Olympia opening is expected to catalyse the renewal of Oxford Street with further development on the way. Nearby, developer W.T. Malouf has reworked its plans for the much-loved Verona site at Oxford Street, which will become a mixed-use precinct comprising a new Golden Age Cinema, retail and 53 apartments, 15 of which will be affordable. ▲ W.T. Malouf has redesigned its plans for the Verona site to include cinemas as well as market and affordable key worker apartments. WT Malouf is pursuing the project through the State Significant Development application pathway and expects to receive determination in early 2026. The development would retain Verona’s iconic brick façade, recognising the building’s role in Paddington’s cultural life for nearly three decades, according to WT Malouf director Jack Joseph. “At a time when Sydney is losing suburban cinemas, we’re committed to creating a bigger and better cinema experience for Paddington,” Joseph said. “Over more than a decade in Surry Hills, we’ve seen how a cinema can anchor dining, music and social life, and we’re excited to bring that same cultural energy to Paddington. “Verona will be a chance to radically reimagine what a cinema can be for Sydney, not just preserving a much-loved institution but giving it new life in a way that reflects the city’s creative future.” TZG has designed the project in line with the City of Sydney’s Oxford Street Cultural and Creative Precinct strategy, which encourages investment in cultural space and night-time economy. “This development is about more than apartments,” Joseph said. “It’s about contributing to Oxford Street’s restoration as one of Sydney’s great cultural boulevards, where people come to live, create and socialise.” The Oxford Street precinct is ripe for renewal and retail revival. In another unloved pocket of retail, developer Robby Ingham is developing shoptop housing project The Cambrian. The MHNDU-designed 15-apartment project at 432-440 Oxford Street was snapped up within the first five hours of the launch. The City of Sydney Council is also planning a multimillion-dollar renewal of the state-heritage-listed Paddington Town Hall on Oxford Street. Built in 1891, the two-storey town hall is an example of the Victorian Free Classical architectural style and was the result of an international design competition.

Central Element Hotel Debut Spearheads Oxford Street Renewal

Get the full story.

The Great Densification: Zoning Alone Won’t Fix Housing Crisis

Prefab, Modular, Ready-to-Go: Construction Innovation Evolves

High-Stakes Bid to Shape Adelaide’s Next Urban Precinct

Modular Hotel Rises on Queenstown’s Steepest Site

No Template, No Shortcuts: Divya Mehta on Leadership and Scale

Melbourne Long Lunch | Panel discussion with Tim Price, Jeremy McLeod, Katya Crema & Anne Michaels

A fireside chat with Troy Daffy | Managing Director, Silverstone Developments

Brisbane Long Lunch | Panel discussion with Rob Comiskey, Frank Licastro, Steve Laffey & Alexandra Stuart-Robertson

Sydney Long Lunch | Panel discussion with Jamie Durie, Jennifer Macquarie & Michael Romano

Cox, Hassell, Azusa Sekkei to Design Brisbane Stadium

Lendlease, Coombes, Mirvac Secure Metro West Precinct

Pet Spas Trump Pools as Melbourne Apartments Evolve

Blackstone Pays $1.2bn for Queensland’s Hamilton Island

2026 Developer Outlook Lunch | Melbourne

2026 Developer Outlook Lunch | Brisbane

2026 Developer Outlook Lunch | Sydney