Login

Heritage buildings find second life as luxury hotels as adaptive reuse gains momentum

A wave of adaptive reuse projects is transforming heritage-listed buildings across Australia's major cities into luxury hotels, with developers and operators finding that original architecture and historical character command premium room rates and drive outsized media attention.
Heritage buildings across Sydney and Melbourne are being converted into luxury hotels as adaptive reuse gains commercial momentum. (CommercialRealEstate.com.au)
Heritage buildings across Sydney and Melbourne are being converted into luxury hotels as adaptive reuse gains commercial momentum. (CommercialRealEstate.com.au)
Expert in Costar News in DC market since 2014
June 18, 2026 | 1:01 P.M.

A new generation of luxury hotel projects is repurposing Australia's heritage building stock, with developers finding that historically significant architecture drives premium room rates, elevated media coverage and differentiated brand positioning that new-build projects struggle to replicate. The trend spans both major CBDs and inner-suburban precincts, with projects ranging from former Salvation Army facilities and Victorian-era factories to colonial-era warehouses and grand Edwardian bank buildings.

This news story is available exclusively to CoStar subscribers.

Watch the video to learn how you can access industry leading CRE news and the data analytics you need to drive success.

This news story is available exclusively to CoStar subscribers.

Ready to Learn More?

Sign Up For a Personalized Demo.

Sign Up For a Demo To Learn More.

Already A Subscriber? Sign In