A $13 million plan to transform a former Telstra exchange building in Chippendale into a five-storey hostel is set for approval despite strong community opposition.
Background of the Proposal
The site at 184–200 Broadway in Chippendale, once home to a 51-year-old Telstra exchange, was acquired by Tricon Group in mid-2024 for about $67 million. Development plans lodged later that year proposed adapting the existing structure into a large-scale tourist accommodation hub.
Initial design documents outlined a five-storey hostel with 1,058 beds spread across 164 rooms in shared layouts of four, six and eight beds. Communal areas would include 665 square metres of indoor space and 157 square metres of outdoor space, carved from the centre of the building to create an open-air courtyard.
Facilities and Design Features
The proposal includes a rooftop terrace with a swimming pool and sunbathing decks, as well as an on-site bar and café. Guests would also have access to activities such as walking tours, live music, film sessions and food-related events.
Accommodation would be restricted to a maximum of 28 days per guest, with most stays expected to average two to three nights. To encourage sustainable transport, the plans allow for 100 bicycle parking bays.
The design also draws on European hostel models, such as the Next House in Copenhagen, and proposes sandstone and brick façades to align with nearby heritage structures.
Council Considerations
The City of Sydney Local Planning Panel is scheduled to decide on the project at an extraordinary meeting on 20 August 2025. Council staff have recommended approval with several conditions. These include reducing the building height from 30.9 metres to 25 metres in line with local planning controls and removing seven ground-level rooms to improve amenity, reducing the total bed count to 1,004.
Other conditions address concerns over floor space, the need for more communal areas, and guest access arrangements.
Community Response
During the public exhibition earlier in 2025, the proposal drew 314 objections and 52 submissions of support. The main concerns raised by residents related to traffic and parking impacts, potential overcrowding, reduced amenity for neighbouring properties, and the lack of new housing.
Supportive submissions highlighted the shortage of affordable accommodation in Sydney and the potential economic benefits for the local area.
Next Steps
If approved, the development would proceed as an adaptive reuse of the existing building, with construction costs estimated at $13 million. The decision of the planning panel will determine whether the Chippendale hostel moves ahead under the revised conditions set by council.
Published 22-Aug-2025
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