Proposed Five-Storey Hostel in Chippendale Aims to Accommodate Growing Tourist Numbers

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Artist’s impression of proposed backpackers accommodation in Chippendale (Photo credit: City of Sydney DA Tracker)

A bold proposal has been lodged in Chippendale, one of Sydney’s rapidly evolving suburbs, aiming to transform a former telecommunications hub into a ‘backpackers accommodation’ that could reshape the local tourism landscape. 


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The site, located at 184-200 Broadway, was once the home of Telstra’s exchange building but is now set to become a five-storey tourist accommodation hub designed to meet the soaring demand for affordable lodging in the city.

Artist’s impression only (Photo credit: City of Sydney DA Tracker)

This $13 million project is poised to bring 1,058 beds to the heart of Chippendale, with the transformation focusing on making the most of the building’s existing structure while reimagining its interior spaces to create a modern, welcoming environment for visitors from around the world. 

With a growing number of tourists flocking to Sydney, the need for diverse and accessible accommodation options has never been greater. The development aims to address this gap by offering a unique blend of hostel-style rooms, including four, six, and eight-bed options, perfect for short-term stays, with a maximum stay of 28 days to ensure a constant flow of guests.

The plans (D/2024/1165) also include a host of attractive communal amenities, such as a rooftop terrace complete with a swimming pool and sunbathing decks, as well as an on-site bar and café to create a vibrant social atmosphere. 

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184-200 Broadway, Chippendale (Photo credit: Google Street View)

Guests will be encouraged to engage in activities like walking tours, food and drink sessions, and live events, fostering a sense of community among travelers. To accommodate the growing interest in cycling around the city, the development will also feature 100 parking bays for bicycles.

The choice of Chippendale for this project is no accident. This inner-city neighbourhood has seen rapid gentrification in recent years, with a thriving arts scene, innovative cafes, and a variety of lifestyle offerings that attract both locals and visitors alike. The building’s proximity to public transport and local amenities makes it an ideal location for tourists who want easy access to the city’s top attractions while enjoying the unique charm of a more local, creative community.

The hostel is being designed with a European influence, drawing inspiration from large-scale hostels like the Next House in Copenhagen, known for their modern, functional spaces that cater to a wide range of guests. This international inspiration is reflected in the project’s intention to provide a high-quality, affordable alternative to Sydney’s traditional hotel offerings, which are often out of reach for budget-conscious travelers.

Notably, while the building itself is not heritage-listed, it is situated within the Chippendale Heritage Conservation Area, meaning the development will need to respect the area’s historical significance while introducing a contemporary architectural design. This balance of old and new will help preserve Chippendale’s character while accommodating the needs of a growing and diverse population of tourists.


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As Sydney continues to experience a surge in visitor numbers, with millions of tourists flocking to the city each year, the need for more diverse accommodation options is critical. This Chippendale hostel promises to be a key player in meeting that demand, offering a modern, cost-effective, and community-oriented space for travelers to stay, explore, and connect.

Published 10-April-2025