The Mercure Hotel in Newcastle West could soon be redeveloped to make way for 228 high-rise apartments across adjacent towers, according to a recent development application submitted to the City of Newcastle (CN).
Stage one of the project from Salter Brothers Asset Management and worth close to $85 million includes plans for mixed use development at the 12 Steel Street site.

The masterplan concept comprises the initial retention of the hotel and construction of the first mixed use tower.
The lower four storeys of the proposed mixed use development include retail facilities, car parking, apartments, communal open space and residents amenities.
The first tower will be 23 storeys in height and the second, to be built as part of stage two, will be 19 storeys high. Together they will contain 228 residential apartments.
According to the 68 page Statement of Environmental Effects document, the Salter Brothers purchased the site in 2022 as part of its acquisition of the “Tuckerbox Portfolio” and believe this development will help tackle “the housing crisis currently gripping NSW”.
The Mercure Hotel, which has formerly operated as a Travelodge and Rydges Hotel, has 131 rooms across seven storeys, meaning the new development will dwarf its current structure by a further 16 storeys.
After two pre-DA meetings with stakeholders including council, the developers are confident they have addressed initial concerns around issues such as flooding, access, construction noise and disruption to the hotel.
Concluding in the Environmental Effects document, they believe that “design excellence has been achieved through a high-quality architectural design accompanied by a well-considered selection of materials and a highly resolved built form which responds to the opportunities and constraints of the site”.
If it gets the green light, the two-tower development will be the latest in a long line of other high-rise ventures in this area of Newcastle including the Watervue apartments on Hunter Street, GWH’s One apartments and Verve Apartments on King Street.
What do you think of this latest high-rise for Newcastle West? We’d love to hear from you!
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