W Hotel set for site of Melbourne's iconic Palace Theatre

The W Hotel brand could set its foundations in Australia soon if local developer Jinshan Investments has its way.  

The developer has proposed to build a 30-storey W Hotel on 20 Bourke Street (pictured below), which is currently occupied by century-old music venue Palace Theatre.  

The project will cost $180 million, and will see 205 hotel rooms and 145 luxury apartments managed by the Starwood Hotel group added to Bourke Street’s east end.  

According to a Resort Publishing report, Jinshan Investments purchased the Palace Theatre at auction last year after former owners Kefi Nominees went into administration. Kefi Nominees were granted a short-term lease to continue holding concerts.  

Music fans are opposing the proposed development. At present, an online petition has garnered some 24,000 signatures to save the Palace Theatre. In addition, a Facebook page named “Save the Palace Theatre – Melbourne” has attracted some 28,000 “likes”.  

The Melbourne Heritage group has expressed its concern about the fate of the Palace Theatre.

In a statement posted on their website, they have called for the preservation of both the 1950s art deco façade and the 1916 interiors of the theatre because of its heritage significance.  

They also emphasised the cultural importance of the iconic venue, citing its evolution “from Edwardian theatre to revivalist church to nightclub to its latest incarnation as the Palace Theatre.”  

In addition, Planning Minister Matthew Guy has told ABC news that "the developer is dreaming if he thinks the government is going to approve this in the form in which it has been submitted. It is too tall, it is in the wrong location."  

While the Starwood Group said they were not in a position to answer queries with regard to the proposed closing of the Palace Theatre, they told Property Observer, “Starwood Hotels & Resorts is very excited to be involved in the Bourke Street project and bringing the W brand back to Australia.”