Justin Hemmes has settled on the site next to the Ivy in George Street Sydney which was reported late last year.
The site, previously owned by St George was marketed by McVay Real Estate with plans approved for 16 storey, 195 room hotel.
Hemmes paid $77M for the 582sqm site ($132,000 psm) which will now be amalgamated with his existing Ivy buildings to form a 3,500sqm development site.
Hemmes said he was leaning towards a new concept for a 55-storey hotel, which would replace the existing structure which was always intended to be a medium term usage. Hemmes is also looking for a development partner to be involved in the project.
Hemmes originally purchased the George Street site in Sydney for $22 million in 2004, and the Ivy launched in 2007.