Accor has signed a management agreement that will see the Sydney International Centre Convention (ICC) hotel operate under its Sofitel brand.

Australian hotel owner Dr. Jerry Schwartz has signed a conditional agreement to purchase the hotel, which is to be developed by Lend Lease.

Accor Pacific chief operating officer, Simon McGrath said the company is extremely proud to be selected to manage the hotel, which is to begin construction at the end of the year.

“We are thrilled that our long-standing relationship with Dr. Schwartz continues to prosper and we are honoured to manage his latest hotel project which will be one of the largest luxury hotels in Australia.”

Schwartz said: “Our relationship with Accor is a long one and we believe that Sofitel branding of the hotel will help maximise the potential of the hotel asset.

“Accor has been a pioneer in the Darling Harbour precinct for over 20 years, and having developed some of Sydney’s best and most progressive hotels, we are confident that they will deliver an outstanding product for both domestic and international visitors.”

The luxury 35-storey hotel will include 600 rooms and what is said to be a unique and instantly recognisable architectural design.

“Australia is becoming a hot spot for international luxury brands and the increasing number of ultra-high net-worth individuals. Foreign capital, higher disposable incomes and independent Chinese travellers are fuelling the growth, and in recent months, Australia has seen strong demand from offshore investors for five-star hotel assets,” McGrath said.

“Financial institutions from leading economies such as Abu Dhabi, Korea and Singapore have been acquiring hotels in Sydney, driven by the huge potential in the Australian luxury market.”

The hotel forms part of the NSW Government’s $2.5 billion transformation of Darling Harbour, which includes the creation of Sydney’s new convention, exhibition and entertainment precinct.

“We applaud the NSW State Government on its redevelopment of a completely revitalised Darling Harbour which includes this innovative hotel. Once open, Sofitel Sydney Darling Harbour will be a major tourism drawcard for not only Australians but travellers from all over the world,” McGrath said.

“We believe that the new Darling Harbour precinct will be one of the world’s most exciting urban renaissance projects with the new ICC Sydney and the upgrades to the neighbouring Pyrmont, Ultimo and Haymarket districts set to make Darling Harbour a first-choice destination for business, convention and leisure travellers,” added Schwartz.

The hotel is scheduled for completion in the second quarter of 2017.