In Brief: Salter Brothers has listed the 131-room Mercure Newcastle at 12 Steel Street for sale through an expressions of interest campaign closing Nov. 5, 2026.
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Mercure Newcastle Hotel – Image Credit Accor
The property occupies a 4,414-square-meter freehold site at the western end of the Newcastle CBD. CBRE’s Michael Simpson, Andrew Williams, and Nick Hill have been appointed to manage the sale.
Salter Brothers has obtained Stage 1 development approval for a master plan redevelopment comprising 228 apartments across two towers, with associated retail and parking. The approval applies to the hotel site.
The Mercure Newcastle has 131 guest rooms, Distrikt Press Café & Bar, seven meeting and event spaces, an outdoor swimming pool and 60 on-site parking spaces. The property completed a refurbishment and rebranding to Mercure in 2024, covering guest rooms, meeting facilities and public areas.
Vacant possession of management will be available from Jan. 1, 2027.
Newcastle is NSW’s second-largest city and the economic center of the Hunter Region, with demand across corporate, health, education, events and leisure sectors.
Newcastle’s hotel market recorded 70% occupancy and an average daily rate of $231 in the year to June 2026. The average daily rate was 27.6% above pre-pandemic levels.
Infrastructure projects in Newcastle include the opening of the international terminal at Newcastle Airport in 2025, the proposed $498 million Newcastle Entertainment and Conference Centre at Broadmeadow, and the $835 million John Hunter Health and Innovation Precinct. The projects are expected to broaden the city’s corporate, events and visitor demand base over the medium to long term.