The Intercontinental Hotel Double Bay, the spot where Princess Diana stayed in 1996 and INXS frontman Michael Hutchence was found deceased in 1997 has been sold for $180m to an apartment developer.

Sources told the Wentworth Courier the deal was brokered by the Agency’s Steven Chen.

The buyer, Melbourne apartment developer Fridcorp, later released a statement confirming the purchase of the refurbished 140-room hotel, refurbished by Bates Smart, and land in a joint venture with Piety Group from vendor Shanghai Group, who had paid $140m four years ago.

The 3670-square-metre luxury hotel originally opened as a Ritz Carlton Hotel in 1991 and was the hotel of choice in the 90s for famous guests, including Princess Diana, Madonna, Bill Clinton, and Elton John.

The circa $180m price tag is triple the $60m that the site sold for only eight years ago.

It is understood the deal was done on Friday, May 7.

Several other prominent Sydney-based apartment developers are known to have been interested in the hotel and given its record price, sources say it “Absolutely must be a development site”.

In a statement sent to The Courier, Fridcorp confirmed the sale and noted that in 2011, Woollahra Council granted a permit to demolish the existing hotel and take advantage of the gorgeous harbour views by adding an eight-storey residential building and retail offering.  

Prior to this, the hotel was rebranded as the Sir Stamford Double Bay in 2001 and operated until 2009, then underwent a complete facelift and became the Intercontinental Sydney Double Bay in 2014.