Rydges Hotels and the Denwol group will build a $68-million four-star hotel just outside the International Terminal of Sydney Airport. Construction is expected to begin soon and is scheduled to be substantially complete by late 2012.

It will have 317 rooms, a bar, restaurant and gym, expected to attract both business travelers and tourists because of its proximity to the international gateway.

"Sydney Airport has a direct role in the promotion of tourism in Sydney, NSW and Australia and the development of a new four-star hotel will enhance Sydney as a premier destination for inbound tourism to Australia," Sydney Airport Chief Executive Officer Kerrie Mather said in a statement.

"We continue to invest in projects that we see as enhancing Sydney Airport as a world class airport experience and to expand our range of services to meet the needs of passengers, family and friends," he added.

Sydney Airport handled in 2010 over 11.39 million passengers which represented a 23 per cent hike from the 9.23 million travelers who used the gateway in 2005.

The Denwol Group is a diversified Australian property group focused on development and management of hospitality, commercial and residential properties. Rydges Hotels and Resorts is owned and operated by Amalgamated Holdings Limited, which has hotel chains across Australia, New Zealand, Dubai and London.

Besides the new hotel, the airport's commercial property area was boosted two years ago with the construction of the $39-million nine storey Central Terrace Building which has 9,000 square metres of office building space. It is considered a viable office space option to the city centre.

The commercial property is opposite the entrance of Sydney Airport's international terminal and beside the new multistory car park. Sydney Airport Corporation is reportedly planning to move its headquarters to the Central Terrace Building.

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