Luxury global hotelier Hilton today announced it was moving into Adelaide’s east end with plans to build a brand new hotel that would welcome its first guests in 2031.

The group made an announcement today saying the new building would rise from 299 Pirie Street and be called Hilton Adelaide East End, with 27 storeys and 251 rooms ranging from 31 to 140 square metres.

Its plan included a recreation deck, several food and drink venues, a 303 square metre meeting space, a fitness centre and a pool – with the iconic Hilton building in Victoria Square having been taken over by another group to be rebadged as an Amora Hotel with a $73 million renovation.

The new Hilton hotel is being developed under a franchise agreement with Auriga Investments and would be operated by Trilogy Hotels as part of a broader Arcadia mixed-use development that includes housing plans.

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“This project allows us to reintroduce Hilton Hotels and Resorts as a modern, design-led flagship aligned with Adelaide’s growth and evolving skyline,” Hilton Australasia development director Tushar Raniga said.

Auriga Investment Group director Eric Luk said that “Arcadia was conceived as a place where community, design and city life come together – a precinct that blends a new residential neighbourhood with a flagship Hilton hotel”.

Tuesday morning’s announcement comes as commercial and residential real estate consultants Knight Frank today announced it had sold a South Terrace office building for $18.5 million.

The four-storey building at 151 South Terrace fronts the city’s southern park lands and was bought by a local private investor, with the transaction negotiated by Max Frohlich and Ryan Mills of Knight Frank.

The building was constructed in 1988 and occupies 1,298 square metres, with 1,298 square metres of net lettable area, with Frohlich saying there was interest in the building from both local and national investors.

“Backed by Adelaide’s strengthening office market, characterised by positive net absorption, rising effective rents and a limited future supply pipeline, the asset is positioned to capture ongoing rental growth,” he said.

Mills said investors were increasingly attracted to South Australia due to its “relative affordability” and “strong growth prospects”.

“There is currently more than $100 billion in projects in the pipeline across defence, space, technology and renewables in the state,” he said.

“The sub-$30 million market remains the most liquid segment nationally, and Adelaide continues to offer more stable capital values relative to the eastern capitals.”