Scruffy Murphy's Sydney pub site to make way for new tower

Scruffy Murphy's, the Sydney CBD Irish pub, is set to make way for a new hotel and residential tower.

A $127 million development has been lodged by the site's owners, KGH Co Pty Ltd, who also secured the neighbouring site.

KGH Co Pty Ltd, owned by Pierre Wakim and Mario Khaicy have proposed the 40-storey building.

KHG Co Pty Ltd, who along with Scruffy Murphy's, now owns the sites between 698 and 704 George Street.

The hotel will run from the fourth level to the 21st level, with the first three levels dedicated to the existing apartments at the heritage Kiss Building and Haymarket House, along with a gym and foyers.

From the 21st floor up there will be private apartments.

There will be 240 rooms in the hotel.

Knight Frank is marketing the offering.