Iconic Sydney karaoke bar Ding Dong Dang quietly closes its doors

A popular karaoke bar in Sydney has quietly closed its doors and is set to be turned into a $40 million hotel.

Ding Dong Dang in Surry Hills, located just around the corner from Central Station, was a late-night fixture of the city's nightlife for decades.

A local spotted the iconic fluorescent sign on its side outside the venue this week and the bar is now listed as "permanently closed" on Google.

The bar was famed for its quirky décor, themed rooms and the polaroid photos splashed across its walls.

At one stage it was also known for its violence and a man was shot dead on the street outside during a brawl in 2002.

This meant bag checks, a metal detector and burly security guards were a hangover from those days.

The building will be demolished and turned into a nine-storey hotel, according to a development application lodged last year and approved last week.

The hotel is set to have 123 rooms, two restaurants, a small bar and a café.