Illegal Sydney hostel operator fined $100k

A man operating a hostel inside a supermarket has been fined $100,000 as the City of Sydney council cracks down on illegal accommodation.

The council said Amr Hassan was convicted on Tuesday for converting part of the Banana Supermarket in Chippendale for residential use.

"This case sends a message that illegal, dangerous accommodation networks will not be tolerated in the city, and the people who profit from them will be prosecuted," Lord Mayor Clover Moore said in the statement on Wednesday.

A dedicated investigation team set up last year to tackle organised illegal accommodation is headed by former Scotland Yard detective Roy Cottam.

The team has carried out 30 search warrants, inspected more than 100 premises and issued $75,000 in fines.

Mr Cottam said Hassan had the largest syndicate of unsafe and illegal accommodation the team has so far identified in the area.

"This is a fantastic result for the City particularly in light of the lengths the defendant was prepared to go to in order to avoid liability," he said.