Pub tycoon Justin Hemmes, the Laundy family and another large private investor, who declined to be named, were reported to have shown interest in the hotel.
It marks the end of a very busy year for the pub sector with close to $500 million worth of assets changing hands. Aside from gaming revenues, the pubs are being bought for the underlying land price growth and a rise in patrons coming back to the venues for better quality food and social gatherings.
Sydney’s lockout laws has led to a shift in buying suburban pubs, as evidenced by the recent sale of the Ingleburn pub in the south west of the city by the Bonnie Hotels group owned by Marc and Meg DeAngelis, on a record 3.4 per cent yield.
The wider DeAngelis family also paid $35 million last week for the Raby Tavern also in Sydney’s south west.
In October Mr Hemmes diversified his hotel empire with the purchase of one of Sydney’s biggest gaming pubs, the Allawah Hotel, in Sydney’s south west, for about $34 million.
The acquisition of both freehold and operating interests will enable the required capital investment to further enhance the hotel.
Moelis Hotel CEO Dan Brady
Once the sale is completed, management will run by Moelis Hotel group, which is also the overall manager of the listed Redcape Hotel group.
The pub will be the seed asset for a new, unlisted and independent fund, to be managed by the Moelis Australia Hotel Management group. It was sold through JLL’s hotels and hospitality national director John Musca and supported by JLL boutique accommodation specialist Tom Gibson and Queensland vice-president Tom Gleeson.
Moelis Australia Hotel group and the Redcape Hotel group chief executive Dan Brady said the purchase of both the real estate and operating business would reunite the common ownership of the real estate and operating business for the first time since 2007.
He said Moelis intended to retain the majority of the existing management operations and venue staff.
“The acquisition of both freehold and operating interests will enable the required capital investment to further enhance what has made the hotel iconic,” Mr Brady said.
More to come