Capital Gain
Billionaire pub baron Arthur Laundy is expanding his regional hotel footprint, outlaying $41 million for the Woy Woy Hotel on NSWโs Central Coast, as investors vie for hotels with stable income and underlying land value growth.
The Woy Woy was sold by hospitality investment manager and operator Harvest Hospitality, which bought it in December 2021 for $32 million. Known as The Old Pub, itโs on Woy Woyโs main street at 33 The Boulevard.
Laundy also owns The Bayview, which he bought in 2021 for $32 million, in the same town. English comedian Spike Milligan once called Woy Woy: โThe worldโs largest above-ground cemeteryโ. His parents, Leo and Florence, settled there in the 1950s, prompting many visits (and jokes) from him.
JLL Hotelsโ Ben McDonald and Kate MacDonald managed the sale.
In Sydney, former policeman and pub expert Bob Tate, together with other syndicate investors, are selling the Glasshouse hotel in Maroubra. Tateโs syndicate has held the pub for 25 years. Part of the ground floor area has been closed since COVID. Tate also owns the Clovelly Hotel.
The Glasshouse generates average weekly revenue above $100,000, with the gaming operations alone turning over $1.3 million a week. The sale includes the hotel licence that has 3am trading hours and 24 gaming machines.
No price guide was offered by the agents given it has both leasehold and freehold titles. JLL Hotelsโ Kate MacDonald, Ben McDonald, and Mike Wheatley Hotels, are the sales agents.
The leasehold for the Arthouse Hotel in the city is also on the market. The owner, hotelier Ben McBeath, has price expectations around $6.5 million. The lease is being offered for sale after several informal and unsolicited approaches from hoteliers keen to secure a presence in the CBD.
The Arthouse is on Pitt Street in The Galleries retail precinct surrounded by large office towers. It generates annual revenue of around $8 million from its bar, food, gaming and wagering.
McBeathโs portfolio includes the Great Northern and Treehouse Hotel in North Sydney. HTL Propertyโs Dan Dragicevich and Sam Handy are advising on the sale.
Island site
Private investment syndicate Nedosu has put its freehold island site at 70-72 Commonwealth Street in Surry Hills up for sale.
With price expectations above $25 million, it comes with approval for a 121-room hotel plus zoning flexibility for co-living or student accommodation and is near three major universities.
The Commonwealth Street property also has frontages to Brisbane Street and Goulburn Lane and houses a two-storey office building with secure car parking.
Nearby, private investor Phil Wolanskiโs Denwol group paid $32.6 million for 79 Commonwealth Street last November. JLLโs Willem Watson and Harry Borger are selling No.70-72.
Whatโs Tatt?
The Barracks, part of the City Tattersalls Club at 5-7 Barrack Street, is on the market with a price tag of more than $15 million.
The four-storey, 341.5 square metre freehold site has basement and ground floor hospitality space and has long been occupied by the RSL. The Combined Services RSL Club was established on the site in 1945. During WWII, the basement served as Stage Door Canteen for servicemen and women.
The building currently operates as a licensed hospitality venue under the City Tattersalls Club umbrella. Planning controls allow for a broad range of uses, including retail, office, hotel, build-to-rent and other mixed-use outcomes.
Colliersโ James Cowan and Jack McGregor are the agents on the deal.
Waldorfโs here
The Waldorf Astoria sign is up on Andrew and Nicola Forrestโs building that overlooks Circular Quay as the hotel moves towards its opening next year.
Hotel management behemoth, Hilton, which will operate the Forrestsโ property, is also set to launch Australiaโs first LXR Hotel & Resort at the former Palazzo Versace on the Gold Coast next year, marking a significant double investment in Australiaโs luxury market.
Hilton hotels are expanding in Australia at the luxury end โ with Waldorf Astoria โ and in the lifestyle market with brands like Motto by Hilton in York Street.
Paul Hutton, head of Asia Pacific at Hilton, said many hotel guests are locals opting to stay at home rather than navigate the expense and stress of overseas travel.
โWe are seeing a lot of our guests looking for lifestyle and luxury vacations within Australia and we are looking to fill the gap with a wide range of hotel brands,โ Hutton told Capital Gain.
