Padstow Park Hotel doubles price in four years
Padstow Park Hotel in Sydney’s southwest has sold for almost twice what investment firm White & Partners paid for it less than four years ago.
After winning approval for extended trading hours late last year, the hotel went under the hammer yesterday with bids starting at $24 million.
Three-way bidding saw the price climb to $25.8 million before auctioneer Jason Andrew secured the reserve price of $26 million.
Commercial Insights: Subscribe to receive the latest news and updates
The buyer was the John Feros-led JDA Group, which had a management agreement at the hotel.
The hotel was last sold for $13.7 million in 2014 by Wesfarmers hospitality arm Coles Liquor.
Ray White Hotels Australia managing director Andrew Jolliffe says the auction room had been well supported by “astute purchasers”. “Our auction sale record is now sitting at an 86% success rate,” he says.
“The hotel received an extraordinary level of interest, albeit commensurate with the quality of the opportunity, via the on-market campaign process.”
Feros says he is pleased with the result.
“We clearly know the hotel and have a good appreciation of the area, having operated hotels in that part of Sydney for decades,” he says. “We are active buyers in the market and will continue to seek and transact upon well-located opportunities where we see we can add value.”
The hotel last traded in 2014 for $13.7 million.
Jolliffe says a stable legislative environment and low interest rates have helped fuel the appetite for A-grade hotels.
“Nationally this industry is better funded, guided and operated than at any other time in its long history, lending itself to continued market strength and investment grade longevity,” he says.
Other recent sales included the Royal Hotel Bondi for $30 million to Justin Hemmes; the $45 million sale of the Hurstville Ritz to Nelson Meers Hotel Group and Moelis Australia Redcape Hotel Group’s purchase of Cabramatta Hotel, also for $45 million.
The Grand View Hotel at Wentworth Falls was withdrawn from yesterday’s auction but a buyer will continue to be sought for the “only pub in a town of 6000”.
This article originally appeared on www.theaustralian.com.au/property.
