Pub baron Arthur Laundy plans more hotel developments

The multi-millionaire publican is in an expansive mood aboard his 82-foot superyacht as it motors towards the Woolwich Pier Hotel — one of Sydney’s most beautiful harbourside pubs — which has just undergone a major overhaul managed by his daughter, Justine Tindall.

Laundy says that, despite Laundy Hotels’ recent flurry of pub renovations, purchases and new builds, he will never drive his multi-million-dollar operation, which includes a half share in the $110 million Sofitel Noosa Pacific Resort, towards a stock exchange listing.

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“I guess I am not comfortable in that area. If you make a mistake you are (hurting) other people. That would make me sensitive and worry and I try not to have too many worries,” Laundy told The Australian in his first major interview in more than five years. “I would like to see the pub portfolio continue with my family after I am gone (but) that will depend largely on my family.”

Despite no desire for an ASX listing, Laundy is always keen to add another hotel to his burgeoning portfolio — whether it is an outright purchase or the transaction has been negotiated with one of his long-term investment partners such as Theo Karedis, who sold out of Theo’s Liquor for a reported $175 million in 2002.

Laundy Hotels managing director Arthur Laundy. Picture: Aran Anderson

“We are always looking, the bucket is never full. If a hotel arrives on the market and I believe I can improve it then I will always give it thought,” Laundy says.

Laundy, who has leased 28 of his hotels to Woolworths since 2012, lists the developments he has on his plate like others list items on a grocery shopping list.

The Manly Pacific Hotel, bought with Karedis for $56 million in 2003, is expected to be overhauled next year.

The Woolwich Pier Hotel has just undergone a four-month Hamptons-style renovation in a bid to attract even more of the area’s cashed-up locals but also the lucrative corporate and leisure function market.

The Laundy family bought the Woolwich Pier Hotel as well as the Woolloomooloo Bay Hotel in mid-2015 from pub investor Anthony Medich. The sale price was not disclosed.

Their most recent pub acquisition is closer to the CBD. The Laundys last month bought the Bells Hotel on Woolloomooloo’s waterfront prior to auction, fighting off a number of high-profile suitors. The purchase of Bell’s Hotel, which was offered to the market for the first time in 45 years, will complement the Laundys’ Woolloomooloo Bay Hotel.

Inside the new-look Woolwich Pier Hotel in Sydney. Picture: Stacey Pestrin

Renovation is planned for the Bells Hotel, possibly adding a rooftop bar.

Further out of Sydney, the Laundys have embarked on their largest development, a hotel and brewery at Marsden Park with a function area holding 1400 patrons. At least $47 million has been pumped into the project.

“It’s a big venture, it’s the biggest building I have ever built, and it will open towards March,” Laundy says.

He is also developing a hotel at Olympic Park in a joint venture with building group FDC.

Legendary adman John Singleton and former Qantas chief executive Geoff Dixon were so impressed with Laundy’s hotel acumen they invited him to join their Australian Pub Fund venture several years ago. At its peak, the fund controlled $300 million-plus of Sydney and Brisbane pubs.

“I was invited to join that group,” Laundy says.

“I politely declined. I didn’t want to be in a partnership.”

Laundy’s favourite hotel remains the Twin Willows, 23km southwest of the Sydney CBD.

It has been the headquarters of Laundy Hotels since the family built it in the 1960s.

This article originally appeared on www.theaustralian.com.au/property.