Longueville Hotel sells for $50 million
The Longueville Hotel has been sold off-the-market for a reported $50m after being owned and operated by the same family since 1929.
The Campion family had operated the hotel after purchasing the lease off Tooth & Co, with the family appointing JLL’s Josn Musca and Ben McDonald to run the campaign.
In the many years since acquiring the hotel, the Lane Cove Village has evolved into a town centre – with the Hotel itself serving over 40,000 patrons.
The hotel, at 80 Longueville Rd, Lane Cove, includes a bar, dining, gaming and wagering area, with 27 gaming machines – leading to an average weekly revenue of $160,000
According to JLL Managing Director John Musca, the buyers of the hotel had the option to reposition the basement bar and optimise the first floor of the hotel to operate 15 accommodation rooms.
“Transaction activity in the asset-class is at a two-decade high nationally, not surprising given the superior weighting attributed to hotel earnings and the very limited number of assets per capita that will ever be available to acquire – we are witnessing never before seen consolidation,” Mr Musca said.
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Industry community hotel owners Patrick and Angela Gallagher were the successful buyers of The Longueville Hotel, adding the commercial property to their other hotel assets including the Hunters Hill Hotel and Terrigal Hotel.
The sale is one of many in the hotel industry that have seen generational families changing hands with owner-operators and private groups to expand their hospitality portfolios, many with massive sale prices.
Family representative Graham Campion, a third generation member and current operator, said that the asset was sold ten days prior to the closing of the Expression of Interest process.
“It’s with a tinge of sadness but immense pride that the family are handing over the Longy to such respectful, exemplary custodians as the Gallaghers and we wish them every success with the next evolution of this wonderful business,” Mr Campion said.
JLL Senior Vice President Ben McDonald pointed to the recent sale of Bar Broadway in Chippendale for $37m as evidence of the ongoing demand for real estate assets with high local patron numbers that continued to grow over the past two years.
“The chance to acquire hotel assets commanding a monopolistic position in strong retail locations are worthy of ‘unicorn’ status and likely to be held by new buyers generationally. We don’t see that changing anytime soon as asset supply continues to diminish.”