Hotel Steyne owner Sam Arnaout spends a reported $60m on Manly’s landmark Ivanhoe Hotel
Less than two years after spending about $65 million on the landmark Hotel Steyne, Sam Arnaout’s Iris Capital has picked up another iconic pub just a few doors down on Manly Corso
Iris Capital has reportedly paid about $60 million for The Ivanhoe Hotel, which has been owned by the Peterson family for the past 36 years.
The popular three-level hotel has a prominent spot right in the middle of Manly Corso.
“The Peterson family are proud to have served the Manly community for almost four decades and it’s now time for another family to take the reins of the Ivanhoe Hotel Manly,” Tim Peterson said.
“We leave The Ivanhoe in the very capable hands of Sam Arnaout and his family.”
The off-market deal adds another iconic pub to Iris Capital’s already strong presence on the Corso.
The company spent $3 million on a massive renovation of Hotel Steyne during the CV-19 shut down period.
“With an almost paranoid level of attention, we are constantly reviewing our capital application strategy, and we do so to ensure absolute flexibility in order to rapidly activate upon any criteria-match opportunities in the market,” Mr Arnaout said.
“Given our existing and long hold investment strategy already within the area, The Ivanhoe Hotel property enjoyed the benefit of our attention and desire to contribute more broadly to the precinct and the continued creation of enhanced local place branding; where everyone prospers.”
The sale was managed by hotel specialists and HTL Property founders Dan Dragicevich and Andrew Jolliffe, and is an early favourite for 2021’s biggest national deal of the year.
Neither Mr Dragicevich or Mr Jolliffe would comment on the sale price, however industry sources have put the deal around the $60 million mark.
“We strategised heavily with regard how best to present such a material and well known commercial property holding, one which has enjoyed such a long and robust history as a huge cash flow generating hospitality asset,” Mr Dragicevich said.
“Whilst there exists some clear synergistic benefits to Iris Capital’s acquisition of the Ivanhoe given its proximity to other holdings within the stable, the opportunity really did present some never to be repeated fundamentals in a tourism business precinct that has seen extraordinary visitation growth over the past few years and consequently appealed to numerous parties.”
With the national hospitality platform defying the challenges of 2020, Mr Jolliffe said the path forward looked prosperous for commercial property indexed to A-grade hospitality offerings.
“When we analyse the successful buyer profiles across the deals we have recently concluded, the commonality all these deals share is that experienced operators with determined capital deployment strategies are winning the race to these one in 50-year asset opportunities,” he said.
“The fact that successful parties are doing so in an interest rate environment the lowest on record, and with the functional ability to move so incredibly quickly in order to get both to and across the deal table, is a theme not challenged by mutual exclusivity.”
The monster sale is another feather in HTL Property’s cap. Just seven weeks into 2021, the company has already brokered 10 sales, including The Ivanhoe Hotel deal.
HTL’s other sales so far this year including the Byron region’s Lennox Hotel, Brisbane’s Alliance and Sydney’s General Gordon.
And it kicks the year off for Iris Capital, following hot on the heels of the company’s $180 million purchase of a portfolio of 17 Ibis hotels from AccorInvest late last year.
It was the biggest hotel deal of the year, and included 12 hotels in NSW, including the 200-room Ibis Sydney Airport and the Ibis Budget Sydney Olympic Park and regional hotels; three hotels in Victoria, including the 230-room Ibis Melbourne Hotel and Apartments in the Melbourne CBD, and one each in Canberra and Brisbane.
All up it includes almost 1800 rooms. The portfolio had originally been part of a group of 23 hotels including six leasehold assets, which were sold to collapsed fund manager, the iProsperity Group, in September, 2019, for $220 million.
The deal did not go ahead due to the company’s collapse. Founder Michael Gu subsequently fled the country in July with debts of some $350 million.