Randwick’s ‘The Dog’ on the block for $30m
Sydney’s hot pub market is about to be tested once again with the high-profile Duke of Gloucester Hotel in the city’s eastern suburbs on the block for $30 million.
There has been a run of pub sales in the area including the Centennial Hotel in Woollahra, the Royal Hotel in Bondi and Bondi’s Icebergs Bar and Dining Room.
HTL Property’s Sam Handy and Daniel Dragicevich are now selling the Randwick pub, which is tipped to draw local and international interest.
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Known by locals as “The Dog”, the hotel has been managed by the Good Beer Company for a private syndicate which wants to pour funds into a redevelopment of another of their hotels — the Keg & Brew Hotel in Surry Hills.
“We’ve had several unsolicited approaches to buy the DOG in recent times and decided to put it to market to focus on our redevelopment of the Keg & Brew,” Good Beer Company’s John Azar says.
The syndicate picked up the hotel in an off-market purchase from Newhaven Hotels in 2015 for about $17 million and undertook a $3.5 million renovation, refurbishment and reconfiguration.
The pub’s food offer was also updated, helping the lift property’s annual revenues to more than $8 million. The hotel has a 2am liquor licence with only 19 gaming machines.
The hotel was ranked 425th on the regulator’s gaming turnover rankings and the gaming room could be upgraded.
HTL Property’s director Sam Handy said The Duke of Gloucester Hotel was surrounded by several top gaming pubs and could have 30 machines, boosting revenue.
The two-storey hotel is perched on a 746sqm landholding in Randwick and already sports three bars, two kitchens, a TAB and outdoor areas.
“It is expected that the underlying land and building value will excite a large segment of the market seeking prime property indexed to a stable and secure cash flow businesses,” Handy says.
This article originally appeared on www.theaustralian.com.au/property.
