Sale imminent for Manly’s Hotel Steyne
Almost a month after the expressions of interest campaign closed, negotiations are reportedly underway to hopefully finalise a deal to sell the iconic Manly pub known as The Drain.
It is understood agents appointed to sell the much-loved Hotel Steyne are in talks with a number of parties.
HTL Property’s Asia Pacific managing director Andrew Jolliffe, says he cannot comment on the negotiations, or identify the parties involved.
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Nor would he speculate on any potential sale price for the high profile property.
However it is known that buyers came from all over Sydney, Australia and even overseas to look at the Hotel Steyne, within days of it hitting the market in February.
Among them was pub king Justin Hemmes, whose spokeswoman confirmed to the Manly Daily newspaper that he was interested in the hotel, after he was spotted looking at the property in February.
However she also says his company Merivale is not looking to buy Hotel Steyne.
Industry sources have suggested the sale could fetch between $60 million and $80 million in today’s market, based on the value of the real estate, the business and recent sales.
Early on in the campaign, Jolliffe says he made appointments with at least two interstate hoteliers for this week, and is also fielding overseas interest in the pub.
Hotel Steyne is currently owned by a consortium comprising investors Mark Carnegie and Robert Whyte, along with hotelier Arthur Laundy and businessman John Singleton.
They paid about $30 million for the property in 2010, and have reportedly spent about $5 million on the hotel since then.
The three-level property covers a prime 1948sqm site on Manly Corso. It has six bars, two restaurants, a designated gaming room with 30 poker machines and an entire accommodation level. In addition, the rooftop bar, Henry’s, can accommodate up to 250 people and has views overlooking Manly Beach.
While the hotel has undergone significant refurbishment in recent years, Mr Jolliffe said there was further potential to expand and improve the hotel-style accommodation offering.
Launching the sales campaign in February, Jolliffe said the expressions of interest campaign was not a fishing exercise designed to flush out potential investors, as the consortium was committed to selling the pub.
“We’ve been very fortunate to be engaged to sell a number of the nation’s signature hospitality offerings, but the Hotel Steyne is arguably the most prolific and certainly well-known beachside hotel, with generations of locals and tourists frequenting this noteworthy institution,” he said at the time.
This article from the Manly Daily originally appeared as “Negotiations underway to sell Hotel Steyne after EOI campaign closes”.