The Colombian Hotel to test thirst for Sydney pubs
Sydney’s pub market is surging into life after a quiet start to the year with Oxford St institution The Colombian Hotel on the block and expectations it will sell for about $20 million.
Relatively few Sydney freehold pubs have been offered this year, with the industry waiting for the future of the Sydney-focused Redcape Hotel Group, which is weighing a float or trade sale, to be settled.
The values of leasehold venues are also under some pressure. The Keystone hospitality group collapsed into the hands of receivers Ferrier Hodgson, with that $100 million business now on the block via CBRE director Daniel Dragicevich.
Publicans are also facing shifts in the residential property market where many properties are being chased for their development potential. There is also a potentially harsher political climate for gaming.
The value of pubs with a development angle is being tested by the Feros Group’s offer of the Lone Pine Tavern at Rooty Hill, in Sydney’s western suburbs. The owners could reap about $30 million from the sale via JLL’s John Musca and Sam Brewer.
The Colombian Hotel, owned by David McHugh, is a three-level former Westpac building that sits on the corner of Oxford and Crown streets in Darlinghurst. The Colombian sale is being handled by Andrew Jolliffe and Joel Fisher of Ray White Hotels Australia in conjunction with Gerry Quinlan of Manenti Quinlan & Associates.
Inner-city pubs that have been offered in recent times have been snapped up and many are being revamped by big name hoteliers, with Justin Hemmes overhauling The Paddington and Bruce Solomon and Matt Moran soon to reopen the Paddington Inn.
“We know this market intimately, and given our current success in the area, we are confident of a highly competitive sales process,” Jolliffe says.
He pointed to changes of ownership at the Woolloomooloo Bay Hotel, The Woollahra Hotel, Four in Hand and Royal Hotel, and the Dolphin Hotel in Surry Hills, which is now led by celebrity chef Maurizio Terzini.
The high-profile Oxford St hotel also has 30 poker machines and could benefit from the lift in commercial property values in the area.
his article originally appeared on www.theaustralian.com.au/property.