The record price achieved for a hotel sale at public auction now cements the Hemmes presence in Sydney’s suburban pub market. The attraction of this area is that it is unaffected by the city-zoned lockout drinking regulations.

Mr Hemmes is expected to redevelop the site in the same way as his other properties to reflect the local demographic, which includes the nearby Green Square development.

His empire now stretches from Sydney’s northern beaches with his revamped Newport Arms, to the CBD with the Ivy and Establishment, the eastern suburbs with the Coogee Bay Pavilion and the recently re-opened Paddington Arms, and the inner-south with the Alexandria Hotel.

Ray White Hotels Asia-Pacific director Andrew Jolliffe said bidding for the Tennyson was “spirited” and the final price tag was the highest paid at auction for a freehold going concern to date.

“Justin Hemmes completely dominated the 250-person crowd,” Mr Jolliffe said.

He said the Tennyson was a popular multi-level hotel with 30 gaming machines. Notwithstanding its latest ranking at 87 in NSW, it required an upgrade and renovation plans designed by architect Paul Kelly had recently received development approval.

“Only a very small number of Top 100 gaming hotels have changed hands over the past few years, such is the vice-like grip the ever-diminishing number of consolidating ownership bodies hold on this particular asset class,” Mr Jolliffe said.

“The hotel, even in its currently unrenovated state, attracts in excess of $8 million in annual receipts from predominantly high gross profit margin revenue centres.”

Andrew Jolifee was also auctioning the 9300 square meter Figtree Hotel in Wollongong on the same day. With development potential, the hammer dropped at $5.375 million with the sale secured by Andrew Denmeade and Joel Fisher of DenFish.
 
DenFish, a relatively new pub venture, already owns and operates the Unanderra Hotel and Central Hotel in Shell Harbour.

See also:

Get to know Andrew Jolliffe - Director APAC, Ray White Hotels