The Harold Park Hotel in Glebe has been sold by JLL Hotels & Hospitality Group only five days after coming to market, further evidence of the strong hotel asset demand in Sydney.

Considered a sales record, the privately held hotel was sold for circa $6 million under an attractive staged structure to a local hotel group.

Minutes from Sydney’s CBD via the Anzac Bridge and opposite what used to be Harold Park Raceway, the Harold Park Hotel is poised to benefit from the imminent completion of the Mirvac built Vance development that is across the road and incorporates 1280 apartments.

Approximately 10 years old, the Harold Park Hotel currently offers a public bar and bistro, a beer garden, a bar and function room, gaming room with eight EGMs, two car bays, a lift and expansive back of house areas.

“When you consider that the breakup value of the licence, EGMs and the 1300m2+ stratum property for alternate retail or commercial uses underpinned the value and the compelling catchment story, it was no surprise that the opportunity was keenly contested,” said JLL’s National Director John Musca, who managed the sale with JLL’s Senior Vice President Nick Butler.

The sale of the Harold Park comes hot on the heels of JLL’s sale of the Empire Hotel in Annandale for $10.3 million to the Oscars Group and of Wallaby Bill Young acquiring the Friend in Hand Hotel in Glebe off-market for over $10 million.

There has been a run of hotels sold in the area, with JLL research revealing nearly $500 million worth of hotel sales in the first 6 months of 2019.

Yields are fluctuating dramatically in correlation to the bespoke investment strategies of differing buying groups and the acquisition merits of each asset as evidenced by the Harold Park Hotel being closed on sale (delivering no return on sale) right through to the Laundy Group’s recent acquisition of the Oxford Hotel in Drummoyne with a circa 8.1% yield.

“We’ve exchanged seven hotel transactions in the past few weeks alone ranging from $4 million - $56 million, satisfying the prioritized investment requirements of our valued private and corporate clients and with more transactions to announce, particularly off-market, it’s an important time to be talking to us about opportunities,” said Mr Musca.

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