Sydney pub group Tilley and Wills Hotels has chosen Fortitude Valley for its first foray into the Brisbane pub market, buying The Elephant Hotel for more than $20 million.

Occupying a 1,237 square metre freehold site, the expansive, multi-level building offers four separate bars, a large outdoor beer garden and a gaming room with 42 machines. 

The deal was negotiated by CBRE’s Paul Fraser and Jack Morrison, in conjunction with JLL’s Tom Gleeson, on behalf of the Riversdale operated Australian Pub Fund.  

Mr Gleeson said the incoming operators had an "enviable" track record of successfully reinventing venues.

"(The group) are excited to bring their distinct style to the iconic Elephant Hotel and capitalise on the long-term prosperity of the Fortitude Valley precinct," he said.

Mr Fraser said the sales campaign generated more than 60 enquiries and eight offers nationally, highlighting the appetite for large format going concern hotels with "diverse income streams and obvious operational upside opportunities".

“Demand strongly outstrips supply in Queensland’s South East corridor, which has led to heightened market tension and an overall tightening of cap rates," he said.

"With cost of debt at an all-time low, it is certainly a sellers’ market right now and we don't expect that to change throughout 2020."

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