Once again shining a spotlight on demand levels for regional hotels in the NSW pub market, the Imperial Hotel in Singleton has been sold to a private, Sydney-based hotel investor for around $18.5m in an ‘off market’ transaction facilitated by JLL Hotels & Hospitality Group.

Situated in the ‘Upper Hunter’ region of NSW’s Hunter Valley and approximately 70km’s from Newcastle, the hotel benefits from a confluence of strong economic and tourism driven activity and is set to be supported by a growing residential population as demand for ‘lifestyle’ locations continue to gather steam.

JLL Hotels’ Senior Vice President Ben McDonald and Vice President Kate MacDonald, brokered the sale on behalf of private vendors, the Murphy family, who have now exited their second hotel following the sale of their Belmore Hotel in Maitland in 2017.

Occupying a ~3,000sqm land parcel, the large format hotel includes 3am Hotel Licence with 23 GMEs and generates average weekly revenues of $105,000 via public bar, bistro, gaming and 14 first floor accommodation rooms. The hotel was also sold with CDC approval for expansion of the existing trading footprint providing a new gaming room, bistro including beer garden and alfresco dining, public bar and new TAB which is set to deliver a heightened patron experience upon completion.

Acquiring the asset in 2019, the Murphy family set about repositioning the business away from its late-night entertainment trade and focused on what they believed the area was in desperate need of – a genuine pub with a great bar, good food and strong engagement with customers and the community as a whole.

JLL Hotels’ Kate MacDonald noted, “Strong performing regional hotels easily accessible from Sydney continue to attract the discerning eye of astute hoteliers and investors given their cashflow generation ability, consistent performance, and growing local economies.”

With asset prices continuing to escalate in Metropolitan Sydney, JLL is confident demand for regional hotels with sound investment fundamentals will remain buoyant in the medium term and follows recent prominent transactions including the Criterion Hotel, Gundagai, Thomas Blamey Hotel, Wagga Wagga, Shaws Bay Hotel, Ballina and New Albury Hotel in Albury NSW.

The Imperial Hotel sale adds weight to JLL’s impressive run of transactions in 2022 thus far and is one of a number of asset sales set to be announced in the coming weeks.