HTL Property's Sam Handy and Daniel Dragicevich have been exclusively retained to steer the campaign which follows hot on the heels of some other significant Eastern Suburbs pub sales including the Centennial Hotel (Woollahra), Royal Hotel (Bondi) and Bondi's Icebergs Bar and Dining Room.

Affectionately known by locals as the 'DOG', the hotel has been operated under management by the Good Beer Company on behalf of a private syndicate which have cited a necessary redeployment of capital for the redevelopment of one of their other hotels as their rationale behind the sale - the Keg & Brew Hotel in Surry Hills is currently under construction.

“We’ve had several unsolicited approaches to buy the DOG in recent times and decided to put it to market to focus on our redevelopment of the Keg & Brew”, commented owner John Azar.

The syndicate acquired the hotel in a discreet off-market transaction from Newhaven Hotels in 2015 for a reported $17 million and immediately activated a $3.5 million renovation, refurbishment and reconfiguration.

They also repositioned the existing food and beverage proposition which has clearly resonated well with the locals.

Click here to view the listing on The Hotel Page with further information.

With annual revenues well in excess of $8 million, the hotel boasts a 2am liquor licence with only 19 gaming machines attached. The hotel was ranked #425 on OLGR's Dec-18 quarter rankings and outside of some hardware upgrades, the gaming room has remained largely untouched since the sale some four years ago. It is this area of the business that the agents advise demonstrates the most compelling and clear-cut upside for an incoming purchaser.

HTL Property's Director Sam Handy advised, "The Duke of Gloucester Hotel is surrounded by several TOP 200 gaming rooms, all with the maximum gaming machine holding of 30 machines. An incoming purchaser would be strongly advised to immediately increase the hotel’s machine holding from 19 to the allowable 30 and doubling the size of the gaming room by extending into the existing TAB and smoking area."

See also: Newcastle pubs the Belmont Hotel and Salamander Tavern sold for $20m by HTL Property

The two-storey hotel is prominently perched on an imposing 746sqm landholding at the cross section of Frenchmans Road and Clovelly Road in Randwick. The expansive trading footprint spans two levels and presents three bars, two kitchens, TAB, designated gaming room and multiple outdoor areas.

Handy added, “Whilst the business upside levers are obvious, it is expected that the underlying land and building value will excite a large segment of the market seeking prime property indexed to a stable and secure cash flow businesses”.

Click here to view the listing on The Hotel Page with further information.