Exclusively negotiated by Vice President, Kate MacDonald, Senior Vice President, Ben McDonald and Investment Sales Director, Dylan McEvoy JLL Hotels & Hospitality Group is thrilled to announce the Freehold Investment sale of the East Village Hotel in Darlinghurst reflecting a passing yield of circa 5%.

After testing the freehold going concern market earlier in the year, the owners, Goodtime Hospitality, turned to JLL Hotels for a more strategic approach to drive an outcome on their behalf, ultimately leading to the investment sale subject to the existing lease.

f83d4ef4-7112-4302-9ca2-44af5374db6b.png

Utilising the broader JLL investment sales platform in conjunction with leveraging key stakeholder relationships in the hotel space, Ms MacDonald generated significant interest from a wide ranging investor pool in search for quality commercial property assets with strong tenancy covenants and lease metrics – something the team at Goodtime Hospitality certainly offered.

The hotel was sold to private interests with JLL Hotels’ Kate MacDonald suggesting that “crafting the outcome meant recognizing the hotel operators pedigree alongside the strong underlying property fundamentals and we’re delighted to assist yet another city fringe Sydney hotel owner to meet their divestment objectives”.

The sale comes on the back of a spate of investment hotel sales to both private and public suitors whereby freehold hotel interests are being sold subject to long-term lease agreements to reputable tenancy covenants. More recently Cushman and Wakefield and CBRE $54 million sale of the Mango Hill Tavern and Summer Hill Hotel freehold assets to ASX Listed HPI demonstrated the value being ascribed to these unique annuity income streams underpinned by irreplaceable, attached licensing and gaming assets.

6bdfdfd3-f4f4-41dd-b6a8-d2616bc586b2.png