JLL Hotels & Hospitality Group have today confirmed the sale of the Cabbage Tree Hotel in Fairy Meadow (Wollongong) NSW for $11m.

Affectionately known as ‘The Patch’, the hotel is located approximately 3 kilometres north of the Wollongong CBD, sits on a prominent 4,740sqm site on the Princes Highway and includes ownership of the Hotel Licence and 15 gaming machine entitlements.

JLL Hotels Senior Vice President, Ben McDonald and Vice President, Kate MacDonald facilitated the off-market transaction which sees the hotel’s long-term, private owner on track to exit the investment after close to 40 years of ownership.

Commenting on the sale, JLL’s Ben McDonald noted; “The transaction highlights the underlying strength of investor appetite for hotel assets that exhibit compelling investment credentials located outside the Sydney metropolitan market. The new ownership structure will see a ‘re-stapling’ of the freehold and leasehold interests for the first time in decades which is set to unlock the significant potential of the asset for the new owners.”

The purchasers have been identified as a syndicate of hoteliers that includes the Laundy family, Nick Tindall and the hotel’s current operators, Brad & Corrina Young who also count the Postman’s Tavern in Nowra and the Bomaderry Hotel businesses among their growing hospitality interests. The acquisition also marks the Laundy families return to the region for the first time since the portfolio sale of leasehold interests in their North Wollongong, Balgownie and The Charles Hotel to ALH (Endeavour – ASX:EDV) in 2012.

This sale adds weight to JLL’s impressive run of pub sales in 2021 with over $160m in asset sales to be announced before Christmas.

To request a sales analysis please contact the selling agents JLL Hotels Senior Vice President Ben McDonald and Vice President Kate MacDonald via the below contact details.