The Bexley North Hotel has been listed for sale, offering the combination of a robust existing earnings profile and compelling mixed-use redevelopment potential (STCA).

The hotel has been owned and operated by the Yang family for the last 40 years, and recently received Gateway Determination from NSW Planning for a mixed-use redevelopment comprising a pub, hotel, retail, commercial and residential development.

‘Our family has owned and operated the hotel for over 40 years, and we have positioned both the business and development site for its next evolution’ suggested owner Michael Yang

‘Whilst we’re not necessarily developers, we believe that the hotel and site represent an amazing opportunity to acquire a large format Hotel with genuine mixed-use redevelopment potential’ Yang added.

Licensee and shareholder Trevor Yang further offered, ‘our family is open to either entering into a joint venture partnership with a developer and equally open to passing the torch onto a suitable hotelier who will continue our philosophy of operating a family friendly pub for the local community’.

Leading national pub brokerage agency HTL Property has been exclusively appointed to sell the hotel in conjunction with Colliers International; who will focus on the development component of the asset.

HTL Property’s Sam Handy, Dan Dragicevich and Andrew Jolliffe will steer the sale process alongside Colliers International’s James Cowan and Trent Gallagher.

It is anticipated that the hotel will garner interest from a broad spectrum of buyers, including hoteliers, investors, developers and land-bankers; all expected to be attracted to the significant cash flow benefits of the business.

The Bexley North Hotel business generates in excess of $11,500,000 in annual revenues across bar, bistro, gaming, wagering, accommodation and retail liquor. It features a 24 hour liquor licence with 30 gaming machines attached and 20 accommodation rooms. Almost half of the hotel’s trading footprint currently lies dormant; and presents with obvious optimisation upside.

The large format hotel enjoys an exclusive trading catchment, and is virtually unopposed in terms of other pub competitors int the immediate vicinity. The business benefits from the organic foot traffic derived from its proximity to Woolworths, Bexley North train station and Bayside Council’s 150 space car park.

'We anticipate the campaign will generate interest from a broad spectrum of suitors. These will range from hoteliers interested in reinvigorating the offering through to developers, land bankers and investors attracted to the site's strategic land holding; offering tangible and flexible redevelopment options" advised HTL Property Director, Sam Handy.

The hotel occupies a significant 4,234 sqm landholding in Bexley’s Norths town centre, with favourable and attractive planning approvals in place.

NSW Planning confirmed in May of this year that it had determined that a proposal for a two tower mixed- use development comprising a pub, retail, residential (92 x apartments) and accommodation hotel (50 x rooms) should proceed subject to the conditions outlined in the Gateway Determination.

“We have seen a considerable uptick in enquiry from large off-shore and institutional developers working on the thematic that the combination of inbound skilled migration, overlayed by the considerable undersupply of stock by 2024, will drive pricing escalations both for the sales and leasing market” added James Cowan, Director at Colliers.

“There are very few, if any, developable sites left in this market; and the best has been left for last. The site benefits from significant scale, diverse future uses and holding income - we believe it will be extremely well competed for by both build to sell and the burgeoning build to rent sector” concluded Trent Gallagher, National Director at Colliers.

The Bexley North Hotel is being sold by a National Expression of Interest sale process closing at 4:00pm on Wednesday 13 September 2023.