JLL Hotels & Hospitality Group has launched the sale of the Union Hotel, North Sydney and The Harold, Forest Lodge as unsatisfied capital continues to seek opportunities in the sector.
JLL Hotels & Hospitality Group has launched the sale of the Union Hotel, North Sydney and The Harold, Forest Lodge as unsatisfied capital continues to seek opportunities in the sector.
Now widely considered one of the most resilient operating real estate asset classes in the country, pubs have been a major drawcard for hoteliers seeking to grow portfolios and investors wanting exposure to the strong underlying cashflows and trading fundamentals on offer.
JLL Hotels Executive Vice President, Ben McDonald and Senior Vice President, Kate MacDonald have been appointed to steer the campaign on behalf of privately held, Good Beer Co who are reweighting their hotel portfolio in line with their ongoing operating strategy.
Mr McDonald noted, “With both assets having recently undergone significant refurbishments, the pubs offer interested parties a ‘plug and play’ opportunity of scale and the ability to capitalise on combined weekly revenue in excess of $142,000, over 2,100sqm of trading floorspace, 34 gaming machine entitlements and are nicely diversified from a location point of view.”
Having recently managed 7 of the 8 pub transactions in metropolitan Sydney so far in 2023, including the nearby Commodore Hotel in McMahons Point and the famous Oaks Hotel, Neutral Bay, JLL expects interest in the two assets to be healthy given the attractive price points of each asset relative to the most recent transaction data.
Senior Vice President Kate MacDonald highlighted the investment fundamentals of each asset with a core focus on the underlying growth narrative of each location set to play a key role in the campaign.
“Whilst the businesses currently offer an attractive revenue profile for hoteliers and investors, we fully expect our business case for profit enhancement to play out in the short term as local infrastructure and the neighbouring development pipeline of projects are realised.
The pubs are being offered for sale either individually or in one line via public Expressions of Interest closing Thursday 14th September 2023 (if not sold prior).