JLL Hotels & Hospitality Group announces to market the successful sale of the Paragon Hotel in Mudgee NSW. The venue was sold on behalf of industry veterans Jamie and Gina Fitzgerald who consolidate their portfolio to focus on their primary hotel venue, The Woolpack Hotel.

The landmark transaction is the largest hotel deal to occur in Mudgee which is reflective of the venue’s excellent profitability and valuable underlying real property. The sale included the Paragon Hotel, residential cottage on 82 Gladstone Street and 5 strata titled terrace buildings at 36 Perry Street. All assets sold operate under the greater hotel operation with the total land size comprising of 4,477sqm. Furthermore, an approved DA to build 11 additional motel suites on the northwestern periphery of the site was included in the sale which enables future substantial development potential.

The Paragon Hotel has a loyal following and is an attractant to locals and travellers alike. Weekly revenues have historically averaged over $80,000 ex GST, with peak trading periods often well exceeding $100,000 ex GST. The hotel comprises of a single intermate public bar operation, gaming room (with 6 gaming machine entitlements), a modernised pavilion-style beer garden and 13 first floor pub accommodation rooms. The hotel site occupies a prominent corner position at the intersection of Perry Street and Gladstone Street.

The successful purchasing party is a syndicate led by Mudgee local Steve Harding, and business partner Scott Still. The group are experienced hoteliers who operate a portfolio of assets, one of which being The Royal Hotel in Oberon. The syndicate endeavours to build upon the outstanding foundation established by the Fitzgerald family with a view to continue to grow overall revenue.

The deal was negotiated by JLL specialist hotel brokers Greg Jeloudev and Edward Browne who conducted a discreet off-market expression of interest process. The mandate targeted specific buyer profiles who had the capacity and appetite to acquire an asset of such scale and revenue mix. Mr Jeloudev notes “The sale of the Paragon Hotel demonstrates the continued prioritisation for regional assets with a diversified trade mix. The valuable underlying real assets, coupled with excellent profitability drew substantial interest from local and metropolitan investors alike.”

Mudgee continues to boom being an attractive tourist destination and commercial hub for the region. Substantial proximal renewable infrastructure projects continue to grow local industry which compliment already established agricultural production. The local population is forecast to increase by 32% by 2041 and is reflective of the popularity of the area.

The announcement of the Paragon Hotel sale highlights JLL’s dominance in the Mid-Western regional hotel market with the firm having sold Gulgong’s Centennial Hotel in 2023, and the Post Office Hotel 2022.

JLL Hotels & Hospitality Group sincerely thanks the Fitzgerald family for entrusting the firm with this important mandate and congratulate the respective purchasers on their new acquisition. For further information regarding this sale, parties are encouraged to contact the undersigned agents.

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