Following the recent announcements of ~$160m in asset sales nationally, JLL Hotels & Hospitality Group has launched the sale campaign for the newly re-branded Chatswood Hotel in NSW on behalf of its private owners.

JLL Executive Vice President Ben McDonald and Senior Vice President Kate MacDonald have been exclusively appointed to steer the Expressions of Interest campaign following an uptick in investor activity in the sector thus far in 2024.

With an enviable mix of investment attributes including 1am trading approval, growing average weekly revenue in excess of $95,000, and 30 gaming machines, it is anticipated that Chatswood Hotel will pique the interest of a wide audience seeking exposure to the pub market on Sydney’s exclusive and highly desirable Lower North Shore. 

Ms MacDonald noted; “Having recently undergone a cosmetic upgrade which includes reactivation of dormant and underutilised trading areas coupled with a reconfiguration of the gaming room, Chatswood Hotel is well-positioned to capitalise on the enormous growth in surrounding residential density and commuter growth of Chatswood Train Station”.

The pub market itself has seen a slight reset since the all-time highs of 2022 when total transaction volumes reached ~$2.3bn.

At that time, strong trading fundamentals mixed with heightened debt liquidity and weight of capital entering the space converged to fuel yield compression thereby pushing capital values beyond those seen in the market previously. 

Despite a softening in market conditions through 2023, Mr McDonald believes that transaction momentum is about to turn with recent sales supporting that view nationally.

“We are on the precipice of a real momentum shift in the pub space as deal flow is on the improve. We are increasingly optimistic on conditions as the year goes on with stakeholders seemingly more comfortable with the trading landscape, the ‘higher for longer’ interest rate environment and the debt landscape more broadly.

"Having the largest national team of specialist brokers, I can tell you we are extremely busy servicing our growing client base across the pub, mid-market accommodation, tourism and leisure asset classes.”

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