Pub sales hit $115m in two weeks for JLL with Chatswood Hotel deal
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Pub sales hit $115m in two weeks for JLL with Chatswood Hotel deal
Sydney’s exclusive Lower North Shore, Chatswood Hotel sold by JLL experts Ben McDonald and Kate MacDonald taking total sales for the firm to $115m in the last fortnight alone.
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JLLChatswood Hotel sold by JLL
As transaction momentum continues to build in the NSW pub market, JLL Hotels & Hospitality Group has announced the sale of Chatswood Hotel on Sydney’s exclusive Lower North Shore taking total sales for the firm to $115m in the last fortnight alone.
Formally known as the Chelsea Hotel before a recent rebrand, the pub is located within Chatswood’s thriving CBD and sits directly opposite Chatswood Railway Station affording the business to capitalise on the enormous growth in surrounding residential density and commuter growth of the evolving railway precinct.
JLL Managing Director, Ben McDonald and Senior Vice President Kate MacDonald exclusively handled the sale having also sold it to the vendor in 2021.
Ms MacDonald highlighted a change in key investment drivers as a catalyst for the transaction unfolding this time, adding, “With strong food and beverage potential coupled with 30 EGMs and an efficient operational footprint, the sale campaign generated over 50 enquiries including interstate hoteliers seeking exposure to the NSW pub market. The genuine trading upside via existing DA approval and recent two-hour licence extension from 1am to 3am underpinned interest in the opportunity and will no doubt support future earnings growth of the business.”
Whilst not identified, JLL have confirmed the purchaser to be a private local family with significant interests in the pub space. The incoming operational strategy is understood to centre on expanding the existing trading footprint and optimising the current offering including the introduction of a branded sports bar and all-weather beer garden area.
The pub market is again displaying signs of why it features heavily in the minds and investment portfolios of alternative asset investors given the resilience of business cashflows backed by real estate ownership.
Mr McDonald noted, “As a firm, JLL’s national pubs platform has transacted in excess of $670m thus far in 2024 with momentum continuing to build into the back end of the year. We anticipate ongoing demand from established hoteliers mixed with opportunistic asset managers to be most active in the coming months as opportunities present themselves in both on and off market situations.”
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