Capital Gain
Billionaire pub baron Arthur Laundy is expanding his regional hotel footprint, outlaying $41 million for the Woy Woy Hotel on NSW’s Central Coast, as investors vie for hotels with stable income and underlying land value growth.
The Woy Woy was sold by hospitality investment manager and operator Harvest Hospitality, which bought it in December 2021 for $32 million. Known as The Old Pub, it’s on Woy Woy’s main street at 33 The Boulevard.
Laundy also owns The Bayview, which he bought in 2021 for $32 million, in the same town. English comedian Spike Milligan once called Woy Woy: “The world’s largest above-ground cemetery”. His parents, Leo and Florence, settled there in the 1950s, prompting many visits (and jokes) from him.
JLL Hotels’ Ben McDonald and Kate MacDonald managed the sale.
In Sydney, former policeman and pub expert Bob Tate, together with other syndicate investors, are selling the Glasshouse hotel in Maroubra. Tate’s syndicate has held the pub for 25 years. Part of the ground floor area has been closed since COVID. Tate also owns the Clovelly Hotel.
The Glasshouse generates average weekly revenue above $100,000, with the gaming operations alone turning over $1.3 million a week. The sale includes the hotel licence that has 3am trading hours and 24 gaming machines.
No price guide was offered by the agents given it has both leasehold and freehold titles. JLL Hotels’ Kate MacDonald, Ben McDonald, and Mike Wheatley Hotels, are the sales agents.
The leasehold for the Arthouse Hotel in the city is also on the market. The owner, hotelier Ben McBeath, has price expectations around $6.5 million. The lease is being offered for sale after several informal and unsolicited approaches from hoteliers keen to secure a presence in the CBD.
The Arthouse is on Pitt Street in The Galleries retail precinct surrounded by large office towers. It generates annual revenue of around $8 million from its bar, food, gaming and wagering.
McBeath’s portfolio includes the Great Northern and Treehouse Hotel in North Sydney. HTL Property’s Dan Dragicevich and Sam Handy are advising on the sale.
Island site
Private investment syndicate Nedosu has put its freehold island site at 70-72 Commonwealth Street in Surry Hills up for sale.
With price expectations above $25 million, it comes with approval for a 121-room hotel plus zoning flexibility for co-living or student accommodation and is near three major universities.
The Commonwealth Street property also has frontages to Brisbane Street and Goulburn Lane and houses a two-storey office building with secure car parking.
Nearby, private investor Phil Wolanski’s Denwol group paid $32.6 million for 79 Commonwealth Street last November. JLL’s Willem Watson and Harry Borger are selling No.70-72.
What’s Tatt?
The Barracks, part of the City Tattersalls Club at 5-7 Barrack Street, is on the market with a price tag of more than $15 million.
The four-storey, 341.5 square metre freehold site has basement and ground floor hospitality space and has long been occupied by the RSL. The Combined Services RSL Club was established on the site in 1945. During WWII, the basement served as Stage Door Canteen for servicemen and women.
The building currently operates as a licensed hospitality venue under the City Tattersalls Club umbrella. Planning controls allow for a broad range of uses, including retail, office, hotel, build-to-rent and other mixed-use outcomes.
Colliers’ James Cowan and Jack McGregor are the agents on the deal.
Waldorf’s here
The Waldorf Astoria sign is up on Andrew and Nicola Forrest’s building that overlooks Circular Quay as the hotel moves towards its opening next year.
Hotel management behemoth, Hilton, which will operate the Forrests’ property, is also set to launch Australia’s first LXR Hotel & Resort at the former Palazzo Versace on the Gold Coast next year, marking a significant double investment in Australia’s luxury market.
Hilton hotels are expanding in Australia at the luxury end – with Waldorf Astoria – and in the lifestyle market with brands like Motto by Hilton in York Street.
Paul Hutton, head of Asia Pacific at Hilton, said many hotel guests are locals opting to stay at home rather than navigate the expense and stress of overseas travel.
“We are seeing a lot of our guests looking for lifestyle and luxury vacations within Australia and we are looking to fill the gap with a wide range of hotel brands,” Hutton told Capital Gain.
