Sydney's Exchange Hotel in Darlinghurst has been sold to a private investor in the latest in a series of national hotel deals.
CBRE Hotels has transacted over $220 million of pub assets so far in 2015, including the Exchange Hotel on Oxford Street.
CBRE Hotels National Director Dan Dragicevich said the Exchange Hotel had been sold to a private investor at a time when the CBD lockout laws continued to impact the late night economy.
Over the past 20 years, the Exchange Hotel has been a nightclub-centric operation and has run hugely successful nights under well-known brands such as Spectrum, Phoenix and Q Bar. It was sold on behalf of a private partnership of long term owners.
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"Increased appetite from retail and commercial investors coupled with the effects of the lockout laws meant that the multi-level nightclub model that the Exchange Hotel has for so long operated under was no longer optimal," Mr Dragicevich said.
“The incoming owner is a private investor who has different ideas for the site but is maintaining ownership of the liquor licence so there will continue to be some form of hospitality offering.”
Mr Dragicevich said the metropolitan hotel markets of Melbourne, Sydney and Brisbane continued to be very active, with highlights being the circa $40 million sale of the Oasis on Beamish in Sydney’s Campsie – the largest single gaming-centric hotel in NSW since 2007.
This year had also seen the sharpest passive pub yield ever achieved in Victoria at 3.5% for the Imperial Hotel in the Melbourne CBD and the largest privately negotiated deal to the ALH/Charter Hall consortium for two hotels in Townsville.