Hotel Bondi Sells for $43m As Investors Cash In On Suburban Pubs
Sydney lock-out regulations have investors and private operators investing in suburban-Sydney pubs.
Hotel Bondi, was recently sold to the son of the original owner, the late Cyril Maloney, for $43 million.
The iconic pub held interest from major investors including neighbouring developer
The pub, which has been operating since 1919, has 30 gaming machines, a bottle shop, 37 hotel rooms and ample car parking.
JLL agent John Musca, national director, pub investment sales told the
Sydney Morning Herald the Hotel Bondi was owned by the Mr Moloney for nearly 44 years, and is arguably Bondi’s most recognised landmark.
The sale process attracted 14 bidders from around the world.
"Bidders included local and offshore developers, accommodation hoteliers, publicans and domestic and overseas high-net-worth investors," Mr Musca said.
"The residential conversion opportunity was compelling as was the hotel business proposition, so the market as a whole recognised it for what it was, a truly generational asset."
Hotel Bondi is located adjacent to the Swiss Grand Hotel, which has been converted into world-class Pacific Bondi Beach luxury apartments and hospitality development, planned for opening 2015.
Mr James Aroney, JLL Hotels & Hospitality Group capital markets director, told the Sydney Morning Herald that demand for sites for residential conversion and redevelopment continues unabated across the capitals,“Strategically located properties are well placed to harness this wave of equity presently." Mr Aroney said.
Other recent pub deals include the Double Bay’s Golden Sheaf Pub, which is on the market by current owner, Bruce Solomon and Sydney’s famous gaming hotel, The Grand Hotel.
Melbourne will also see some pub deals coming through with the popular Fitzroy Beer Garden hitting the market this week.
