One of NSW most prominent publicans, Arthur Laundy, has picked up the Bidwill Hotel in western Sydney for $35 million.
Laundy Hotels purchased the large format suburban hotel, situated upon a 4,300sq m site on the edge of Sydney’s north-west growth corridor, following a short sales process.
The billionaire owner of Laundy Hotels, which operates more than 20 venues in NSW including the Bells Hotel in Woolloomooloo and The Oxford Hotel in Drummoyne, said he bought the large hotel in the outer western Sydney suburb for “cashflow purposes”.
Laundy, already familiar to the Bidwill area, owns two nearby hotels: the Plumpton Hotel and the mega Marsden Park Brewhouse.
HTL Property’s Sam Handy, Dan Dragicevich and Andrew Jolliffe negotiated the transaction on behalf of private owners the Secheny family, who had held the pub since 2005.
“Our client designed with us a strategy to excise fair market value,” Dragicevich said.
“In doing so a paragon of this industry in the form of the Laundy family, moved [in order] to access balance sheet firepower to grow out its portfolio of A-grade assets.”
After opening the Marsden Park Brewhouse in April last year Laundy Hotels followed up with the approval for a $35 million redevelopment of the Log Cabin Hotel in Penrith.
The Log Cabin Hotel will be developed by a long-standing consortium including Laundy Hotels, the Cottle family and businessman Rob Wearn.
Laundy also has plans to develop a hotel at Calderwood, a burgeoning suburb near his existing Albion Park Hotel, having purchased the site from Lendlease for around $4 million.
In recent months, landlords have been backed by lenders to expand as gaming revenues rise on the back of government stimulus packages, and as food and beverage operations are leveraged to a recovery in consumer spending.
The Australian Hotels Association also estimates that pubs alone will need to hire an additional 9,000 extra staff in NSW to cope with the increased capacity, just in time for Christmas.
“Capital markets have undeniably awakened from their Covid-19 enforced lull, and our look forward deal flow pipeline in the hospitality asset class speaks to a more than motivated investment audience,” Jolliffe said.
“Accordingly, we anticipate 2021 will promote a day one transaction landscape closely reflecting what has been experienced in the closing stages of a dynamic closure to the year 2020.”
The Bidwill Hotel deal closely follows several other recent Sydney hotel sale announcements, topping $170 million, in recent weeks.
At least five pubs have changed hands since the start of November, the largest being the record purchase of Sydney’s Narwee Hotel for about $45 million by Iris Capital.
The popular Four in Hand in Paddington was also picked up by John Azar's Good Beer Company for $8.25 million.
ASX listed Redcape also secured the Gladstone Hotel in Dulwich Hill, in a transaction also managed by JLL for $38 million.
Last week, Moelis Australia swooped on the adjoining Oxford Street watering holes, the Kinselas and Courthouse Hotels, in a $67 million acquisition.
Moelis has plans to combine the two venues into one large pub complex for the inner-city Taylor Square precinct.