The sale of Sydney’s Belmore Hotel to former Sydney lord mayor and philanthropist Nelson Meers for about $50 million reveals a continued thirst among investors for high-profile watering holes.
The deal, brokered by HTL Property agents, is among the highest paid for a gaming hotel this year, and comes in the wake of a remarkable run in pub sales including the St George Hotel in Belmore last month.
The Belmore Hotel is the third pub asset the Joel Fisher-led Monarch Hotels has offloaded in the past 12 months.
HTL Property’s Dan Dragicevich and Andrew Jolliffe brokered the off-market sale.
“2019 has been punctuated by some material sales of typically hard-to-dislodge leading gaming assets, with Allawah Hotel sold to Justin Hemmes for $33 million, Raby Tavern at $35 million, St George Tavern at $47 million and now the Belmore Hotel at $50 million, all in the last eight weeks,” Dragicevich said.
Other big gaming hotel sales in October include Newcastle’s Kent Hotel and the Allawah hotel, which sold to pub baron Justin Hemmes for $34 million.
The widespread appetite for pub assets has seen a premium placed on real estate, with Byron Bay’s The Beach Hotel sold to investment bank Moelis for $100 million this month.
HTL Asia Pacific director Andrew Jolliffe said the sale of the Belmore is further evidence of investors’ confidence in Australian punters’ love affair with their local.
“The marketplace for this hospitality and leisure indexed asset class is, on a national basis, delivering upon any fair measure wholly rewarding results to all stakeholders,” Jolliffe said.
“The consistency and prosperity enjoyed warrants the focus it now firmly enjoys from alternative asset class investors, who are unapologetically indiscreet regarding their desire to place capital here.”