Sydney’s pub sector has clocked another sale, with the multi-level Salisbury Hotel changing hands in the inner-west suburb of Stanmore for about $11 million.
Private equity firm L90 Capital placed the 3-storey hotel on the market in September, with HTL Property appointed to lead the campaign.
The investment firm, led by Brendan Madden, acquired the Salisbury Hotel in 2015 for $8.5 million, undertaking a million-dollar renovation program to reposition the pub in a strong Sydney fringe pub market.
HTL Property’s Dan Dragicevich said that the buyer, a private investment firm, has retained the existing management structure of the hotel.
“We are seeing the equity refresh model gain greater frequency, with recent examples including the sale of Allawah Hotel in Sydney’s south-west for about $30 million as illustrative of this less traditional but equally effective exit model,” Dragicevich said.
The art deco hotel sits on an 800sq m block, with plenty of opportunity for hotel-like accommodation options over the top two stories, Jolliffe said.
“Fringe CBD suburbs remain under resourced in terms of room inventory, and properties such as the Salisbury Hotel remain well placed to capitalise on the need for a range of accommodation options to meet both tourism and business-based short-stay requirements.”
HTL Property, formed earlier this year by Andrew Jolliffe and Dan Dragicevich, have brokered major headline pub deals in 2018 including Redcape’s pub portfolio, the Vauxhall Inn and, more recently, the Bells Hotel in Woolloomooloo.