By Clyde Mooney
A recently renovated Surry Hills hotel has sold swiftly to a private party, indicating a continuation of investor interest and general revival of inner-city venues.
The Forresters Hotel follows the Beresford and the Excelsior as iconic Surry Hill’s pubs to have changed hands in the past year.
The hotel recently had an internal makeover, including commissioned internal wall art works by legendary Melbourne street artist Ghost Patrol.
This is the third sale this month for Andrew Joliffe, MD of Ray White Hotels and former CEO of listed pub group National Leisure & Gaming.
Joliffe told TheShout that relative newcomer to the NSW market, Ray White Hotels, currently has in excess of $150 million worth of hotels under agreement and that things were pointing toward a pub market on the rebound being snapped up by astute investors.
“Hotels are in many cases superior investment vehicles when compared to other asset classes, because of their liquid nature and their strong cash flow-based business models,” said Joliffe.
“Pubs don’t run trade debtors, and this is a powerful differentiation to almost all other asset classes of significant scale.
“Well experienced publicans already know this, and now sophisticated financial investment institutions are also being drawn to this magnetic industry character trait.”
Sydney’s Surry Hills enjoys similarities in bohemian lifestyle to New York’s Soho district, and the gentrification of the area seems destined to continue.