By Vanessa Cavasinni, editor Australian Hotelier
Debutante operators nabbed the George IV Inn at Ray White Hotels’ auction event yesterday, while negotiations are underway for the two other regional pub lots on the ticket.
The auction began with the George IV Inn in Picton, on the fringe of the Sydney catchment area. Vendor Patrick Moloney had put the pub up for sale after incurring flood damage, which the insurer would not cover. There were two parties bidding for the venue – one of the oldest in New South Wales – with bidding starting at $1.8 million, going back and forth in increments between $25,000 and $100,000. The highest bid – which was under reserve – was $3.05 million, made by Adam Cryer and Ross Robinson, who are new to the industry. After half an hour of negotiations, the pub was sold to the pair for $3.125 million.
Belmore Hotel in Maitland, the second lot of the day, with 19 EGMs and DA approval for 30 in total, was passed in, with bids only reaching $9 million. Andrew Jolliffe and Blake Edwards were negotiating with the highest bidder after the auction, looking to reach an agreement that would please the vendor and potential buyer. Australian Hotelier understands that an offer was made, but as yet has not been disclosed.
The Unanderra Hotel in the Wollongong area was withdrawn from the auction process, as parties who were unable to attend the auction had started negotiations for the hotel earlier in the day.
Four other properties were auctioned off on the day by the Ray White Commercial division.
While all three hotels did not sell over reserve as hoped, Jolliffe remains confident in the auction process, as evidenced in the turnout and the negotiations that proceeded it.
"Our year to date auction clearance rate is 89 per cent, and this figure; coupled with the volume of participating parties in the auction room today, clearly illustrates the strength and depth of both the asset class, and our unique auction process. With offers received today both in the room and afterwards for all properties we auctioned, we enjoy a significant level of confidence in our sale model; and the support of our valued client base and, importantly, that of the market, bears firm testimony to this strategy."
At Ray White’s last hotel auction, Merivale purchased the Tennyson Hotel in Sydney for a record $37.05 million.