Bayfield Hotels has purchased the Belrose Hotel off Redcape, six years after selling the venue to the national pub group.
Known for its focus on Sydney’s Northern Beaches region, Bayfield Hotels purchased the hotel off Redcape in an off-market transaction. While neither party would be drawn on the sale price, reports suggest it is in the vicinity of $23 million – what Redcape paid for the venue in 2012.
Belrose Hotel is a large-format venue with a diverse revenue mix, including a large retail liquor offering, bistro, function spaces and kids playground. Kaine Bayfield, COO of Bayfield Hotels said this mix of offerings, as well as the group’s familiarity with the venue, made it an attractive purchase.
“There were a few things that appealed to us about the hotel: The Northern Beaches location. The food and family focused hotel suits our business model and strengths. The large format bottle shop is another strength of our business which we can further strengthen and utilise economies of scale.
“We also feel we know the hotel pretty intimately being previous owners and having originally developed the site to the hotel you see today. We are also familiar with the local community surrounding the hotel and look forward to reengaging with them.”
The Belrose Hotel will rejoin the Bayfield Hotels portfolio that includes Dee Why Hotel and The Light Brigade in Sydney’s east. The family-owned group was keeping an eye out for further opportunities in the Northern Beaches – an area that it is very familiar with, having operated Dee Why Hotel for 40 years. It had also operated The Newport Arms for several years before selling the sprawling venue to Merivale in 2015.
Redcape CEO Dan Brady stated that he was happy to divest the asset to such invested operators.
“The sale of the Belrose Hotel represents a strategic divestment for Redcape as we continue to optimise our portfolio of strategically placed operating businesses underpinned by real estate holdings.
“Having redeveloped the hotel some years ago, Bayfield Hotels are an obvious and natural owner and we wish them well. We have thoroughly enjoyed our involvement with the Belrose Hotel and community, including the many local organisations we have contributed to and the local jobs we have created since 2012.”
The proceeds of the sale will be reinvested in Redcape’s ongoing portfolio management strategy.