Patrick and Angela Gallagher have acquired the Longueville Hotel in North Sydney, with a competitive offer of roughly $50m ending the off-market, invitation-only EOI campaign ten days early.

The hotel was put up for sale by the Campion family, whose extended family have operated the hotel since 1929 after purchasing the lease off Tooth & Co, and then eventually acquiring the freehold. Third-generation owner and current custodian Graham Campion grew up in the pub.

The Campion family appointed JLL’s John Musca and Ben McDonald to steer the sales campaign.

The Longueville Hotel occupies a gateway site at the entry to Lane Cove Village on Longueville Road, and serves a large population catchment of over 40,000 residents with no immediate competition. It offers an enhanced patron experience across bar, dining, gaming and wagering with 3am trading approval, 27 gaming machines entitlements and an average weekly revenue in excess of $160,000.

“Transaction activity in the asset-class is at a two-decade high nationally, not surprising given the superior weighting attributed to hotel earnings and the very limited number of assets per capita that will ever be available to acquire – we are witnessing never before seen consolidation,” stated Musca.

Development opportunity lies in capitalising on current plans to improve the gaming offering, repositioning of the basement bar and optimisation of the first floor of the hotel which is currently approved to operate 15 accommodation rooms, but is also licensed.

The Villa outdoor balcony bar was added to the hotel during its major renovation in early 2020.

The Gallaghers add the Longueville Hotel to their stable of large-format, landmark community hotels, which include the Hunters Hill Hotel and Terrigal Hotel.

“We are delighted to now consider the ‘Longy’ as part of the Gallagher suite of quality family hotels and thank the Campion family for the opportunity to continue the hotel’s legacy in this wonderful, supportive community,” stated Patrick Gallagher.

Campion wished the new owners well with the beloved hotel he grew up in.

“It’s with a tinge of sadness but immense pride that the family are handing over the Longy to such respectful, exemplar custodians as the Gallaghers and we wish them every success with the next evolution of this wonderful business.”

McDonald reflected on the high standard of the Longueville Hotel, and the rarity with which such assets become available on the market.

“The chance to acquire hotel assets commanding a monopolistic position in strong retail locations are worthy of ‘unicorn’ status and likely to be held by new buyers generationally. We don’t see that changing anytime soon as asset supply continues to diminish.” 

Australian Hotelier featured the major renovation of the Longueville Hotel, including the addition of The Villa outdoor bar, in its September 2020 issue. Check it out below.

Australian Hotelier September 2020

Leave a comment

Your email address will not be published. Required fields are marked *