Well-known NSW hotelier, Steve Hunt of Hunt Hospitality has divested another hotel, selling the Duke of Wellington in New Lambton, Newcastle, to the newly-formed Reklaw Hotels for $16m.
The off-market sale by JLL Hotels & Hospitality Group sees Reklaw Hotels, owned by Sydney-based hotelier Nick Walker, secure its first acquisition and cornerstone hotel asset.
Hunt said: “Selling the Duke wasn’t an easy decision as it is such a strong community-based asset with a great mix of trade. This is the third time in the last six years our fund has divested an asset for well over 50 per cent more than the original purchase.
“I wish the new owners well and know that ongoing, this will be a great pub for them.”
The off-market deal was brokered exclusively by JLL Hotels Senior Vice President Ben McDonald who highlighted the increasing weight of capital seeking exposure to the resilient asset class.
McDonald said: “The sale of The Duke is another example of increasing buyer depth in the marketplace as this is the first acquisition for the purchaser – a newly formed hotel group based in Sydney. Assets underpinned by strong trading fundamentals in key geographical markets continue to attract the interest and capital of a wide-ranging buyer pool and we anticipate such interest continuing to intensify as hotel opportunities are aggressively pursued.”
Offering an 885sqm footprint, 24 gaming machines, sports bar and TAB, significant internal beer garden and seven first floor accommodation rooms, The Duke is a strong hotel asset that is set to capitalise on Newcastle’s undeniable growth narrative.