By Vanessa Cavasinni, editor Australian Hotelier
The Colombian Hotel, an iconic fixture for Sydney’s LGBTQI community, has been purchased by Iris Capital.
The Colombian Hotel was placed on the market after its owner, David McHugh relocated overseas. Knowing the venue would garner plenty of interest, both in Australia and internationally, a short, four-week EOI campaign was run by Andrew Jolliffe of Ray White Hotels and Gerry Quinlan of Manenti Quinlan and Associates.
More than 80 enquiries were made, but ultimately Iris Capital made the successful bid, reportedly for more than $15 million.
While in recent years foot traffic has died off as Oxford Street lost its shine as a hub of nightlife, however The Colombian Hotel has maintained a busy trade, thanks to its reputation as hub for Sydney’s LGBTQI community.
Oxford Street is also enjoying some reinvigoration of its status as an active area of Sydney nightlife, with hotel operators such as Merivale, Solotel and Bayfield Hotels reinvesting in the strip; along with bar operators such as Applejacks Hospitality and Jared Merlino of Lobe Plantation.
With this mix of attractive features, Quinlan suggested that The Colombian Hotel sale was one of the most active campaigns he’s been involved in.
"We were inundated from the moment we made public the proposed sale of the hotel, with enquiry ranging from well-known national hoteliers and hotel groups; to astute local and international property developers."
Joliffe added: "The investment thesis for this opportunity was compelling, with scale, position, opportunity and profitability all central components. And like other valuable property assets we have sold into this market and which also enjoy explosive revenue centres, astute buyers on our database are always going to jostle aggressively for position."
Iris Capital was not available for comment.