JDA Hotels have shown their faith in the rebuild of the General Gordon Hotel by buying out their partners in the hotel, White and Partners.
White and Partners and JDA Hotels first purchased the General Gordon Hotel in 2017 off the now-defunct Lantern Hotels for $18.1 million. In July 2018, the hotel was midway through a $4 million renovation when a fire caused extensive damage to the building, with both the roof and a major wall on the second floor of the pub collapsing.
The owners quickly committed to rebuilding the pub, which is currently near completion, with the hotel expected to reopen in April.
In the meantime, White and Partners decided to divest their portion of the hotel, with Andrew Jolliffe and Daniel Dragicevich of HTL Property running an off-market EOI campaign. While there was very strong interest from several Sydney-based hotel groups, the incumbent management team of JDA Hotels made the successful bid of roughly $30 million.
“We have enjoyed a long and favourable association with the hotel; and following the unintended hiatus, we are now super excited about the magnitude of not only the rebuild, but also the vast potential contained in the area with its substantially enhanced transport services on our doorstep an unmistakable value underwriter,” stated JDA Hotel’s CEO, John Feros.
Dragicevich said the off-market EOI campaign has proven to be a popular sales method of late.
“The process run is typical of what we have been recently asked to curate for highly regarded assets such as The Courthouse Hotel in Surry Hills, and the Bidwell Hotel in Sydney’s Western suburbs, with the aforementioned properties being sold off-market to both Moelis Australia Hotel Management and the Laundy family respectively.”
The General Gordon Hotel is expected to reopen in April this year.