JDA Hotels has beat out a number of bids at auction on the Padstow Hotel to take on the freehold of the venue for $26 million.
The Padstow Hotel was sold at auction by White & Partners via Ray White Hotels. White & Partners had purchased the venue in 2014 from Spirit Hotels – the hospitality arm of Coles – for $13.7 million.
“The hotel received an extraordinary level of interest, albeit commensurate with the quality of the opportunity, via the on-market campaign process; and was ultimately purchased for $26 million by JDA Hotels who enjoyed a management agreement at the hotel,” stated Andrew Jolliffe, who steered the auction campaign.
Padstow Hotel is currently ranked 169 in the New South Wales’ Top 200 gaming hotels, and is the recipient of a recent extension of trading hours windfall until 2am. It is situated opposite Padstow train station on a 2700 sqm block.
Speaking on behalf of JDA Hotels, John Feros said he was pleased with the outcome.
“We clearly know the hotel, and have a good appreciation of the area having operated hotels in that part of Sydney for decades.”
Feros suggested that the group was on the look-out for other good acquisition opportunities.
“We are active buyers in the market, and will continue to seek and transact upon well located opportunities where we see we can add value.”
Jolliffe suggested that the strong interest and sale price of the Padstow Park Hotel were indicative of the quality of industry operations across the country.
“Nationally, this industry is better funded, guided and operated than at any other time in its long history, lending itself to continued market strength and investment grade longevity.”
The sale this morning takes Ray White Hotels’ auction success rate to 86 per cent. Grand View Hotel in the Blue Mountains region of New South Wales was also set to be sold via auction this morning, but was withdrawn due to a pre-auction offer which is currently being negotiated.