By Vanessa Cavasinni, editor Australian Hotelier
Australian and international hotel operators will be looking at two major opportunities that have just been presented in the greater Sydney area – a mixed-use development, including a pub in central Parramatta, and the sale of the popular The Colombian Hotel on the CBD’s fringe.
This week, Property NSW has placed a large mixed/use development site in the heart of Parramatta – Sydney’s second CBD – on the market. The site includes a freehold property, hotel licence and gaming entitlements, and is located adjacent to Westfield Parramatta and opposite the train station, situating the property in an area of high foot traffic.
The 2812 sqm site is being offered via an EOI campaign, handled by JLL’s national director of hotel sales, John Musca, and head of metropolitan sales and investments NSW, Sam Brewer. The campaign is expected to attract both hoteliers and developers alike.
Musca suggests that the opportunity to develop such a site in a central location will likely not be repeated again.
“The multi-zoned strategic city centre site with separate, tangible hotel licence and gaming assets presents as a remarkable offering to hoteliers seeking a city centre greenfield hotel opportunity as part of a broader development scheme, which simply don’t exist anywhere else in Sydney.”
He continued: “This is a unique opportunity given the site’s prime location and the fact it is positioned in the heart of a major commercial hub and close to major transport links. As demand is strong for opportunities within Parramatta, the asset represents one of the most sought after hotel development opportunities remaining in Sydney and is quite likely to be the last anticipated new build opportunity that we might ever see in Parramatta.”
Heading into the city centre, it has been announced today that The Colombian Hotel, a stalwart of Oxford Street’s nightlife and a hub for Sydney’s LGBTQI community, has been placed on the market.
David McHugh, current owner of The Colombian Hotel, has relocated overseas and has entrusted Andrew Jolliffe and Joel Fisher of Ray White Hotels and Gerry Quinlan of Manenti Quinlan & Associates, to handle the sale.
The Eastern Suburbs of Sydney, particularly the fringe suburbs between the CBD and beaches, have seen a resurgence within the pub market in the last twelve months, with sales including the Four In Hand and Woollahra Hotel to Public House Management Group, and the revitalisation of pubs such as The Paddington by Merivale, The Light Brigade Hotel by Bayfield Hotels, and the current renovation of the Paddington Inn by Solotel.
“We know this market intimately, and given our current success in the area, we are confident of a highly competitive sales process” stated Jolliffe.
Between consistent revenue due to high patronage and 30 gaming machines, The Colombian Hotel is expected to be an attractive asset for many operators.
“It is a unique property that attracts strong patronage across a range of operating time frames, as well as enjoying formidable revenue from gaming operations; consistently ranked highly in the State’s Top 200 gaming venues quarterly,” commented Quinlan.
“We have seen a resurgence in commercial property values in Oxford St after a period of suppression given development in other areas, however what is clear to astute investors is that the various infrastructure investment strategies being deployed at both State and Federal level will have a significant impact on the value of commercial property in the Oxford St precinct.”