The leasehold of a high-profile hotel in Sydney’s eastern suburbs, East Village, has been exchanged between Locky Paech of Goodtime Hospitality and a newly formed syndicate.
Situated on the corner of Liverpool and Palmer Streets in the inner-city suburb of Darlinghurst, East Village has been operated by Paech for the last eight years after undertaking a significant renovation with former business partner James Bodel.
The freehold interest of the pub was sold in 2020, with JLL Hotels & Hospitality Group appointed to quietly sell the leasehold interest in a transaction handled by senior vice president Kate MacDonald.
With Paech undertaking a career shift, the leasehold interest has changed hands to newly-formed syndicate Tipple Time Hospitality. The syndicate is spearheaded by hospitality veterans Brian Sarkis, current licensee of ArtHouse Sydney; Matthew Orr, current licensee of Great Northern in Newcastle; and Ben McBeath.
Reflecting on his first day at ArtHouse, Sarkis says he received an email which read “we are going to achieve big things together. I can feel it.”
Now, commenting on the purchase, he says: “I didn’t think that would mean acquiring such a stunning venue in the East Village Hotel, only two years later. Ben, Mat and I, as Tipple Time Hospitality, are excited to refresh an already brilliant establishment. It has the best rooftop view in Sydney, and we can’t wait to hit the ground running.”
The pub comprises a ground floor public bar with footpath seating, a first floor commercial kitchen and manager’s office, second floor ‘Athletic Club’, and finally, one of Sydney’s most renowned rooftop terraces with skyline views.
Speaking about continued curiosity in leasehold hotels, MacDonald said: “In the current interest rate environment, investing in a long-term lease appears to be of increasing appeal. The team at JLL continues to field enquiries from astute hoteliers looking to diversify and boost cash flows within their portfolios.”
JLL Hotels still has $95m in transactions yet to announce, highlighting transaction momentum in the national pub market.