By Vanessa Cavasinni, editor Australian Hotelier
Public House Management Group (PHMG) has purchased The Toxteth Hotel in Glebe.
Mitchell Waugh’s group purchased the Toxteth Hotel from the Australian Pub Fund (APF) for circa $21 million. This is the fourth sale from the APF, since announcing its intentions to divest the hotels under the Riversdale umbrella.
For PHMG, it’s the first purchase in around 18 months, after the group went on a spending spree in late 2015, purchasing $60 million worth of hotels spread around Sydney. For Waugh, not only does the Toxteth Hotel fit the group’s mandate of hotels with balanced income streams, but it has personal significance as well.
“The Toxteth Hotel has always held sentimental value as it was where I got my first taste of the hospitality industry as an enthusiastic 18 year old working for then owners the Murphy family. PHMG looks forward to continuing to build upon the strong relationship they forged with the Glebe community.”
Andrew Jolliffe of Ray White, who negotiated the off-market sale, praised the PHMG operation.
"The purchase of this significant fringe CBD hotel asset is consistent with others made by the very well credentialed PHMG; and the recent operational improvements made to other hotels recently bought for the stable, such as those made to Mosman's Buena Vista, are patently available to the group again in respect of this acquisition."
The sale was also welcomed by APF, as noted by spokesman Matthew Beach.
"Fundamentally, the sale price achieved represented a material accretion of value when compared to the purchase price, and is consistent on a comparable yield basis to where we have been prepared to sell other hotel properties owned by the fund."
For Waugh, the Toxteth purchase is in line with the group’s operating model, and hints that there may be more acquisitions on the cards.
“Our philosophy is not complicated. We look for opportunities to acquire A grade commercial property holdings in destinations underpinned by active patronage fundamentals; and whereby we can apply our deliberate hospitality strategies in order to grow revenue across all income streams.
“We remain committed to assessing acquisitions opportunities whereby our hospitality strategy can add value to an existing operation and where we believe our brand will enjoy long term support from the community within which the hotel is located,” Waugh added.