Amid uncertainty surrounding Virtical’s financial status, the sale of its flagship pub The Republic Hotel has now been confirmed.
Less than a fortnight ago, the news dropped that Virtical had sold The Republic Hotel at a discounted price of $32m, after acquiring it for $40m in 2023. Almost concurrently, it was revealed that receivers had been appointed to the hotel, amid Virtical’s financial woes.
It has since been confirmed that the sale to Thomas Hotels has gone ahead, with the sale overseen by Ben McDonald and Kate MacDonald of JLL Hotels & Hospitality Group, in conjunction with Nick Lower of Savills.
Standing prominently at the intersection of Pitt and Bridge Street at the northern end of Sydney’s CBD, the Republic has been well known in the past for attracting a finance crowd given its location directly opposite the ASX Headquarters on Bridge Street.
Today, the pub attracts a diverse clientele from all corners of the CBD and given its proximity to Circular Quay, the Sydney Harbour Bridge, and the Opera House, enjoys a steady flow of tourists past its front door.
Drawn to the valuable underlying real estate supported by a strong multi-level hospitality business, the Thomas family look set to capitalise on the underutilised 24-hour hotel licence, 28 gaming machines and growing patron demand in the immediate vicinity as ‘return to work’ policies for corporates gather prominence and momentum through the CBD.
The Republic Hotel joins a portfolio of 20 pubs across Sydney and the Central Coast which includes Aurora Hotel and Rooftop and Molly Malones Tavern in Surry Hills; The Bradbury Hotel in Sydney’s south-west; The Commercial Hotel and Tollgate Hotel in Parramatta; and the Lakes & Ocean Hotel in Forster.
“The sale of The Republic Hotel, with its rich history and prime corner position, reinforces the ongoing demand for strategically located hospitality assets in Sydney’s CBD. We are delighted to have facilitated a successful transaction that showcases the resilience of the hospitality market in prime locations,” stated Lower.
McDonald noted that the sale was indicative of a renewed appetite for pub assets in the market.
“We are seeing greater capital demand for pubs right now as the trading environment continues to improve. This increased competition is opening several options for owners with our intimate knowledge of underbidder capital suggesting a genuine appetite for a variety of hospitality opportunities.”