The Riverview Hotel in Tempe has changed hands in an acquisition that makes Universal Hotels the sole owner of the two pubs in the suburb of Tempe.
Located just 10km southwest of Sydney CBD, the inner-west hotel comprises a sports bar, bistro, function rooms and 14 pub-style accommodation rooms, with a development approval for an additional 37 motel rooms.
Although the freehold asset is currently leased on a monthly tenancy, Universal Hotels plans to take possession of the pub before the acquisition is settled.
Harris Kospetas, Universal Hotels CEO, said: “We’re really excited about the purchase as we also own and have recently completed a major refurbishment on The Tempe Hotel across the road. The purchase has synergistic benefits, and as well provides us the opportunity to expand upon our food, beverage and entertainment offerings in the precinct.”
Like the Tempe Hotel, The Riverview Hotel will undergo a considerate refurbishment, set to close upon settlement while the group determines the future of the venue.
“The venue has not traded as a traditional pub for some time and we would like to work on bridging back its features. We are yet to determine our food concept but we are thinking of an exciting sub-restaurant that would be a destination for many people in the area,” added Kospetas.
The recent renovation of the Tempe Hotel transformed the pub into a family-friendly space with a focus on sports and Mediterranean-inspired food, paying homage to Kospetas’ Greek family heritage. The new space has provided a much-needed sanctuary for the local community, and Kospetas says the refurbishment of The Riverview Hotel will complement this by taking a different route.
“The Riverview has a different design and car park access from Princes Highway which we believe gives us an opportunity to attract a destination customer looking for a different experience than what is currently on offer,” he told Australian Hotelier.
“We will focus on working with the original bar and layout to reactivate the public bar and create a viewing deck to the street. Our food offering is still under consideration but it will involve some pub classics with a twist that could focus more on a certain style of cuisine. We’re currently discussing cuisine’s such as Asian, Italian or Middle Eastern.
“We are still in the early stages but we are definitely inclined to design a venue that compliments and brings a new offering into the community rather than trying to compete with the Tempe Hotel.”
Despite selling the leasehold of the Bat & Ball Hotel earlier this year, the acquisition demonstrates Universal Hotels’ ongoing interest in central Sydney pubs after welcoming the Evening Star Hotel in Surry Hills to its portfolio just last month and launching its flagship multimillion-dollar venue Darling Pavilion last year.
The sale of The Riverview Hotel also marks the final divestment of Tyche Asset Management’s pub assets in Sydney, in a transaction handled by HTL Property directors Blake Edwards and Sam Handy.
Speaking about the resilience of the pub market and the re-emerging appetite for investment, Edwards commented: “We saw an extended period over the last 18 or so months where low supply was met by commensurate levels of sanguine demand. This caused soft pricing and low transaction volumes.
“Recent tax cuts have been stimulatory, resulting in buoyant trading conditions in many sectors of the market. The result being more transactions and potentially the recommencement of some modest price growth.”