Universal Hotels has acquired the leasehold interest of the Moko Hotel in the Sydney suburb of Eastwood, representing the group’s fourth transaction this year.
Located in a prime position on Eastwood’s high street, the Moko Hotel first opened its doors in late-2014 – operating as a modern Korean restaurant with a hotel license. Over the years, a natural transition has seen the venue transform into an efficient and highly popular 695 sqm pub, generating income across food and beverage and gaming, with 30 gaming machine entitlements.
The acquisition marks the latest move in Universal Hotels’ continued expansion strategy, having recently acquired the freehold going concern interest in the Lord Roberts Hotel in East Sydney. This year, the group has also divested the leasehold interests in the Newtown Hotel to a private local hotelier, and the Darling Pavilion, which the group launched as its flagship venue in 2023 after a multimillion-dollar makeover.
JLL Hotels & Hospitality Group’s senior vice president Kate MacDonald, who steered the sale with managing director Ben McDonald, commented: “Moko is the third-largest leasehold pub sale in NSW surpassed only by the Criterion Hotel in Sydney’s CBD and Glenquarie Tavern, Macquarie Fields, both sold by JLL in 2023 and 2022 respectively. Long-term leases with favourable terms are exceptionally rare to find.”
The transaction was handled off-market on behalf of Moko shareholder and licensee Paul Dirou and partners – who reflect fondly on a decade-long tenure.
Dirou stated: “It has been a terrific experience and a time that we will look upon fondly. The pub and the community of Eastwood have been very good to us, and we wish Universal the best of luck moving forward.
“We extend our gratitude to Kate and Ben at JLL for their exceptional management of this transaction. Throughout the entire process, we felt we were their primary focus, and we are overjoyed with the outcome and professional service they delivered,” he continued.
Universal Hotels CEO Harris Kospetas added: “We look forward to connecting with the local community and further building on the strong foundations already established under the stewardship of Paul & Peter.”
JLL’s national pubs team is seeing strong buying and selling activity across the market, especially at the premium end of the market where increased capital demand is most evident. With transaction activity set to continue, JLL soon expects to announce almost $250 million worth of pub sales.
McDonald emphasises the ongoing strong demand for leasehold hotels in particular: “These high-yield ventures, particularly those with compact footprints, offer efficient complementary assets for portfolios seeking to diversify revenue streams or offset other investments. We’re pleased to partner with groups like Universal Hotels to identify strategic opportunities that support their growth objectives.”