By Andy Young
The Good Beer Group has put its popular Dove & Olive Hotel up for sale as it looks to redeploy capital for renovating the recently acquired Duke of Gloucester Hotel in Randwick.
JLL Hotels & Hospitality Group has been appointed to market the hotel, which is for sale by Expressions of Interest closing Thursday 26 August 2016.
John Musca, national director, investment sales, at JLL Hotels & Hospitality Group, said: “’The Dove’ is unique in that it will easily deliver astute purchasers a 10 per cent plus yield at purchase, a rarity in the food and beverage centric hotel space, with almost no risk and on a big revenue base, so it’s really a big hotel opportunity on a manageable footprint.
“It is an attractive acquisition that will easily value up and show an incredible return on equity day one.”
The Dove & Olive has established itself as one of the busiest hotels in the Surry Hills area of Sydney, with JLL saying the pub consistently generates “over $100,000 per week in revenues.”
The pub offers a good craft beer selection, value food, 12 poker machines and is in a sought-after position on Devonshire Street; there will also soon be a Light Rail station close by.
Good quality, city fringe hotels have proved increasingly popular for hoteliers in Sydney. JLL said the pub has already been targeted by some Sydney hoteliers and is expecting a keen interest in this sale.
John Azar, the owner of the Dove & Oliev, told TheShout: "We are developing an impressive new offering within The DOG Hotel, formerly known as The Duke of Gloucester. Building three state of the art kitchens, we have a magnificent new bistro restaurant that will open its doors in early September. We are also in the process of building a courtyard café, as well installing an unprecedented 59 beer taps. We are redefining this pub. The DOG Hotel will be a new destination for the Eastern Suburbs."