By Triana O'Keefe, editor Australian Hotelier

One of the largest private hotel groups in the industry, Iris Hotel Group has this week announced the sale of the recently refurbished Oxford Hotel, Drummoyne, in Sydney's inner west.

The sale reflects Iris's changed focus towards residential property, with the group having recently won approval for a large scale development in Sydney’s Potts Point, where it is currently undertaking a $300 million conversion of 178 apartments and introducing a retail concept at the Mercure Hotel site.

"It certainly hasn’t been an easy decision to divest the Oxford as we haven’t had the opportunity to benefit from the just-completed 12-month renovation, but the equity will be redirected to the Mercure project, which is our focus for 2015," said Iris CEO Sam Arnaout.

The Oxfor Hotel, Drummoyne

Billed as one of the best freehold going concern hotel opportunities of 2014, the Drummoyne property occupies a high profile corner site and includes a ground floor bar, gaming room, TAB and beer garden as well as completely renovated first floor bistro, restaurant and function space.

Dan Dragicevich of CBRE Hotels and JLL’s John Musca have been appointed to steer the tender campaign for the large landmark hotel, formerly known as PJ Gallagher’s, which also includes the property located adjacent to the hotel at 15-17 Lyons Road.

"The diversified nature of this opportunity affords the incoming purchaser a plethora of future development options as well as significant earnings potential," CBRE’s Mr Dragicevich said.

Musca added: "As virtually a Top 100 gaming hotel with substantial bar and food revenues and a complete renovation about to drive growth, the Oxford is arguably the best hotel opportunity offered all year."

The Shout Team

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