By Clyde Mooney

Continuing the resurgence of the pub market in Sydney's Surry Hills, Jones Lang LaSalle Hotels (JLL) has announced the sale of the Royal Exhibition Hotel for more than $10 million.

The sale to an undisclosed party – which JLL says has not owned a pub before – follows that of several other recent sales in the inner-Sydney suburb, including the Excelsior and Forresters Arms Hotels.

“Along with a further $11 million+ of hotels we currently have under agreement or offer in Surry Hills, we’ve seen nearly $25 million of transactional activity in the area in the past 6 months,” said John Musca, director of pub investments, Jones Lang LaSalle Hotels.

JLL says savvy new operators that bring their own differentiating propositions to city fringe hotels have brought about a number of recent successes, such as the revitalised Carrington, Norfolk and Excelsior Hotels.

“This renewed focus on food, service and atmosphere is being driven by the public’s engagement with small bar concepts delivered on a larger hotel footprint, as well as the recognition of underlying property values in city fringe hotels,” said JLL Hotels manager Sam Handy.

The Royal Exhibition is a 24-hour licensed venue that occupies a landmark corner position on Chalmers and Devonshire Streets opposite the entrance to central station, and includes 22 gaming machines and 11 well-appointed hotel rooms on a large 550 square metre site area.

The previous owner-operators are retiring after 22 years at the Royal Exhibition.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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