By Clyde Mooney – editor of Australian Hotelier
The Laundys have put five city-fringe freeholds on the market, citing "inconsistency" with their investment strategies.
Speaking to Australian Hotelier, Laundy Hotel Group director Stu Laundy said the inner-city food and beverage pubs are "non-core for what dad and I are trying to achieve" since the departure of his brother Craig from the family business.
"Dad and I are more focused on larger, big-ticket assets," said Laundy, who purchased the massive and iconic Watson’s Bay Hotel in October.
"These smaller venues were largely driven by Craig and are a very different business model. Not having anyone driving them, they have become somewhat superfluous to our interests."
The five venues are in the established suburbs of Balmain, Rozelle, Waverley, East Sydney and Newcastle CBD, and being marketed by Gerry Quinlan, Mike Wheatley and Andrew Jolliffe of Manenti Quinlan, Knight Frank, and Ray White Hotels respectively.
NSW MD of Ray White Hotels, Andrew Jolliffe, told Australian Hotelier the venues are in price ranges likely to appeal to a diverse market.
"Significant interest is expected from seasoned hoteliers, new entrants to the hotel industry – given the sub-$10m entry point each respective asset represents – and developers seeking to capitalise upon the unmistakable opportunity each corner position site promotes.
"All five hotels have historical trading pedigree, so there exists day one cash flow benefits, and all have clear upside earnings capacity via the employment of strategic management and marketing initiatives, deployment of capital for improvements, or development of the site and relocation of the valuable hotel licence and gaming machine entitlements."
Stu Laundy maintains the venues are healthy and the sales certainly not "necessary".
"If there are compelling offers we'll sell the pubs and look to deploy the capital elsewhere. Lately dad's been on fire strategically so I'm sure he'll have something up his sleeve," he said.
The individual sales consist of the Garry Owen Hotel in Rozelle, the trendy Cat & Fiddle in Balmain, Newcastle’s Crown & Anchor, Hotel William in Sydney’s CBD, and the Charing Cross Hotel in Waverley.
In March of 2012, Craig Laundy announced his successful Liberal Party pre-selection for the Federal seat of Reid.
For pubs currently on the market, check TheShout’s new Pub Sales page.
Click here to sign up to the Pub Sales newsletter.