By Clyde Mooney – editor Australian Hotelier
Formerly the poster child for alcohol-related problems, and the hub of OLGR ‘strike-worthy’ activity, the interminable Newcastle precinct is coming back in vogue.
On the market for just four weeks, the sprawling Sydney Junction Hotel on bustling Beaumont Street has been snapped up by an established Sydney operator.
While the incoming owners opted to remain behind the scenes, the late-trading hotel – which is situated squarely in the controversial lock-out zone – was hotly pursued and offers significant potential.
The good-news campaign is a strong indicator that the robust hotel industry has adapted to the restrictions of the lock-out initiative, which bodes well for the Sydney venues caught in a similar disposition.
TheShout – Pub Sales asked the selling agents for their perspective, given the broader perspective of property sales in NSW after the longer-term timeline of Newcastle’s restrictions.
“The campaign generated significant interest from both Newcastle and Sydney-based Hoteliers and highlights the resurgence in both the local Newcastle market and the NSW Freehold Going Concern segment generally,” offered CBRE’s national director – pubs, Dan Dragicevich.
“Newcastle has been subject to 1AM lockouts for over five years now, and judging by the interest in the property there is still potential to run a successful venue with these in place.”
“Operators in Newcastle report that whilst it does take time, as well as operational adjustment, consumer behaviour does change and people have become aware of the restrictions and plan their nights out around those,” added Deane Moore, of Moore & Moore Real Estate, which partnered with CBRE on the campaign.