By Clyde Mooney – editor Australian Hotelier
The Sydney Auction Centre witnessed a bumper day for the pub real estate market, as three properties under the hammer yesterday attracted in excess of $20 million in bids.
A mix of hoteliers and agents crowded the room as Manly’s The Shore Club, Wollongong’s Dicey Riley’s (pictured) and Newcastle’s The Exchange Hotel brought some spirited bidding that continued to demonstrate investor confidence.
Offering a distinct upside in a strong gaming market, Dicey Riley’s vendor received $5.4 million, which was in line with the price guidance suggested by Ray White Hotels, which brokered the campaign.
Ray White’s Joel Fisher told TheShout the campaign unearthed in excess of 40 potential buyers in the price bracket of sub-$10 million, and the sale will inject some “well-deserved positivity” into the region.
"The price achieved illustrates just how sought after well-positioned hotels with upside are in today's market,” Fisher said.
“And the buyer, an astute hotelier, will reap the benefits of the rapidly improving Wollongong CBD following the $650m investment being made by a mix of private and Government entities."
Manenti Quinlan, which managed the campaign for The Shore Club, was unable to supply comment in time for this story.
The auctions were a strong demonstration of the increasingly strong position the hotel market finds itself in, and Ray White’s Andrew Jolliffe believes there is a market for more regular, planned days such as yesterday.
“There is a real opportunity for the market to support a consolidated and regular auction day, and we have plans to co-ordinate another similar day where multiple hotel assets are offered to the market," Jolliffe said.
"This concept will only build, and we are happy to drive it."