Hospitality giants Matt Moran and Bruce Solomon's joint venture group, Solotel, has expanded its footprint across town with the purchase of the prized Clovelly Hotel in Sydney's eastern suburbs.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Apart from its landmark pub, the property has development potential to upgrade the accommodation area and the food offerings.
The sale caps off one of the busiest years for Australia's pub sector, with more than $500 million worth of assets having changed hands.
Included in those deals are the sale of the leaseholds of pubs by the collapsed Keystone Group such as the Cargo Bar and Bungalow 8, and the downsizing of the Lantern Hotel group's extensive national portfolio.
The exclusive agents on the Clovelly sale, Daniel Dragicevich from CBRE and Andrew Jolliffe of Ray White Hotels Australia, would not be drawn on transaction details nor the price paid, citing confidentiality clauses between the parties.
But it is understood they received multiple offers for the "Cloey" around the mid-$30 millions.
Solotel owns numerous hospitality businesses around Australia including Opera Bar, the recently refurbished Aria restaurant at Sydney's Circular Quay and The Paddington Inn, as well as Double Bay's The Sheaf and Woollahra's Chiswick.
Speaking on behalf of Solotel, Mr Solomon said the group was "thrilled to be taking over such a well-loved pub that really is the full package - it has a brilliant location, ocean views and a great pub culture".
"We look forward to a great relationship with the local community, and starting to finesse the already great offering at the Clovelly," Mr Solomon said.
Sam Arnaout's Iris Capital sold the Cloey as he focuses on his new developments, including the Hunter Street Mall in in Newcastle, which Planning Minister Rob Stokes said was "an exciting time in the history of Newcastle".
Other similar hotels have sold recently, such as the Tennyson in Mascot to Justin Hemmes for $37.05 million and the Coogee Pavilion, Newport Arms and the Bondi Hotel, which have sold for $36 million, $46 million and $43 million, respectively.
Most recently, Longueville Hotel owner Graham Campion paid $14.5 million for the Commodore Hotel in McMahons Point, while Iris Capital bought the Colombian Hotel on Oxford Street.
"We're bullish about the market strength and depth heading into 2017, and believe the Clovelly Hotel sale process provides a good illustration of where long-term, very successful industry participants, such as Solotel, see enduring value in the sector," Mr Dragicevich said
In a sign of further activity, Ray White's Mr Jolliffe has also been engaged by advertising tsar John Singleton and his business partner, former Qantas chief Geoff Dixon, to sell their Riversdale pubs. The first two of those - the Marlborough Hotel in Newtown and Kinselas in Surry Hills - will be publicly marketed in early 2017.
"I believe the strength and market depth will likely result in some Riversdale hospitality properties being dealt with in an off-market fashion," Mr Jolliffe said.
