Frothy Market Continues with HTL’s Bath Arms Sale

The popular Bath Arms Hotel in Burwood has been successfully sold in an off-market transaction negotiated by leading national pub brokerage agency, HTL Property.

The Sydney based hotel was sold by DHI Hotels, with the deal representing a significant windfall for the group whilst setting a new yield benchmark for the Sydney Metro gaming hotels. The well known group repositioned and significantly improved the business over the course of their tenure, but possess several brownfield and greenfield pub developments to focus on over the medium term.

The sale was exclusively negotiated by HTL Property’s Dan Dragicevich, Sam Handy and Andrew Jolliffe; and follows hot on the heels of some of the trios other recent inner city sales including the Crystal Palace Hotel (CBD), Agincourt Hotel (CBD) and the Fire House Hotel (North Sydney).

“Following our strategic portfolio review, we’ve determined to reshape our stable of hotels and focus time and financial capital more liberally towards greenfield projects; an area of our multi-faceted business in respect of which, has continued to reward our concerted efforts” advised Hotelier, Peter De Angelis.

The Bath Arms Hotel is prominently positioned at the corner of Parramatta and Burwood Roads, immediately adjacent the approved Burwood North metro station – which is currently under construction and set to service the expected population explosion being created by the state sponsored Burwood North Metro precinct. The subject precinct is forecast to deliver 15,000 new homes surrounding the new Metro Station; which will be positioned just four stations away from the Sydney CBD. Over and above additional housing, the masterplan will seek to create a new and thriving inner west community with more jobs, greenspace and better infrastructure to support a growing population.

“The sale of the Bath Arms Hotel is symptomatic of both the current industry sentiment and ongoing, laser-like investment market focus on pubs as an asset class” advised HTL Property National Director, Dan Dragicevich.

“We’re on record predicting elevated transactional activity over the course of the second half of the year as supply constraints intersect with strong trading conditions and further easing of interest rates” Dragicevich added.

The powerful business generates ~$8,000,000 in annual revenues across bar, bistro, gaming and accommodation departments. It separately enjoys a 3am liquor licence with 30 x gaming machines attached and has an average ILGA NSW gaming ranking of #178 over the last 12 months. The hotel was recently renovated and refurbished with a single service point servicing an expansive trading footprint. The Bath Arms features 16 x accommodation rooms and a dual access car park with 25 car spaces.

The hotel sits on a 2,561 sqm site with favourable planning approvals and long, high visibility frontages to both Parramatta Road and Burwood Road. The site sits within the boundaries of the Burwood North Precinct Master Plan, and it is anticipated that it could provide for significant mixed-use redevelopment potential in the future.

‘This sale represents our fourth inner-city pub sale over the course of the last three months and is further validation of our view that investors are actively searching for hard yielding property assets’ commented HTL Property Director, Sam Handy.

The Sydney pubs market has been particularly transactional over the first half of calendar year 2025, with HTL Property confirming that enquiry and transaction volumes are up across every single market and price point; with numerous additional hotel sales yet to be announced, under agreement and/or in varying stages of the sale process. Only this past fortnight, the leading agency announced the record sale of the Gem Hotel in Griffith – representing the largest ever regional NSW pub transaction; and the successful sale of Sydney’s iconic Fire House Hotel in North Sydney.

“Non electronic gaming machine revenue performance is underpinning positive system growth across the greater Sydney hotel market; and the combination of deliberate lending institution behaviour and the weighted average cost of capital contracting means hospitality asset metrics look as proud today as they have at any other point in time” concluded HTL Property Managing Director, Andrew Jolliffe.

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