With the national hotel transaction landscape in overdrive, led largely by the volume of sales in Sydney including the sub 5% cap rate divestments of both the Vineyard Hotel and Carousel Inn in the past month; leading agents Andrew Jolliffe and Dan Dragicevich of specialist agency HTL Property now bring to market Western Sydney’s Top 100 gaming hotel, The New Victoria Tavern located in Wetherill Park.
“Ranked 91 in the state for the June quarter, hotels of this magnitude coming to market are unsurprisingly so very rare; but hotels of this magnitude within the Fairfield LGA available for purchase are, frankly, unheard of” advised HTL Property National Director, Dan Dragicevich.
“Furthermore, the vice like grip in situ owners have over all other Fairfield hotels, renders this single hotel opportunity the very last one of its kind for anytime in the foreseeable future. With the New Victoria Tavern’s nearest competitors ranked #1, #12, #14, #23, #27, #38, #58 and #60 in the State gaming rankings respectively” Dragicevich added.
Situated within the 650* hectare Smithfield-Wetherill Park Industrial Area, which comprises 14000* employees working throughout 3000* businesses, the turnkey opportunity enjoys the benefit of a suburb absolutely bursting with enterprise and growth. In fact, the location of the hotel speaks to an almost exclusive trading catchment comprising the suburbs of Wetherill Park, Bossley Park, Prairiewood, Fairfield West and Smithfield.
“Our clients only own one hotel in Sydney, and it is clear to them that their focus should be on other investments in other geographical locations and industries where they hold alternative investments” confirmed HTL Property Managing Director, Andrew Jolliffe.
A recent renovation at the hotel means there exists no immediate requirement for capex; however experienced operators will quickly recognize the opportunity to materially augment the already strong gaming and other forms of traditional hotel revenue.
“Forming part of the asset sale is a medical practice currently leased to ASX listed Healius Ltd (ASX:HLS), and which enjoys some downstream flexibility in terms of amalgamating the space into a hospitality function aligned with the current hotel operation” suggested Dragicevich.
“What the number one and two national sales for 2021, being the Vineyard Hotel and Carousel Inn have taught us, is that truly irreplaceable assets enjoy an unmistakable value price bracket unique to only a handful of properties nationally” said Jolliffe.
“In the circumstance regarding the sale of the New Victoria Tavern, the barriers protecting asset replication by would-be competitors are on any fair measure insurmountable. Even before taking into consideration the recent Development Consent to trade to 4am” concluded Jolliffe.
The freehold going concern sale of the New Victoria Tavern is being exclusively conducted by expert agents HTL Property via a national on market EOI process concluding Thursday 9 December, 2021.
Fairfield is Sydney’s number one performing LGA on a profit per machine basis, with 16 of the LGA’s 19 hotels ranked within the Top 100. The New Victoria Tavern is the State’s strongest performing gaming hotel on a per machine basis.
Comparative sales indicate a price expectation of $60m or greater for the New Victoria Tavern.
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