Closely following HTL Property’s market announcement of the pre-auction sale of the The Bells Hotel in Woolloomooloo to industry paragon Arthur Laundy, the newly formed specialist brokerage agency has today advised the market of the sale of Sydney’s multi-level Salisbury Hotel in the Inner-West suburb of Stanmore.
Comprising multiple street frontages, the three storey hotel is situated less than 100m from Stanmore Train Station, and has been sold following an public EOI campaign conducted by principals Andrew Jolliffe and Dan Dragicevich.
“Suburbs such as Stanmore which are situated within 10mins of the Sydney CBD are readily attractive to investors who are seeking to match cash flow generating hospitality functions with AAA grade commercial property investment; and such is the case with The Salisbury Hotel and its successful sale campaign” advised Jolliffe.
The hotel, last sold in 2015 for around $8.5m, underwent a strategic capital expenditure program which repositioned the business for greater market share capture.
“Our private equity styled clients, led by Brendan Madden’s L90 Capital, engaged us to operate a national EOI sale process which attracted inter-state interest; and ultimately extracted from the investor landscape new equity, which sought to retain the existing management structure” commented Dragicevich.
“We are seeing the equity refresh model gain greater frequency, with recent examples including the sale of the Allawah Hotel in Sydney’s South-West for around 30m illustrative of this less traditional but equally effective exit model” concluded Dragicevich.
The Salisbury Hotel sits upon an impressive 800 sqm* commercial property holding, and whilst enjoying rejuvenated bar, restaurant and gaming facilities, was yet to maximize the commanding accommodation opportunity over the top two floors.
“Notwithstanding the surfeit of short stay accommodation options in the development pipeline for Sydney, fringe CBD suburbs remain under resourced in terms of room inventory; and properties such as The Salisbury Hotel remain well placed to capitalize on the need for a range of accommodation options to meet both tourism and business based short stay requirements” advised Jolliffe.
HTL Property would not comment upon the price at which Salisbury Hotel Contracts for Sale were exchanged, other than to say the price achieved was consistent with the earlier guidance given.