One of Sydney’s landmark pubs, Bar Broadway, formerly known as Sutherlands Hotel, in the inner-city suburb of Chippendale has come to market for the first time in two decades with price expectations of around $45 million.
The long-term private freeholder of the property has joined with the leaseholder to sell the site which comes with development potential and sits in the heart of the Central Park development, Sydney’s new “Silicon Valley”, and Chinatown.
It has a long history of being a Tooth and Co pub and over the years has been known as the Westminster Hotel, Guys & Dolls Hotel, Sutherlands Hotel and most recently Bar Broadway. It is being sold through JLL hotel and Knight Frank.
“The recent sales of the nearby Crown Hotel, Courthouse Hotel and Kinselas Hotel for an average yield of 5 per cent – none of which had comparable business catchments to Bar Broadway – provide an insight into the quality of this opportunity,” Knight Frank director Mike Wheatley and JLL Hotels’ John Musca said.
The pub offers a new owner a 24-hour hotel licence with 28 pokies, a bar and two levels with 36 accommodation beds. There is the opportunity to develop two additional upper floors, bringing the beds inventory to 63.
“I can’t recall the last time a hotel with such explosive and broad-based business drivers was offered to market,” Musca said.
The property comes to market at a time when the Sydney hotel market continues to demonstrate high levels of liquidity. There have been more than $1 billion of pub hotel transactions in the past 12 months and the capital appetite is unrelenting for the sector.
Over the Queensland border, a new independent pub venture led by former Carlton & United Breweries chief executive Peter Filipovic, who is the new chief executive of HTL Capital, and Patrick Ryan of Ryan’s Hotel Group has finalised its maiden acquisition, securing a major hotel in south east Queensland.
The purchase price was not disclosed, but was believed to be between $11 million and $12 million.