Industry identity Rod Salmon has sold the Rydalmere Tavern in Sydney’s west and moved into the Chelsea Hotel in Chatswood in a combined deal worth about $100 million.
Situated on the 3,000 sqm site, the Rydalmere Tavern held 30 gaming machine entitlements and had recently received a 4am extended trading approval.
Salmon originally purchased two adjoining commercial properties in 2017 and then repositioned the assets into the Rydalmere Tavern.
The tavern also had a ground floor restaurant and first floor commercial tenants, Totally Workwear and Plus Fitness Gym, who remained at the property.
JLL Hotels & Hospitality Group Managing Director John Musca and Senior Vice President Ben McDonald brokered the deal between Salmon and the buyer – a private hotelier with significant interests in the pub space.
“Already a highly ranked gaming venue, the chance to acquire assets underpinned by growing underlying cashflows at this premium end of the market is rapidly diminishing as a result of widespread asset consolidation,” McDonald said.
“Combine that with over $400,000 in net passive income from the commercial tenancies, the underlying development scope plus sought-after geographical location and we think the result speaks for itself.”
Musca said the perpetual nature of hotel cashflows in key markets had shown their unrelenting ability to perform despite changing economic conditions.
“Long term hotel investors continue to seek out assets offering value accretive characteristics for existing portfolio’s, and we expect that to continue in 2023 despite a moving macro-economic environment,” he said.
The sale follows an enormous week of transactional activity for JLL Hotels with more than $350 million of pub assets either sold or in final stages of negotiation nationally.
Recent Sydney pub deals include the sale of the Tudor Hotel in Redfern for $17 million last month.
Other deals include Sue Cameron’s sale of the Lord Roberts hotel for $22.5 million and the sale of the Windsor Castle hotel for $51 million.
