Owner-operator Sue Cameron has sold the 151-year-old Lord Roberts Hotel in Sydney’s Darlinghurst area for $22.5 million.
The historic pub, located at 64 Stanley Street on Sydney’s CBD fringe, was bought by forex trader Adam Macfarlane.
On a 259 sqm site, the property occupied the busy Stanley and Riley Street corner and comprise several restaurant, lounge and bar areas spanning across its three levels with a range of balconies plus a pool room and beer garden.
According to Savills, the site has a rich history as part of the land originally granted to Commissary-General John Palmer in 1793.
His grant extended from Woolloomooloo Bay into the East Sydney and Darlinghurst areas.
Palmer subsequently purchased additional land extending into the area now known as Surry Hills and by 1800, had consolidated an estate of almost 200 acres.
As a farmer and grazier, Palmer was said to be an unqualified success; however, his political affiliations and support of the Rum Rebellion led to the forced sale of his estates in 1814.
Savills’ Nick Lower, Selin Ince and Nick Butler transacted the sale.
Nick Butler, Director, Hotels at Savills, said the sale reflected the strength of the asset class, with city fringe hotels having enjoyed a measurable bounce back into profitable trading post-pandemic.
“The precinct is set for significant investment in development with the Lord Roberts at the very epicentre of planning proposals and properties under option,” Butler said.
“The new owner is a successful forex trader and ex-pat who has returned to Australia and sees the growth potential in the hotel asset class.
“We understand he plans to undertake minor renovations to the pub to retain its historic character and charm.”
Nick Lower, State Director, Hotels at Savills, said inner-city pubs remained tightly held, and The Lord Roberts was ideally located right next to the CBD, just minutes from the most premier amenity the Eastern Suburbs had to offer.
“The pub has a truly unique, high exposure location with high visibility to the affluent catchment of the Eastern Suburbs,” Lower said.
Savills’ Ince said the Lord Roberts was a true generational asset and hadn’t been offered for sale in more than 100 years.
“In addition to the popular pub, it has long-term potential as a significant CBD fringe landholding with freehold assets on one of Sydney’s most iconic thoroughfares,” Ince said.
Recent pub deals include Australian Venue Co’s acquisition of nine hospitality venues in Western Australia last month, as well as Redcape’s sale of the Minskys Hotel and Commercial Suites in Sydney for $39 million.
In March, Public Hospitality Group purchased he Lady Hampshire hotel and pub in Camperdown, Sydney for about $11 million, while EG and Australian Venue Co. bought The Anglers Tavern pub in Melbourne for $23.33 million in February.
Last December, MA Financial Group acquired the Hotel Brunswick in Brunswick Heads near Byron Bay on the NSW North Coast for $68 million, as Hotel Property Investments bought a portfolio of seven pubs located throughout South Australia for $66.1 million.
Interested in pub and hospitality valuations? Read our Pubs and hospitality through the eyes of a valuer: 2022 article to learn more.