Manly’s Hotel Steyne could reap $70m for pub consortium

It is the only time the four identities have joined forces and are said to have a policy that if one wants to sell then «they all sell».

It comes as the pub market is soaring with more than $1 billion worth of assets changing hands last year and already close to $100 million worth in the market in the first two months of 2019.

While investors remain in the sector, it is the owner/operators with a passion for food and entertainment that are snapping up the venues.

Going are the days of the beer and burgers, being replaced with high-profile chefs, good wine lists and a lot less reliance on poker machines for revenue generation.

HTL Property Asia Pacific managing director Andrew Jolliffe said there was a range of likely buyers, from the listed pub sector to private investors or another consortiums.

«We’ve been very fortunate to be engaged to sell a number of the nation’s signature hospitality offerings, but the Hotel Steyne is arguably the most prolific and certainly well-known beachside hotel, with generations of locals and tourists frequenting this noteworthy institution,» Mr Jolliffe said.

Originally built in 1859, and then remodelled by Tooth & Co in 1936, the Hotel Steyne is seen as Manly’s true local with six bars, two restaurants, a designated gaming room with 30 poker machines and an entire level of accommodation.

Hotel Steyne is metres from the beach.

Hotel Steyne is metres from the beach.Credit:Nick Moir

«The opportunities for upside business levers within the hotel are patently clear, including the augmentation and repositioning of the accommodation offering,» Mr Jolliffe said.

«However, underwriting this total investment thesis is the ability to own almost 2000 square metres of beachside freehold land on one of the world’s most picturesque and well-known beaches.»

‘The fact that this extraordinary opportunity exists on the very beach TripAdvisor has just
announced as the number one beach in Australia ahead of the Whitsunday’s hugely popular Whitehaven Beach, makes it all the more strategic and compelling an investment proposition.

Mr Singleton, Mr Carnegie and former head of Qantas, Geoff Dixon, entered the pub sector close to a decade ago when they bought into the former Riversdale group. It owned a number of Sydney pubs such as the Toxteth, Vic on the Park and Kinselas Middlebar.

But over the past few years, after a possible float was disbanded, the trio have been selling down the assets. The Steyne was separate and also included Mr Singelton’s mate Gerry Harvey.

Mr Whyte and Mr Singleton also own the 17 billboards around Sydney airport, worth about $80 million combined, and last year tested the market for a sale, but later withdrew the assets.

Carolyn Cummins is Commercial Property Editor for The Sydney Morning Herald.

Most Viewed in Business





You may also like...