Marlow Hotel Group snaps up Peachtree Hotel in Penrith.
The Peachtree Hotel and associated bottle shop in Penrith, in Sydney’s west has been sold for $16.5 million.
The company picking it up was the Sydney-based Marlow Hotel Group.
The Marolow group acquired the 10,550-square-metre pub from Chinese developer Boyuan Holdings. The deal was an off-market transaction. Marlow will be operating the venue.
With managing director Jason Marlow at the helm, the group has a strategy of renovating and rebranding hotel assets.
Its targets family-owned venues which have not been modified in years. Marlow picks up the financial uplift from its work and investment.
Marlow is building quite a portfolio. It already owns five venues in New South Wales including Bank Tavern in Kogarah and Intersection Tavern in Ramsgate.
The Peachtree Hotel generates $6.5 million in revenue a year. Most of that is from food and beverage but it also picks up money from gaming and the bottle shop.
“We’re not in the nightclub business and want to ensure that it stays this way. We’re dedicated to providing the community with a family-friendly, hub for socialising, not simply a local watering hole,” Mr Marlow told Commercial Real Estate.
The Marlow Group is looking to refurbish it so that it will offer multiple function spaces, casual dining options, and a new indoor children’s play facility.
“We know Penrith residents love being out and about within their community. With the rate of development and the commencement of the airport, we believe the workforce will be located closer to home, resulting in more quality time with family and friends,” Mr Marlow told Commercial Real Estate.
Ray White Hotels’ Andrew Jolliffe, who managed the sale, said the Marlow Hotel Group was expected to focus on the food offering.
“He (Mr Marlow) recognised the scale of the property and the quite obvious quality that the venue promotes, but he was really attracted to the sheer weight of the population increase going on in that area,” Mr Jolliffe told Commercial Real Estate.
“There’s huge residential growth in that area, a couple of nearby housing developments, and I think this thing’s got the scale and size to accommodate that sort of revenue.”
Leon Getler 14th June 2018.
