Paddington's Four in Hand Sold and to Remain a Hotel
Press Release - Ray White Hotels - 4th July 2018
After months of media speculation, Paddington's legendary Four in Hand Hotel has been sold to the Sydney based Good Beer Company in an off-market transaction conducted by leading broker and Ray White Asia Pacific director Andrew Jolliffe.
The sale of the Eastern Suburbs institution, a topic of intense media speculation over the past few weeks, has drawn widespread attention as well as interest from a local resident lobby group who have amassed over 10,000 signatures in effort to keep the business operating as a hotel - as distinct from being developed into residential dwellings.
Whilst a public marketing campaign designed to sell the asset as a residential property was undertaken by another agent, Jolliffe was always of the personal view that the property should remain a hotel.
"Fundamentally, our clients are award winning second-generation hoteliers, who are entitled to seek a range of divestment opportunities for their respective investments" commented Jolliffe. "Quite clearly there are hospitality properties out there which enjoy alternative use opportunities; however, in my view some are simply either too iconic or important to the fabric of a community to make wholesale changes to, and I think this is true of the Four in Hand. Ultimately however, it's a commercial property not a house; so, it's applicable that the economics of market forces dictate the outcome and as such our clients initially sought alternative sale options. This is quite simply good portfolio hygiene" said Jolliffe.
Having been engaged by the Public House Management Group after the sale process to sell the property as a residential conversion opportunity failed to deliver a suitable buyer, Jolliffe now believes it is incumbent upon the vocal Paddington community to back up the fervor shown over recent weeks. "It is imperative that the many passionate constituents whom participated in the petition to keep the Four in Hand a hotel, must now back up this show of unity with a show of patronage at the hotel; and others in the area" believes Jolliffe.
Speaking about the sale of The Four in Hand Hotel, Jolliffe believes it is indicative of the value of hotels to communities around the country. "What the recent sale of the Four in Hand patently suggests is that hotels remain very important community focal and meeting points, and that this heritage enjoys a value beyond only monetary, and which is worthwhile protecting" advised Jolliffe.
"I'm elated we could achieve a strong price for our clients in order to see the history of this hugely popular Sydney hospitality institution preserved" concluded Jolliffe.
Jolliffe would not be drawn on the Four in Hand sale price, only to confirm that it was materially greater than the level speculated in recent media reports.
The sale follows recent sales of numerous Sydney hotels by Jolliffe indicating the hotel market continues to outperform many of its contemporary property sectors.
"We have successfully transacted upon 85m worth of hotel properties nationally in the past 5 days, illustrating the durability and depth of the marketplace for this asset class" Jolliffe concluded.
