Harold Park Hotel sold in only 5 days!

In what’s considered a sales record the Harold Park Hotel has been sold by JLL Hotels & Hospitality Group only five days after coming to market, further evidencing strong hotel asset demand in Sydney.

The privately held hotel was sold for circa $6 million under an attractive staged structure, to a local hotel group.

Situated minutes from the Sydney CBD via the Anzac Bridge and opposite what used to be Harold Park Raceway, the Harold Park Hotel is poised to benefit from the imminent completion of the Mirvac built Vance development across the road which includes some 1280 apartments. Approximately 10 years old the hotel includes public bar and bistro, beer garden , first-floor bar and function room, smoking gaming room with eight EGMs, two car bays, lift and impressive huge well-fitted back of house areas.

JLLs Senior Vice President Nick Butler managed the sale with National Director John Musca and said that “When you consider that the breakup value of the licence, EGMs and the 1300m2+ stratum property for alternate retail or commercial uses underpinned the value, and the compelling catchment story, it was no surprise that the opportunity was keenly contested”.

The sale comes hot on the heels of JLL’s sale of the nearby sale of the Empire Hotel, Annandale for $10.3 million to the Oscars Group and with Wallaby Bill Young just acquiring the Friend in Hand Hotel in Glebe off-market for over $10 million, the area has seen a run of hotels sold. JLL research shows that the industry has witnessed nearly $500 million worth of hotel sales in the first 6 months of 2019.

Yields are fluctuating wildly in correlation to the bespoke investment strategies of differing buying groups and the acquisition merits of each asset as evidenced by the Harold Park Hotel being closed on sale and therefore delivering no return on sale right through to the Laundy Group’s recent acquisition of the Oxford Hotel in Drummoyne evidencing a market high circa 9% yield.

JLL National Director John Musca’s suggested that “we’ve exchanged seven hotel transactions in the past few weeks alone ranging from $4 million - $56 million, satisfying the prioritised investment requirements of our valued private and corporate clients and with more transactions to announce, particularly off-market, it’s an important time to be talking to us about opportunities”.

JLL Hotels & Hospitality Group, 5^th July 2019