Newcastle’s Grand Hotel Sold as NSW Pub Market Continues to Shine

The Grand Hotel in Newcastle is the latest asset to be sold as heightened demand continues to outstrip supply throughout the NSW pub market. JLL Hotels & Hospitality Group in conjunction with Moore & Moore Real Estate exclusively handled the EOI campaign on behalf of career hotelier and long term owner, Mike Angus.

Having tested the market previously and in response to numerous unsolicited approaches over the preceding 12 months, Mr Angus engaged the market leading brokerage services of Senior Vice President Ben McDonald & Vice President, Kate MacDonald from JLL Hotels in conjunction with Moore & Moore Principal, Deane Moore to facilitate the sales campaign at a time when genuine buyer depth coupled with favourable economic conditions continues to fuel price growth.

Hotel owner, Mike Angus offered; “Having owned and operated the hotel for over 30 years, I felt the time was right for me personally and I couldn’t be happier with the result and level of service Kate, Ben and Deane delivered in what was a fairly emotional decision.”

In highlighting the appeal of the asset, JLL’s Kate MacDonald said; “Being situated in the burgeoning east end of Newcastle and approximately 200m to the beach, the Grand Hotel offers incredible scope to capitalize on the significant transformation of the immediate area whilst leveraging the broader appeal and growing market demand for Newcastle itself.”

Offering 17 recently renovated and ensuited accommodation rooms, 6 GMEs, underutilised 3am trading approval and distinct food and beverage trading options, the hotel generated significant interest from a diverse set of investment professionals including local and interstate hotelier’s, passive commercial property investors and ‘value-add’ opportunity funds seeking exposure to the
asset class.

Moore & Moore Principal, Deane Moore spoke of the continued growth and prominence of Newcastle as an investment destination. Mr Moore said; “Newcastle and the Hunter region as a whole continues it’s impressive growth trajectory with significant capital investment from public, private and government sources. This fundamentally will continue to drive the appeal of the area and we anticipate ongoing interest in the location from a varied investor set.”

With over $250m of hotels in various stages of negotiation, JLL sees no near-term abatement of demand in the sector. The sale of the Grand Hotel closely follows JLL’s record setting sale of The Great Northern Hotel and Lateen Lane Hotel in Byron Bay for circa $80m, highlighting the breadth of expertise of the brokerage team across all markets.

JLL Hotels & Hospitality Group, 29^th July 2021