Big Western Sydney pub sale sees another long term owner exit

Despite the challenges facing Sydney hotels currently in lockdown, JLL Hotels and Hospitality Group is delighted to announce the sale of Adam’s Tavern in Blacktown for $25 million, a record price for a Blacktown city and fringe hotel.

Adam’s Tavern included drive thru bottle-shop, public bar, bistro and gaming lounge with 30 GMEs, all located on a 1,867sqm site in the largest city (by population) in NSW. It was in an ‘invitation only’ off-market sale process, on behalf of nearly 30-year owner Bob McGhee who established the hotel. The sale represents the largest gaming-centric hotel transaction since the start of the second Sydney lockdown in June 2021.

Fielding numerous unsolicited approaches, Mr McGhee exclusively appointed JLL Hotels Managing Director John Musca and Vice President Kate MacDonald, to represent yet another long term hotel owner in a life-changing decision to divest.

“The owner was one of the last remaining Western Sydney owner-operators in a climate where independent single hotel ownership is diminishing. We know that a decision like this doesn’t come lightly, however the timing from a family objective aspect and strength of the market seemed to align” remarked MacDonald.

Long time owner Bob McGhee said, “I wish new owner Peter Walker, a long-time friend, all the very best and I’m confident he will do very well at Adam’s.”

In the past 18 months the JLL National team have managed the strategic divestment of over 15 hotels for long time owners who have had their hotels for over 25 years and in some instances up to 50 years, in the same families. More recently the sale of the Great Northern Hotel, Byron Bay for $55 million, which was owned by the Mooney family for 30 years, was a high profile example of such activity. This followed other sales like the Gladstone Hotel in Dulwich Hill (42 years), London Tavern in Balmain (32 years), The Grand Hotel in Newcastle (30 years), the Tumut Star Hotel in Tumut (34 years), and the Emerald Hotel, South Melbourne (48 years), evidencing somewhat of an exit trend.

In relation to these generational exits, Mr Musca suggested “The tumultuous ownership experiences across the hospitality sector since the onset of COVID have no doubt given rise to some resetting of many generational hotelier family outlooks, however it is only in conjunction with an extraordinary weight of capital to the asset-class and as a result, the strongest pricing outcomes seen in over two decades of hotel transactions”.

“I certainly appreciated the efforts of the JLL team. They are trustworthy, professional and committed hotel brokers that always had my interests at heart. The process was discreet as well as being proactive,” said Mr McGhee.

JLL, 2^nd September 2021