Laundy challenges Hemmes for hotel supremacy

The battle between the Laundy and Hemmes hotel dynasties continues to heat up.

The Laundy family and Hemmes are responsible for a record $2.2 billion pub-buying frenzy, with Laundy recently acquiring five trophy pubs in a $150 million deal that now puts the family assets at nearly 90 venues.

The family has bought out partner Fraser Short to take full ownership.

The hotels include Watsons Bay Boutique Hotel in Sydney’s Eastern Suburb, Northies at Cronulla, Park House Mona Vale in Sydney’s Northern Beaches and the Lennox Head Hotel and Illawong Hotel on the NSW north coast.

A sixth venue, The Farm, is a 32ha working farm and hospitality venue near Byron Bay.

Total pub deals for the first five weeks of 2023 is around $330 million, after a record $2.2 billion of assets changed hands in 2022.

Pub broker HTL predicts annual hotel sales have nearly doubled from $1.3 billion in 2019 and that they are set to exceed the record of $2.2 billion set at 30 June last year.

Laundy said Short is responsible for turning the assets into world class hospitality venues.

“Signing this deal gives myself and my kids a great platform to continue to grow Laundy Hotels as a family-friendly hotel group of the future,” rich lister Arthur Laundy said.

Hemmes has 80 venues to his name along with a string of assets including the Ivy, Queen Chow, hemmesphere and Establishment.

Laundy’s latest buys are a threat to Hemmes’ crown of hospitality king and follow the acquisition of the Thomas Blamey Tavern in Wagga Wagga for a record $27 million in March last year.

Cash flow positive hotels, restaurants and bars are the new investment trend, following the downturn in office space occupation.

Behind Laundy and Hemmes sit the Solotel hospitality group with more than 20 hotels and bars, plus restaurants including Chophouse Sydney and House Canteen at Circular Quay.

CEO Elliot Solomon has been hard at work diversifying Solotel’s assets which include Kings Cross Hotel, The Golden Sheaf at Double Bay, The Clock Hotel in Surry Hills, the Bank, Courthouse  and Marlborough hotels in Newtown, and the Erskineville hotel, Darlo Bar, the Opera Bar, and the Edinburgh Castle Hotel in Sydney's CBD.

Foreign exchange trader Adam MacFarlane is another player.

MacFarlane snapped up the Lord Roberts Hotel last year for $22.5 million.

Meanwhile, former Sydney lord mayor Nelson Meers acquired Crossroads Hotel in Casula for a record $160 million.   

Hemmes has described the post COVID recovery in the hotel industry as 'extraordinary'.

Jonathan Jackson - 8-2-23