Schwartz puts Macquarie Hotel up for sale
A strategic inner-city venue with prime gaming opportunities has been listed for sale as industry expectations continue to show a healthy rebound.
In operation as a hotel since 1888, the historic Macquarie Hotel, currently trading as Sydney Brewhouse, has been operated for the past 16 years by Dr Jerry Schwartz, who has added an eight hectolitre brewery to the pub.
The pub features three bars across four levels and a 24-hour licence, gaming room and 25 poker machines, a large trading footprint, the microbrewery, 27 boutique accommodation rooms and a rooftop terrace.
Plastic surgeon and hotel tycoon Dr Schwartz has appointed Jones Lang LaSalle Hotels (JLL) and Spencer Carr Property to steer the sale, by way of tender closing Thursday November 1.
"Dr. Schwartz acquired the hotel in 1996 to facilitate his two true passions of live music entertainment and micro-brewing, but is now rationalising the hotel asset as he continues to focus on other opportunities within the accommodation and medical sectors," said Sam Handy, JLL manager - pub investment sales.
"The hotel is positioned on Goulburn Street on the cusp of the Sydney CBD and Surry Hills, which provides upside in gaming and also by way of repositioning the current food and beverage proposition."
"The 24-hour liquor licence and 25 gaming machines without a current smoking solution, combined with the hotel’s proximity to Central Station and several Top 200 venues provides an incredible gaming opportunity for an incoming operator."
"Surry Hills lays claim to some of the most successful hotel businesses in Sydney, which augurs very well for a potential relaunch and repositioning of the food and beverage proposition," added Spencer-Carr director, Adam Spencer-Carr.
The agents suggested that positive sentiment is returning to the New South Wales pubs industry, with trade stabilising, debt liquidity improving and increased certainty around government legislation.
"The industry has remained remarkably resilient in the wake of increasing government restrictions, a crackdown by police on excessive alcohol consumption, rising compliance costs, competition from small bars and a decrease in overall disposable income," Handy said.
"Hotel buyers that are in a strong cash position, have demonstrable industry experience and excellent lender relationships are well positioned to acquire pub assets whilst existing operators are seeking to rationalise under-performing or non-strategic pubs in an effort to release equity to take advantage of a slowly turning market and current interest rates."
"This is providing some excellent acquisition opportunities for astute purchasers seeking large format pub assets in busy precincts as evidenced by the recent sales of the Bank Hotel and Marlborough Hotel in Newtown and the Unity Hall Hotel in Balmain.
Source: The Shout, 17 September 2012
