Fairfax family, Justin Hemmes trade premium Sydney hotel
Justin Hemmes has snapped up one of the inner-city’s best-known premium pubs.
The Sackville Hotel – and a neighbouring block it can be extended into – at Rozelle, are believed to be trading for about $45 million.
It has been held 27 years by Amalgamated Hotels, a private hospitality investment group controlled by Bruce Solomon, owner of Solotel, which operates the venue.
Lee Thomas, the late Mary Fairfax’s personal secretary for more than three decades, is also an Amalgamated director.
The freehold going concern Sackville sale is subject to ACCC merger clearance.
Mr Hemmes’ Merivale has for eight years held the Three Weeds Hotel in the suburb.
If the latest deal proceeds, it would increase the number of venues the group owns to over 80.
Four months ago realestatesource.com.au reported the publican paid $19m for the freehold to the city’s vacant ex-Tattersalls Club, beside his proposed Kings Green precinct, with interconnected bars, nightclubs and restaurants, a boutique hotel, wellness centre and offices.
It would incorporate Merivale’s historic Hotel CBD, held since 1995, and a $200m amalgamation of buildings acquired four years ago.
Deal needs OK
On 1391 square metres, zoned Local Centre, at 599 Darling Street, on the south-west corner of Wise, in a retail precinct – the prime thoroughfare to Balmain – the Rozelle property was developed in 1876 as the Bellevue Hotel.
It derives income from a bar, bistro and drive-thru bottle shop.
There is also a gaming room with 19 electronic gambling machines.
These alone turnover $1.2 million per week, the agents said.
The weekly trade revenue is over $240,000 (continues below).
The ground level is fully renovated while two floors are utilised for storage.
These could be repurposed for additional hospitality space, guest suites or offices.
The hotel came with approval to extend business hours until 2am in a Band 1 SA2.
Amalgamated paid $3.06m for the freehold 27 years ago next week.
Initially carrying $60m price hopes when relisted, the Sackville was the priciest of three freehold going concerns Amalgamated listed in one line or individually in May. The others – The Clock at Surry Hills and The Bank at Newtown – were reportedly worth just over $40m combined.
Separately that month, we reported the group sold Kingsford’s Regent Hotel, licensed to trade 24 hours with 30 EGMs, to Thomas Hotels, for $42m.
Colliers’ Guillaume Volz and Eugene White with JLL’s John Musca and Ben McDonald were the agents. Mr Musca and Mr McDonald with Kate MacDonald sold the Sackville.
Solotel also earlier this year listed the Bridgeview Hotel at Willoughby – with 16 guest rooms and a gaming room with 28 EGMs.
Rozelle is about four kilometres west of Sydney’s CBD.
The suburb’s median house value has increased 40 per cent since COVID, the agents said.
According to REA Group the median apartment value is $1.3m ($930,000 for one-bedrooms and $1.8m for two bedrooms).
The median house value is $2.385m.
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