Jon Adgemis’ JAGA Group is paying Oscars Hotels, led by brothers Bill and Mario Gravanis, a speculated $17 million for the freehold going concern of Darlinghurst’s The Strand Hotel.
The William Street venue contains 25 accommodation suites, a gaming room with 21 electronic gambling machines and 24-hour liquor licence.
It recently underwent a $3m refurbishment.
JLL’s John Mosca with HTL’s Dan Dragicevich, Andrew Jollife and Sam Handy represented the vendor.
“Whilst not traditionally considered sellers of assets, the brothers cited good portfolio hygiene and the opportunity for some operational consolidation as the rationale behind the sale,” Mr Dragicevich said.
“What this sale serves to highlight is not only the strengthening weight of outside capital, but also sophisticated interest in an asset class which continued to rebound prosperously following 2020’s external challenges, he added.
JAGA holds other pubs with accommodation in inner-Sydney, including Balmain’s Exchange Hotel and Town Hall, Alexandria’s Camelia Grove, The Kurrajong (also known as the Swanson Hotel) at Erskineville and Norfolk Hotel in Redfern.
The Strand occupies a 279 square metre B4 zoned site at the south east corner of Crown St – three blocks east of Hyde Park.
It is understood the incoming owner will apply to build more rooms; the B4 zoning allows for a 22 metre structure.
The venue will be managed by The People, a new entity founded by Paul Schulte and Andrew Taylor, which it is believed will buy an equity stake.
Oscars retains several facilities including, in metropolitan Sydney, The Empire Hotel (Annandale), Rocksia Hotel (Arncliffe), Brighton le Sands’ Novotel, The Port Darling Harbour, Tattersalls Hotel (Penrith) and Petersham’s Livingstone Hotel (story continues below).
In the regions, it holds the The Beachcomber Hotel and Resort at Toukley, on the NSW central coast, recently acquired for c$20m from former Rothschild managing director David Kingston, and at Wollongong, Towradhi Beach Hotel and Novotel North Beach Hotel.
Mr Adgemis is a corporate, recently leading KPMG’s mergers and acquisitions department.
Elsewhere in Darlinghurst
Elsewhere in Darlinghurst, last year, Moelis paid $22m for the Courthouse Hotel then $45m for the neighbouring Kinselas Hotel, St Vincent’s Hospital acquired the suburb’s Green Park Hotel while Goodtime Hospitality sold the East Village Hotel, built in 1918 as the Tradesman’s Arms.
Seven months ago AsheMorgan and Toga purchased a 99-year lease from the City of Sydney for three historic Oxford St, Darlinghurst, blocks, with plans for a 75 suite hotel, 7600 sqm of offices, and retail.
Two Wagga Wagga venues trade
Meanwhile, two Wagga Wagga hospitality venues traded last month.
The local Oates family is paying a reported $6.2m for Romano’s Hotel at 81 Fitzmaurice St, at the north east corner of Sturt.
This venue hit the market in February; HTL said seven parties contested.
The same agency also represented the Stratton family, which sold the Sportsmen’s Hotel, also known as The Sporties, opposite Wagga Wagga Cricket Ground, for a reported $5m-plus.
The buyer is a syndicate including Sam Cruikshank and local Sean O’Hara – which own the nearby Turvey Tavern.