Hotel Hacienda: Redfern icon with Mexican restaurant and 'stunning CBD skyline views' offers untapped rooftop potential
An inner-city Sydney hotel home to “stunning CBD skyline views” and a Mexican restaurant is looking for new owners with a price tag of around $20 million.
Hotel Hacienda in Redfern, a ‘diverse, inclusive, quirky’ suburb tucked between Surry Hills and Waterloo just three kilometres south of the CBD, underwent a renovation a few years ago.
The five-storey freehold at 179 Cleveland Street offers the Tacos Muchachos restaurant as well as a 24-hour on-site liquor licence, a rooftop terrace, a large lobby, 63 studio rooms, a two-bedroom apartment, and a 12-car basement car park.
“Sydney’s hotel market has undergone a resurgence over the past 18 months, with Hotel Hacienda providing significant scope to capitalise on growing room rates, with few competing offerings in this quality and price point,” said Knight Frank’s Demi Carigliano.
The neighbourhood icon, with its well-rated restaurant that started as a Mexican street-food pop-up during COVID, is 350 metres from Redfern station and 900 metres from Central Station and close to Sydney University.
The dark-coloured building has mixed-use zoning and spans about 1800 square metres of floor space on a massive 506-square-metre block.
Vendors are looking for expressions of interest through Knight Franks’s Carigliano and Anthony Pirrottina, along with Adam Bodon from the Adam Charles agency.
In 2021, about $2 million was spent upgrading the hotspot, including cosmetic, furniture, fixtures, plant and equipment upgrades.
Its current cash profit, or EBITDA, is strong with substantial scope to increase it, according to the agents.
Carigliano said he expected significant interest from private investors and hotel operators, with the property’s location another of the major drawcards.
“This is a quality investment offering in a high-exposure location in Sydney’s inner fringe. It’s also close to gentrification precincts, including Central Park and Atlassian Tech Central, which will drive values over the immediate term.
“The incoming purchaser has the flexibility to operate the asset themselves, or continue with a more passive approach.”
The property, with already strong earnings, is poised for future income, with an untapped rooftop terrace yet to realise its potential, said Boden.
“The building’s rooftop, which has stunning CBD skyline views, remains unused, providing an opportunity to add value immediately,” he said.
“The property also offers future development potential. Its mixed-use zoning also allows for a range of alternate uses, including co-living/boarding houses, residential apartments and serviced apartments.”
Expressions of interest close at 4pm on September 19.
