Justin Hemmes' Merivale group buys the Lorne Hotel for $38 million
Sydney pub baron Justin Hemmes has continued his foray into the Victorian market, purchasing the famous Lorne Hotel through his Merivale empire for $38 million.
The sale – his first pub purchase in Victoria – comes only two weeks after he made his first foray into the Melbourne market, spending more than $40 million on Tomasetti House, in Flinders Lane, and a day after he bought his fourth hotel in Sydney’s inner west, Norton’s Irish Pub, for about $24 million.
The 145-year-old, oceanfront Lorne Hotel is one of the best-known regional pubs in the state, as the destination of the “Pier to Pub” ocean swimming race, and more recently as the outpost for two of Melbourne’s most celebrated restaurants, MoVida and Coda.
Owned and operated by the Upham family for nearly 20 years, the pub also features a 120-person function room, accommodation and an extensive beer garden overlooking the ocean.
“The Upham family couldn’t think of better custodians of the Lorne Hotel than the Merivale Group. We leave knowing that the residents of Lorne and tourists that visit our beautiful town will have an amazing experience when visiting the venue. We wish them all the best”, Paul Upham said.
The Upham family will hand over the keys to the venue later this year and, according to Merivale, the hotel will trade as normal over the summer.
“The Lorne Hotel is an iconic venue in a truly spectacular location,” Mr Hemmes said.
“It has been an absolute pleasure getting to know John and Paul Upham … we feel honoured to continue their legacy and help usher the pub into the next phase of its incredible 145-year history”.
The off-market sale, brokered by JLL Hotels & Hospitality Group’s managing director John Musca and vice president Will Connolly, includes 10 gaming-machine entitlements and four adjacent holiday apartments.
Mr Musca said the sale was part of a trend of NSW hoteliers looking for better opportunities in other states.
“The sale is a tangible example of the commencing flow of capital across borders from the ever-tightening NSW hotel market, seeking compatible scale and brand opportunities”, Musca said. “More examples of this capital flow will follow”.
He said JLL had a further $250 million worth of pub assets in the pipeline, and he expected other off-market sales in Victoria to be announced in the coming weeks.
