Marlow Hotel Group buys Peachtree Hotel in Penrith for $16.5 million
Marlow Hotel Group has snapped up the Peachtree Hotel and associated bottle shop in Penrith, in Sydney’s west, for $16.5 million.
The Sydney-based business, led by managing director Jason Marlow, acquired the 10,550-square-metre pub from Chinese developer Boyuan Holdings in an off-market transaction, and will also be operating the venue.
Founded in the 1980s, the Marlow Hotel Group is known for its strategy of renovating and rebranding hotel assets, especially family-owned venues which have not been modified in years, to gain the financial uplift.
The group, which also has a management arm, owns five venues in NSW including Bank Tavern in Kogarah and Intersection Tavern in Ramsgate.
The Peachtree Hotel earns more than $6.5 million in revenue a year mostly from food and beverage, but also from gaming and the bottle shop.
“We’re not in the nightclub business and want to ensure that it stays this way. We’re dedicated to providing the community with a family-friendly, hub for socialising, not simply a local watering hole,” Mr Marlow said.
The reinvented venue will provide multiple function spaces, casual dining options, and a new indoor kid’s play facility.
The Peachtree Hotel in Penrith sold for $16.5 million. Photo: Google Maps
“We know Penrith residents love being out and about within their community. With the rate of development and the commencement of the airport, we believe the workforce will be located closer to home, resulting in more quality time with family and friends.”
Ray White Hotels’ Andrew Jolliffe, who brokered the sale, expects the Marlow Hotel Group to amplify the food offering.
“He (Mr Marlow) recognised the scale of the property and the quite obvious quality that the venue promotes, but he was really attracted to the sheer weight of the population increase going on in that area,” he said.
“There’s huge residential growth in that area, a couple of nearby housing developments, and I think this thing’s got the scale and size to accommodate that sort of revenue.”
Boyuan bought the large-format hotel at 54 Peachtree Road for $15.5 million last year from Colin Parras, who had renovated the venues extensively in the 15 years he held it.
The pub purchase was Boyuan’s first foray into the hotels sector as part of its strategy to diversify its assets. It owns mainly residential and commercial development sites in NSW.
Mr Jolliffe said that Boyuan had sold to maximise its exit of the pub and refocus capital and attention on the bigger projects after a strategic review.
The developer sought to sell off-market for a discreet, quick transaction within a time frame and a short settlement.
