South Sydney's Allawah Hotel sells in deal worth $30m
Another A-grade Sydney hotel, the Allawah Hotel in the city’s south west, has been snapped up by a private equity group believed to be White & Partners in a deal worth about $30 million, according to the agent involved.
The pub was sold by parties associated with JDA Hotels, which has kept an ownership stake and will continue to run it under a management agreement.
Records show the pub sits on a 1274-square-metre corner site adjacent Allawah station.
The sale is just the latest bullish hotel deal in Sydney as the sector enjoys a boom. Photo: Supplied
Ray White Group Asia Pacific director of hotels Andrew Jolliffe said managing the sale required a different approach.
“This is…a very strong A-grade gaming hotel sale,” he said in a statement.
Mr Joliffe said he was confident the pub sector would continue to boom. The sale of the Allawah marked the 25th A-grade freehold hotel sold in Sydney in the past 18 months.
Speaking on behalf of JDA hotels, founder John Feros said that the private equity style deal structure was something his group had done in the past and would likely look to participate in again.
“We had owned the Allawah Hotel for over a decade and decided the time was right to recalibrate the capital stack,” Mr Feros said in a statement.
“Whilst not a traditional exit event for the hotel space, we were confident we could find a deal structure that works”.
The pub sits on a 1,274 square metre corner site adjacent Allawah Train Station. Photo: Supplied
The multi-storey Allawah Hotel is ranked 140 in the state’s latest top-200 gaming rankings.
The off-market sale follows a string of high-profile hotels sold including six hotels in six months from Australian Pub Fund, worth about $120 million.
Also this year the combined sale of Hunters Hill and Tiger Bar pubs netted Iris Capital and Gallagher Hotel Management $65 million and in June hotelier Simon Tilley bought the Greenwood pub lease for more than $10 million.
