BLUE MOUNTAINS PORTFOLIO FOR SALE

In On the Market by Clyde Mooney

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Private family operators have put to market their Blue Mountains pubs the Katoomba and Alexandra Hotels, as they look to retirement.

The Katoomba Hotel was first built in 1881, and the current structure in 1918. It thrived during the area’s boom in tourism during the latter half of the 20th century, being just over 100 kilometres from the heart of Sydney.

It boasts a public bar, bottle shop and gaming room, with clear upside in further development of the gaming, late trading approvals, and improved food & beverage offerings.

The elegant Alexandra Hotel was built in 1903 on a 3,700sqm block. Known locally as The Alex, it is Leura’s only pub, its name a nod to the popular wife of reigning monarch King Edward VII, Queen Alexandra.

It was designed by a local architect, in an adaptation of the Queen Anne style, with striking interior arches and a staircase made of kauri pine. It boasts old-world charm, with 22 bedrooms with electric service bells, three bathrooms, a large dining room, ‘smoking’ and recreation rooms, a drawing room, and a majestic 26-metre front balcony offering excellent views of the mountains, Leura Gap and the Jamison Valley.

The Hotel operation sees a well-maintained building, holding bar and gaming with 15 EGMs, and nine hotel rooms plus a manager’s residence.

Katoomba Hotel

Both pubs saw renovations in 2014 by the current owners, who have held them since the early 2000s.

Looking toward retirement, the incumbent have listed the Blue Mountains portfolio with Knight Frank’s Mike Wheatley and Kate MacDonald, offering substantial FGC opportunity in a time of shortage.

“Both Hotels represent a very affordable opportunity in a tightly held hotel market,” suggests Wheatley.

“We are seeing more and more operators look outside the Sydney Metropolitan area, and we believe the Mountains will favourably respond to the requirements of operators and investors alike.”

Inspections of the two Hotels by appointment only through Wheatley and MacDonald.

Alexandra Hotel, Leura