Sam Arnaout’s Iris Capital has listed the freehold of its iconic Clovelly Hotel, armed with a 20-year lease to Bruce Solomon & Matt Moran’s Morsol.
Iris has held the Clovelly since 2008, and executed a huge redevelopment in 2012, bringing multiple bars and function spaces.
Last October Iris put the Hotel to market, offering $9.1m in annual sales and opportunity in most revenue departments for a fresh operator, particularly growing the pub’s business in Australia’s booming overnight stay accommodation sector.
In December Solomon and Moran negotiated a deal through their Morsol partnership on The Cloey’s leasehold operation, securing a 20-year triple-net lease including the licence and 15 EGMs.
Iris has now listed the passive freehold of the 1,708m² site through Colliers International and JLL Hotels, boasting the blue-chip lease to the high-profile tenants.
“The MorSol lease covenant and the exceptional oceanfront location of the Hotel firmly positions this passive investment opportunity alongside some of the most aspirational assets in the country, sure to attract the attention of discerning private capital sources,” says JLL National Director John Musca.
Sydney’s Eastern suburbs is home to a predominantly high-income population and its maturity in hospitality offerings means new licences are extremely rare.
Subsequently, well-positioned landmark pubs are rarely transacted and frequently held by the most successful and ardent of operators, such as Justin Hemmes (Coogee Pavilion), Kim Maloney OAM (Hotel Bondi), Chris Cheung (Coogee Bay Hotel), and Arthur Laundy and Fraser Short (Watson’s Bay Hotel).
Colliers’ Miron Solomons suggests a line-up of sophisticated investors will run the ruler over the Clovelly opportunity.
The freehold of the Clovelly Hotel is being sold via an international Expressions of Interest campaign, closing Wednesday, 30 August.