The Laundys have acquired the large-format Swansea Hotel in Lake Macquarie for an A-grade price of $13 million from the Bernie family.
The two-storey Hotel sits on 3,235 m² on the main street of Swansea – the gateway to NSW Central Coast aquatic playground Lake Macquarie, around half an hour’s drive south of Newcastle.
It boasts a thriving bistro, TAB, Keno and gaming room with 30 EGMs, and last year underwent a full renovation. The large site offers considerable development potential, with upside also in the accommodation.
The Swansea was long operated by award-winning hoteliers Phil and Marj Bernie. The $13 million sale represented a yield barely into double figures, and the business could take considerable operational firepower to improve.
“We are very excited to be part of the future of the Swansea Hotel,” relayed Nick Tindall, GM at Laundy Hotels.
“The presentation and operation of the pub is a credit to the Bernie family, and we look forward to maintaining its place amongst NSW’s premier coastal Hotels.”
The pub was marketed by CBRE Hotels, which reports nearly $50m worth of NSW regional and coastal assets so far this year.
“The Swansea Hotel is truly an A-grade NSW coastal asset, with the price quantum and yield being testament to its quality,” stated CBRE national director, Dan Dragicevich,
“There has been a noticeable increase of investment recently in assets outside of Sydney by traditionally metro buyers, and the high-profile Laundy Hotel Group has been amongst those leading the charge.”
Displaying definite signs of a predilection, Arthur Laundy has purchased a string of NSW Central and North Coast pubs in the past year, including Settler’s Tavern at West Gosford, also purchased from the Bernies, and the big-ticket Crowne Plaza Terrigal partnership with Greg Karedis.
While Laundy has been leading the coastal charge, more and more experienced operators are taking the opportunity for better yields and upside potential. Pelathon bought the New Orana, also in Lake Macquarie, and last month Marty Short and Sean O’Hara teamed up to pay $10m for the Toormina.