Industry doyen Patrick Gallagher has divested his Royal Hotel in Ryde to former Wallaby and growing Sydney hotelier Bill Young.
Located on a prominent corner of arterial Blaxland Road, opposite the redeveloped Top Ryde shopping centre, the Royal counts a balanced trade and enviable #157 on the Liquor & Gaming list of NSW venues (Dec-2020).
During their time in the venue, Gallagher Hotels has secured extended trading hours and added additional machines, completely renovated the downstairs pub and activated the first-floor accommodation.
The acquisition in 2014 was a partnership between Gallagher and old schoolmate, former publican and funds manager Richard Pegum, and it was agreed to realise the investment after four or five years, given the right price.
Gallagher told PubTIC it had nothing to do with any COVID disruption, and the portfolio is seeing strong revenue in all its venues outside the Sydney CBD.
It’s understood the suburban staple found a market-inspired price this time of circa $36 million.
Young counts the proximate Concord, Five Dock and recently reopened Illinois hotels in his growing stable of six Sydney pubs.
“The Royal at Ryde follows our 2020 acquisition and recent refurbishment of the Illinois Hotel, and fits perfectly into our geographical wheelhouse,” he says.
“Strategically, we are satisfied that we have now assembled a complementary mix of full-service hotel offerings, in a demographic we know well and will continue to enjoy our interactions with for many years to come.”
The off-market transaction was managed by HTL Property’s Dan Dragicevich and Andrew Jolliffe, who suggest it was a “deserved sale price” given the pub’s barriers to entry, and the shortage of available assets – particularly in light of the weight of investment capital looking for a foothold in the marketplace.
“Having originally sold the Royal to Patrick and his partner in 2014, it was particularly satisfying to be involved in the deal for their successful exit,” offered Dragicevich. “The pair have added considerable value during their tenure.”
