Melbourne hotelier Julian Gerner is bowing out of the industry with sale of his last asset, Morgan’s Sorrento.
Originally named the Mornington, becoming the third ever hotel in Sorrento, in 1876 the current building was constructed, dubbed the Koonya Hotel, at 1 Esplanade, on the corner of Morgan St.
In 1927 the neighbouring building was erected; a saddlery, sometimes morgue, and general business known as Morgan’s.
The sites became popular in the late 80s under restauranteur Peter Roland, then in 2001 a new development split the asset into two tenancies.
Morgan’s Sorrento is the former pub’s beer garden plus the Morgan’s building, positioned between two historic buildings, enjoying 40 metres of Sorrento waterfront frontage.
Gerner began in hospitality whilst in university in the early 90s and bought his first pub in 1997. Formerly the director of Public House Group and Melbourne Pub Group, he has accumulated broad experience across hotels, accommodation and development, often juggling multiple venues.
He purchased Morgan’s Sorrento in 2013, and after 30-plus years says he’s ready to give it a rest.
“It’s time for me to call last drinks on my hospitality career. It’s a young man’s game, I reckon, and I don’t think I qualify anymore.”
Hardly what might be considered ‘old’ he suggests he’s deliberately taking some time away from the industry and not ‘slamming the door’.
“As someone who has seen it all – the good, the bad, and some of the ugly – it is time to try something fresh.
“I’ve never been fitter or healthier, and I’m really looking forward to what comes next – whatever that is.”
Sorrento is a seaside precinct on the southern shores of Port Phillip Bay, around 100 kilometres drive from the Melbourne CBD, offering both bay and surf beaches, golf courses, wineries, boutique shops, spas and galleries.
The hotel is close to the ferry terminal and saw a major $3 million refurbishment in 2018, upgrading all services and equipment.
The lease has 12 years remaining, and the operation currently reports annual revenue of circa $2.6 million.
Marketing literature notes opportunity in repositioning the offering to include breakfast, lunch, dinner and functions, to appeal to a broader array of the happy masses coming to the area.
Morgan’s is one of only four hotel licences in the precinct, along with the Continental, Portsea Hotel and Hotel Sorrento, and agents suggest its abject rarity is “key to the future” of such a beachfront operation.
Its sale is expected to generate interest from established hoteliers from Melbourne and interstate, and may well suit a micro-brewery-style venue.
“Sorento is a tourism destination that continues to skyrocket, as do median house prices and population growth,” suggests CBRE Hotel’s Scott Callow, marketing the asset with colleague Mathew George.
Sale of the leasehold at Morgan’s Sorrento is being sold via Expressions of Interest, closing Friday, 14 April.
