Ged Dore and company have put up the handsome Salisbury Hotel in Stanmore, as an investor partner seeks to cash out.
Built 1899, the three-level pub enjoys triple street frontage, occupying a prominent 800sqm corner lot on the main retail strip 100 metres from Stanmore station, which a UTS study found is used by over 3k commuters each day.
Offering multiple bars, bistro, gaming room with 15 machines, function spaces, 20 accommodation rooms across two levels, a popular outdoor beer garden and bottleshop, the pub does a balanced mix of trade, generating over $95k in weekly revenue.
Gerard and Trish Dore began management of the pub in 2015, with a partial ownership share, alongside a group of investors led by Brendan Madden’s L90 Capital.
In 2016 they undertook a circa $3 million renovation, and the Dores invested further, becoming 25 per cent shareholders.
Then, in 2018, the backers determined uplift in the pub had been sufficient to cash out, and listed it for sale. Dore fended off all comers, further increasing his share to 50 per cent in purchase with a new partner, taking the title and operation for around $11 million.
While the business has fared well from a hands-on owner operator, debt accumulated has hampered further expansion options.
Stanmore is in Sydney’s booming inner west, approximately 10 minutes from the CBD or 15 from the airport.
The Salisbury is the only pub in the locality, with its more than 7,500 residents, finding more of a ‘village’ atmosphere than its close neighbours Enmore and Newtown.
Dore says he is not eager to sell, but the choice comes from his partner.
He says he relishes the first five years of running a pub, and has to “love it” and not simply operate it as a business. He’d hoped the Salisbury would be in his hands “forever”, saying “we’re going to be here for life” when he took the deeds in 2018.
Having worked many years for larger groups, Dore found his way into ownership and has executed his preference for ‘community builds’ based in befriending the locals. He concedes there is likely upside to be had in tighter cost controls, and that he has never pushed to optimise the (Band 1) gaming.
The accommodation was refurbished and the rooms are said to be doing well, but it’s also thought there could be benefit in reconfiguring for more beds, to capitalise on the market for short-term stays.
Ged and Trish still manage the nearby Enmore and Henson Park hotels, but lament they will miss the Salisbury.
“The reason we really like it is because it’s like a village and we really believe that over time it will come into its own as a great independent business.”
A campaign for the sale is being managed by JLL Hotels’ Kate MacDonald and Ben McDonald, amid signs of renewed activity in the sector as economic headwinds improve, providing greater certainty for hoteliers and investors.
“Not only is the property architecturally striking, given its Art Deco heritage, but the trading profile is one which we see to be extremely attractive for those seeking a balanced hotel business whilst also offering short-term growth options,” says MacDonald.
The freehold going concern of the Salisbury is being sold by Expressions of Interest, closing Thursday, 21 September.
