The high-profile Evening Star Hotel on the edge of the Sydney CBD has come to market, amid multi-billion-dollar infrastructure investment on its doorstep.
Located on Elizabeth Street, a 2-minute walk from Sydney’s Central Station and Light Rail, the Star features a spacious single-operation public bar, commercial kitchen, and gaming room with its own entrance, under a 24-hour licence and strata title.
The gaming operation is historically ranked Top-250, holding 24 machines (21 entitlements, three permits), with a mandatory three-hour shutdown and 6am trading approval on Fridays and Saturdays.
Both the bar and gaming room have been recently refurbished, and there is scope to increase revenue across departments, particularly in the food offering.
Marketing literature reports an efficient business operation currently generating 86 per cent of revenue from bar and gaming.
Its location, on the doorstep of Sydney’s new $3bn Tech Central precinct, currently under construction, stands to benefit greatly from the estimated 25k office workers.
Late 2020 the hotel was purchased for $12 million from Marcus Levy’s Marvan Hotels by expanding hotelier Barham Hamarashid, adding to his portfolio that already included commercial property in Surry Hills, as well as the Highlands Hotels in Mittagong and Winmalee Tavern. The following year he bought Hotel Cecil, in Casino.
Following a lacklustre period in pub transactions over the past 6-12 months, the Evening Star is now undergoing an on-market campaign through JLL Hotels’ Ben McDonald and Kate MacDonald. Given the tightly-held nature of Sydney CBD and CBD-fringe opportunities, agents cite its “convergence of demand drivers” and expect to draw “strong” interest from operators seeking opportunities, despite the broader economic and legislative environment.
“The Evening Star is well positioned to capitalise on the heightened exposure and increasing foot traffic passing by the venue,” notes McDonald.
In terms of an anticipated price point on the sale, MacDonald suggests comparable assets cannot be found below $20 million.
The Evening Star Hotel is being sold via Expressions of Interest, closing Wednesday, 8 May.
