Good Beer is serving up The Harold of Forest Lodge, providing opportunity for a hands-on operator to capitalise on blue sky in a thriving inner west precinct.
Set on a 579sqm stratum site, the old three-storey Harold Park Hotel was destroyed by fire in 1959, eventually replaced with the current building in 2007.
Today its location is opposite the Harold Park residential precinct, on the former racetrack, now 1,300 apartments holding 2,500 residents, and close to Mirvac’s Tramshed retail and dining precinct, which sold in early 2022 for $52 million.
The pub is also close to the Royal Prince Alfred (RPA) Hospital, and both the University of Sydney and UTS, and less than a kilometre from the massive Blackwattle Bay waterfront mixed-use precinct.
Forest Lodge enjoys a strategic location only a few kilometres west of the CBD, furnished with a blend of historic and modern architecture, making it an attractive location for businesses looking to establish a strong brand and operation.
The Hotel, with two levels and lower ground amenities, has a total trading footprint of 900sqm and reports generating annual revenue of $3.2 million, across bar, bistro and a gaming room with eight machines. Its Band 1, SA2 classification provides minimal barriers for operators to enhance the gaming offering.
Vendor on the sale is John Azar’s Good Beer Company, which acquired it from Oscars in 2022 and is understood to be refining the portfolio to better align with its operating strategies.
The group recently undertook a comprehensive $1.5 million renovation and reconfiguration at The Harold, leaving “nothing to spend”. Marketing literature suggests revenue generated since the refurbishment demonstrates its capacity for consistent cashflow, while its thought there is further scope to enhance EBITDA.
Forest Lodge and surrounds finds a desirable pub-to-patron ratio, particularly compared against other inner-city suburbs, such as Paddington, Newtown, Surry Hills and Balmain.
Flexible zoning at The Harold lends potential to several alternative uses, including residential, retail, child-care or accommodation.
The property is likely to fetch offers circa $10 million, with a sale campaign being marketed by HTL Property’s Dan Dragicevich, Sam Handy, Andrew Jolliffe and Blake Edwards.
“The Harold is one of Sydney’s best entry-level hotel opportunities,” suggests Handy.
“It is currently operated by a large group, and would perhaps be better suited to a focused food and beverage hotelier.”
The freehold going concern of The Harold is being sold via Expressions of Interest, closing Wednesday, 9 April.
