Sonnel Hospitality has taken the next step in its ambitious plans, purchasing the freehold going concern of the striking Fire House Hotel, marking the first in the North Sydney CBD in more than 40 years.
Vendor Mark Barry has owned the 1895-built building since 2001, overseeing its conversion in 2007 into a hotel spanning two levels, sporting high-end interior finishes and multiple bars behind an ornate heritage façade, under a 3am licence.
In 2018 Barry sold the hotel’s airspace to developer Billbergia for construction of a $121 million 35-storey tower above and beside the pub, comprising 224 hotels rooms and multiple levels of facilities.
In July of this year he sent it to market, looking for north of $30 million.
“My family has thoroughly enjoyed its business connection with the North Sydney CBD spanning in excess of 30 years, and feel entirely confident the exceptional Sonnel Hospitality team will ensure the Fire House Hotel’s fine legacy is only further emboldened in the decades to come,” says Barry.
Sonnel, headed by Simon Meers, has reportedly acquired the Fire House for more than $35 million.
The group keeps an impressive portfolio, counting the recently remodelled Guildford Hotel, and sprawling Crossroads Hotel, purchased in 2022 for a record-setting $160 million.
Making its debut north of the Harbour Bridge, Sonnel COO Tim Fitzgerald told PubTIC western Sydney will always be “our heartland” but opportunity comes in many forms.
“We are always on the lookout for venues where we see value and long-term growth, and this asset in North Sydney happened to tick both those boxes.”
Having recently unveiled its reworking of the Marrickville Tavern and expansive redevelopment plans at its Ermington Hotel, Crossroads Hotel, Ashfield Hotel and New Victoria Tavern, adding the Fire House marks another significant step in the group’s vision to foster in-venue experiences.
“Our mission is to grow our hospitality portfolio and be game-changing in this space, and Fire House provides us with a rare opportunity to establish a foothold in a new market while complementing our strong presence in western Sydney,” added Fitzgerald.
Hot on the heels of a chart-topping regional transaction at Griffith’s Gem Hotel, sale of the Fire House was managed by HTL Property’s Andrew Jolliffe and Dan Dragicevich, who say the appeal of the hotel speaks of the “unsatisfied investor depth” for A-grade hospitality assets.
“Unsurprisingly, given the extraordinary aesthetics and proximity promoted by the Fire House Hotel, the sale process extracted an abnormally large level of interest in acquiring the generational property,” says Dragicevich.
