The re-stapled freehold going concern of the landmark Bar Broadway, aka Sutherlands Hotel, has come to market for the first time in 20 years.
One of only five surviving examples of Sydney CBD hotels built in an interwar Functionalist style, the pub had a long association with Tooth and Co brewery and over the years has been known as the Westminster Hotel, Guys & Dolls Hotel, Sutherlands Hotel and most recently Bar Broadway.
The two-storey brick structure is said to have one of the few remaining ceramic tiled interiors and public bar still largely intact, and is keeper of a 24-hour hotel licence, gaming operation with 28 machines and three-hour shutdown, and upstairs accommodation set up for 36 beds.
Central to its growing commercial, retail, student and residential catchment it is said to be one of the most strategically located hotels in Sydney – finding itself at the core of the huge southern CBD Central Park development, Chinatown, multiple universities and only metres from Central Station, plus Sydney’s ‘Silicon Valley’, bringing three new towers by Atlassian, Frasers and Dexus next door, set to deliver circa 4,000 construction workers for up to five years ahead of 16,000 additional permanent employees.
The Hotel title also holds an activated DA for two additional upper floors, with potential to take the bed inventory to 63.
The long-term freeholder of the property has joined with the leaseholder and re-stapled the entities – as the Sydney hotel market tallies over $1bn in pub hotel transactions in the past year.
Sale price expectations are in the vicinity of $45 million.
“The recent sales of the nearby Crown Hotel, Courthouse Hotel and Kinselas Hotel for an average yield of five per cent – none of which had comparable business catchments to Bar Broadway – provide an insight into the quality of this opportunity,” suggests Knight Frank director Mike Wheatley, marketing the asset in conjunction with JLL Hotels’ John Musca.
The freehold going concern of Bar Broadway is being sold via Expressions of Interest, closing Thursday, 30 June.
