Ludlow Hospitality and Paddy Coughlan have flipped popular Illawarra pub Five Islands to Mark Kennedy’s Endeavour Hotels.
The former Cringila Hotel was built in 1956. The Gravanis brothers’ Oscars Hotels bought the tired operation, promoting itself as a ‘daddy daycare’ for male patrons, and executed an extensive $2.5 million-plus makeover.
Reborn as the Five Islands, the entrance had been moved, creating a new public bar and sports bar, facilitating a reconfigured gaming room with 22 EGMs, bistro with new family-friendly menus, and a large beer garden. The 2,314sqm site also counts 12 accommodation rooms.
Mid-2021, investor-backed pub fund Ludlow, fronted by Coughlan, made its first acquisition with purchase of the pub for around $21 million.
Aiming to be an ‘Opportunity Fund’, Ludlow undertook some fine-tuning and consolidation of the revised hotel, before listing it for sale again in April.
It has been purchased now by Endeavour Hotels, founded by Mark Kennedy, for a reported price of about $27 million.
“We wish Mark and his team every future success with a hotel now positioned to enjoy the benefits of the surging population base in the Illawarra region,” said Coughlan.
Agents on the campaign, HTL Property, declined to confirm the sale price.
“Not surprisingly, we enjoyed multiple offers to purchase the Five Islands Hotel, with the majority of the interest coming from Sydney investors looking to take strategic positions in growth corridors radiating outwards from the traditional metro core,” offered HTL’s Sam Handy.
Endeavour currently holds the keys to the Clarendon Tavern, and Newtown’s Coopers Hotel, which Kennedy purchased in 2019.
Heading up the new digs as licensee will be group GM Luke Anderson, who has spent time running venues in the employ of Redcape, Waugh Group and Feros Group.
After three owners in about as many years, Kennedy suggests their strongest upside is in consolidation.
“Certainly the bones are there,” he says. “We’re just going to improve on what the last two owners have done, like we’ve done at our other pubs.
“Despite the good work they’ve done on it, we’re in it for long haul.”
Partaking of a top-gear market, he says they are in “no rush” to buy again soon, but will certainly look at the right opportunities in the future. In the meantime they intend to settle in at the Islands.
“We look forward to building a solid, consistent, value-driven business, and to offer that to the local community.
“That only comes with time, and building a solid team. You can’t do it overnight.”
