The Marlow Hotel Group has secured the huge Peachtree Hotel in Penrith, following less than a year’s ownership by ASX-listed property developer, Boyuan Holdings.
The Peachtree Hotel – locally known as The Peachy – sits on a 10,055sqm lot close to the Penrith CBD, and has a reputation for large entertainment events and strong late-night trade on Fridays.
Recognising the area’s increasing significance in Sydney’s infrastructure shift toward the western suburbs, the freehold going concern has been bought by Jason Marlow’s Group for $16.5 million with strong thoughts on its future direction.
“We’re not in the nightclub business and want to ensure that it stays this way,” offers Marlow.
“We’re dedicated to providing the community with a family-friendly hub for socialising, not simply a local watering hole.”
The Group has a strong reputation for quality food offerings and plans to build this part of the business through a “variety of casual dining” options, as well as greater utilisation of several function spaces and an all-new children’s indoor play facility.
The goal is for the increased all-generations business, focusing on food and entertainment, to tap into the “community vibe” of a demographic benefitting from the cultural migration.
“With the rate of development and the commencement of the airport, we believe the workforce will be located closer to home, resulting in more quality time with family and friends,” explains Marlow. “Peachtree Hotel will be the new favourite local for some awesome pub bistro fare.”
The Hotel’s huge lot lends itself to further development, but Marlow told PubTIC they are in no hurry to decide what may happen.
“At this early stage, our plan is to sit and understand the hotel and its operations, before committing to any development.”
The sale represented an annualised return of 8.1 per cent for BHL, and while the company maintains it will “actively pursue” other hotel and hospitality investments, a strategic review deemed this a good time to swiftly on-sell.
Since listing late 2016, BHL’s market cap has remained quite steady, until a dramatic rise beginning in April this year to a peak of 64 cents per share – an increase of 178 per cent since mid-2017.
“The Board has resolved to capitalise on current market conditions and proceed with the sale of the Peachtree from our current portfolio of assets,” said BHL CEO Caden Wan in a statement to the ASX.
The off-market transaction was brokered by Ray White Asia-Pacific director Andrew Jolliffe, who tips Marlow will benefit from The Peachy’s broad potential.
“The Marlow Hotel Group is a regular Casual Dining Award winner at state-based industry events, and this family-focused hotel management strategy is evidenced at other [Group] venues, such as The Rose and Crown in Parramatta, or the Boathouse Tavern in Queensland’s Coomera.
“To do this effectively, hoteliers require scale, position and demand, and the Peachtree Hotel exemplifies all pre-requisite requirements.”