The sleeping beauty Hotel Palisade has been sold again for a hot market top-dollar price, less than two years after it reawakened from eight years closed and two renovations.
A hotel was first built on the Millers Point site of the Palisade back in 1880, beside the stake (palisade) fence in the street. The current structure was built in 1912 by the Sydney Harbour Trust for the port workers and local community.
The Palisade overlooks the Sydney Harbour Bridge and foreshore, and the $6 billion Barangaroo development, with unobstructed views that make it irreplaceable and earning it the label of the ‘Jewel of Millers Point’.
After closing for business in 2008, it lay dormant until a large-scale refurbishment in late 2014. In March 2015 it went to market through Manenti Quinlan, drawing huge interest and over 100 inspections.
Although it didn’t meet reserve at auction, settlement was negotiated soon after with British entrepreneur Richard Sapsford, closing the deal for close to $20 million.
Sapsford then undertook yet another major renovation and restoration on the trophy asset costing another $5 million, resulting in the spectacular venue today, with the Henry Deane rooftop bar and restaurant, eight luxurious hotel rooms, functions spaces, and the Public House Bar on street level.
In October 2015 it finally reopened for business, almost eight years after last trading.
Just one year later, citing personal reasons, Sapford re-listed the new operation, still seeing uplift amid a growing reputation and potential. The campaign through JLL Hotels noted an even hungrier market for the relatively young business, with expectations of more than $30m.
But as A-grade hotel sales around the country challenged price and yield records, no taker was found for the one-of-a-kind Palisade.
Now out of the blue, news has emerged the Palisade has sold to Chinese-backed First Master Capital, registered since May this year.
While details are scarce, the sale price is believed to be circa $31.5m, and contrary to reports, the deal is believed to have been set up by a Sydney-based residential agent that frequents the pub.
PubTIC contacted the Hotel and related stakeholders, but was unable to secure further details prior to publication.