Stephen Hunt’s Hunt Hospitality has flipped the august Duke of Wellington Hotel in New Lambton, selling for $16 million to Nick Walker’s Reklaw Hotels.
The Duke was built 1876, named in honour of the famous commander of the English and Allied army at the 1815 Battle of Waterloo against Napoleon Bonaparte. Set on an 885sqm footprint, approximately 15 minutes from Newcastle CBD, it houses a sports bar and TAB, gaming room, internal beer garden, and seven accommodation rooms on the first floor.
Hunt’s group bought The Duke mid-2016, for around $8.5 million.
He went all-in on targeted elements, including a new, upgraded gaming operation, increasing from 15 to 24 machines.
Not looking to sell, the Newcastle-based hotelier turned down the first recent, albeit attractive offer.
Formerly of Lesday Hotels, Sydney-based hotelier Nick Walker fronted with an offer of $16 million, through his newly-formed Reklaw Hotels. Finding it “too good to refuse” and juggling extensive plans for the final months of 2021 and much of 2022, Hunt agreed to hand over the deeds.
“Selling the Duke wasn’t an easy decision, as it is such a strong community-based asset with a great mix of trade,” he says.
The acquisition through JLL Hotels’ Ben McDonald is the first for Reklaw, which reportedly plans “to build a portfolio of assets”.
It marks the third time Hunt has turned over an asset for more than 150 per cent of the purchase price, following the group’s success at the Rutherford Hotel and Lakeside Village Tavern.
Despite the valuation uplift, Hunt says there’s still life in the old warhorse. They were recently entertaining plans for an upstairs function area and an increase to other areas of the hotel.
“It will be interesting to see what they do,” he poses.
“It’s always good for pubs to keep growing … it keeps people coming back.”
