Sydney inner west variant Kuleto’s has been sold for the first time in over four decades to a newcomer to the industry, amid continued strong demand and limited supply for city fringe hotels.
Previously known as the Milton Hotel, the Newtown hotel staple resides at the northern end of King Street, central to of some of Sydney’s very best bars, restaurants, breweries and pubs, servicing around 40k residents and around 50k weekly visitors to the precinct.
Kuleto’s holds a rare 3am hotel liquor licence (Monday to Saturday) on both the ground and first floor. For the past few years it has been operating as a cocktail bar, and typically does not open Mondays and Tuesdays and rarely closes after midnight.
Hitting the market in August, sales literature suggested it would benefit from a repositioning with a revised food and beverage proposition, and potentially gaming, given its green zone (SA2) location, in addition to a general renovation and refurbishment.
The sale was by long-time owner Donna Asensio, who cited an exit from the industry and impending retirement as her rationale. Asensio said she was “elated with the outcome” delivered and looks forward to seeing what the incoming operators, bringing some fresh ideas and direction, will do with the old pub.
“I will leave Kuleto’s and the Newtown community with a very heavy heart, as it has been my home for the better part of 42 years.”
The buyer is an unnamed “new consortium” said to have plans of introducing an “edgier” f&b offering to better resonate with the spoiled-for-choice inner west community.
The price paid was also not disclosed, although understood to be “consistent with market guidance”, which Industry sources say was north of $7 million.
“Kuleto’s is an important part of the history and fabric of the Newtown community, and the locals should rest assured that the incoming operator will be a more than worthy custodian of the business,” offered HTL Property’s Sam Handy, who negotiated the sale with colleague Blake Edwards.
Sale of Kuleto’s follows recent inner city hotel sales – notably including Momento’s hattrick of the Friend in Hand Hotel in Glebe and Royal Albert Hotel in Surry Hills in May, then Nags Head Hotel in Glebe in July.
