Two of the most active players in NSW pubs have done a deal, seeing Harvest Hospitality announce sale of the Woy Woy Hotel to the expansive Laundy Hotels.
Harvest bought the pub at the end of 2021 for $32 million from the McIntyre family, identifying it as an undercooked asset with strong fundamentals and clear upside.
Last year the group completed a major renovation throughout the venue, improving the layout, lifting the food and beverage offering and working to enhance the overall customer experience.
The work has reportedly resulted in a “material improvement” in performance, doubling the pub’s earnings over the life of the investment, through strategic capital investment and a concerted focus on operations.
Laundy Hotels takes the deeds for around $40 million, reflecting the uplift. Laundy holds other pubs in the region and Woy Woy adds to his synergies in the Central Coast.
“It’s a beautiful old pub,” he says. “It’s always been a lovely pub.
“This is certainly a situation where we can employ more people, and use them at other hotels too.”
News on the Woy Woy comes hot on the heels of announcement Laundy headed a group of investors in purchase of the Imperial Hotel at Singleton, around 90 minutes north.
New South Wales’ Central Coast has a resident population of approximately 360k people, forecast to grow another 14 per cent over the next two decades.
“I’m pleased with the buy and looking forward to operating it,” adds Laundy. “I think it’s an acquisition I’ll be proud of.”
Harvest Hospitality sent the asset to market in February and say its divestment reflects a successful execution of the group’s investment strategy of going further than simply applying capital.
“Woy Woy is a good example of our approach – identifying underperforming assets with strong fundamentals and then doing the work to unlock that value,” offers CEO Chris Cornforth.
“We didn’t just renovate the pub, we focused heavily on getting the fundamentals right including building the right team, elevating the experience and running the venue well.”
Harvest reports it will continue to focus on identifying and repositioning suitable hospitality assets, with several projects currently underway and the recently relaunched Harvest Hospitality Income Fund now open.
The Woy Woy campaign was managed by JLL Hotels’ Ben McDonald and Kate MacDonald, who stress the continued strength of coastal pub assets.
“Mr Laundy’s savvy investment in the Woy Woy Town Centre, now owning the only two hotels in the town, underscores the confidence in the Central Coast’s long-term hospitality fundamentals,” said McDonald.
