Following an extensive renovation, Marcus Levy has sold his sea-change Seabreeze Hotel business to Coast king Steven Hunt, as Marvan keeps moving.
The Seabreeze is a broad offering pub on a generous block intended as the perfect setting in which to “soak up the ambience and quintessential beauty” of Nelson Bay, around an hour north-east of Newcastle, and two and half from Sydney.
Levy’s Marvan Hotel Group has operated the freehold going concern, and executed a multi-million-dollar renovation that saw them take the prizes for Best Pub-Style Accommodation, and Chef of the Year – Country, at last year’s AHA NSW Awards for Excellence.
Having settled into his new Irish-themed acquisition Finnian’s Tavern at Port Macquarie, Steven Hunt was looking to add another operation to his growing mixed stable of four freeholds and two leases. The Hunt portfolio was also nominated for multiple awards by the AHA, taking home Best Traditional Hotel Bar – Country for the Rutherford Hotel.
An off-market transaction brokered by HTL Property’s Blake Edwards and Dan Dragicevich sees the group take on a brand new 25-year lease at the Seabreeze for $4.5 million, as Marvan Hotels looks to focus on other projects such as the all-new Gweillo in Surry Hills.
“The Seabreeze has been a great hotel for us, and is an important part of the Port Stephens community,” offers Levy.
“Given the amount of renovation work we currently have in the pipeline across our portfolio, the lease deal suited us well, and we wish Steve and his team all the best in taking the venue forward.”
The sale price represents a strong return on the pub’s performance, and maintains the balance Hunt is engineering within a top-dollar volatile market.
“We are really excited to add the Seabreeze Hotel to our Group, which will fit well with our other leaseholds in Port Macquarie and Urunga,” he says. “It’s a fantastic location with a great team and a loyal core of locals.”
Amid stock shortage in the capitals and tightening yields in most regions, exacerbated by smart money pushing the boundaries across the sector, the Seabreeze is a prominent example of a build-your-own opportunity by a confident operator.
“We are seeing an increase in the level of interest in the leasehold hotel sector,” suggests Blake Edwards. “This is certainly driven by the likes of Aus Venue Co, as the freehold market continues to sharpen, and the margin between the comparative multiples available to the purchaser widens, creating real value for experienced groups.”
