After another year of consolidation, Feros Group is testing the market by offering up its top-gaming pub the Lone Pine Tavern.
The Lone Pine occupies a whopping 10,000 m adjacent to Rooty Hill train station and was briefly put to market last year by the Feros Group at the same time as the Panania Hotel, which was subsequently bought by Mark Malloy.
Chris Feros told PubTIC he felt the hotel needed better history of the upturn since they renovated it, and the time was now right to test the waters.
“It has held strong over the last year, and we are confident it can now get a good sales result,” said Feros. “[It’s] an impressive asset that continues to grow, but our group’s resources are focused on the new projects and we appreciate that there are operators better suited to optimizing this business then we are.”
The Hotel possesses a 3am licence, and comprises a public bar, TAB and wagering bar, bistro and bistro bar, gaming lounge with 28 gaming machines, function room, large beer garden, children’s play area, drive-through bottle shop and parking for 170 cars. It has proven a constant in the Liquor & Gaming list of Top200 venues.
It is being marketed via a Tender process by JLL Hotels national director John Musca, who notes the lack of high-profile gaming pub to come to market this year, and suggests price expectation circa $30 million.
“In the first half of 2016 we have witnessed an unprecedented scarcity of large suburban hotels available for purchase and there’s not been a single coveted top-ranking gaming asset transacted, so there exists a logjam of private and public sector capital seeking acquisitions in the asset class.”
Feros has been busy building brand new venues, such as the amazing Huxley’s speak-easy style pub behind his Ugly Pizza restaurant in Caringbah and his new Gerale St Kitchen, and expanding the culinary excellence of other venues such as his award-winning Terrey Hills Tavern. Lone Pine has not escaped these benefits, trading on quality pub grub and family-friendly feed specials most nights.
“The customer experience in Sydney hotels has improved markedly in recent years and with residential densities intensifying, particularly around main public transport nodes, and continued high barriers to entry, it stands to reason that these businesses are becoming more valuable,” added Musca.