For the first time in 35 years the iconic Lord Nelson Brewery Hotel in Sydney’s historic The Rocks is for sale, along with its famed beer brand, Lord Nelson Brewery.
Standing statuesquely on the corner of Kent and Argyle Streets in Millers Point, the multi-storey building was constructed in the late 1830s in Old Colonial Regency style, designed by Michael Lehane and made from sandstone quarried locally. It was granted a hotel licence in 1842.
The heritage-listed pub, known as ‘The Lord’, now finds itself conveniently central to Circular Quay and the city’s newest entertainment precinct, Barangaroo.
New Zealand-born Blair Hayden bought the pub in 1986 with business partners, Yalumba boss Robert-Hill Smith and accountant Michael Gilbert, paying the Maritime Services Board of NSW just $750k.
Armed with an 1852 photograph, the new owners completed a restoration of the sandstone building, revealing unique features, such as many convict-made chisel marks on the stone façade.
They were inspired to create beers in the style of the traditional English style ale and installed a functional micro-brewery.
For 35 years Hayden has been the face of the operation, which boasts being Sydney’s oldest continually licensed hotel, and home of Australia’s oldest pub brewery.
Hayden is optimistic about the future of the pub and the brand, opting to divest in a combined sale amidst the growing demand for hotels.
“We truly love this pub. However, after 35 years, we simply don’t have the energy or the resources to take the business to the next level, but we have no doubt that someone will.”
Today the hotel features a ground floor public bar and footpath seating, fine-dining restaurant and commercial kitchen on the first floor, under nine accommodation rooms and an office.
Below street level is the basement cellar, with brewery viewing area above and original floors and fittings.
The Lord has stoically shunned poker machines, instead focusing on “hospitality and those age-old crafts; feeding people and brewing ales”.
The Lord’s brewery banner owes around 90 per cent of its sales to the award-winning Three Sheets Pale Ale, which it has brewed since the beginning, making it one of Australia’s original pale ales. It has built a strong following, available at over 125 Sydney venues and distributed throughout Australia. Capacity at the Hotel is limited and much of the brand’s produce is contract brewed offsite.
On Thursday an emotional Hayden thanked long-serving staff and loyal regulars “from the bottom of our pint glass”.
Sale announcement came through JLL’s Kate MacDonald and John Musca, with price expectations north of $35 million for the freehold going concern and opportunity.
The most recent proximate pub sale was of the trophy Harbour View Hotel, bought by Dominic Barba mid-2019 for $12 million.
“The current private owners have done a terrific job to create and nurture the beer and brand from infancy, but the potential scale of this product for an outfit with superior resource capabilities is quite extraordinary,” says MacDonald.
