Justin Hemmes’ Merivale has emerged from the slowdown swinging, snapping up Good Beer Co’s the Duke of Gloucester Hotel for around $32 million.
Dominating the intersection of Frenchmans and Clovelly roads in Randwick, the expansive two-level heritage pub is known locally as The DOG, and was bought by John Azar’s Good Beer Company (GBC) from Newhaven Hotels’ in 2015 for $16.5 million.
Having successfully repositioned it as the mecca in the east for craft beer, GBC briefly listed it in March last year, citing a 2am licence and 750sqm block, bistro, large outdoor area and 19 EGMs, weekly revenue circa $180k and a $30 million price tag.
The DOG joins Merivale’s growing local collection, already counting Coogee Pavilion, Hotel Centennial, The Royal Bondi and The Paddington.
Hemmes suggests the purchase is a vote of confidence in the game after a devastating year and says The DOG will auger well with Merivale’s pack of pubs in the area.
“It’s a lovely old heritage building in a great local community and it fits perfectly into our eastern suburbs portfolio.”
Merivale will take the keys in January 2021, and has thus far remained tight-lipped about future plans for the venue.
