Nathan Dawes’ Gateway Hotel Group has charged into Sydney, snapping up the Parkview Hotel ahead of its scheduled auction date.
Located in Sydney’s burgeoning Alexandria corridor just south of the CBD, the hotel had a reputation long ago as one of Sydney’s toughest watering holes. Established in 1898 by influential Redfern Council alderman James Roche, who was himself a regular before the courts, it served hard-drinking men and members of the infamous razor gangs.
Today the area is one undergoing significant urban transformation, led by the $1.5 billion Ashmore Precinct.
The two-storey Parkview features a ground-floor public bar with outdoor beer garden, gaming with 15 coveted City of Sydney entitlements, and an elegantly appointed restaurant and function space on the upper level.
For the past 14 years it has been owned by a private Sydney investor, with operations under a lease that expires April 2026.
Last month they sent the soon-to-be-vacant freehold asset to market, with an auction originally scheduled for 23 September but postponed for a week due to the level of interest.
But Dawes secured an agreement with the vendors ahead of time, exchanging contracts last week, prior to the revised auction date.
This represents Gateway Hotel Group’s (GHG) first hotel asset in Sydney, although it is the group’s fifth addition in the past five years.
Dawes explains he has pivoted from a strategy that focused on freehold going concerns in the regional Northern Rivers area. Looking to suburban Queensland this new approach previously resulted in purchase of the large-format Meadowbrook Hotel.
“The purchase or PVH is both an exciting challenge and a proud milestone,” he says.
“Pubs are at the heart of our communities, and I’m committed to building on its history while creating a welcoming space, where locals and visitors alike can feel at home.”
Dawes also revealed the debut into Sydney will soon be followed by announcement of a further acquisition in line with GHG’s model.
“We will continue to grow by selecting high growth assets from Brisbane and now Sydney where our expertise and patron passion have a strong impact on revenues.”
The sale campaign was conducted by JLL Hotels’ Kate MacDonald, Ben McDonald and Greg Jeloudev, who tip similar opportunities are going to be increasingly hard to find.
“Securing a Sydney metropolitan hotel featuring 15 gaming machines at this price point has become exceptionally challenging, with such opportunities expected to diminish further as economic conditions strengthen,” says MacDonald.
