Pelathon has listed its big Oxford Street cornerstone as it continues to shift focus onto big Queensland operations.
The four-level Oxford is one of the anchors of Taylor Square – the celebrated heartland of Oxford Street and the LGBTI community.
The pub has a befitting reputation for reinvention, first opening in the early 1850s as the Queens Arms. Over the following decades it morphed and moved slightly in its precise location, becoming the Cottage of Content in 1860, Johnston’s Family Hotel in 1872, Ryan’s Family Hotel in 1885, and Midland Hotel in 1900.
In 1909 the pub, which was now recognised as being on the corner of Oxford and Bourke Street, was demolished to allow for road widening by Sydney Council. It re-emerged as the Oxford Hotel, in roughly the same position, with a new Federation look by prolific pub architect, E Lindsay Thompson.
Pelathon has owned and operated the Oxford for seven years, and two years ago divested the freehold and executed a big million-dollar renovation throughout.
Since then the group has increasingly invested and shifted attentions to operations in Queensland, such as its in-construction project in Cairns, and expansive renovation at Brisbane’s Grand Central.
The Oxford Street precinct has suffered serious disruption to its traditional late-night market, courtesy of the controversial lockout laws, but the feeling amongst operators is that this has bottomed out and trade is ready to pick up again in its inevitable new form.
“Ever since the late-night laws came in, all those businesses have taken a hit. It hasn’t been easy after the lockout laws,” poses Pelathon CEO Jaz Mooney.
“But it’s now on its way to recovery. The pub’s multi-level, and suits all types, from functions to promoters to good genuine all-day business.
“We think it’s the right time to sell. We think that anyone that goes in after us is going to do a better job than we will reinventing it.”
Holding a 24-hour licence and 21 EGMs, the pub boasts 874sqm, capacity for 670 pax and currently sees annual revenue over $2.3m.
The lease has four years remaining, with a further four 5-year options, at attractive market terms.
Mooney’s group has been operating the Oxford under management, offering an “everyone welcome” model following the big-budget renovation in late 2015 – a necessity in the wake of the lockouts.
The leasehold interest has been listed with CBRE Hotels’ Sam Handy and Daniel Dragicevich, who note the upside potential for repositioning for a hands-on owner-operator at the Taylor Square stalwart.
“The Oxford Hotel presents an incredible entry-level opportunity for an operator seeking to either re-engage with the LGTBI community or to activate a more compelling food, beverage and late-night entertainment offering,” suggests Handy.
“The vendors are realistic and committed to a sale, so all offers will be considered at campaign close.”
The Oxford Hotel is for sale by Expressions of Interest, concluding Wednesday 8 November.
