Blue Mountains landmark the New Ivanhoe Hotel in Blackheath has sold for the first time in nearly five decades, the Ray family passing the baton to Ray Reilly and business partner Adrian Guest.
The Ray family have been running the 1930s old world pub known affectionately as ‘The Ivy’ for the past 45 years, since patriarch Vic Ray and wife Sybil took the lease in 1976. A year later they upgraded into the freehold.
Fielding numerous unsolicited offers in recent years, daughter, resident and long-term owner Kerrie Ray made the decision in April to part with the family’s legacy, electing to sell to hospitality faithfuls Reilly and Guest.
“Thank you to all of the staff and loyal customers over all these years,” offered Kerrie.
Blackheath is a community of 4,500 people that swells with tourists and day-trippers on weekends and holidays.
Occupying a site around 1,500sqm, on a high-exposure corner of the Great Western Highway 90 minutes from the Sydney CBD, the country-style hotel includes gaming with eight EGMs, 14 well-presented accommodation rooms, three equipped with ensuites, and a manager’s residence.
The operation holds approval for 3am trading, and the small drive-through bottleshop enjoys the benefit of being the only one in town.
Marking another generational asset changing hands, it’s reported the freehold going concern sold for close to $6 million.
Guest reports he’s new to the mountains and will be assuming operations at the New Ivanhoe with considered plans. While wanting to maintain the close quarters bequest of the Ray family, the Hotel is due to see some modernisation, increasing the prominence of the accommodation and capitalising on the drive-through retail opportunity.
“It certainly won’t be easy to fill Kerrie’s shoes, but we’re excited to work with the local community to deliver an enhanced version of the local pub that they already know and love,” says Guest.
The deal was brokered by JLL Hotels’ Kate MacDonald in conjunction with Knight Frank’s Mike Wheatley, who report the on-market campaign was “hotly contested”, attracting submission of multiple bids and a deliberate choice by the Rays.
“The New Ivanhoe Hotel is a real gem of our industry, and the highly competitive sales process demonstrates the continued investment desire for long-held family assets underpinned by strong trading fundamentals,” remarks MacDonald.
“Kerrie and her family have been outstanding custodians, and we are proud to have assisted in passing the baton to genuine publicans who will pay respect to the Ray family legacy,” added Wheatley.
