Marcello Colosimo’s Momento Hospitality has continued its march into inner-city prospects with purchase of the famed Royal Albert Hotel of Surry Hills.
On the southern edge of the Sydney CBD, the Surry Hills boozer is well known as one of Sydney’s most credible craft beer haunts, set on a bustling 211sqm corner amid fine-dining restaurants.
Holding a midnight licence and gaming room with 12 machines, it reported annual revenues north of $1.5 million, and strong underlying value and development upside, with B4 Mixed Use zoning
The re-stapled freehold going concern came to market in March, in a collaboration of long-term freehold owners and the leaseholder, tipped to appeal to hoteliers, restaurateurs, investors and developers.
One notable part-owner over the past decade has been NRL legend and colourful media identity Bryan Fletcher.
“It’s been a great journey with that little pub, and as a consortium we’ve elected to pursue other capital deployment objectives at this juncture,” offered Fletcher.
Royal Albert is Momento’s second city-fringe hotel in as many weeks, following acquisition of the Friend in Hand Hotel in Glebe, similarly owned by another football legend, Bill Young and family.
Colosimo confirmed he is actively looking for opportunities in the city hotel market, and takes another stride in the strategy, with plans to step up the foodservice to meet the beer.
“I’d done a fair bit of work with the Albert when we had the Australian Brewery,” says Colosimo.
“It’s a great little pub, in a good location.
“We’ll expand our smoked meat concept onsite, while keeping the craft beer angle that has been built up.”
Sale price for the re-stapled asset was not disclosed, but is understood to be consistent with market guidance of $10 million.
Pubs skirting the Sydney CBD continue to attract the attentions of expanding pub and hospitality operators, as seen in the Momento moves, Universal grabbing the Bat & Ball of Redfern, and a syndicate buying Balmain’s Dry Dock.
The Royal Albert transaction was brokered by HTL Property’s Sam Handy and Blake Edwards, who hint there will be more to come.
“We get the strong sense that the inner-city market will enjoy sustained investor interest for some time,” said Handy.
