Industry stalwarts the Ryan family have tempted the Malouf family with an offer they couldn’t refuse for the landmark Royal Oak Hotel in roaring Double Bay.
Since 1873 the Royal Oak has held a strategic position at the epicentre of the eastern suburbs enclave, developing a brand that has made it one of Australia’s most recognisable hospitality venues.
The Malouf family, aka Royal Hotels, bought it in 2011 and in 2015 executed a major renovation, feeding on its history with locals to create a thriving f&b-based operation.
Works included painstakingly reinstating the classic pub’s striking exterior tiles, with Jamie Malouf remarking that “it now looks like a pub again”.
Double Bay is found four kilometres east of the CBD and the sale comes as the municipality is undergoing an evolution, seeing a significant pipeline of investment set to reshape the precinct and further strengthen its reputation as one of Sydney’s premier lifestyle destinations.
Fortis is becoming one of the largest players, with its $195 million Ruby House development, and Rebel Property Group is undertaking the most significant project ever seen in the suburb as it spends $1bn on the remaking of the former InterContinental Hotel site on Cross St.
Currently under construction directly across from the Royal Oak is the $140 million project by multi-national RH Galleries – a high-end decorator business with outlets in cities such as London, Milan, Paris and New York. This will be the company’s first store in Australia.
The multi-generational Ryan Family has a swag of nearly two-dozen hotels across Sydney. Patriarch Peter Ryan was previously operator of the other Double Bay icon, the Golden Sheaf.
Peter’s son Patrick how has two sons of his own looking to join the family business, and taking a generational approach to growth approached the Maloufs about a sale – acknowledging its prominence and history, and securing the deal for $100 million.
“We’re delighted to have acquired such a well-known and equally well patronised Sydney hotel, and look forward to continuing the outstanding custodianship carried by the Royal Hotels Group over the past 15 years,” he says.
“The family are particularly excited about being back in a Double Bay pub.”
Representing the vendors, Ed Malouf says he has confidence the Royal Oak remains in good hands.
“It’s a great result that the hotel will be handed over to the Ryan family, who are well recognised, astute hotel operators in the pub industry and we wish them all the best going forward.”
The off-market transaction was managed by HTL Property’s Dan Dragicevich and Andrew Jolliffe, who note the precinct’s “once-in-a-generation period of investment” was a key consideration of the transaction.
“The Royal Oak sits right in the middle of that story,” says Dragicevich.
“The dynamic combination of population growth, premium commercial and residential development and substantial investment into the surrounding retail and hospitality precinct provides for compelling long-term revenue growth and value trajectory.”
Privy to poignant market indicators, Jolliffe notes the key metric that fundamentally, “we have more buyers than sellers” in the current marketplace.
“The Ryan Family has secured what is patently an iconic hotel, at an important chronological point in the continued evolution of Double Bay.”
