The Salmon family has divested its unexpectedly successful Rydalmere Tavern in Sydney’s west to pub veteran Andrew Lazarus’ Zenith Hotels.
Rod Salmon is the Port Stephens-based owner of development company Coho Property. Having purchased a warehouse on 3,000sqm of land on Victoria Rd at Rydalmere, and holding an errant hotel licence, Salmon opted to create and launch the Palate Hotel.
After a few years and operators working it as a pub-style restaurant, the Salmons acquired 30 gaming entitlements and turned it into a Top100 performer, beneath first floor commercial tenants, generating over $400k in net passive income. It was rebranded the Rydalmere Tavern.
The property still holds genuine value-add or development potential, and recently secured approval for 4am trading.
No stranger to the game, Salmon held 12 pubs in the early 2000s, but sold down to none. Back in the business, his son Nate entered operations a few years ago.
“The Rydalmere came out of having a spare warehouse and a pub licence from the Sawdust,” says Nate. “We built it almost on a whim, and turned it into a fortune.”
Last month PubTIC reported on their acquisition of the Gallagher’s Chelsea Hotel in Chatswood, which was largely a consequence of having signed the deal with Zenith, through Lazarus’ Dalz P/L, for circa $60 million.
Both sales were brokered by JLL Hotels’ John Musca and Ben McDonald, who would not confirm the price or identity of the Rydalmere purchaser, but suggested the result “speaks for itself”.
Noting the consistent ability for hotels to maintain cashflows even during changing economic conditions, McDonald suggests the Tavern has the potential to be one of western Sydney’s “key destination venues”.
“Already a highly ranked gaming venue, the chance to acquire assets underpinned by growing underlying cashflows at this premium end of the market is rapidly diminishing as a result of widespread asset consolidation.”
