Solotel has announced it has divested its leasehold interest in the beachside Clovelly Hotel.
The group took on a lease in 2016 with Sam Arnaout’s Iris Capital, which had owned and operated and renovated it extensively over the past decade, before Iris sold the freehold for $34 million on a tight five per cent return.
Amid major plans for its fleet of venues across Sydney, Solotel has now moved on from the lease as the private owners execute other plans.
“Solotel has made a strategic decision to rebalance our portfolio for future growth, and invest in our freehold venues,” offered director, Bruce Solomon. “This means we are unfortunately saying goodbye to the Cloey locals, who were a pleasure to serve over the past two years.”
On Monday, 8 October, the Group will hand the keys to new operators, which sources suggest will be the newly-formed team of Simon Tilley and Nick Wills.
“We understand both the priorities of Solotel and the importance of the Cloey to the local community. We have a first-class team to take the Hotel forward, and the best times are ahead,” stated asset manager and representative for the owners, John Preston.
More information as it becomes available.