The long-serving Kanellos family have put the Rose Hotel in Chippendale to market for the first time in two decades, offering a rare opportunity on the Sydney CBD fringe.
Residing on a 485sqm corner of arterial Cleveland Street, the Rose is something of an inner-west institution. It is within walking distance of both Central and Redfern train stations and Broadway Shopping Centre, surrounded by heavily populated residential and commercial structures, and both the University of Technology Sydney (UTS) and the University of Sydney (USYD).
Holding around 700sqm of trading space over two levels, it provides public bar and bistro and a gaming room with nine “underperforming” machines. On the first floor is a bar and balcony suited to private functions, and there is a substantial all-weather beer garden.
Inside is an eclectic array of memorabilia and tributes to loyal patrons of years gone by, which are said to reflect its mantra ‘We’re a pub for locals, supported by locals’.
The business reports an average of roughly $70K in weekly revenue across bar, food, and gaming.
Located two kilometres south of the Sydney CBD, Chippendale records a median age of 34, and the local population is forecast to increase by more than 30 per cent in the next two decades. The Rose is well positioned to capitalise on the ‘mega hostel’ Tech Central project under construction, slated to accommodate over a thousand guests.
Sales literature notes dormant space in the operation ripe for refurbishment or repositioning, and the pub’s demographic provides for targeted marketing strategies to locals, to expand the food and beverage operation.
The Kanellos family, Con, George and Effie, are approaching retirement and after years of approaches and more than 20 years determined “the time is right” to hand over the keys of their highly sought after hotel.
An Expressions of Interest campaign on the freehold going concern closes Tuesday, 3 June. JLL Hotels’ Kate MacDonald and Greg Jeloudev note that interested parties can now “bid with confidence” as the investment environment is expected to “substantially improve” following Labor’s decisive federal election win over the weekend.
“The Rose Hotel offers a genuine bolt-on opportunity for established groups, or of course newer entrants to the market looking to place a flag in the ground in Sydney,” offers MacDonald.
“As such, we are expecting a hotly contested sales process from a vibrant mix of operators and investors.”
