The famous Captain Cook Hotel of Paddington is for sale as a freehold going concern accommodation pub, at one of Sydney’s busiest intersections, within walking distance of the CBD.
Commanding a 544sqm corner of Flinders Street and Moore Park Road, ‘The Captain’ is close to the new football stadium, Sydney Cricket Ground and Entertainment Quarter, and connected to Central Station via the Light Rail.
The striking four-storey building was built in 1914, designed by prominent architect John Burcham Clamp in the Federation Anglo-Dutch style and featuring a large statue of navigator and astronomer Captain James Cook atop the roof.
Inside is a multifaceted business consisting of a single service ground floor bar, a compact functional kitchen and two separate dining spaces, gaming room holding 15 machines, retail liquor, and 22 accommodation rooms plus a penthouse.
The rooftop area adjoins a private and expansive bar and offers 360-degree views of Sydney.
The extensive accommodation is set up and licensed for 96 Beds, and well served as short-stay due to its access to transport. But there is also potential for higher rate rooms, which could bring an additional four rooms with the conversion of existing common areas, or even in residential long-stay accommodation.
Incumbent tenants purchased the freehold off the long-term landlords the Lepouris family and are now offering the property to market as a freehold going concern.
The owners are a consortium of currently three parties, after the exit of some smaller shareholders, including the Moroney family. One of the former operating managers, Robert Moroney, drew attention to himself and the business earlier this year after being caught by police with drugs.
A lease on the pub has come to market a few times in recent years, but the restapled asset is expected to attract interest from more senior players, looking at offers north of $18 million.
Ben Horne is one of the three owners, and says they want to head into investment opportunities better suited to their skillset, and more along the lines of property development and redevelopment.
“As a syndicate we are looking at other potential assets that we think might be more suited to where we want to go as a group,” he explains.
“We see the Captain as being a great opportunity for a solid operator that has capital to tip into it, and take it to the next level.”
Conscious of the rapidly rising values of freehold hotels and not drawn to the operational side of the business, Horne thinks timing of the sale is perfect, given the pending opening of the new stadium.
“I’ve been going there since I was 18, when we’d come to Sydney, and have some very good memories of The Captain.
“We hope someone can do it justice.”
Sale of the pub is being managed by Savills Hotels’ Nick Butler, Nick Lower and Selin Ince, who note the multitude of options available to an incoming operator.
“With the brand-new Sydney Football Stadium set to open over the next couple of months, and over 100 events scheduled between that venue and the SCG, the next owner of The Captain is set to capitalise on the re-invigorated precinct from the day they take the keys,” suggests Butler.
The freehold going concern of the Captain Cook Hotel is for sale via Expressions of Interest, closing Thursday, 2 June.
