The Thomas family’s Thomas Hotels has secured the Regent Hotel in Kingsford from operators Solotel and freeholders Amalgamated Hotels, which have held the asset for the past 27 years.
In February the parties came together to offer up the combined interests of the landmark Hotel, owned by Amalgamated since 1999, along with surrounding property accumulated since.
Amalgamated counts Solotel founder Bruce Solomon and long-time Fairfax family associate Lee Thomas as directors and has been divesting its pub holding, also sending the Solotel-operated Sackville, Bank and Clock hotels to market this month.
Solotel has been similarly reconfiguring, selling its leases on four Sydney pubs to AVC for circa $60 million at the start of the year, and most recently passing the Kings Cross Hotel to Oscars Group.
The February offering was led by the prospect of the family-run group’s multifaceted Regent Hotel, providing sports bar, bistro, gaming room with 30 machines and an outdoor courtyard, with 6am late-trading Friday and Saturday. Enjoying limited immediate competition it reports weekly revenue of around $145k.
The Regent Hotel occupies a 2,684sqm corner proximate to UNSW, Prince of Wales Hospital, Randwick Racecourse and Moore Park, and just 50 metres from the Kingsford Light Rail Station with direct access to Sydney CBD.
It was offered up with the neighbouring development properties individually or in-one-line, with price guidance on the bundle north of $100 million.
Thomas Hotels operates a diverse array of pubs across the Sydney CBD and greater metropolitan area, from Parramatta to Kingsgrove.
Kingsford and Kensington are central to what is described as one of Sydney’s “most dynamic” urban renewal corridors and the Regent is a logical addition to the portfolio. Chris Thomas was contacted for comment but unable to reply prior to publication.
While agents did not disclose the sale price of the tightly held pub asset, it has been reported at $40 million for the hotel, and the adjoining development site remains on the market. Settlement is slated for July.
The sale campaign was through JLL Hotels’ John Musca and Ben McDonald in conjunction with Colliers’ Guillaume Volz, who say it was one of the most keenly contested pub sales seen in the eastern suburbs in recent years, with investors drawn to its combination of scale, licence conditions and location.
“We saw strong competition from a broad pool of domestic and offshore buyers, reflecting confidence in well-located hotels that combine immediate income with long-term growth fundamentals,” reported McDonald.
