Colourful stalwart of Surry Hills the Evening Star has been snatched by the Kospetas family’s cosmic Universal Hotels.
The Evening Star holds history attendant with the precinct, once home to media and newspaper tycoons partaking of its liquid offerings.
Located on Elizabeth Street opposite Sydney’s Central Station, it is on the doorstep of the new $3bn Tech Central precinct and stands to benefit greatly from the estimated 25K office workers. The pub incorporates a spacious single-operation public bar, commercial kitchen, and gaming room with 24 EGMs and its own entrance, typically ranked Top-250.
The operation is in a strata title, holding a 24-hour licence.
Both the bar and gaming room have recently been refurbished, and generate 86 per cent of revenue, but there is scope to increase trade across all departments, particularly the food offering, and the operation stands well-positioned to capitalise on the projected growth throughout the southern CBD.
Acquisition of the Star brings Universal’s portfolio to 17 venues across NSW, predominantly in Sydney’s CBD and fringe. While mostly keeping freeholds, the family were attracted to the sound underlying investment attributes, reputedly paying circa $17 million for the strata title.
“The location and demographic of the Evening Star have a strong synergy with our customer base and we feel that there is great potential for us to activate our resources and improve the hotel’s offerings,” explained CEO Harris Kospetas.
Well versed in the precinct and its people, Universal will reposition the pub to better align with its potential.
“Our plans initially will be to take over and revamp the hotel to appeal more to locals, young professionals and commuters around the Central Station precinct as well as focusing on a new and exciting south-east Asian-inspired food and cocktail concept,” furthered Kospetas.
The Hotel was sent to market in April by private operator Barham Hamarashid, who also holds the Highlands Hotel in Mittagong, Winmalee Tavern and Hotel Cecil, in Casino, in a campaign through JLL Hotels’ Ben McDonald and Kate MacDonald.
“The Evening Star is well positioned to capitalise on the heightened exposure and increasing foot traffic passing by the venue,” noted McDonald of the opportunity.
JLL anticipates this to be the first of many transaction announcements in the coming weeks, and is active on both sides of the equation.
“As a firm, our primary goal is to optimise and enhance the investment strategies of our clients – be it on the buy or sell side,” added McDonald.
“This transaction has worked out extremely well for both parties who are elated with the outcome.”
