The Kospetas family’s Universal Hotels has jumped at the opportunity of another large-format Sydney operation, taking the keys to the Newtown Hotel from Chris Morris’ Colonial Leisure Group
The three-level Newtown, on King Street, is a local institution, catering to up to 720 people and hosting regular live drag performances.
Keystone purchased it in 2010 and spent a year renovating, restoring and engineering a compliant solution for the historic street-view balcony and fitting mod-cons such as a retractable awning over the courtyard and a mini-cinema on the top floor.
Colonial Leisure Group (CLG) bought the operation in early 2016, heralding its debut into NSW. The freehold owners are a private Greek family that have held the asset for over 30 years.
CLG still boasts a strong portfolio, counting venues in Queensland and Western Australia, but predominantly in Melbourne.
Potentially overstretched in challenging post-COVID trading conditions, it has sold the leasehold business to Universal for circa $5.5 million.
Keystone had secured a 30-year lease, which still has more than 21 years remaining.
Universal is not typically a leasehold operator, and only considered the Newtown when it was broached shortly after the group’s sale of Darlinghurst’s three-level Kinselas Hotel, late 2020.
The family is now in negotiation with the freehold owners, and may yet find themselves the title-holder.
Harris Kospetas says they are well familiar with the Newtown demographic. He reports the new asset is trading strongly and a “very solid business”. It joins the group’s venues on Oxford Street and CBD fringe, bringing “a lot of synergies” to operations.
“We’re really excited about the Newtown and becoming part of a very vibrant and diverse community. The venue fits our strengths in entertainment, food and beverage.
“CLG have done a great job with the venue and we look forward to building on the strong foundation laid by them.”
