The elegant Alexandra Hotel in lofty Leura is for sale as publican Richard Wynne looks to focus on other projects.
The two-storey colonial-style Alexandra was built 1903, on a 3,700sqm block, and offers a public bar, commercial kitchen and bistro, function space, gaming room with 18 EGMs, beer gardens both front and rear, nine accommodation rooms and parking for around 50 cars.
Industry veteran Richard Wynne bought it in 2018 with partners Greg Perrett and Chris Matthews, executing a significant capital improvement program that saw extensive cosmetic renovations and a new gaming room, and repositioning of the food and beverage operations.
The changes have seen trade more than double, now reporting weekly figures of almost $85k, coming mostly from bar (37pc), bistro, (31pc) and gaming (29pc), and generating circa $1m in annual net profit.
Agents suggest the already strong gaming trade might be further improved by utilising the venue’s existing late-trading licence, the possible acquisition of more machines and improving signage and access, as well as further upgrades to hardware and reconfiguration of the room; the social distancing laws have prevented the full complement to be in operation.
In the last couple of years Wynne has taken interest in several Sydney venues, and cites concentrating on those endeavours as his primary motivator for the sale.
“The Alex is a fantastic earner for us, though ultimately our ambition moving forward is to concentrate on assets in the metro markets,” he says.
“The business is going from strength to strength, and I am confident that an incoming purchaser will continue the upwards momentum we have garnered.”
Sources suggest the pub will fetch in the region of $10-12 million, representing a possible yield play for many of the wide variety of buyers likely to take interest.
“Leura and the wider Blue Mountains economy have benefited from the large increase in tourism expenditure from domestic travel,” notes HTL Property’s Xavier Plunkett, marketing the Hotel with colleague Blake Edwards.
“While international tourism numbers have waned due to the imposed travel bans, pub businesses are a major beneficiary of the changing consumer base as the spend per capita in pubs from domestic travellers and day-trippers far exceeds that of international travellers.”
The freehold going concern of the Alexandra Hotel Leura is being offered via Expressions of Interest, closing Wednesday 7 April.
