Dove & Olive on the auction block
The Dove & Olive Hotel in Sydney’s Surry Hills is on the market.
The Good Beer company is selling the hotel to raise the cash for the planned upgrade of its recently acquired Duke of Gloucester Hotel in Randwick.
JLL is managing the sale and JLL managing director John Musca says it’s one of the busiest venues in Sydney. The hotel is estimated to generate $100,000 a week in sales.
The pub is an attractive proposition, offering a good craft beer selection and value food. It also has 12 poker machines. There will also soon be a Light Rail station nearby.
"The Dove is unique in that it will easily deliver astute purchasers a 10 per cent-plus yield at purchase, a rarity in the food and beverage-centric hotel space, with almost no risk and on a big revenue base, so it's really a big hotel opportunity on a manageable footprint," JLL's Mr Musca told the Sydney Morning Herald.
It is likely to fetch a good price. Sales in Surry Hills alone have included the Trinity Bar which went for $8.5 million and the Royal Exhibition Hotel which sold for $19 million.
He said the demand for quality city-fringe hotels outside the CBD is on the up. And one of the reasons for that is Sydney’s lock out laws.
The pub owner John Azar is very excited about the sale.
“We are developing an impressive new offering within The DOG Hotel, formerly known as The Duke of Gloucester,’’ Mr Azar told The Shout. “Building three state of the art kitchens, we have a magnificent new bistro restaurant that will open its doors in early September. We are also in the process of building a courtyard café, as well installing an unprecedented 59 beer taps. We are redefining this pub. The DOG Hotel will be a new destination for the Eastern Suburbs."
The Good Beer Company is a social enterprise business. It gives 50 per cent of its profits to charity.
It is also redeploying capital to fund a huge renovation planned for its recently acquired Botany View Hotel in Newtown.
by Leon Gettler, July 18th 2016
