Justin Hemmes expands empire
Pub baron Justin Hemmes has just acquired the Tennyson Hotel in Sydney’s Mascot for $37 million.
That’s another pub added to his growing empire which includes The Ivy and Establishment, The Newport, the Coogee Pavilion, The Paddington Inn, The Alexandria Hotel, The Oxford Tavern, the Queens Hotel in Enmore and other flashy spots.
Hemmes beat off a number of keen bidders at the auction with plenty in the market now looking to expand into one of Sydney’s most rapidly gentrifying precincts unaffected by the city-zoned lockout drinking regulations.
It’s an empire that stretches from Sydney’s northern beaches to the CBD to the inner south.
The iconic art-deco hotel has recently undergone a renovation and comes with 30 poker machine licences.
Hemmes plans to redevelop the site, much in the same way that he has done with his other pubs. The Tennyson will be developed to reflect the local area which includes Green Square development.
The sale was handled by Ray White Hotels director Amdrew Jolliffe.
Mr Jolliffe said the bidding was intense and The Tennyson’s price tag was the highest paid at auction for a freehold going concern to date.
While the hotel is ranked at 87 in New South Wales, it has to be upgraded and renovated.
Architect Paul Kelly has recently received development approval for his renovation plans.
"Only a very small number of Top 100 gaming hotels have changed hands over the past few years, such is the vice-like grip the ever-diminishing number of consolidating ownership bodies hold on this particular asset class," Mr Jolliffe told the Sydney Morning Herald.
"The hotel, even in its currently un-renovated state, attracts in excess of $8 million in annual receipts from predominantly high gross profit margin revenue centres."
He said operators like Hemmes were now coming back into the market which had been dominated by investors.
by Leon Gettler, December 2nd 2016
