Lidcombe Hotel sold for $36 million
The Marvan Hotels Group has sold The Lidcombe Hotel in Sydney’s west for about $36 million.
The Lidcombe is one of Sydney’s top gaming pubs, and is part of the NSW Office of Liquor, Gaming and Racing’s top 200 gamings rankings list.
It has a 24-hour liquor licence and a rare three-hour gaming shutdown.
Marvan Hotels is run by well-known Sydney publican Marcus Levy. He has owned the pub for eight years and has renovated the property.
Mr Levy is also the owner of the Westmead Hotel, Evening Star Hotel, the Sea Breeze Hotel in Nelson Bay and the The Flynn in Sydney’s CBD.
With a 36-metre building height approval, the pub sits on 782 square metres with a floor-to-space ratio of 5:1 so it offers plenty of redevelopment opportunities.
“The Lidcombe Hotel is a true A-grade hotel asset and the price achieved is testament to the scarcity of hotels of this quality,” CBRE hotels national director Daniel Dragicevich, who sold the property with Sam Handy told Commercial Real Estate.
“We are optimistic that the strong current market will continue into 2017 with stable investment fundamentals, limited supply and attractive yield spreads underpinning continued interest in the sector.”
The pub was acquired by a private buyer. Apart from gaming, the hotel also offers some accommodation and is adjacent to Lidcombe train station at 2 John Street.
The pub is historically significant. Established in the early twentieth century, it would have provided temporary accommodation for some of the workers who arrived in the area at the time and would have provided some stimulus to the growth of the Lidcombe town centre.
The transaction, finalised at the end of last year, capped off a vigorous market for hotel sales in 2016.
It is estimated there were $293 million in sales of top Sydney gaming hotels over the last quarter of 2016.
by Leon Gettler, February 21st 2017
