Hotel Palisade sold for $30 million
The hotel property boom continues with an investment firm buying the Hotel Palisade in Sydney’s Millers Point for $31.5 million.
First Master Capital acquired the hotel’s freehold.
The sale was done through John Musca of JLL Hotels & Hospitality.
It’s a significant deal for Musca, being the second freehold sale of over $30 million for Musca’s investors, following the sale of the Clovelly Hotel which sold for a solid $34 million last week, in the lead-up to the prime summer season.
The Palisade offers views of the harbour and the surrounding areas.
The sale comes after it was renovated and re-opened in 2015.
Eight boutique accommodation rooms were added in the renovations.
This was in addition to a ground floor public bar, the rooftop Henry Deane Bar and Restaurant as well as a number of private function rooms.
“Hotel Palisade is an exemplary piece of world-class property the likes of which only exist in a few cities of the world, and which happens also to be a resoundingly successful hotel business, setting the tone in the renaissance of Sydney’s Millers Point,” Musca told The Shout.
“Much like the recent record sale of the Clovelly Hotel it highlights the growing association of the sophisticated investment community with underlying hotel property values in capital cities.”
Capital funds and investors are zeroing in on Sydney pubs and there have been a number of key sales.
These include the heritage-listed four level Clovelly, built in 1859, which was sold to a little known investor, the Crown Hotel in Parramatta and a private equity group swooping on the Allawah Hotel in Sydney’s south west.
Musca told The Shout that the sale of the Hotel Palisade was part of this emergent trend.
All signs that Sydney’s pub boom is going strong.
And outside of Sydney, there was the sale of the Beach Hotel in Byron Bay to the Impact Investment Group.
by Leon Gettler, September 26th 2017
