Sydney pub market holds steady as industry mulls CGT changes
More than $100 million in Sydney hotel transactions have been recorded since the federal budget's proposed changes to the capital gains tax discount were announced in May, with industry figures indicating that buyer appetite in the pub sector remains largely undiminished despite the uncertainty.
The Albanese government's proposal to abolish the 50 per cent CGT discount from July 1 next year has drawn close attention from pub investors, though many in the market appear to be proceeding on the expectation that the measure will not ultimately pass.
Andrew Jolliffe, Managing Director of HTL Property, told The Australian that sentiment among buyers remains cautiously optimistic. "There is great hope it gets repealed and doesn't go through – I am talking about CGT changes in particular," he said.
Jolliffe noted that transactional activity had continued in the weeks following the budget announcement, pointing to Oscars Group's acquisition of the Hotel Diplomat in Potts Point and the Thomas family's purchase of the Regent Hotel in Kingsgrove as recent examples.
He said no measurable shift in market behaviour had emerged since the announcement: "All the discussions we are having have indicated that people will move beyond this anticipated change to the (tax) structure. People are still going to need investments, there's been a flattening of entrepreneurialism that appears to be the design of the thing. I think people will still need investments and will find greater comfort in commercial property than in equities or investing in start-up businesses."
Jolliffe also pointed to continuing deal flow as a signal of underlying confidence: "There's evidence of people transacting since the budget announcements because there is genuine hope they will amend the proposed structures and appreciate people will still want to invest."
On the depth of buyer interest more broadly, he added: "The interest in pubs has been quite dramatic, there's been a lot more people looking at the hotels this year."
Regent Hotel, Kingsgrove — The Thomas family acquired the Regent Hotel from the Fairfax family in a $42 million deal brokered by JLL Hotels & Hospitality's Ben McDonald and John Musca, with Colliers acting as co-agent. The property sits on a 2,684 sqm corner block, holds 30 gaming machines and generates approximately $145,000 per week in revenue. A Fairfax-owned development site adjoining the pub remains on the market.
Bexley North Hotel — JLL Hotels & Hospitality negotiated the $70 million off-market sale of the Bexley North Hotel to JDA Collective, representing the second-largest metropolitan Sydney pub transaction of the year. The deal ends the Yang family's 40-year ownership of the venue, which holds 30 poker machines — the maximum permitted under NSW legislation — and has ranked among the state's top 100 gaming venues for five consecutive years. The property generates more than $11 million annually across its bar, bistro, 18 accommodation rooms and drive-through bottle shop.
Tamworth Hotel, Central West NSW — JLL Hotels & Hospitality also facilitated the sale of the Tamworth Hotel to publican Jim Knox for an undisclosed sum.
Vendor Daniel Whitten's property turns over approximately $6 million per year excluding GST, and includes seven gaming machines, 14 accommodation rooms, a beer garden and a drive-through bottle shop.
Jonathan Jackson, 28th May 2026
