Lewis Hotels eyes $95m payday on gaming pubs

THE private Lewis Hotels Group is at the centre of plans to set up a new pub company with four of its gaming hotels in the Sydney suburbs under option for about $95 million.

An unknown Sydney-based group is thought to be looking at the Beverly Hills Hotel south of the city, where Lewis Hotels Group is based, and three of its other venues.

They include The Canley Hotel, southwest of the CBD, which is undergoing a ­redevelopment, the Croydon Park Hotel in Ashfield and the Wentworthville Hotel near Parramatta, both west of the CBD

The group also owns the Lapstone Hotel and Kogarah Tavern, but these are not believed to be part of the plans.

The news comes after ­rumours swept the industry last month that legendary publican George Thomas was being targeted for a tie-up by investment house Perpetual. Both parties subsequently denied they were working together, but the sector is experiencing a pick-up and new ventures are planned.

Notably, the Australian Pub Fund, backed by the MH Carnegie private equity fund and businessman John Singleton, has sold one smaller asset ahead of a potential float it has slated for this year.

Lewis Hotels Group was founded when John Lewis and Peter Ashelford met at a country pub in Victoria. The pair jumped into owning pubs when they bought a venue in Kogarah, about 14km south of the CBD, and they have since traded in and out of many well-known Sydney watering holes.

The Australian has been unable to establish if Mr Lewis and Mr Ashelford would be involved in the new venture, but both are highly regarded in the industry.

Their group made a name in buying run-down venues and then refurbishing them according to its own high standards and attracting more customers.

Source:  The Australian - 3 April 2014