In 2003, the Carlton & United Brewery on Sydney’s Broadway closed its doors, and in its place, developers designed and constructed a vibrant inner-city neighbourhood, known as Sydney’s Central Park. The site, in the southern segment of the CBD, is now home to over 2,000 apartments and 869 student dwellings, and offers entertainment and hospitality experiences that can rival any in the country.
Nestled within this bustling area is the humble but formidable Bar Broadway Hotel. A short walk from the University of Sydney and a single turn away from the dizzying aromas of ‘Spice Alley’ on Kensington Street, Bar Broadway is a gateway asset whose catchment is the envy of its competitors.
Now, JLL Hotels and Hospitality, in conjunction with Knight Frank, are bringing it to market.
“I can't recall the last time a hotel with such explosive and broad-based business drivers was offered to market,” admitted JLL Hotels Managing Director, John Musca. “This asset will attract extensive interest from astute hoteliers of all profiles nationally.”
Considering the Sydney hotel market’s recent successes, with over $1 billion changing hands in pub hotel transactions over the past twelve months, Musca’s comments should turn heads. But with the attributes that Bar Broadway possesses, it shouldn’t come as much of a surprise that he’s impressed by the property he’s offering.
Formerly known as Sutherlands Hotel, Bar Broadway is a legitimate entertainment repository, equipped with 28 gaming machines, a 24-hour hotel licence with a 3-hour shutdown, a bar, and two levels that feature 36 accommodation beds. Furthermore, the property is actively under application for two additional upper floors, with current plans indicating that the Hotel’s accommodation capacity could be raised to 63 if these plans are accepted. Given the Hotel’s proximity to public transport and its inimitable access to the heart of Sydney, these upgrades should be highly valued.
“The recent sales of the nearby Crown Hotel, Courthouse Hotel and Kinselas Hotel [were] for an average yield of 5%, none of which had comparable business catchments to Bar Broadway,” stated Knight Frank Director, Mike Wheatley. “[This] provide[s] an insight into the quality of this opportunity.”
It’s this assessment of Bar Broadway’s charming combination of perfect location and distinctive features that leads industry experts to expect a circa $45 million outcome. With similar properties inspiring results comparable to that estimate in the past few months, it’s not much of a reach to anticipate such a significant sale.
Earlier on in May, JLL Hotels and Hospitality was also responsible for the campaign which led to Redcape successfully divesting the iconic lower north shore pub, Minskys Hotel. Minskys' 4am trading approval, 25 gaming machines, and separate bottle shop all contributed to a final figure of $39 million for the property. The Bar Broadway Hotel is situated in a suburb with commensurate value to Minskys home of Cremorne, and with it containing additional gaming machines and a more business-friendly gaming licence than its contemporary pub, the agents expect the market to see the inherent merit in the property.
The Bar Broadway Hotel is available to the market via an Expressions of Interest campaign that concludes on Thursday, 30th of June, run by JLL Hotels' John Musca and Ben McDonald, in conjunction with Knight Frank's Mike Wheatley.
