Sydney's Clovelly Hotel changes hands for $34 million as pub sales pick up
Popular watering hole, The Clovelly Hotel, in Sydney’s eastern suburbs has changed hands for $34 million in another high-profile deal involving pubs.
The deal comes close on the heels of another waterfront pub, the Beach Hotel in Byron Bay, fetching $70 million. It was snapped up by a Melbourne-based private equity firm backed by the wealthy Liberman family.
The Clovelly Hotel, popularly known as ‘The Cloey’, overlooks Clovelly Beach and is home to celebrity chef Matt Moran.
In February 2017, MorSol – a joint venture between Matt Moran and Solotel Hotel Group – secured a long-term leasehold interest in the Clovelly Hotel.
The heritage-listed pub, built in 1859, was sold by Sam Arnaout’s Iris Group. Iris bought the hotel and tavern for $27.2 million in October 2014, The Australian reported.
The deal was negotiated by JLL’s John Musca and Colliers International’s Miron Solomons.
Occupying 1,708 sqm at the junction of Clovelly Road, the four-level pub has 15 pokies, a public bar, beer garden, gaming room and accommodation facilities.
It is believed to have sold on a yield of about 5 per cent, the Australian said citing sources.
The buyer is a little-known private local investor.
Matt Moran will continue to operate the pub.
A development application has since been lodged to increase the size and standard of the hotel’s short-stay options.
At present, it 14 hotel rooms with some offering sea views.
JLL’s Musca did not comment on the sale negotiations but added that the pub was keenly contested, with wide-ranging local, interstate and offshore interest.
“This was not surprising given the asset profile and the fact that residential property in the area is selling for nearly $28,000 sqm,” Musca said.
