Bowden, Redcape in massive transactions
Stephen and Louise Bowden have sold two of their hotels in off-market transactions for a grand total of $90 million, while Redcape have just acquired $100m worth of hotels.
In the record transaction of the year, the Hurstville Ritz Hotel and Cabramatta Hotel have both been divested by the group for $45 million each. John Morrison of Sydney Hotel Brokers negotiated the sales of both the Hurstville Ritz Hotel and Cabramatta Hotel on behalf of the Bowden Group.
The Hurstville Ritz Hotel has been sold to Nelson Meers Hotel Group. The Bowden Group had a long history with the venue, having first acquired the pub, formerly known as Shanney’s in 1979 from Tooth & Co. The hotel was sold in 2007 for $52 million, with the Bowden Group repurchasing the venue for $30.5 million in 2011.
Morrison and Bowden released a joint statement on the transaction.
“John Morrison and Stephen Bowden wish the purchasers of both hotels all the best in their newly acquired hotels.
“In addition Stephen would like to thank his daughter and general manager Alana Bowden, his dedicated loyal staff (licensee Colleen Banschikoff and manager Jimmy Lawton), his legal adviser (Ryan Watts, solicitor director of Slater & Elias Lawyers), and all the loyal Hurstville Ritz Hotel patrons over the nearly 40-year reign at the Hotel by the Bowdens.”
The freehold for the Cabramatta Hotel has been acquired by Moelis Australia Redcape Hotel Group (Redcape), who held the leasehold of the venue. Redcape has been acquisitive of late, having also purchased Andergrove Tavern in Mackay, Queensland for $13.15 million, and the Crescent Hotel in Fairfield, Sydney, from private owners for $40 million. The three acquisitions total just under $100 million.
John Musca of JLL Hotels & Hospitality negotiated the Mackay and Fairfield pub transactions on behalf of Redcape, and speaking of the Crescent Hotel in particular said: “In what has rapidly become the most tightly held asset class in the country, the hotel profile appears a natural fit for the purchaser’s core operating strengths”.
JLL Queensland manager Tom Gleeson, also praised Redcape’s purchase of Andergrove Tavern.
“It’s tremendous to see such confidence in a regional hotel opportunity from experienced operators who intimately understand the vagaries of commodity-driven economies.”
The Andergrove Tavern was sold by local businessman John Cowley.