Merivale shores up gaming assets with Allawah Hotel
Merivale has purchased the Allawah Hotel in Sydney’s south, in a move that continues to diversify the group’s assets.
The Justin Hemmes-owned hospitality vehicle has purchased the large-format pub off White & Partners for roughly $34 million, according to reports. It is the second gaming-focused pub purchase for the group in three years, after the purchase of The Tennyson in 2016.
The sale was negotiated by HTL Property directors Andrew Jolliffe and Dan Dragicevich, who noted the significance of the sale within the market.
“The national hotel market is currently the beneficiary of a prosperous transaction landscape, and this sale is representative of a significant event upon that landscape,” stated Jolliffe.
“This is the sixth property we have sold to Merivale Group, and represents the second purchase of a gaming centric hotel by the leading hospitality group,” added Dragicevich.
As at 30 June, the Allawah Hotel was ranked 145th in the New South Wales gaming rankings, with 30 EGM entitlements, a 3am licence and a DA to renovate the gaming room. The hotel also includes multiple bars, function rooms and bottle shop facilities.
Known for its high-end dining and beverage options, the purchase of the Allawah Hotel is another step towards diversifying the offerings and assets of Merivale, with the steady income of a high-performing gaming pub. The Allawah Hotel reportedly has a revenue return of more than $9 million annually.