Merivale adds to its suburban pub portfolio
By Andy Young
Merivale has another pub in its portfolio after boss Justin Hemmes paid $37.05m for The Tennyson Hotel in Sydney’s south.
The hotel was bought at a public auction held by auctioneer Damien Cooley at the Ray White offices in Sydney’s CBD yesterday, after being offered for sale by the agent. With around 250 people in attendance, Hemmes was the highest bidder for the top 100 gaming hotel.
Speaking after the auction, a spokesperson for Merivale said: “Merivale has purchased The Tennyson Hotel on Botany Road, Mascot, continuing its program of expansion into thriving communities across Sydney.
“The hotel joins the Merivale portfolio in what has been the fastest period of growth in the group’s history. Over the past year, Merivale launched the first phase of The Newport’s landmark redevelopment and three new venues on Paddington’s iconic Oxford Street strip – The Paddington, Fred’s and Charlie Parker’s. It will soon open its first Inner West venue, Queens Hotel in Enmore, before working with local talent to re-open the Alexandria Hotel, the beloved Sydney pub that was saved from residential redevelopment, in 2017.
“Further details and plans for The Tennyson Hotel will be announced in due course."
Although known for his central Sydney bars this purchase adds another suburban hotel to the Merivale portfolio, following Hemmes’ recent purchases of the Queens Hotel in Enmore and the Alexandria Hotel.
Ray White's Asia Pacific Director of Hotels, Andrew Jolliffe, said: "Several factors contributed to the outstanding auction results [ob Thursday], including the quality of hotel product, quality of bidders, deft skill of auctioneer Damien Cooley, and the market landscape which remains imbalanced in terms of supply meeting demand for A-grade hotel assets.
"Auctions are at the genesis of our group philosophy, and the results [on Thursday] in selling 100 per cent of our stock under the hammer bears firm testament to the potency of a well-funded, strategic and deliberate auction sale process."
With another auction day planned for 30 March 2017, with several notable hotels scheduled to go under the hammer, Jolliffe added: "We have an auction sale process formula we are confident in prosecuting, and have already sourced some high quality hotel product to bring to market early next year so as to continue this theme commensurate with the patent market demands."
The price paid for The Tennyson is a further demonstration of the buoyant nature of Sydney’s pub market, which has seen recent purchases by the Dixon Group, plus sell-offs by Lantern and proposed sales by the Riversdale Group.