The eponymous Newport Arms Hotel, a true icon of the national hotel landscape is set to be offered to the market as a freehold going concern for the first time in its celebrated history. Fresh from the $56m benchmark sales of the highly sought after Mona Vale and North Cronulla Hotels respectively, leading Ray White Hotels Australia agents Andrew Jolliffe and Joel Fisher have been exclusively retained to manage the sale of the iconic waterfront hotel and potential development site.
Speaking exclusively to the SMH, Ray White Hotels Asia Pacific Director Andrew Jolliffe commented that the sale of the hotel "would attract interest from both astute hoteliers recognising the rarity of the opportunity, local developers and international mixed use property funds who have trodden a well worn path to Australian shores as the strategic capital flight out of Asia maintains momentum." "Apart from being a thriving and historically very strong cash flow business, and maybe the most recognisable hotel in Australia, the Newport Arms sits on a 1.14ha (11,642 sq metres) waterfront parcel of land zoned with multiple alternative uses."
Formerly a Tooths hotel lease, the hotel was acquired by the current owners the Bayfield family in the early 1990's and has been an award winning operation almost without peer ever since.
Having previously sold the Caringbah Inn through Ray White Hotels for a record 2012 sale price of approx 44m, the Bayfield family appear to be transitioning to focus on their other non hotel related assets. Ex CBRE National Head of Hotels and now Ray White Hotels Director Joel Fisher commented that the sheer magnitude of the Newport Arms site and underlying business asset meant the opportunity was a rare as he has previously seen. "We've managed the sale of some significant hotel assets in the past 6 months, and the market recognition for AAA grade hotel properties which are both rarely sold and enjoy future development opportunities which underpin the value is very clear."
Jolliffe added that the existing hotel operation, whilst clearly the premium offering in the area, still enjoyed upside given areas of the property which will respond well to cap ex. "Revenue generation at the hotel is already significant and the barriers to entry for competition abundant, this asset is the community focal point for literally tens of thousands of local residents and the opportunity move pace with the demands of the localised and tourism based clientele is patent."
"This is not a one pub one suburb opportunity, but rather a one pub numerous surrounding suburbs opportunity."
