NEWS
Hotel Steyne in Manly is currently up for sale
MANLY’S HOTEL STEYNE UP FOR SALE Hotel Steyne was purchased back in 2010 by the current owners, a group of investors including hotelier Arthur Laundy, businessman John Singleton and investors Mark Carnegie and Robert Whyte. The group are now looking to exit from their one-off investment at a time of buoyant sales. HTL Property Asia Pacific MD Andrew Jolliffe is handling the sale, and said: “The Hotel Steyne is arguably the most prolific and
certainly well-known beachside hotel, with generations of locals and tourists frequenting this noteworthy institution.” Nominated last year for an AHA NSW Award of Excellence as 2018 City Hotel of the Year, the large format hospitality property spans three levels across a 1,948 sqm corner footprint 400m from the Manly ferry terminal, with a direct link to the Sydney CBD. The multi-level business includes six bars, two restaurants,
a designated gaming room with 30 poker machines and an accommodation level. In addition, the rooftop bar, Henry’s, accommodates up to 250 people with views across Manly’s beach. “When we sold the Beach Hotel in Byron Bay,” said HTL Property National Pub Director, Dan Dragicevich, “the volume of interstate and international enquiry was remarkable; and it is our firm expectation that this asset will generate the
REDCAPE RESULTS SHOW REVENUE UP 17.5% Redcape Hotel Group has issued its first earnings results for its 32 venues since listing on the Australian Stock Exchange on 30 November 2018. The detailed report makes for interesting reading. Key results include strong revenue growth of 17.5% and operating EBITDA up 13.8% for the last six months of 2018, with both primarily driven by acquisitions. The report summarised the period as a “strong first quarter performance followed by some variable trade at certain venues late in 1H19 extending into the current period”. Redcape did not detail which venues it believed were underperforming. The results show the group explored 15 venue acquisitions, eventually acquiring six, paying $158m in total for them, all off-market. Results show the group paid: • $20m in July 2018 for the Sun Hotel in Townsville; • $40m in August 2018 for the Vauxhall Inn, Granville;
• $48m in August 2018 for the Australian Hotel and Brewery; and • $50m in December 2018 for three South Coast venues. The group sold the Belrose Hotel for $20m in the same period, which represents a 5.1% premium to book value. The report also highlights growth capital expenditure of $4.9m due to the “major” renovations at the Leumeah Hotel and a $4.2m “material refurbishment” at the Eastwood Hotel. An estimate of costs for refurbishing the Cabramatta Inn currently underway of around $7m is also detailed, with a current completion date of June 2019. The group also moved its head office to Minskys Hotel in Cremorne during this period. The report also shows a focus on electronic gaming machine renewal contributed to capital expenditure costs of $2.2m. Gaming revenue contributed $90.7m
same widespread response.” “The fact that this extraordinary opportunity exists on the very beach TripAdvisor has just announced as the number one beach in Australia ahead of the Whitsunday’s hugely popular Whitehaven Beach, makes it all the more strategic and compelling an investment proposition” concluded Jolliffe. The Hotel Steyne will be sold via an International Expression of Interest sale campaign due to end in March 2019.
Renovations at the Leumeah Hotel cost Redcape Hotel Group $4.9m
against a total revenue of $142.6m. Sales costs were $67.6m, representing a gross profit margin of 52.6%. Concluding on the results, Redcape said “Management have implemented several operating initiatives aimed at optimising venue performance and minimising the overall impact that a softer economic environment might have on Redcape’s financial performance.”
AUSTRALIAN HOTELIER MARCH 2019 | 7
