Beachside Hotel Icon Acquired by Award Winning Hospitality Group
Following a very active international expression of interest campaign, the hugely popular Eastern Suburbs hotel business, the Clovelly Hotel, has been sold to Solotel, headed by award winning hospitality duo, managing directors Bruce Solomon and Matt Moran.
The hotel, marketed by Daniel Dragicevich from CBRE and Andrew Jolliffe of Ray White Hotels Australia, attracted considerable interest from both domestic and overseas based groups. Situated upon a commanding 1708 sqm beachside block with Pacific Ocean views, the legendary multi storey “Cloey” is said to have been pursued by some of Australia’s most recognisable and successful hoteliers.
“The Eastern Seaboard of Australia is both a unique and tightly held commercial property precinct, and assets like the Clovelly Hotel appropriately enjoy international appeal given their simply unrepeatable business dynamics” commented Jolliffe.
With the recent success of Justin Hemmes’ nearby Coogee Pavilion, as well as Chris Cheung’s Coogee Bay Hotel, Kim Maloney’s Bondi Hotel and Arthur Laundy and Fraser Short’s Watsons Bay Hotel, the opportunity to acquire this “once in a generation” hotel icon was simply too good for many to refuse.
“We received considerable enquiries for this opportunity, and ultimately the astute hospitality and business prowess of Solotel was the successful party; and, clearly, a most applicable suitor for the next chapter in the hotel’s life” advised Dragicevich.
Solotel are the owners of numerous hospitality businesses around Australia including Opera Bar, recently refurbished Aria restaurant at Sydney’s Circular Quay and The Paddington Inn; as well as Double Bay’s The Sheaf and Woollahra’s Chiswick, leaving many industry observers salivating at the prospects of the future shape the business is likely to take. Speaking on behalf of Solotel, Solomon says, “We are thrilled to be taking over such a well-loved pub that really is the full package- it has a brilliant location, ocean views and a great pub culture. We look forward to a great relationship with the local community, and starting to finesse the already great offering at the Clovelly.”
Clovelly Hotel owner Iris Capital, led by successful entrepreneur Sam Arnaout, was unavailable for comment. However it is understood Arnaout rejected several other offers for the property, ensuring that Solotel became the successful party.With industry insiders suggesting Arnaout’s focus will shift over the short term to the NSW State Government awarded redevelopment tender his company recently won in relation to the wholesale regeneration of the Newcastle CBD.
The sale comes at a time when the national hotel market has seen multiple high profile transactions, and record prices achieved; with agents believing the fundamentals for a continuance of this market strength to prevail in 2017.
“We’re bullish about the market strength and depth heading into 2017, and believe the Clovelly Hotel sale process provides a good illustration of where long term of very successful industry participants, such as Solotel, see enduring value in the sector” concluded Dragicevich.