Gateway Newtown Freehold Hotel

The Riversdale Group has confirmed the exclusive engagement of leading hotel broker and Ray White Asia Pacific Director Andrew Jolliffe in order to sell the iconic Marlborough Hotel, Riversdale’s largest and most valuable hotel property via EOI campaign closing Wednesday 1st March 2017 at 4pm.

The “Marly” is an expansive large format hotel with multiple bars, function spaces and a high performing gaming room with 30 very valuable EGMs. With upside across all departments, none more apparent than operational improvements in the gaming room, and the activation of the D.A. approved rooftop terrace: The Marlborough Hotel is a compelling opportunity for astute investors.

Located just 5km* from the Sydney Central Business District, the 978sqm property is surrounded by an abundance of world class recreation, education and lifestyle amenities. The building itself is an evocative 1940’s constructed Interwar architectural style Hotel. The commanding facade retains much of the original period character. Internally, the hotel presents well and has had many internal upgrades and refurbishments over the last few years.

"The multi-street fronted Marlborough Hotel is, in the first instance, a most serious piece of fringe CBD commercial real estate; and at almost 1000sqm and numerous storeys including an approved alfresco roof top area; the investment flexibility is patently clear. In addition to all above however, is the cash flow potency and reliability the current business model promotes; with well in excess of $10m in combined annual receipts enjoyed by the balanced revenue centers"

"Few A-grade hotel offerings we've been fortunate to be exclusively retained to sell have such business depth as does The Marlborough. Situated outside Sydney's lock-out zone, and with perpetual ownership of 30 very valuable gaming licenses and a DA approval for a licensed rooftop operation, it all augurs well for fantastic future revenue attraction. Staple this asset inventory with the property's proximity to the heavily populated Sydney University and active employee base at RPA, and the downstream access to nearby patronage looks incredibly solid"

"We've espoused the view recently, and confidently, that the market indicators suggest a case for A-grade freehold hotel yields to contract below 8% in gateway east coast cities. In fact, with the prevalence of well-priced debt and record revenue levels being achieved in some sectors of the industry, the downward pressure in yields is far more pronounced than any upward pressure we've seen exhibited"

The sale of The Marlborough Hotel is via EOI concluding 1 March 2017.