The Clovelly Hotel has been acquired by the Solotel Group, adding yet another property to their burgeoning pub portfolio in another sign the Sydney hotel market continues to run hot.
The Clovelly, sold for an undisclosed price, joins other well known pubs such as The Sheaf, The Chiswick Hotel, the Paddington Inn and The Erko under managing directors Matt Moran and Bruce Solomon’s ownership. They also purchased the Abercrombie Hotel in Chippendale earlier this year.
The Solotel Group, which is a merger of Mr Moran’s MorSol and Mr Solomon’s Solotel, commenced operating at the start of the financial year.
Mr Solomon said that the group’s focus would be on “finessing” the current offering at the Clovelly, which is situated on a 1708-square-metre beachside block with views to the ocean.
“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,” he said.
The hotel was marketed by Daniel Dragicevich from CBRE and Andrew Jolliffe of Ray White Hotels Australia.
The pair said that the campaign attracted interest from both domestic and overseas buyers.
“We received considerable inquiries 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” Mr Dragicevich said.
The recent success enjoyed by Justin Hemmes’ revamped Coogee Pavillion was an example of the changing face of the beachside hotel market, and the likely future direction of the Clovelly, Mr Jolliffe said.
“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,” he said.
Mr Dragicevich said that “the Clovelly Hotel sale process provides a good illustration of where long term very successful industry participants, such as Solotel, see enduring value in the sector.”
The current owner of the Clovelly Hotel is Iris Capital, led by Sam Arnaout, who is understood to have rejected several offers for the property.
“Iris Capital selected Bruce Solomon and Matt Moran to be the successors of the Clovelly Hotel as we believe they are the perfect match to take the hotel to the next level. It was time for us to pass the baton and we’re confident Bruce and Matt will do the landmark establishment justice,” Mr Arnaout said.
Iris Capital was recently awarded a redevelopment tender by the NSW Government for the Hunter Street Mall site, in the Newcastle CBD, but remains “committed to the hospitality industry”.
“Iris Capital remains committed to the hospitality industry and is always exploring new venues for new business. We’re continually re-evaluating our portfolio at any point in time,” Mr Arnaout said.