John Lewis diversifies pubs portfolio with Ramada hotel deal

Standing on an 8000 square metre site at 161 Hume Highway, the Ramada was sold to Lewis Hotels by the Farhad family’s Z Hotels, which had owned it since 2012.

Previously known as the Ibis Styles Sydney Lansvale, the hotel was rebranded as Ramada Hotel and Suites Sydney Cabramatta in 2018 as part of a franchise agreement between American hotel giant Wyndham and Z Hotels. The rebrand marked the debut of the midscale Ramada brand in Sydney.

“The Ramada represents the group’s first acquisition into an asset with such a substantial accommodation component and we hold a positive view of the outlook for well-located accommodation assets in the medium term,” Mr Lewis told The Australian Financial Review.

“We have underutilised accommodation components across our group at the moment and the Ramada affords us the opportunity to gain a further insight into the operating dynamics for these businesses, which we will look to export across our portfolio.”

The sale of the Ramada hotel was negotiated by John Musca, managing director of JLL Hotels & Hospitality Group.

Lewis Hotels owns and operates nine hotels across Sydney including Kings Cross nightspot the Vegas Hotel (bought for about $32 million in 2015), the Royal Exchange Hotel in Marrickville and the Kogarah Tavern.

It also offers charter fishing trips in Sydney on a 50-foot boat and runs Angus cattle at a farm near Taree that provides beef for its venues.

The Lewis family’s involvement in the hospitality industry dates back to 1963.

It is understood the Ramada Hotel attracted interest from a number of major industry players including highly acquisitive Iris Capital.

The vendor, Z Hotels, is led by managing director Fazila Farhad,