Lord Roberts and Newtown pub switch owners in unusual $20m deal
The Kospetas family’s Universal Hotel Group and long-time publican Sue Cameron have swapped inner-city Sydney pubs in an unusual transaction that industry sources gave a combined value of about $20 million.
Universal has offloaded its leasehold interest in Sydney’s Newtown Hotel to Cameron, who will take over the pub operation, and purchased the freehold of the Lord Roberts Hotel in Darlinghurst from Cameron, giving the company ownership of the property as well as the business.
Universal Hotel Group chief executive Harris Kospetas said his company – which operates 16 venues across NSW – had been interested in the 150-year-old Lord Roberts Hotel since 2022, when it sold for $22.5 million to forex trader Adam MacFarlane in a deal that subsequently failed.
“The Lord Roberts is a well-known Darlinghurst institution and we appreciate its reputation,” Kospetas told The Australian Financial Review.
“We plan to work on reinstating the heritage features of the property but not making too many changes. We will take the time to settle into the venue and consult with the local community.”
Spanning two storeys, the bright-green Newtown Hotel, located in King Street, has 10 gaming machines and brings in average weekly revenue of more than $120,000. There are 16 years left on the lease.
“We are confident the purchaser will continue to build on the great foundation our team has created at Newtown Hotel, and we wish them the best of luck,” Kospetas said.
Originally named the Shannon Hotel in 1867 before being renamed in 1901, the bright yellow Lord Roberts Hotel also has gaming facilities, as well as a dining area and balcony.
Kate MacDonald, senior vice president at JLL, who brokered the deal with colleague Greg Jeloudev, said high cash flow businesses such as the two assets with strong earnings would always be highly sought-after.
“As investment metrics start to compress with rate reductions, we will see leasehold opportunities continue to gain interest from portfolio owners and market entrants alike,” MacDonald said.
While transactions of assets between owners are uncommon, they do happen. Universal acquired the freehold of the Evening Star Hotel in Surry Hills last year for about $17 million, while selling the leasehold of The Mill Bondi to hotelier Barham Hamarashid for $4 million.
Kospetas said the hospitality industry generally was experiencing a challenging period marked by rising costs and a decline in customer spending.
“Pubs however have been able to remain resilient through the multiple revenue opportunities and the ability to streamline operations,” he said. “In these times, it is important to keep things simple and support the local community through an offering focused on great value for money.”
