White Cockatoo Hotel changes hands in $17m off-market deal
The White Cockatoo Hotel, which has been the go-to watering hole in Petersham since 1886, has sold in an off-market deal for $17 million.
The pub and hotel had been operated by Ray Reilly and family since 2017, during which time it generated weekly sales of over $125,000, excluding GST, across food, beverage and the 19 guest rooms, demonstrating its strong performance within the hospitality sector in Sydney’s west.
The sale included the hotel’s freehold and business operations, while eight gaming machine entitlements will be sold separately.
Reilly says the venue had evolved significantly during the family’s ownership.
“The White Cockatoo has been an exceptional business for our family since we acquired it in 2017,” he says. “Through thoughtful improvements, including the addition of a backyard space in 2020, we’ve watched it evolve into the vibrant neighbourhood pub it is today.”
Reilly says the venue’s success has been driven by its local customer base and neighbourhood identity.
“At the heart of this success has always been the community – the loyal patrons who bring the venue to life,” he says.
“We’re confident that the new owners will continue to build on this foundation, and we thank everyone who has supported us over the years.”
Kate MacDonald, senior vice president at JLL’s Hotels & Hospitality Group, says the venue represents the type of hospitality asset increasingly sought by buyers.
“Ray, Rene and their team have built an extraordinary business,” she says. “The White Cockatoo exemplifies the type of community-focused, food and beverage-led venue that is becoming increasingly popular in the modern pub market.”
The sale comes amid continued strength across Sydney’s pub market, with high-performing suburban venues attracting significant investor interest due to their resilient trading profiles and diversified income streams.
Hospitality assets with strong food and beverage offerings, accommodation and established local patronage are increasingly being viewed as stable long-term investments by both private and institutional capital.
The sector’s ongoing momentum has been reinforced by recent campaigns, including the sale of the Bexley North Hotel, the off-market transaction of the Kings Cross Hotel and the launch of a campaign for Sydney venues, including The Clock Hotel, The Sackville Hotel and The Bank Hotel.
JLL executive director of pubs Australia John Musca says off-market deals are common in the pub sector, with a number of both domestic and international investors on the books waiting to pounce on the next big deal.
“A lot of what happens is, we’ll understand a buyer’s strategy and then approach owners through relationships we’ve built over many years in the business,” he says. “If your timing is right and the offer is compelling enough, you end up with an off-market transaction. It happens very commonly in the pub asset class.”
