JDA Hotels has snapped up the leasehold of Haymarket’s Mountbatten Hotel for $7.5 million, just as it reopens its newly acquired General Gordon Hotel in the inner west.
The eastern seaboard has seen a rare surge in hotels transaction activity since the eve of summer as the sector reopened following pandemic-enforced lockdowns.
HTL Property’s Dan Dragicevich and Sam Handy negotiated the fresh off-market transaction on behalf of Surfside Hotels, which has operated the Chinatown precinct venue for over 20 years.
Surfside Hotel still owns and operates three other venues within the southern CBD, being the Market City Tavern, Star Hotel and Surry Hills Hotel.
The Mountbatten Hotel features a 3am liquor licence with a three-hour weekend gaming shutdown and 25 gaming machines. It has a ranking of 490 in September, having previously consistently ranked in the top 200 prior to the closure of George Street in 2015 for the light rail construction.
JDA Hotels are no stranger to the Chinatown precinct, owning the nearby Great Southern Bar and Charlie Chan’s Hotel. It paid $30 million earlier this year to acquire the General Gordon in Sydenham, which was being rebuilt after suffering fire damage in 2018.
“The Chinatown precinct is notoriously tightly held, and consequently very keenly sought after by the market for its intrinsic fundamentals” Dragicevich said.
The deal arrives the same week that the leasehold of the Bimbo hotel in Melbourne’s Fitzroy was picked up by AVC, in another off-market deal, from Colonial Leisure Group, while ASX-listed ALE offloaded several of its hotels at the Burgess Rawson portfolio auction held in Melbourne for a combined $26 million.