News: The Hotel Bondi Is Up For Sale
Many people want a piece of Bondi property but very rarely does an icon like the Hotel Bondi actually come onto the market.
Built in 1919, in the middle of Campbell Parade, the historic hotel is literally metres from the beach.
For the past 44 years its been owned by the family of renowned property developer and publican Cyril Maloney, sitting as a map of Bondi’s history while the buildings around it have changed and changed again in that time.
Hotel Bondi’s selling agent, Jones Lang LaSalle (JLL), says it is “arguably Bondi’s most recognised landmark and certainly the most aspirational hotel operating opportunity we’ve ever offered.”
JLL says that the location and timing of the sale could increase its value significantly over initial estimates around the $40-$45 million mark.
The company says Bondi is “in the midst of a significant transformation” as finishing touches are put on world-class developments in the area including the Pacific Bondi Beach, Toga Group’s Boheme Bondi Beach luxury apartments and the Adina Hotel complex.
“These quality developments along with the Investec Beachhouse luxury apartment and retail complex next door, point to mixed-use conversion as a viable alternative use of this extraordinary property.” said James Aroney, Director – Investment Sales, JLL Capital Markets.
He adds that “residential demand for the location cannot be ignored” and cites the Pacific Bondi Beach penthouse luxury apartment as a major example of property value. The apartment sold for $21 million, which Aroney says reflects “a rate of $41,000 per square metre”.
Hotel Bondi, which is four levels high, was extensively renovated at a cost of $6 million in 2013 and includes:
- 37 ensuite hotel rooms,
- A ground floor bar,
- Gaming room with 30 gaming machine entitlements,
- A bottleshop; and
- 12 car spaces.
Potential buys could include overseas developers as well as pub specilaists like John Singelton of the Steyne Hotel in Manly, Justin Hemmes who is about to open the new Coogee Pavilion, and the Watsons Bay Hotel’s Short family.
JLL says the hotel will be offered with vacant possession, providing hoteliers a much sought-after Bondi operating opportunity. But they have also said interest in prospective short or long-term tenancy has already emerged, “which could provide a passive, fixed income for developers and investors whilst they optimise and finalise a range of mixed-use conversion opportunities”.
Whatever the case is, there is no doubt this Bondi icon is greatly valued by investors, locals and Bondi lovers alike.
Featured Image Courtesy: www.hotelbondi.com.au