Sorrento’s historic pub the Contintental Hotel on the market again

A HOTELIER who last year bought Sorrento’s iconic Continental Hotel and had a $22m redevelopment approved has put the pub on the market again, saying he can’t afford to finance the plans.

Continental Hotel owner Julian Gerner hopes he can find a buyer for the pub who will keep him on as the operator. Picture: Mal Fairclough

SORRENTO’S iconic Continental Hotel is up for sale — again.

This time though the historic Peninsula pub, known as “The Conti”, comes with an added cocktail of permit plans in the mix.

They include a three-storey apartment building, a wellness centre and cafe, yoga deck, lap pool, 38 new hotel rooms, a modern public bar, an up-market restaurant and two function rooms.

The hotel was built in 1875 and Mr Gerner has plans approved for a $22m redevelopment. Picture: Mal Fairclough

Owner Julian Gerner bought the sprawling Sorrento site, which has been closed for several months, last year for a speculated $15 million.

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He is hoping for a sale price of more than $20 million for the 1875-built drinking den, which now covers nearly 4500sq m thanks to the $1.8 million purchase of an adjacent carpark.

He said he couldn’t afford to fund the works himself and would ideally continue to operate the hotel under the ownership of someone else.

“I still want to run the hotel, I am a hotelier with over 20 year experience of running big pubs,” Mr Gerner said.

“A couple of weeks ago I came to the conclusion I couldn’t finance the upgrades, so am calling for expressions of interest.

“I’d like to work with a new owner as an operator; I just don’t have the financial capacity to undertake upgrades on my own.”

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Mr Gerner hopes the pub will sell for at least $20 million. Picture: Mal Fairclough

CBRE senior director Scott Callow spruiked the sale as an “exciting opportunity to purchase one of Victoria’s signature hotels”.

“This is a rare opportunity for developers to become the custodian of a historic coastal landmark and to capitalise on the permit approval which allows for a remarkable hotel opportunity and luxury residences,” Mr Callow said.

“Mornington Peninsula continues to grow in popularity with local and overseas tourists and Sorrento has evolved into one of the most thriving centres along the Peninsula.”

The sale is being run through an expressions of interest process, with submissions closing on December 5.