Arthur Laundy negotiates record pub deal for five sites including Watsons Bay Boutique Hotel

Billionaire pub mogul Arthur Laundy has negotiated the biggest single hotel deal in his 60-plus years in the industry.

Multi-billionaire pub mogul Arthur Laundy has negotiated the biggest single hotel deal in his sixty plus years in the industry buying out Fraser Short’s half share in five major hotels including Sydney’s Watsons Bay Boutique Hotel and the giant Northies Hotel at Cronulla.

The veteran publican has negotiated to pay up to $300m to acquire Fraser Short’s 50 per cent stake in five hotels as well as the trendy The Farm enterprise in Byron Bay giving the Laundy family full control of the assets.

The deal comes at a time when the introduction of cashless gaming is being proposed by the NSW government and Mr Laundy this morning admitted that its introduction was his biggest concern.

But Mr Laundy’s Laundy Hotels have been shifting gears across his pub portfolio of 93 hotels for several years concentrating more on food and beverage offerings and specialist restaurants such as the new Arturo’s fine dining offering at his Woolly Bay Hotel in inner Sydney as well as premium dining at his Log Cabin pub at Penrith in Sydney’s west.

Billionaire Publican Arthur Laundy with his daughter Danielle and her husband Shane Richardson at Watsons Bay Hotel. Picture: Jane Dempster

Mr Laundy said he would fund the payment to Mr Short via cash and some debt.

Meanwhile, Mr Short would not be drawn on his future business plans but said he may branch out from hospitality.

“Running 1200 staff has had its challenges, I have been talking for a little while to Arthur about selling out to him, it’s been very overwhelming. Arthur has given me an opportunity. How do you manage work and young kids,” said Mr Fraser who has four young children.

Watsons Bay Boutique Hotel. Picture: Mark Dalgleish

Mr Laundy, who admits it’s been a tough 10 years in the hospitality industry, said the partnership between himself and Mr Short began some ten years ago when the pair were introduced by his son Stuart Laundy and they purchased the Watsons Bay Hotel for around $27m. The hotel has since been resurrected into one of Australia’s best known and popular hotels.

Mr Laundy’s daughter Danielle Richardson and son-in-law Shane Richardson have been heavily involved in the negotiations to buy out Mr Short’s stake and said following the transaction the Laundy Hotels Group would now employ around 3000 staff and were the largest independent draught beer beverage purchasers in Australia.

Mr Richardson said Laundy Hotels had expanded its offering to become the social hub of a community.

“We welcome kids, we welcome young people, we welcome old people, we welcome everyone into our venue … it’s a space for family celebration for events, for functions.”

Stuart Laundy, who also works for the family business, said his job is finding strategic partners, acquisitions and disposals.

“I would love to work more with Danielle and Richo (Mr Richardson), who are very good operationally. It’s been great working with Fraser Short and I’m sorry he’s leaving the business,” he said.

The portfolio of hotels acquired from Mr Short also includes the Park House Mona Vale, the Illawong Hotel and the Lennox Head Hotel on the NSW Far North Coast.