John Singleton sells Hotel Steyne for more than $60m

A group led by John Singleton has sold one of Sydney’s most iconic pubs for more than $60m.

The Steyne Hotel at Manly, in Sydney. Picture: AAP

A consortium led by high-profile businessman and media owner John Singleton sold Manly’s iconic Hotel Steyne to private group Iris Capital last night for more than $60 million in one of the city’s largest pub deals.

The adman and his backers including financier Mark Carnegie, publican Arthur Laundy and former Kerry Packer associate Robert Whyte have ridden the rise of Sydney’s pub scene, buying the hotel for just over $30 million in 2010 and have since spent about $5 million on minor refurbishments.

Many of the city’s most-loved watering holes are being transformed into multi-million dollar developments but sources said the Hotel Steyne which was put on the market at the behest of Mr Singleton earlier this year, could sustain a renovation of at least $100 million.

A mini-boom in Sydney’s pubs has seen the likes of billionaire Justin Hemmes buy up properties for major projects and developers like Iris put apartments on their landmark sites.

Mr Singleton is keen to stay in the sector and last month splashed close to $25m buying the Elanora Hotel, one of the major pubs in the NSW Central Coast city of Gosford.

Iris is yet to reveal its plans for the Hotel Steyne.

Iris also owns pubs in locations such as Kings Cross, where it has proposed a development of the famed Bourbon Hotel.

The Manly deal was brokered by HTL Property’s Andrew Jolliffe and Dan Dragicevich after an extensive campaign that set the traditional publicans who dominate the local industry against international buyers.

John Singleton. Picture: Glenn Hampson

Mr Jolliffe said multiple local, interstate and international investors challenged the right to acquire the unique hospitality asset. “The winning bidder identified with the once in a lifetime opportunity to create asset class price history,” Mr Jolliffe said.

“We are delighted to have acquired what is, on any fair test, Australia’s leading hotel property in the form of Manly’s iconic Hotel Steyne,” Iris Capital founder Sam Arnaout said in a statement.

“This positions our company, Iris Capital, as a genuine hospitality leader in this part of the world, and complements our macro coastal investment strategy,” he said.

Iris Capital is stepping up to join the top ranks of hospitality players and is also undertaking landmark projects such as Newcastle’s $700m East End development, where Event Hospitality & Entertainments QT brand will run the hotel.

Mr Dragicevich said that the pub sector was well financed and resourced and there was a deep pool of buyers.

While confirming the unconditional sale of the Hotel Steyne, which is set on a strategic 2000sq m site, HTL Property would not be drawn upon the price paid by the successful party, other than to suggest market guidance of more than $60m was hit.

“The successful price extracted from the process was consistent with the pre-campaign expectation; and was supported by multiple short-listed parties,” Mr Dragicevich said.

“When considering the sale of the Hotel Steyne in the context of our recent key transactions concluded in multiple states nationally this year, it remains our considered view that market strength and depth are not only positive, but also currently serve to embolden an already robust asset class” Mr Dragicevich said.