Carousel Inn Sells to Solotel
Media Release: Monday 8 November
Following the record sale of the Vineyard Hotel in October on behalf of the Stanford family, specialist agency HTL Property has announced today the sale of the family's second large format Sydney hotel in the form of the 21,000sqm Carousel Inn.
After a national on market campaign managed exclusively by HTL's Dan Dragicevich and Andrew Jolliffe, the expansive and Rooty Hill located hotel property has been purchased by leading hospitality operation, Solotel.
“We’re excited by the opportunity the Carousel Inn brings to Solotel and would like to thank the Stanford family for providing this opportunity and the team at HTL Property for running a seamless sales process.
We’re thrilled that the venue can be passed onto another family-owned hospitality operator” said Elliot Solomon, CEO of Solotel.
“We look forward to engaging with the community to better understand how we can take the venue into the future. This purchase is an important first step into the North West – a key growth corridor for Sydney – as we look to continue to expand our diverse portfolio of pubs, bars and restaurants across Sydney”.
"We're absolutely delighted with the sale to the Solomon family, and look forward to concluding our portfolio divestment objective with the sale of our final North Western Sydney hotel asset in Riverstone, before the end of the year" advised Vendor, Glen Stanford.
"Genuine AAA grade large format hospitality opportunities such as the Carousel Inn are increasingly scarce in Metropolitan Sydney, and the price and yield achieved bears testimony to this fact" commented HTL Property National Director, Dan Dragicevich.
"Of the ten most recent comparable sales by location and gaming segment the first seven, based upon chronology, represent an average cap rate of 6.7%; whereas the most recent three indicate an average cap rate less than 5%; keenly illustrating both appetite and product rarity" Dragicevich concluded.
For an asset class that enjoyed consolidated national sales exceeding $1.5bn in the last financial year, the transaction cadence indicated over the last month following the relaxation of travel restrictions, has provided a strong argument for the replication of sale volumes.
"The sale of several hundred million worth of Sydney hotel assets in the past 5 weeks is a meaningful vector for the health of the asset class nationally" advised HTL Property Managing Director, Andrew Jolliffe.
"With further sales of materiality planned between now and the end of the year, we are confident in restating our submission with regard the continued and deep financial interest in the sector" Jolliffe concluded.
HTL Property agents would not be drawn upon as to the price paid for the Carousel Inn, other than to confirm consistency with the market guidance provided throughout the public sale process