Hotel Hacienda, a well-known hotel in the inner Sydney suburb of Redfern, is up for sale.
The five-storey commercial freehold at 179 Cleveland Street has a building area of circa 1,800sq m on a high profile 506sq m site.
The hotel consists of 63 studio rooms, one two-bedroom apartment, a large lobby and fully operational Mexican themed restaurant, Tacos Muchachos, on the ground floor, a rooftop terrace and 12 car space basement. The property also has 24-hour on-site liquor licence.
It is being taken to the market via an Expressions of Interest campaign run by Demi Carigliano and Anthony Pirrottina of Knight Frank in conjunction with Adam Bodon of Adam Charles.
Price expectations are in the mid $20 million range.
Hotel Hacienda underwent a $2 million refurbishment in 2021, with a combination of cosmetic, FF&E and plant and equipment upgrades to the property.
Its current EBITDA is strong with substantial scope to increase.
Mr Carigliano said the sales campaign for the property was expected to generate significant interest from private investors and hotel operators, with the property’s location one of the major drawcards.
“This is a quality investment offering in a high-exposure location in Sydney’s inner fringe, just three kilometres from the CBD,” he said.
“Hotel Hacienda is close to amenity including transport hubs, being within a short walk of two of Sydney busiest train stations – Redfern Station and Central Station, as well as Sydney University, UTS and Broadway.
“It’s also close to gentrification precincts including Central Park and Atlassian Tech Central, which will drive values over the immediate term.
“Sydney’s hotel market has undergone a resurgence over the past 18 months, with Hotel Hacienda providing significant scope to capitalise on growing room rates, with few competing offerings in this quality and price point. “The incoming purchaser has the flexibility to operate the asset themselves, or continue with a more passive approach.”
Mr Bodon said the property had a current strong EBITDA, but also offered the potential for future upside.
“The building’s rooftop, which has stunning CBD skyline views, remains unused, providing an opportunity to add value immediately,” he said.
“The property also offers future development potential, with its mixed-use zoning also allows for a range of alternate uses, including co-living/boarding houses, residential apartments and serviced apartments.”
The Expressions of Interest campaign for the property will close at 4pm (AEST) on Thursday, September 19.
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