One of South Melbourne’s most recognisable hospitality offerings is finding its way to market, and with the market value of pubs continuing to balloon, it’s anticipated that this listing will attract major interest.
“Buyer demand in Melbourne’s hotel investment market is thankfully showing no sign of slowing down,” states JLL’s Will Connolly. Mr. Connolly is working alongside Kay & Burton’s Gerald Delany to bring 237-279 Cecil Street to investors. The freehold interest in the iconic Lamaro’s Hotel is up for grabs, and it’s sure to pique the interest of publicans across the nation.
“An icon like Lamaro’s Hotel comes to market perfectly poised, at a time where demand currently outweighs supply,” explained Mr. Connolly.
“Competitive tension amongst buyers for Lamaro’s is certain to reach boiling point, given the asset is priced within a range that is achievable to a wider pool of market in comparison to similar properties currently in the market-place.”
The hotel lease offers security to investors by way of a 10-year initial term, with a further 10-year option available. Additionally, income growth via 4% annual increases bolsters the listing, and that’s all without mentioning the cherry on top – also being offered for sale are three purpose-built residential apartments that sit across the first and top floors of the property. As such, 237-279 Cecil Street presents as a mixed-use asset with significant upside.
Lamaro's Hotel - 273-279 Cecil St, South Melbourne VIC 3205
For the long-term owner, Pam Lamaro, who first started operating the pub over two decades ago, the timing to exit the premises is right. “Our journey at the hotel has certainly been a rewarding one, with Lamaro’s now being a quintessential part of Melbourne’s revered pub culture; I feel so grateful that it has turned into the institution it now is.”
Situated on a prominent 509 sqm corner block that South Melbourne residents have become well-acquainted with, Lamaro’s Hotel is conveniently located within minutes of the Melbourne CBD and its corresponding attractions, such as Crown Casino. As for the hotel itself, it features a spacious bistro, a public bar, commercial kitchen and two distinct function spaces.
With Melbourne-based hotels proving a hot commodity in 2022, expectations are that interest from the market will be high, and with the Expressions of Interest campaign being run by JLL and Kay & Burton concluding on Thursday, 10th of November, potential buyers are advised to get in contact with the exclusive sales agent promptly.
