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The Lion Hotel, one of Adelaide’s most awarded and iconic hotels, has sold after being marketed for sale for the first time in over 20 years.
The successful transaction also included an adjacent, three level office block at 183 Melbourne Street, providing a land-holding of such size rarely seen in its prized, North Adelaide city fringe location.
The successful sale campaign was led by JLL Hotels & Hospitality Group’s Vice President, Will Connolly, along with Roger Klem, Head of Sales & Investments, SA.
Mr Connolly stated, “The sale of the Lion Hotel is a significantly positive step for the South Australian hospitality market as it continues its return to normality following COVID-19 restrictions.
Whilst JLL successfully navigated some obvious challenges within the sale campaign, this transaction is testament to the iconic nature of the Lion Hotel, with our team still fielding numerous offers on both the Lion Hotel and 183 Melbourne Street in recent weeks”.
The adjacent office building provides solid holding income prior to any longer term redevelopment of the site, which may include mixed use, commercial, residential or short term visitor accommodation.
“The two properties have proven complementary”, added Mr Klem “with shared usage of the car park and tenants often enjoying the hospitality services of the hotel”.
The combined footprint of nearly 5,000 square metres will allow the hotel to unlock medium to high density development in the future whilst benefitting from current income streams.
Owners Tim Gregg and Andrew Svencis decided to sell the high profile hotel they’d owned and operated since 1996. “It’s been quite a journey, with many state and a few national awards along the way, but more importantly great staff and management team, and lots of wonderfully loyal customers,” commented Mr Gregg.
“We now look forward to assisting the new owners as we continue towards settlement later this year,” added Mr Svencis.
The successful purchasers were high-profile South Australian hoteliers, Brett Matthews, Martin Palmer and Ed Peter under the banner of the newly established Duxton Pubs Group.
“Our partnership is excited to have been chosen to continue the great hospitality of proprietors Tim Gregg and Andrew Svencis, with ‘The Lion’ well established as one of Adelaide’s favourite venues.
We look forward to working alongside Tim, Andrew and the team during this transition period with the aim of a much anticipated re-opening of the hotel in late September”.
The Lion Hotel in Melbourne Street, North Adelaide is expected to become a cornerstone asset for the group, whose members collectively own and operate multiple hotels and premium hospitality venues across Adelaide and South Australia, including the multi award-winning Stirling Hotel, Uraidla Hotel, Crafers Hotel, 2KW Bar & Restaurant, and Paloma Bar and Pantry.
“Our goal is to continue to invest in high quality freehold and leasehold hotels as well as other premium assets, with the aim of creating the most dynamic hospitality group in South Australia”.