Partners buy $40m hotel
Woolworths and the Laundy Hotel Group have splashed out about $40 million for the Caringbah Inn in southern Sydney in what is the first purchase since the two industry heavyweights joined forces last year.
The competition watchdog is due to rule on the establishment of that $500 million vehicle, first revealed by The Australian Financial Review, within the next two weeks. Under the terms of the transaction, industry veteran Arthur Laundy will take over the ownership of 31 hotels - now 32 - while Woolworths' hospitality subsidiary, ALH, assumed the management rights.
The acquisition of the Caringbah, which is a few kilometres from Cronulla Beach, fastens both players' dominance of the pub sector in NSW and delivers a lucrative boost to revenue.
Australian Financial Review