The Evening Star Hotel, a prominent fixture on the border of Surry Hills and the Sydney CBD, has hit the market, presenting a rare opportunity for investors and operators in this thriving inner-city suburb.
Situated on Elizabeth Street, just steps away from Central Station and the Light Rail, the Evening Star is poised to benefit from the ongoing transformation of the area. The hotel’s prime location puts it at the heart of Sydney’s burgeoning $3 billion Tech Central precinct, which is expected to bring an influx of approximately 25,000 office workers to the neighbourhood.
The property boasts a spacious public bar, commercial kitchen, and a separate gaming room operating under a valuable 24-hour license. With 24 gaming machines and a historically strong ranking in the Top-250, the Evening Star presents significant potential for revenue growth, particularly in its food offerings.
Current owner Barham Hamarashid, who acquired the hotel in late 2020 for $12 million, has overseen recent refurbishments to both the bar and gaming areas. The sale comes as part of a shift in Hamarashid’s portfolio, which includes other commercial properties in Surry Hills.
Ben McDonald of JLL Hotels, who is handling the sale along with colleague Kate MacDonald, emphasised the unique positioning of the Evening Star. “This property offers a convergence of demand drivers that are rare in the tightly-held Sydney CBD and fringe areas,” McDonald stated.
The sale is expected to attract strong interest from operators looking to capitalise on Surry Hills’ ongoing gentrification and the anticipated economic boost from nearby developments. While specific price expectations haven’t been disclosed, industry insiders suggest comparable properties in the area are valued at no less than $20 million.
For Surry Hills residents and businesses, the sale of the Evening Star Hotel represents not just a change in ownership of a local landmark, but potentially a barometer for the neighbourhood’s rising property values and economic prospects.
Expressions of Interest for the Evening Star Hotel close on Wednesday, 8 May, marking a significant opportunity for investment in one of Sydney’s most vibrant and rapidly evolving suburbs.
Published 8-April-2024