Patonga hotel is listed for sale

The Patonga Beach Hotel has been listed for sale just 18 months after construction company Scape Constructions purchased it.

Headed by Holgate resident Mr Andrew Smith, Scape Constructions purchased the Hotel which occupies approximately 1546 square metres of land overlooking Patonga Beach, in July 2014.

A development application to expand the hotel has mobilised the Patonga community against the expansion plans.

Mr Smith cited business matters and wanting to spend more time with his family as the driving factors behind the decision to sell.

"As a director of several companies in the construction and development industry, my aim is to consolidate the group of companies under my directorship and focus on burgeoning opportunities within my core group of companies.

"Current market conditions suggest it is an opportune time to release the improved asset (the hotel) and benefit from the return on investment.

"As a family man with young children, I envisage the sale of the hotel will free up some time for me to spend with my family and allow me to focus solely on our core business," Mr Smith said.

Mr Smith also said that the community group united against the DA did not affect his decision to sell nor did they affect the decision to press ahead with the works.

"Those who oppose the DA have not affected any of my business decisions.

"While we appreciate the opinions and feedback of those who oppose the DA, it has not waivered our decision in following the DA through, nor has it faltered our belief in the benefits the development will provide to the establishment and Patonga.

"The sale itself is strictly a business decision," he said.

Mr Smith said he felt the sale would not hinder the development.

"I don't believe it will have any impact on the DA process.

"The DA will still proceed and should the hotel be sold before approval, I am more than happy to work with the new owners in seeing it through to completion."

Mr Smith said that community backlash was a familiar part of the development process.

"Being in the development business, this is something I'm familiar with and there is usually some objections to commercial developments.

"It is standard practice in my field," he added.

Licensee Mr Stuart Beazley said residents who opposed the DA and painted Mr Smith as a "villain" may be in for a rude shock when the hotel was purchased.

"It's been disappointing to see the way some residents have reacted and behaved.

"They don't seem to realise how lucky they were to have Mr Smith as the owner of the hotel.

"He did a lot with the hotel for the community including sponsorship, donations and art programs and there were operational decisions he made that he didn't have to, like not utilising the hotel's pokies license.

"I don't think the group opposed to the DA has thought about what could potentially happen to the hotel or Patonga if a big corporation like Woolworths or some other big chain purchases the place.

"There'd be as many pokies as the license allowed as soon as the dust settles," Mr Beazley said.

Mr Smith said that Patonga residents should prepare themselves for an international or corporate owner.

"The sale of the hotel is being run through an international campaign.

"Being local, there was a desire to maintain the quaint, gaming free atmosphere of the hotel which I suppose is unique in the hotel industry.

"A new owner is well within their rights to run the hotel any way they see fit, provided it is meeting all legal, licencing and statutory obligations," Mr Smith said.

Mr Beazley confirmed that no changes would be made to staffing or operational procedures until a new owner emerged.

"Until the hotel is sold it is business as usual."

But staff and residents may not have long to wait according to Ray White's Hotel Director Asia-Pacific and agent handling the sale of Patonga Beach Hotel, Mr Andrew Jolliffe.

According to Mr Jolliffe, the hotel's proven cash flow, beachfront location and staggering tourist appeal make it one desirable purchase.

"True beach, or oceanfront properties such as the Northies at Cronulla which we sold last year, are always highly regarded by astute investors from a range of investment classes and, accordingly, our expectation is that the Patonga Beach Hotel will similarly attract strong interest from parties who recognise the unique nature of quality waterfront businesses," Mr Jolliffe said.

"It is anticipated that the high quality commercial real estate holding, with consistent and reliable annual revenue as well as the inherent value of the waterfront land holding, will attract strong interest from a broad range of hotel and property participants alike.

"Like Bannisters at Mollymook, or the award winning Halcyon House on Cabarita Beach in Northern NSW, the opportunity to secure and then enhance the food, beverage and accommodation offering at the Patonga Beach Hotel, so as to attract greater patronage from both the Central Coast and Sydney, is simply huge," he said.

The hotel is being marketed through an intense four-week international Expression of Interest campaign concluding September 8.

Interview, 16 Aug 2016

Stuart Beazley, Patonga Beach Hotel

Media release, 12 Aug 2016

Interview, 16 Aug 2016

Andrew Jolliffe, Ray White Hotels

Interview, 17 Aug 2016

Andrew Smith, Patonga Beach Hotel

Reporter: Dilon Luke