Sydney’s Kinselas and Courthouse Hotels Sell to Oscars Group for $54 Million

by · Greek City Times

Two of Sydney’s best-known pubs and entertainment venues have changed hands in a $54 million deal, with hospitality giant Oscars GroupOscars Group acquiring the Kinselas Hotel and The Courthouse Hotel at Taylor Square in Darlinghurst.

Sydney’s Kinselas Hotel and Courthouse Hotel at Taylor Square have been acquired by Oscars Group in a $54 million deal.

The landmark Oxford Street properties were sold together with adjoining retail shops by investment firm MA Financial’s Taylor Square Fund.

The combined holding covers approximately 1,050 square metres and features three street frontages along Oxford Street, Bourke Street and Little Oxford Street, placing the venues at the centre of one of Sydney’s busiest nightlife precincts.

The transaction was brokered by JLL Hotels and represents another significant acquisition for Oscars Group, one of Australia’s largest privately owned hospitality operators.

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The reported $54 million sale price is $7 million below the amount previously agreed by hospitality group Virtical three years ago. That proposed transaction collapsed after Virtical failed to complete the purchase.

Oscars Group expands Sydney hospitality portfolio

Oscars Group is expected to incorporate the properties into its broader portfolio of Sydney CBD and inner-city hospitality operations, as part of a wider strategic vision for Taylor Square.

The group operates more than 30 venues across Australia, including the Kings Cross Hotel, and also holds the leasehold of Sydney’s harbourside entertainment precinct at Luna Park.

The acquisition strengthens its presence across Sydney’s inner-city entertainment districts.

The Kinselas and Courthouse hotels offer a combination of hospitality, entertainment and accommodation facilities, including sports bars, function rooms, nightclub spaces and a bistro.

The properties also feature 12 recently renovated accommodation rooms and a combined total of 43 electronic gaming machines.

Kinselas, in particular, has established itself as a recognisable Darlinghurst destination, attracting patrons for its nightlife, live entertainment and hospitality offerings.

MA Financial completes Taylor Square investment

MA Financial sold the properties through its Taylor Square Fund, with the company’s Head of Hospitality, Chris Unger, indicating that the investment fund had reached maturity.

John Musca, director of JLL Hotels, which brokered the transaction, said pubs continued to demonstrate resilience as an investment class despite economic uncertainty.

“Whether it’s mid-terms, wars, COVID or economic turbulence, pub hotels deliver enviable cash flow growth when compared to many other real estate asset classes,” Musca said.

According to JLL, the transaction reflects continued investor demand for Australian pub properties, which have remained attractive amid volatility across the broader commercial property market.

Venues with gaming entitlements in established, tightly held entertainment precincts such as Taylor Square are particularly sought after, given their locations and established customer bases.

JLL expects transaction activity in the sector to remain supported by established hospitality operators and new investors seeking exposure to Australia’s pub market.

The $54 million sale highlights the continued commercial value of Sydney’s established hospitality precincts, with Oscars Group now taking control of two prominent venues at the intersection of Oxford Street and Taylor Square.

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