UNDISCLOSED Sydney-based investors have snapped up two Newcastle hotels.
Pub giant ALH Group, which is 75 per cent owned by Woolworths and operates nearly 300 venues nationally, auctioned The Mattara Hotel at Charlestown and Jewells Tavern as part of a seven-property portfolio sale in Melbourne last week.
Jewells Tavern sold for $5.82 million and The Mattara sold for $5.253 million.
While the properties each have new owners, ALH will retain the businesses, staying on as tenant. Both sites have new 20-year leases in place with five 10-year options.
The two Newcastle hotels make up the lion's share of the group's $14.4 million haul from the auction sale.
ALH Group has also listed a third Newcastle hotel for sale - the Iron Horse at Cardiff.
Expressions of interest will close on June 8 for both the hotel and the BWS liquor store unless sold prior.
On a long term lease to the ALH Group until March 2032, plus 2 15-year options, the property returns a current net yearly rental of $789,684, increasing annually 3.5 per cent.