The sales involved some of the biggest operators in the industry, culminating with the $47 million deal for three pubs previously owned by Geoff Dixon and John Singleton, as part of the Australian Pub Fund, formerly Riversdale Group, through Ray White Hotels director Andrew Jolliffe.

The latest deal sees the return of the Sydney publican Paddy Coughlan, who paid about $6.4 millon for the Botany View Hotel in Newtown.

It is the latest sign of strong demand for inner-city food and beverage pubs, according to agents in the sector.

The BVH, as it is affectionately known, is at the southern end of King Street and close to St Peters train station and the proposed St Peters Triangle masterplan development. The two-level site has extended trading hours and a first-floor beer garden with a 2am licence approval.

Suburban hotels remain the targets for the operators as they are less affected by the lock-out regulations, Savvy operators such as Justin Hemmes and now Matt Moran's Solotel group are also targeting the beachside areas which offer food and beverage and outdoor settings.

CBRE Hotels director Sam Handy and Daniel Dragicevich​ negotiated the sale of the Botany View on behalf of the Murphy family, who owned and operated the pub for 26 years.

The deal marks the third inner-west pub acquisition for Mr Coughlan, who recently acquired the Lady Hampshire in Camperdown and the Lord Gladstone in Chippendale. It comes at a time when the private equity-backed Riversdale Group, a business that Mr Coughlan founded and in which he is still an investor, seeks an exit with the group's assets being sold for significant premiums.

Mr Coughlan said he had noticed a shift in recent years, with many Newtown locals gravitating towards the southern end of King Street.

"The recent acquisition of the Sydney Park Hotel by Ray Reilly and the Queen Victoria Hotel by Mr Hemmes has highlighted this migration trend," Mr Coughlan said.

He said he would look to replicate the success that had been achieved at the Lord Gladstone with a revised food and beverage proposition at the Botany View.

"The Botany View Hotel really suits my core skill set and acquisition strategy under the We Are Bourke Street banner. The Murphy family have been great supporters of the live music scene in the inner west and we look forward to continuing this tradition", Mr Coughlan said.

CBRE Hotels' Mr Handy noted that the sale of the Botany View Hotel represented the final entry-level trading opportunity on King Street.

"It is widely considered that a pub in this location with extended trading hours and a first-floor beer garden should be achieving much stronger patronage and we foresee that Mr Coughlan will be able to replicate his historical success in the area and rapidly elevate the Botany View into a Newtown staple," Mr Handy said. 

Sales

This sale follows a spate of bullish food and beverage pub sales within inner Sydney, most of which have been transacted through CBRE Hotels. These sales include The Winery (Surry Hills), Cargo Bar (Darling Harbour), the Sydney Park Hotel (Newtown) and the Trinity Bar (Surry Hills).

The freehold of the Lidcombe Hotel was also recently sold by Marcus Levy's Marvan Hotels, through CBRE. It was bought it eight years ago from Hedley Leisure & Gaming. It has been sold to an unnamed buyer for close to $36 million, on par with Mr Hemmes' purchase of the Tennyson Hotel in December, through Andrew Jolliffe at Ray White Hotels.

John Musca, JLL's national director – investment sales, hotels and hospitality group, also transacted five hotels in the week before Christmas, worth almost $100 million. They included the Como Hotel, the Bristol Arms Hotel, Lone Pine Tavern in Rooty Hill and others subject to confidentiality.

"That capital continues to find its way to the sector where a 400-500 basis point spread still exists between sustainable earnings and the cost of debt, an attractive proposition for not just experienced operators but increasingly syndicators as well," Mr Musca said.