Kinselas & Courthouse Hotel Have Been Sold To A New Owner

Two of Oxford Street’s most recognisable pubs have a new owner, with Oscars Group buying Kinselas Hotel and The Courthouse Hotel for a combined $54 million.

The deal, brokered by property agency JLL, includes adjoining retail shops at 379–381 Bourke Street, putting a sizeable piece of Sydney’s rainbow precinct in new hands.

For the LGBTQIA+ people who drink, dance and catch up with mates at these venues, the obvious question is what happens next — and whether the things we love about them will be sticking around.

What’s included in the sale?

The properties cover approximately 1,050 square metres, with street frontages on Oxford Street, Bourke Street and Little Oxford Street.

Between them, the venues have sports bars, function rooms, nightclub spaces, a bistro, 12 recently renovated accommodation rooms and 43 poker machines.

Oscars Group bought the properties from MA Financial’s Taylor Square Fund, and plans to add them to its existing collection of hotels in Sydney’s CBD and surrounding suburbs.

The announcement refers to a long-term plan for the Taylor Square precinct, but gives no detail about what that will mean for the pubs’ day-to-day operations, entertainment or the communities who use them.

Chris Unger, MA Financial’s Head of Hospitality, said the sale followed the fund reaching the end of its intended term.

“The Kinselas and Courthouse venues are outside of our highly successful Redcape portfolio in a stand-alone Fund that has come to its maturity.”

A $54 million deal (and questions for the new owners)

JLL’s John Musca, who managed the sale, said pubs remained attractive to buyers because of the money they bring in, even during difficult economic conditions.

“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, which continually drives supply tightness and transaction liquidity,” Musca said.

In plain English: pubs can make plenty of money, owners are reluctant to sell, and buyers are keen when one becomes available.

According to JLL, pubs with permission to operate poker machines in busy areas such as Taylor Square continue to attract high prices. The agency expects demand from existing pub operators and newcomers to keep sales activity strong.

There’s plenty in the announcement about the value of the properties. What’s still missing is a clear commitment to their LGBTQIA+ future.

Star Observer has reached out to Oscars Group for comment, asking for confirmation that both venues will remain LGBTQIA+ venues (and also that Kinselas will retain its widely beloved $16 Pub Classic menu). We did not receive a response by the time of publication.