New Lambton's historic Duke of Wellington has sold for $16 million to Sydney-based hotel group Reklaw Hotels.
The off-market sale comes just five years after Hunt Hospitality purchased the hotel for $8,375,000.
It follows a recent string of pub sales in the region, with Hunt Hospitality purchasing Maitland's Imperial Hotel in June and Stroud's Central Hotel selling in July.
In 2019, The Beach Hotel in Merewether sold to Sydney hotelier Andrew Lazarus after 40 years in the Bale family.
The Duke of Wellington is the first major asset for Reklaw Hotels, which is led by Nick Walker.
JLL Hotels' Ben McDonald, who facilitated the sale, said the buyer had been attracted to recent growth in Newcastle.
"It was a targeted approach by the purchaser," Mr McDonald said.
"We worked with them to find an asset that fit what they were looking for and the Duke was one option he was lucky enough to secure.
"Finding a hotel like that for sub-$20 million is getting harder and harder. The pub market generally ... it's very hot."
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The sale marks another big result for Newcastle-based Hunt Hospitality, which also owns The Kent, Seabreeze Hotel, Finnians, Imperial and the Ocean View Hotel.
Fronted by Stephen Hunt, the hotelier group has recently led a private syndicate to buy and sell Rutherford Hotel and the Lakeside Village Tavern in Raymond Terrace.
The Rutherford Hotel was bought for $4.25 million in 2016 before selling for $6.52 million three years later, while a similar time frame saw Lakeside Village Tavern jump from $7.35 million to $12 million.
"Selling The Duke wasn't an easy decision as it is such a strong community-based asset with a great mix of trade," Mr Hunt said.
"This is the third time in the last six years our fund has divested an asset for well over 50 per cent more than the original purchase."
Since changing hands in 2016, the Duke of Wellington underwent a number of changes, including the addition of function venues and an exterior repaint from terracotta to white.
There was also a focus on producing quality food and supporting local sporting groups.
"We really make sure we focus on being heart of the community, that's what Hunt hospitality is known for," Mr Hunt said.
Dating back to 1876, the Duke of Wellington is located on an 885 square metre block at 69 Regent Street.
