The freehold hotel was put up for sale in March ahead of the sale of owner Redcape's NSW and Queensland pub portfolio by its US hedge fund owners York Capital and Varde Partners to the ASX-listed investment bank for $677 million at the end of June.

The four-star hotel on McIvor Highway, east of the Bendigo CBD, was Redcape's sole Victorian property and a legacy asset from the failed Hedley Leisure Group, the predecessor to Redcape.

Selling agents Mathew George and John Musca from JLL Hotels & Hospitality Group said the hotel changed hands on a 6.5 per cent yield with a lease in place until 2052 to an experienced private hotelier (Jeanine Cook of Hedz Hotels) with fixed 3.75 per cent annual rental increases included.

The All Seasons Hotel brings in current net annual rental income of $1.56 million.

"The strength of the tenant's business coupled with the highly desirable land-bank of 3.5 hectares presented a compelling property for astute investors," Mr George said.

Apart from the 77 rooms, the hotel offers multiple conference, wedding and function centre facilities, 100 gaming machines, bar and dining areas and extensive guest amenities. 

Mr Musca said the sale of the All Seasons set a new record for a privately-tenanted hotel investment in the region and followed intense competition generated from an international sales process. "It was virtually a Charter Hall/ALH-type result for a regional asset," he said.

The buyer – listed on the title deed as David Feldman – will add the All Seasons Hotel to a portfolio of privately-tenanted investment hotels.

The All Seasons was something of an anomaly for Redcape sitting alongside 25 pubs in NSW and Queensland that Moelis Australia now intends to float in the next 12 to 18 months.

The portfolio includes some of Sydney's best pubs, including the El Cortez Hotel in Canley Heights, Minsky's Hotel in Cremorne, the Willoughby Hotel in Willoughby North and the Eastwood Hotel in the Eastern suburbs.

Redcape was formed after the two US hedge funds snapped up the distressed pub portfolios of National Leisure and Gaming and the Hedley Group when pub values collapsed after the global financial crisis.

In 2013, they carved out 41 Coles-managed pubs and successfully floated them as Hotel Property Investments (HPI) leaving the remaining pubs up for grabs.

The Moelis Redcape pub fund is forecast to deliver an initial cash yield to investors of 8.75 per cent per annum.

This story first appeared on Australian Financial Review as ‘Redcape sells Bendigo’s All Seasons Hotel for $24m’