Laundy Hotels is pursuing aggressive revenue diversification within its existing portfolio as regulatory barriers complicate traditional expansion strategies, with 2025 marking a pivotal year for transforming conventional pub operations into multifaceted hospitality destinations.
The group’s 45 venues across New South Wales recorded significant operational evolution throughout 2025, centred on three core revenue drivers: premium food offerings, expanded events programming, and major capital investment in venue infrastructure. This strategic pivot occurs as the broader Laundy family continues acquiring new properties – including January’s $13 million purchase of Ashmont Inn Hotel in Wagga Wagga – despite patriarch Arthur Laundy’s public criticism of regulatory complexity hampering sector growth.
The dual approach reflects calculated risk management: extract maximum value from controlled assets while selectively expanding where partnerships mitigate regulatory exposure. The Ashmont acquisition involved joint investment with Sean O’Hara and Sam Cruikshank, continuing Laundy’s strategy of partnering with local operators in regional markets.
According to Danielle Richardson, director of Laundy Hotels and Arthur’s daughter, operational transformation has become essential as traditional pub models face margin compression. “Food remains central to the way we operate because it strongly influences how and why people choose a venue,” Richardson explained. “We look for opportunities to diversify our offering and respond to gaps in local areas.”
The group’s most significant capital deployment came through the $3 million transformation of Watsons Bay Hotel’s top and mid decks, completed in October 2025. The renovation created versatile event spaces with capacity for 102 seated or 150 standing guests on the top deck, directly targeting corporate functions and weddings markets that generate higher margins than traditional pub trade.
Results validated the investment. December 2025 saw Watsons Bay Hotel host more events than any December in the previous five years. The venue subsequently launched Club Amalfi, a Mediterranean-inspired beach club concept running monthly throughout summer, exemplifying how the group creates recurring revenue streams beyond alcohol sales.
Laundy’s food diversification extends beyond incremental improvements. The group partnered with celebrity chef Manu Feildel to launch Bistro Red Lion by Manu at the 196-year-old Red Lion Hotel in Rozelle. The collaboration, which opened in July 2024 following a $1.5 million renovation, leverages Feildel’s profile from Channel Seven’s My Kitchen Rules while operating Thursday through Sunday on the venue’s upper level.
“Partnering with someone like Manu, who can do food in a way we can’t, brings a great level of interest into the traditional local pub space,” Richardson noted. The partnership demonstrates Laundy’s willingness to cede operational control in specific areas to access expertise and brand recognition that elevates venue positioning.
At the premium end, Sinclair’s restaurant at The Log Cabin Hotel in Penrith retained its Sydney Morning Herald Good Food Guide hat in 2025. The achievement carries particular significance given western Sydney’s traditional positioning and Sinclair’s hyperlocal sourcing mandate requiring all produce within 50 kilometres.
The 2025 capital programme also encompassed new gaming facilities at Northies Cronulla, outdoor dining upgrades at The Tropicana Hotel in Wilberforce, and restoration of the Lord Nelson Brewery Hotel – Sydney’s oldest licensed venue, acquired from Blair Hayden in 2024.
Industry recognition followed operational improvements, with Laundy collecting multiple AHA NSW Awards across dining, people and hotel categories. The group also claimed the Blamey Hotel in Lake Albert won Best Regional Local award at the 2025 AHA NSW Awards.
Richardson identified three persistent operational pressures: cost inflation from wages and utilities, increasingly complex regulatory requirements, and chronic staff recruitment difficulties. These constraints explain why higher-margin revenue diversification has become strategic imperative rather than opportunistic enhancement.
The regulatory challenge resonates beyond operational complexity. Arthur Laundy, ranked among Australia’s wealthiest hoteliers with a $1.75 billion valuation, told media that red tape complicates expansion despite family appetite for growth. This context clarifies why maximising returns from existing venues through sophisticated food offerings, events programming and premium experiences has become central to group strategy.
For HR professionals and senior leaders, Laundy’s transformation illustrates fundamental workforce model shifts. The group now requires staff capabilities extending well beyond traditional pub service – from chef’s table presentations at Sinclair’s to high-touch event coordination at Watsons Bay Hotel. This demands different recruitment profiles, training programmes and retention strategies than conventional pub operations.
The events business, in particular, requires workforce flexibility that traditional pub rosters cannot accommodate. Peak event periods demand surge capacity while maintaining base service levels, necessitating sophisticated labour planning and cross-trained personnel.
Founded in 1945, the Laundy group operates more than 40 venues across metropolitan Sydney, Central Coast, South Coast and regional NSW under Arthur Jnr’s leadership. Richardson and husband Shane Richardson manage Sydney operations, while various family members and partners oversee regional properties through joint venture structures.
Looking to 2026, Richardson confirmed continued capital investment across the portfolio despite external expansion challenges. “We’ll be investing in more of our current hotels that need some love and looking at some exciting new and unique concepts that hopefully continue to challenge our thinking and fill gaps in the market,” she stated.
The group’s strategy suggests successful pub operations increasingly depend on portfolio-level diversification rather than uniform offerings. While traditional pub classics remain essential – Richardson emphasises schnitzels and steaks as base expectations – the ability to serve multiple customer segments through varied concepts appears critical when acquisition-led growth faces regulatory headwinds.
The broader Laundy family’s simultaneous $56 million acquisition of Nine Entertainment’s radio portfolio (2GB, 3AW, 4BC, 6PR, 2UE, Magic1278, 4BH) further demonstrates diversification appetite beyond hospitality venues alone. The radio transaction, subject to ACCC approval and expected to complete by June 2026, will enable promotional synergies across pub and broadcast assets.
