The Feros Group has purchased the building in which its Highfield Caringbah hotel is housed, providing future redevelopment opportunities.
The Sutherland Shire based hotel group paid $15 million for the freehold of 32 Banksia Street, near Caringbah train station.
The L-shaped property, with access from both Banksia Street and Mackay Street, is zoned: B3 Commercial Core, with a maximum building height of 30 metres (nine storeys).
A nine-storey apartment block has been built on a neighbouring site in Banksia Street.
Feros Group held a 15-year lease plus options on the three-story building, which houses four separate but interconnected operations, Huxley's bar, Ugly Pizza, The Botanical and Public House.
The group spent about $12 million renovating the building, which was occupied by the Caringbah Business & Sports Club (Bizzo's), before it was placed in administration in 2015 and wound up.
Ray White Commercial NSW called for expressions of interest for the sale of 100 per cent freehold of the property.
Feros Group chief executive Chris Feros said, "The landlord decided to sell the building and put it on the market, and we were the highest bidder".
"It means we own the building and we own the air space," he said.
"It gives us the opportunity to do more with it down the track.
"Whether we go up, I don't know.
"The thing for me is I live in the shire and I am very excited to be investing more money in the shire.
"It's a natural fit for us to keep investing in the shire."
Confirmation of the sale came as the the Feros Group won the Australian Hotel Association's national award for the best hotel group operator in Australia.