The Macquarie Hotel in Wentworth Avenue, Surry Hills, known as the Schwartz Brewery, has been bought for more than $8 million by Christian Denny, former owner of Icon Hospitality, and a partner at the Woolwich Pier and Kingsgrove hotels.

The vendor, Jerry Schwartz, who made his money in cosmetic surgery, will use the cash to help fund a brewery in Newcastle.

Sold ... the Macquarie Hotel in Wentworth Avenue, Surry Hills, known as the Schwartz Brewery.

The family also bought the Novotel Newcastle from the Accor group in late September for about $16.5 million.

Joint selling agents Adam Spencer-Carr and Sam Handy, of Jones Lang LaSalle, said the demand was high for the pub with its development potential.

''I am extremely excited by the opportunities this hotel presents. It is a very strategic purchase, as it encompasses a strongly emerging precinct with an established hotel property,'' Mr Denny said.

''The hotel already demonstrates solid trade across all revenue centres, but I believe the introduction of a new product offering will unlock substantial trading uplift.''