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“Corindi Beach Hotel’s earnings continue to grow from the single bar, bistro, gaming room with 12 gaming machines with approval for an additional eight, and the only drive-through bottle shop for 10 kilometres,” MacDonald said.
She said there were more than 90 enquiries and four formal offers through the sale campaign, amid the shifting economic and legislative environment. Of the bidders who missed out, MacDonald said there is about $50 million of capital that is available to be invested in other pubs in the area.
In Melbourne, there is the impending settlement of the Rye Hotel, which followed an extended period of uncertainty that ended when Australian Competition and Consumer Commission (ACCC) approved Endeavour’s acquisition in December last year.
The Rye Hotel occupies a huge site on the Nepean Highway, south of Melbourne.
Will Connolly, senior vice president of investment sales at JLL Hotels and Hospitality Group said settlement will be the last drinks for long-term owners the Haughton Family, marking the end of 50 years of family ownership.
Connelly said an renowned boutique hotel located in one of the state’s most popular tourist destinations has also come to market, being the Hotel Frangos, Daylesford.
“We’re delighted to present such an iconic venue to market,” Connelly said.
“Hotel Frangos is the first of a slew of opportunities our team are currently preparing to take to market across Victoria in the coming weeks, in particular a major inner-city Melbourne pub, which will no doubt be one of this year’s most significant opportunities within the pub sector when introduced to market in the coming weeks.”
According to McDonald, the resilience of the sector has always been a drawcard for investors and a “key investment pillar for the long-term private operators and family groups that largely control the space”.
He said with the holidays over and a slight resetting of capitalisation rates – a measure of return and risk on real estate assets – “it certainly feels like the market is hunting for opportunities already”.
“With a marked decrease in transaction volumes year-on-year in 2023 and patient capital on the sidelines for the best part of 12 months, we’re now seeing an undercurrent of transaction momentum building across the country,” he said.
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HTL Property managing director Andrew Jolliffe said that “despite inflationary headwinds, there still exists an unsatisfied depth of equity looking to be invested into the pub sector”.
The group advised on the sale recent sale of the Seabreeze pub on the NSW Mid North Coast from the well-known Short Family empire, with a price tag of about $33 million to the privately owned Hunter Hotel Group.
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