In 2024, Hurley Hotel Group got to enjoy the rewards of a couple of big pub projects. Its given the group a boost of confidence leading into one of their biggest new builds yet.
Hurley Hotel Group project manager Anna Hurley described 2024 as “a bit of a consolidation year” for the group, after completing some massive projects at the end of 2023 – namely the significant overhauls of the Arkaba Hotel and Hotel Royal.
Throughout 2024, the group began to see a return on investment on these sizeable projects with patrons – and their trade – returning in droves to these venues. The accolades soon followed, with Arkaba Hotel picking up several AHA awards at the state and national level, including being named Overall Hotel of the Year – Metropolitan at the AHA National Awards for Excellence.
“The awards are great, and it is really a wonderful recognition. But in the end, we want to pay wages and pay off the investment, and I think that’s been the most pleasing thing this year, particularly at the Royal and at the Arkaba, seeing our customers come back and loving what we’ve done,” stated Hurley.
On the point of consolidation, general manager Sam McInnes said that consolidating staff culture after getting these massive projects underway was a big focus of 2024.
“We’ve got over 600 staff, and we’ve moved from 12 months ago where we were just trying to fill roles to now looking for leadership, looking for skills, looking to develop our staff. We’re focusing on the efficiencies and skills, rather than just trying to fill a spot on the roster.”
And in the case of not missing out an opportunity, Hurley Hotel Group also acquired the Barker Hotel – the first acquisition by the group made in five years – in one of South Australia’s fastest-growing areas.
“Quality assets like the Barker don’t come up very often, so when the opportunity presents itself, you have to take it,” explained McInnes.
Return on investment
With the Arkaba and Hotel Royal re-opening at the end of 2023, for Hurley Hotel Group 2024 was the test of how patrons would respond to these overhauled venues. Thankfully the new reiterations of these venues have resonated with locals.
“We are definitely seeing a return on investment,” stated financial director Samantha Oakley.
“I think particularly with Sporties [at the Arkaba], it’s got a new lease on life and got a bigger and better reputation. And functions. We had strong functions trade before, but with the new Arkaba leisure clients have started coming there a lot more.”
Likewise, Hotel Royal has benefitted from some new additions.
“With the Royal, we didn’t have any good outdoor space at the Royal previously. But we created a courtyard in the renovation, and that’s been a great addition because people love eating and drinking outside. It’s brought in a lot of natural light, which has improved ambience inside as well,” stated Oakley.
Also helping with the trade across the group is the perceived ‘trading down’ of diners, who have swapped meals at premium restaurants for nights out at the pub.
“For a lot of our venues, we sit in a nice, neat point based on area and demographics where people have been able to trade down to our venues,” explained Hurley.
Food sales also did very well across the group’s hotels in 2024, with McInnes putting this down to investing in the team’s chefs – developing skills so that when the opportunity presented itself early last year, two chefs that began their apprenticeships with Hurley Hotel Group could step up into head chef roles.
“We’ve put a lot of effort into making sure we have good food, which is hard to do, but I think we’ve got the rewards from that as well, which you can see in our sales.”
The next big build
Also kicking off in 2024 was the group’s build of the Hotel Panorama, replacing the nearby Tonsley Hotel which made way for a North-South Highway extension. A long-time in planning, this mammoth five-storey build will be the group’s largest project this year, with the hotel currently projected to open in February 2026.
“We’ve been working since 2021 to get the plans done through Council and get it financed, so it’s a real thrill to see it coming together now,” stated Hurley.
Hotel Panorama will have four F&B outlets on the ground floor, three floors of accommodation. The fourth floor will house two function spaces facing east and a rooftop bar facing west to capitalise on sunset views.
It’s a massive project, but the success of the Arkaba rebuild has given the Hurley Hotel Group confidence.
“It’s nerve wracking, investing in such a big project. And when you see the footprint, it is gigantic – as is the budget to build it,” stated Oakley.
“But having renovated the Arkaba and seeing the rewards of that, and even the Marion [renovated in 2021 to the tune of $20m] continuing to perform so strong, it does fill you with a lot of confidence that we’re on the right track, and that it will be a good investment for the future.”
As if the Panorama build wasn’t enough, Hurley Hotel Group will also look to take on some smaller refresh projects this year, including the Arkaba gaming room and accommodation rooms, as well as the motel rooms at the Marion. Renovations of the Torrens Arms Hotel and Kensington Hotel are also planned.
This piece was first published in Australian Hotelier’s 2025 Annual Industry Leaders Forum. You can view the issue below.