By Vanessa Cavasinni, editor Australian Hotelier
As interest in regional pubs grows for operators, a bevy of country and regional pubs have hit the market in New South Wales and Victoria.
A cultural icon
The Palace Hotel in Broken Hill, most famously known for being the site where much of Priscilla Queen of the Desert was filmed, has reluctantly been up put up for sale by the investment group that owns it, as the group is breaking up to pursue their own goals.
The hotel, which is centrally located in Broken Hill, includes including two bars, a function room, restaurant and 50 accommodation rooms all in operation. It also has Australia’s only licence to operate two-up all year round. Palace Hotel is also the hub of the Broken Heel Festival, the annual three-day drag festival that brings lovers of drag and Priscilla to Broken Hill from across the country.
Esther La Rovere, managing director of The Palace, and a nominee for Publican of the Year at the Australian Liquor Industry Awards 2016, sang the praises of The Palace Hotel, and what it means to the Broken Hill community.
“It is a such a hub on any night for the local and visiting economy and boldly sits like an enormous cruise ship in the centre of town. It really is the heart of the community for entertainment, refined food and beverage and a lively atmosphere with such a fantastic range of clientele. It has a very accepting atmosphere and it is not rare to see a drag queen sitting next to a miner, a doctor and a lawyer on any given night.
“For the creative and artistic community it has been a hotspot for touring musicians and alternative entertainers, with drag shows, cabaret and alternate entertainment as well as a hub for Fox Sports events. It is certainly a locals brag piece when they show their friends around the city.”
The hotel has an asking price of $3.875 million, excluding GST.
After setting the all-time record for the sale of a hotel at auction in the form of Mascot's Tennyson Hotel last December, Ray White is again bringing to market via auction multiple freehold hotels – this time focusing specifically on regional hotels.
Asia Pacific Director Andrew Jolliffe believes the market appetite for auctions to be very strong, and expects the upcoming auction day to produce great results for the sellers and prospective buyers alike.
"Fundamentally, the success of an auction process is heavily predicated by market buoyancy, auction process history and the quality of asset being brought to market; and it is the amalgam of these key factors which gives us confidence in relation to our latest in-house auction day" advised Jolliffe.
The auction day will be held on 31 May, and the venues to be sold are The Belmore Hotel, in the centre of Maitland, New South Wales; Wollongong’s Unanderra Hotel, sitting on a 3700sqm parcel of land; and the George IV Hotel, just outside of Sydney in Picton.
Redcape Hotels Group has placed the All Seasons Quality Hotel in Bendigo, Victoria on the market, appointing JLL Hotels & Hospitality to handle the sale. It is one of the country's largest combined accommodation and gaming hotel assets, occupying a 3.5 hectare site and includes 77 four-star-rated hotel rooms, 100 valuable gaming machines and extensive conferencing, function, bar and restaurant facilities licensed for in excess of 1,800 patrons.
The hotel is currently leased to an experienced hotelier and is subject to an attractive combined 45 year long-term lease with fixed annual rental growth.
Mathew George, vice president – investment sales, said the venue more than satisfied the thirst of investors for freehold assets.
"The market has become educated on this asset class and as a result more sophisticated in its approach to these unique assets. No longer do investors need ALH or Coles tenancy covenants to understand the underlying unique attraction of hotels, particularly those with gaming machine licenses, and clear future restapling arbitrages."
The EOI campaign for the All Seasons Quality Hotel ends Thursday 25 May, 2017.