A syndicate led by Gallagher Hotels has sold the Meadowbrook Hotel in the city of Logan, south of Brisbane.

The leasehold interest of the pub had been owned by the Sydney-based syndicate since 2018, having acquired the pub off Jaz Mooney’s Pelathon Management Group for $6 million. It was the syndicate’s first foray into the Queensland market. The recent sales process was handled by JLL’s Tom Gleeson.

The Meadowbrook Hotel is located 35 minutes from both Brisbane and the Gold Coast and boasts a catchment area with a mix of retail, commercial, medical, industrial and residential premises. The hotel is positioned adjacent the Woolworths-anchored Meadowbrook Shopping Centre and is located near Griffith University (Logan Campus) and the Logan City Hospital, which is currently undergoing a significant expansion and redevelopment. The wider area is experiencing some of Queensland’s biggest population growth, with projections surpassing state and national averages.

The hotel includes a gaming room with 40 EGMs, with approval for another five, a sports bar, bistro, beer garden as well as 20 motel accommodation rooms. The property also features a drive-through bottle shop and operates one detached bottle shop.

“Rarely are top 30 gaming hotels available within the SEQ market and the interest reflected the finite nature of the offering. We would like to congratulate the syndicate on their first and ultimately successful foray into the Queensland hotel market and look forward to seeing the incoming ownership group grow on the excellent platform that has been provided,” stated Gleeson.

Meadowbrook Hotel is located next to a shopping centre, and close to Griffith University and Logan City Hospital.

The venue underwent a multi-million-dollar renovation over the past 18 months with profitability uplift evident across all departments. With a final lease expiry in 2056, the incoming tenant is provided a long-term cash flow asset in a well-known and well-regarded gaming corridor.

Strong leasehold assets underpinned by gaming machines have been particularly popular with publicans and investors of late, as debt market requirements have changed – particularly in regards to interest cover ratios. You can read more about the changing pub real estate market – with insights from the JLL team – in the October issue of Australian Hotelier to be published shortly.

Vanessa Cavasinni

Vanessa Cavasinni is the managing editor of Australian Hotelier and Club Management, trade publications for the pub and club sectors respectively. Vanessa has been at the helm of Australian Hotelier since...

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