The Centennial Hotel in Gulgong, affectionately known by locals as The Cenny, has been sold on behalf of Kelly & Co Hotels as the group consolidates its portfolio to focus on larger projects on the NSW coast.
After a highly competitive on-market expressions of interest process, where interest was garnered by existing portfolio owners and single asset owners, the hotel was purchased by new market entrants, the O’Brien family. Headed by brother and sister team Deb and Glen O’Brien, the family’s purchase was a strategic acquisition which complements existing hospitality assets in the region.
The Centennial Hotel is situated on a prime corner site with street frontage approximately 30km north of Mudgee and 293km northwest of Sydney in the historically significant town of Gulgong.
The pub resides on a 1,345sqm block and consists of a single bar operation, seven ensuite accommodation rooms, a detached on-site manager’s residence and an on-site car park. On average, the hotel generates more than $53,000 in weekly sales, an income made up of gaming, food and beverage, and accommodation.
The sale of the pub includes a total of six gaming machine entitlements (GMEs) and a GME threshold in place to further increase the total count to eight. The venue, a proven performer in the gaming department, is ranked third out of 42 of all NSW hotels with six GMEs, with the approved threshold proving a lucrative incentive to acquisitive parties.
The sale was managed exclusively by JLL NSW regional hotel brokers Greg Jeloudey and Edward Browne. Jeloudey noted: “The Cenny unsurprisingly attracted interest from a wide breadth of purchasers due to the excellent trade and underlying asset features of the hotel.
“As debt serviceability and cash flow continue to be at the forefront of the 2023 pub investment landscape, the venue easily satisfies many of the stringent criteria required in the current lending sphere.”
The transaction is JLL’s second sale in Gulgong in as many years after the sale of the Post Office Hotel in April 2022, and follows Kelly & Co’s recent sale of The Royal Hotel in Scone, NSW in June this year as part of its portfolio consolidation.