With the buoyant pub property market in regional NSW continuing to fuel sales, The Sydney Collective, Flower Hotels and Sorella are the latest local operators to grab the opportunity to add to their portfolios.
The Royal Hotel, NSW Rivernina
A freehold pub in the Snowy Valley – the Royal Hotel, Adelong – has been sold to local hotelier group Sorella by long-term owners Angelo Vardanega and James Nugent.
The owners viewed the buoyed market as an opportunistic time to divest, according to JLL Hotels & Hospitality which managed the deal.
Sorella’s growing portfolio also includes the Wade Hotel in Leeton and the Australian Hotel in Yass.
“Stock shortages and the diminishing availability of gaming machine entitlements continue to drive capital values in regional NSW,” said JLL Hotels executive, Greg Jeloudev, who facilitated the transaction.
“This will continue for 2021 and well into 2022. Being local hospitality operators, the acquisition of the Royal Hotel is a natural fit for the team at Sorella.”
The hotel has a 2,023sqm corner position directly opposite the Snowy Mountains Highway, has flexible RU5 Village zoning, and includes 2 gaming machine entitlements.
Sir George Hotel, southern NSW
The Sir George Hotel in Jugiong has been snapped up by The Sydney Collective’s Fraser Short following its sale by mother-daughter owners Liz Prater and Kate Hufton in a deal believed to be worth $14m.
The Sir George, a popular stopover destination, has ten farmhouses, country-style food and beverage, and is located three hours from Sydney along the Hume Highway on the Sydney-Melbourne and Canberra-Wagga Wagga corridor.
Built in 1845, the hotel is said to be the longest singularly held liquor license establishment in Australia, spanning over 165 years. It offers a diverse hospitality operation, including 11 luxury accommodation suites, artisan bakery, retail store, restaurant and bar.
“The Sir George is an iconic operation that represents everything good about country NSW,” Short said. “I am very excited to bring this rare gem into our group and carry the baton on from Kate and Liz who have done an immaculate job in bringing this hotel, its gardens and historic buildings back to life for the community and tourists of Jugiong.”
Owners Liz Prater and Kate Hufton, who acquired the hotel in 2015, said, “We are so proud to have resurrected such a beautiful old hotel and created a thriving business for so many people to enjoy. We are sure that Fraser will do a fantastic job and take The Sir George to new levels, like he has in so many of his other venues.”
According to Tom Gibson and Paul Fraser of CBRE Hotels who managed the sale, the deal highlights the strength of the market for quality tourism assets that offer solid investment fundamentals.
“The deal represented a price per key record for regional NSW and highlights the strength of the market for quality tourism assets that offer solid investment fundamentals,” Gibson said.
Sydney Collective will take the reins in February of 2022.
Barham Hotel, NSW Riverina
JLL Hotels & Hospitality also recently oversaw the sale by long-term private owners Kent and Vicki Bassett of the freehold interest in the Barham Hotel in the western Riverina district of NSW to a private hotelier.
The Bassett’s were former operators of the popular venue but brought in a tenant in 2016. The lease covenant includes a total of 20 years remaining (including options) and reflects a sharp yield of 6.38 per cent, according to JLL’s Greg Jeloudev and Kate MacDonald who facilitated the off-market transaction.
“The sale of the Barham Hotel reflects strong investor demand for quality regional hotel assets. It has been well documented, with the majority of real estate asset classes, low costs of debt and supply shortages continue to drive capital values. This transaction is no exception,” Jeloudev said.
The hotel occupies a 2,019sqm corner site in the township of Barham which is on the Murray River, and includes five gaming machine entitlements, a 24-hour hotelier’s licence, 14 accommodation rooms, and a drive-thru bottle shop.
Traveller’s Rest Hotel, mid-NSW coast
The Traveller’s Rest Hotel in Long Flat on the mid-coast of NSW has been sold to Flower Hotels – owned by Alistair and Renee Flower – and partners Debbie and Aage Christianson who are local to the area and live near the venue.
Traveller’s Rest Hotel offered Flower Hotels a diverse opportunity with its large landholding and direct access to the Hastings River, according to JLL Hotels & Hospitality which managed the sale. The property has scope to create boutique camping accommodation, JLL said, with Flower Hotels excited to be welcoming tourists and holiday makers in the future.
The hotel occupies a 9.5-acre lot and resides on the banks of the Hastings River with direct access to the Oxley Highway. The hotel has RU5 Village planning regulations, and the sale includes four gaming machine entitlements and a midnight licence.
JLL Hotels & Hospitality said demand for regional investment hotels remains strong, with the property group poised to announce more transactions in the future.