This month, two pub groups across the country have announced significant accommodation acquisitions.
Star Group, Queensland’s largest independently owned pub and liquor retail group, has made an expansion play in Mackay, acquiring Rydges Mackay Suites and the Mackay Central Retail Centre. The group also recently acquired the Rydges Gold Coast Airport Hotel, taking its total number of accommodation assets to eight.
Rydges Mackay Suites offers 90 well-appointed rooms, two bars, a contemporary restaurant with footpath dining, and a dedicated gaming room featuring 35 electronic gaming machines.
The hotel also features an indoor swimming pool, gymnasium, and three versatile conference and meeting spaces, appealing to both business and leisure guests.
The was deal facilitated by CBRE Hotels national director Wayne Bunz on behalf of Richard Pegum and Geordie Clark.
“The acquisition represents a strategic addition to Star Group’s expanding portfolio, blending the appeal of a flagship hotel with a dynamic pub operation and strong-performing retail space. It ticked all their boxes,” stated Bunz.
In similar news, earlier this month WA’s Prendiville Group acquired the Travelodge Resort Darwin. The group’s portfolio is a mixture of traditional pubs and resort accommodation across WA and Queensland.
Prendiville Group beat out domestic and international bidders to acquire the 224-room property in Darwin’s CBD. The hotel was sold by Mark Durran and Paul Savitz from Savills Australia and New Zealand and Peter McVann from Knight Frank Australia, on behalf of TFE Hotels.
The recently refurbished hotel resort includes 32 self-contained townhouses, with a new design and a host of resort amenities, including multiple swimming pools, Treetops Restaurant, conference and events facilities, a gymnasium, a sun deck and BBQ area as well as 115 car parking spaces.
“The hotel provides a wide offering of rooms and facilities in an ideal location in the Darwin CBD. With over 130 enquiries and 10 bids lodged throughout the high-profile campaign, investors were attracted by the size, scale and potential of the property as well as the substantial 1.31-hectare city centre land holding,” stated Durran.
“The acquisition of this significant parcel in the Darwin CBD offers Prendiville Group strong growth potential for immediately located accommodation and investment opportunity in the medium to long-term.”
While pub groups acquiring accommodation is not new, the asset class has increased in favour with publicans over the last twelve months, as diversifying portfolios becomes increasingly important in an ever-changing economic and regulatory landscape. At the Pub Leaders Summit earlier this year, JLL’s Ben McDonald said more operators were looking for an asset mix that included features like accommodation and retail outlets. In the same panel, Hunt Hospitality managing director Stephen Hunt spoke to the group’s long-term play for pub assets that include accommodation – both in regional and tourist areas – while Odd Culture Group CEO James Thorpe discussed the group’s venture this year into the online retail space as a means of diversification.
While details have not been revealed as to handover for the Mackay assets for Star Group, Travelodge Resort Darwin will continue to trade as normal and all bookings will be honoured by Prendiville Group post-handover.