Media release:

JLL Hotels & Hospitality Group in conjunction with Moore & Moore RealEstate, are delighted to offer for sale the freehold going concern interest in the Lake Macquarie Tavern in Mount Hutton NSW.

The asset comes to market following years of intense interest in the hotel and numerous unsolicited offers made over the last year alone. Long-term owners and business partners Bob Warren and Paul Crosby have exclusively appointed JLL Senior Vice President, Ben McDonald and Moore & Moore Real Estate Principal, Deane Moore to spearhead the Expressions of Interest campaign which is set to launch in late February 2022.

Many will recognise the partners as the original owners of the hospitality focused accounting practice, Crosby Warren Sinclair, newly rebranded to Pitcher Partners Newcastle – boasting one of the largest books of hospitality clients in the country.

Ideally situated in Mount Hutton, one of the key growth areas of the Lake Macquarie region and approximately 140 kilometers north of Sydney, the large format hotel sits on 9,000sqm (approx.) and is immediately adjacent to Lake Macquarie Square which is owned and managed by Charter Hall – one of Australia’s premium funds management platforms and the recent new owners of ALE Property Group via the ASX listed Charter Hall Long Wale Reit (ASX:CLW) and joint venture partner Hostplus.

The tavern also boasts 30 Gaming Machine Entitlements and a late trading licence in a Band 3 location thereby future proofing the trading proposition and establishing a clear competitive moat for the business going forward.

JLL Hotels Senior Vice President Ben McDonald cited the core investment attributes as some of the most attractive seen in a freehold going concern hotel to hit the public market in recent times.

Mr McDonald noted; “The mix of trading attributes, location and large format proposition adjacent to one of the largest retail centres in the region is sure to attract a wide-ranging buyer pool and fuel significant competition for the asset at a time when the market is starved of opportunity. Add these credentials to a favourable and supportive local economic environment and the investment case writes itself.”

Moore & Moore Real Estate Principal Deane Moore also identified the suburban location as being somewhat immune to the impacts to trade felt by many Newcastle and Sydney based venues in more established and gentrified locations.

Mr Moore went on to add; “Based on the clear lack of direct competition and significant opportunities to enhance the trading proposition we anticipate intense competition from buyers once the Lake Macquarie Tavern officially hits the market.”

Whilst the exclusive agents would not be drawn on price expectations, market sources suggest a price north of $30m for the Lake Macquarie Tavern with the Expressions of Interest Campaign set to commence on 28 February 2022 and due to close on 24 March 2022 (unless sold prior).

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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