By Andrew Starke

While an analysis of the NSW pub sector has found that some pubs have almost halved in value, a new deal suggests there is still value to be obtained for quality properties in good locations.

The Sydney Morning Herald today (Aug 17) revealed that nine pubs sold in NSW in the past six months were on average 45 percent down from either their peak in 2006 / 2007 or pervious sale.

The nine were: Hurstville Ritz (down 28%); CBD Hotel, Newcastle (down 62%); Alexandra Hotel, Leura (down 64%); Woolpack Hotel, Redfern (down 46%); Buckland Hotel, Alexandria (down 42%); Maroubra Beach Hotel (down 30%); Lawson Park Hotel, Mudgee (down 37%); Royal Hotel, Queanbeyan (down 48%); and The Tura Beach Tavern (down 48%).

The report noted that the general malaise in the pub sector was being compounded by some pubs that have gone into receivership failing to sell at auction.

Sydney’s Mandarin Club has been the latest to fold, leaving millions of dollars in debt. Suncorp has appointed McGrath Nicol partner, Shaun Fraser, as the receiver.

However it is not all doom and gloom with Jones Lang LaSalle Hotels recently selling a portfolio of assets, including three NSW hotels, for what analysts believe was a good price.

The three – the Mattara Hotel at Charlestown, the Jewells Tavern at Jewells near Newcastle and the Ironhorse Hotel at Cardiff – were sold along with the Elephant and Wheelbarrow Hotel at Fortitude Valley in Brisbane on behalf of the ING Real Estate Entertainment Fund and Independent Pub Group.

It is understood that Australian Leisure and Hospitality (ALH) has purchased the three properties for about $25 million.

Jones Lang LaSalle Hotels did not return messages left by TheShout.

The Shout Team

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

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