Leading Riverina Hotel Sold
One of regional New South Wales’ strongest gaming pubs has changed hands in the latest sign of continued demand for large format regional pubs.
HTL Property's Blake Edwards and Sam Handy negotiated the successful transaction after a fiercely contested campaign which yielded four offers to purchase and was sold within a week of the campaign closing.
The sale follows closely behind some of HTL's other recent significant regional hotel sales, including Dubbo’s well-known Amaroo Hotel ($9.1m), the Ophir Tavern in Orange ($6.2m) and the Belmore Hotel in Maitland ($8.8m).
With annual revenues well in excess of $4.5 million per annum, the Area Hotel boasts a 3am liquor licence with 23 gaming machines - only 12 of which are currently comprised in an outdoor smoking solution. The hotel recently achieved a ranking of #367 on the State-wide OLGR gaming list; and is poised for significant growth by way of reconfiguring the existing gaming room.
It is the fourth strongest gaming room within the Riverina Region behind the Kooringal Hotel, Victoria Hotel and Gemini Hotel.
The pub is situated on a landholding of 1,293sqm within the main commercial/retail centre of Griffith surrounded by retailers including Coles, Woolworths, Bunnings and ALDI.
The campaign yielded four genuine offers to purchase with mixture of both local interest and metropolitan interest. Existing Griffith publican and Property investor Jim Knox was ultimately the successful buyer.
"With strong transactional volumes of metropolitan gaming hotels over the last 24 months, the availability of stock is rapidly diminishing with metropolitan operators now looking further afield than ever before”, advised HTL Property’s Director Sam Handy.
“HTL Property has recognised the emergence of a patent appetite for both coastal and regional gaming stock, resourced our team accordingly and our track record in this segment over the last nine short months demonstrates that our clients are seeing the benefits of working closely with HTL Property in this respect”, Mr Handy continued.
The Area Hotel has been operated under management on behalf of a private syndicate, and which placed the hotel on the market in order to exit the industry and capitalise upon recent conditions which have seen Sydney publicans combing regional centres for gaming opportunities.
Shareholder and local AHA delegate Jason Torresan advised that syndicate members were ‘extremely pleased’ with the sales process and outcome.
"We have owned the hotel for over 15 years, so the sale is a mixture of emotions for us, but we're delighted with the result and excited to see the incoming operator build upon the platform we have left behind”, commented Torresan.
HTL Property, 15th April 2019
