Don Hodge Group spends $33m on another Newcastle hotel
The Don Hodge Group has snapped up Mount Hutton’s Lake Macquarie Tavern, south west of Newcastle, for $33 million.
The modern pub, on 9000 square metres at 66 Wilsons Road, opposite the Lake Macquarie Square shopping centre, was offloaded by the owner-operators of more than two decades, Paul Crosbie and Bob Warren.
Agents said a mix of family groups and corporate investors looked in, with bids received from almost a dozen parties.
The deal reflects a 5.4 per cent capitalisation rate.
“Despite a potential shift in the economic environment, hoteliers with long-term investment horizons are continuing to complete aggressively for assets that exude quality and are underpinned by strong trade fundamentals in locations they know and understand,” JLL’s Kate MacDonald, who marketed the asset with Ben McDonald and Moore & Moore Real Estate’s Deanne Moore, said.
Th venue offers 30 electronic gambling machine entitlements and late night trading approval (story continues below).
Don Hodge Group, a family business run by second generation member, Don Hodge Junior, holds aviation and trucking interests.
It also owns a commercial real estate portfolio including around Newcastle, the Belmont Hotel and Warners Bay, acquired in 2019 and 2018 respectively.
Mount Hutton is about 14 kilometres from Newcastle.
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