Investors outlay $75m on regional hotels
Two regional hotels – a watering hole and accommodation complex – have traded for over $75 million.
In the biggest deal, the Mattick and Salter family’s Taphouse Group has banked $57m from the Port Macquarie Hotel, north of Sydney.
On 2878 square metres at 8 Horton Street, the asset includes a drive thru bottle shop.
The double storey art deco venue contains a bar and gaming room with 30 electronic gambling machines, licensed until 2am, and 20 upstairs guest suites.
“The materiality of the sale of this nationally recognised hospitality business speaks to both the market confidence and patent quality of offering,” HTL Property managing director, Andrew Jolliffe, who brokered the deal with Sam Handy to a Sydney hotelier, said.
Family patriarchs, Peter Mattick and the late Phillip Salter, established multi-channel marketing giant Salmat Group in 1979.
Taphouse is a subsidiary of that company, which has a c4000-strong workforce.
Earlier this year Port Macquarie’s Mercure Centro at 103 William St sold to a consortium including Laundy Hotels for $23.5m.
Elanor buys Best Western
Meanwhile at Tamworth, Elanor Hotel Accommodation is paying over $18m for the Best Western Sanctuary Inn (story continues below).
On a hectare, the investment includes 60 guest rooms, conference and event space and a restaurant which has been trading since 2006.
The price reflects an 8.5 per cent initial yield – the asset derives $140,000 alone from the Town Green Buffet Bar.
The business collects annual revenue of over $13.3m.
Following settlement, EHA will hold 16 properties.
HTL’s Nic Simarro and Andrew Jackson brokered the off-market sale.
“High performing regional hotels such as the Best Western Sanctuary Inn Tamworth are rare to come by, despite being the most attractive to large investment funds,” Mr Simaroo said.
“We are seeing significant interest from such funds looking for price points greater than $15m, especially in light of the regional space, and this is a major contributor to the exceptional result on this sale,” according to the executive.
More to come.
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