A new Canberra based syndicate – Investment Management Group Hotels – has acquired five Central West NSW pubs for a total of $75 million.
The freeholds were purchased in one line from MPK Hotels.
Each price set a region record; at Orange, the Royal Hotel (pictured, top) traded for a speculated $24m, breaking the ($19m) watermark established two weeks ago with the Robin Hood Hotel.
The other properties are:
- Dudley Hotel, Bathurst
- Castlereagh Hotel, Dubbo
- Federal Hotel, Wellington
- Federal Hotel, Mudgee
Pub Brokers and Advisory’s Nick Butler was the agent.
MPK is directed by Nick McKechnie and Nelson Kelly.
IMGH chief executive officer Matthew Clowry said “the past few years have seen exciting and significant growth across the Central West NSW region and we are delighted to have made this acquisition” (story continues below).
“The MPK ownership team has done an impressive job of growing this iconic portfolio of hotels and developing best in class teams to support their success,” the executive added.
“Our intention is to leverage these foundations to extend and evolve the hospitality experience for the people of Orange, Bathurst, Wellington, Mudgee and Dubbo”.
The hotels are underpinned by very strong maintainable earnings across food, beverage and bottle shop sales, Mr Butler added.
“Passive income streams driven by robust accommodation numbers from Dubbo and Orange are further bolstered by 110 poker machine entitlements across the five freehold hotels, with the new owners planning to activate the approved DAs to incorporate modern, sophisticated solutions to match the impressive physical fleet of machines that already exist,” according to the agent.
Following settlement, MKP will be left with two leaseholds, including the Western Star Hotel at Dubbo which is for sale on a re-stapled freehold going concern basis.