Pub and Liquor Store Portfolio Fetches $45M

SYDNEY-The Hedley Group has acquired the business of the Grape Hotel Group, which includes seven hotels (two freehold and five leasehold) and 14 liquor stores. The sale price is not being revealed by the parties involved; however, local sources have pegged the sale price at around $45 million.The Hedley Group, founded by Tom Hedley, is a developer in North Queensland. The Grape Hotel Group was about 92% owned by the Karedis family and 8% owned by shareholder Tim Kelly.Most of the pubs are in Townsville, Mackay and Rockhampton. They complement Hedley’s existing portfolio of 20 pubs and 43 liquor stores. The GHG stores are higher end, specializing in fine wines, whereas Hedley’s existing shops specialize in beer and spirits.Jones Lang LaSalle Hotels’ Tony Bargwanna and Wayne Bunz negotiated the deal on behalf of the Group. “Institutions perceive [that] the pub industry shows strong potential,” says Bunz. “Hotel owners have been able to sell their income streams generated from lucrative poker machines, food and liquor to experienced management groups.”In addition to brokering this sale, JLL has the marketing assignment for the historic Olims Hotel Canberra. The 125-room hotel in Australia’s national capital is being offered for sale via an expressions of interest campaign that closes Oct. 6. JLL SVP Mark Durran has the disposition assignment on behalf of the Schwartz Family Company. Mercure (Accor Asia Pacific) currently manages the property; however, it is being offered for sale with vacant possession, which means the new owner may switch management firms without penalty.Located on the corner of Ainslie and Limestone avenues, the property includes guest rooms and split-level apartments, conference and function facilities surrounding a landscaped courtyard. Other amenities include a restaurant, bar, bottle shop and a tavern with 10 gaming machines and a beer garden.Durran says hotel room supply in Canberra contracted by 3.3% for the year ended March 2004. “Three hotels/motels closed for redevelopment including Kythera Motel, Acacia Motor Lodge and National Capital Village,” says Durran. “A further three hotels representing 296 rooms are awaiting approvals to redevelop to residential usage, and these will potentially reduce hotel room supply by a further 6% during 2005.” As a result, occupancy and ADR has grown by 7% in the year to March 2004.