GM Hotel Group has sold the Emu Hotel and Bottle shop, Christies Beach Hotel and Lodge Hotel pubs in Adelaide to local and national operators for nearly $75 million.
ALH Group and Charter Hall Group acquired the long-term leasehold interest of the Emu Hotel for $32 million, the largest price paid for a single pub asset in Adelaide ever.
Sitting on a 7,300 sqm freehold site, the Emu comprised public and bistro bars, a large bistro, an entertainment room, a gaming room, a large drive through bottle shop plus a separate leasehold bottle shop situated in the adjoining Morphett Vale Shopping Centre.
“We’re very happy with the outcomes in what is a significant period of transition for the Adelaide hotel trading landscape following recent changes in gaming legislation and wish all purchasers every success with these irreplaceable large-format suburban assets,” GM Hotels Managing Director Greg Maitland said.
Local hoteliers RD Jones Group bought Christies Beach Hotel, which occupied a 4,250 sqm site and included a public bar, bistro and bistro bar, large drive thru bottle shop, motel and gaming room.
Sydney-based Harvest Hotels bought the completely renovated Lodge Hotel, marking the second purchase for the group’s new suburban Adelaide-focussed fund, Harvest Pub Fund 3.
Harvest also acquired the Aussie Inn from a local private syndicate as their first interstate investment.
Harvest Hotels, which already operates eight hotels in NSW, raised $50 million of committed equity in their first-round subscriptions earlier this year for the Adelaide specific Fund 3.
“Our market entry has been measured and methodical and has resulted in securing some quality suburban Adelaide assets for the fund, so we’re thrilled for our investors,” Managing Director Chris Cornforth said.
“It’s satisfying to see the aggregation strategy roll-out and we’re pleased to be getting off to a robust start.”
The Emu Hotel & Bottleshop was sold by JLL Hotels and Hospitality Group.
“No matter where you are in the country, the largest, quality hotel assets will always attract the most astute capital and operators due to their irreplaceability, and the Emu transaction is no exception to this acquisition approach,” JLL Managing Director John Musca said.
“Harvest were astute in identifying the additional value and trading trajectories of Adelaide hotels emanating from the new gaming legislation and corporate consolidation, amidst a tightly held yet disparate market of individual owners, and in association with Terry Board, we are delighted to have managed their first forays into the booming asset class locally.”