Regional pubs snapped up as industry prepares to reopen

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Investors have snapped up more than $22 million worth of pubs in regional NSW ahead of venues in the state and in neighbouring Victoria reopening on June 1.

Among the pubs to have changed hands are the Post Office Hotel in Moree, the Royal Hotel in Condobolin, the Neath Hotel in the Hunter Valley and the Yenda Hotel in Griffith.

Selling agent Xavier Plunkett from pub specialist HTL Property said the new owners were an even mix of local, regional and Sydney-based buyers.

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The Royal Hotel in Condobolin previously sold for $1.75m in 2018. 

"Agriculture, logistics, infrastructure and mining-related industries have been particularly resolute in the face of the COVID-19 outbreak, and we feel that regional markets that have an overweight exposure to these
industries will likely respond very quickly post 1 June” Mr Plunkett said.

“Lower population density and fewer virus transmissions generally in the regional areas provides further optimism to the regional pubs and accommodation sectors respectively," he added.

From June 1, pubs and restaurants in NSW can have up to 50 people inside. In Victoria, 20 people will be allowed to dine in pubs and restaurants from June 1, 50 from June 22 and 100 from mid-July, provided they adhere to social distancing guidelines.

ASX-listed owner-operator Redcape Hotel Group, said on Wednesday the majority of its pubs in NSW and Queensland would open on Monday.

Its portfolio includes a number of regional NSW venues such as the Figtree Hotel and Unanderra Hotel near Wollongong, and the Central Hotel in Shellharbour.

"We now have the opportunity to open and operate again, providing a new sense of certainty around the manageable effects of COVID-19 and optimism for future prosperity," said Redcape CEO Dan Brady.

With more people to holiday locally while international borders remain shut, regional towns and their pubs are expected to become more popular.

HTL Property said investors had identified strategic acquisition opportunities in these regional centres "and in doing so, are securing assets ahead of the well publicised and expected rebound".

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The Yenda Hotel in Griffith was one of the pubs in regional NSW to change hands. 

"Positive sentiment is being matched by positive action, and those willing to move rather than freeze in this marketplace can expect handsome financial and strategic reward over the short-, medium- and long-term horizons," said HTL Property managing director Andrew Jolliffe.

HTL provided little detail about who had bought the regional pubs, but said Moree's Post Office Hotel was acquired by a well-known local northern NSW hotel operator. It was offered for sale by Carol Negline, who paid $1.05 million in 2003.

The Neath Hotel was offered for sale by Michelle and Brett Walton. They had owned the pub since 2004.

The Royal Hotel In Condobolin last changed hands for $1.75 million in 2018. It's perhaps best known as the local of Australian Idol runner up Shannon Noll.