Coles puts hotel on market
AN OPPORTUNITY for an experienced multi-venue operator has hit the market in North Queensland with a Mackay hotel on offer.
Located at 17 Gordon St, the Metropolitan Hotel is being presented for sale via an expressions of interest campaign run by Leon Alaban of Savills.
Mr Alaban, Savills director of hotels in Queensland, said the hotel presented a great opportunity as it attracted business from a stable local patronage following.
“We have monitored an improvement of the local economy and predict this to continue, making the Metropolitan Hotel a great prospect for the future owner,” Mr Alaban said.
He said the regional hotels market had been flat in recent years, however, the recent improvement is largely credited to the news of the Adani mine, which has created a spike in activity for regions such as Townsville and Mackay.
“This news has in turn created an investment shift from both individuals and multi-venue operators seeking value in these regions,” he said.
“Some of the larger corporate groups are looking into expanding on a national basis which includes incorporating regional assets in their portfolios.”
The hotel sits on a large 4046sq m corner site with facilities including a drive-through bottle shop, a large main gaming room with 40 electronic gaming machines, a lounge and bistro area, pool room, and a children’s activity room.
“Along repositioning the asset, there is upside for a purchaser to improve on premise trade and given that there are 40 gaming machines there is scope to maximise higher returns,” he said.
The estimated revenue of the hotel is about $2.8 million per annum inclusive of gaming.
Additional facilities include seven motel rooms, administration and back-of-house amenities, a commercial kitchen, plus a one-bedroom unit manager’s residence. Built circa 1978, the hotel is partly split over two levels and has been extended and renovated over different times.
The hotel is currently leased until March 2018 by Spirit Hotels (Coles) who are due to cease business operations at the expiry of the lease, however, will terminate prior if required.
“It is unusual for a major operator to divest a hotel asset, therefore this offering presents as a unique opportunity to an incoming purchaser,” he said. “Coles operate three other pubs in town, so divesting the Metropolitan was the most logical choice as it was coming to the end of its tenure.”
The hotel is licensed to operate Monday to Saturday 10am to 2am, and Sunday 10am to midnight.
Offers to purchase the hotel close at 4pm on Tuesday, November 28.
For further information contact Mr Alaban on 0422 011 455.
UP FOR GRABS: The Metropolitan Hotel in Mackay is for sale via an expressions of interest campaign.