Pubs on market as family changes strategy
THE Dayal family, which has owned a string of Wellington region hotels for many years, is selling its two Lower Hutt pubs.
The Naenae Hotel and the Hutt Park Hotel in Moera were being sold as part of an exit plan for the diverse family interests, said RSMG Investments director Suresh Dayal.
It was time to downsize so family members could pursue their own interests, he said.
Other family-owned pubs and bars are in Strathmore, Newtown, Karori, Wainuiomata, Lambton Quay and Carterton.
Tommy’s commercial manager Chris Gollins said the two Lower Hutt pubs had changed substantially over the years.
They had morphed from pubs to providers of medium to longstay accommodation.
‘‘Both bars have scaled back from the booze barns of old, but are now more club-like with meals available, a TAB and gaming rooms,’’ he said. ‘‘The Naenae hotel also offers residents extra activity such as a social golf team.’’
Both hotels had been extensively upgraded in the past two years, with each having 21 new rooms added to give a total of 36 to meet increasing demand.
‘‘The accommodation is now of a high standard for this market and very popular.’’
The Naenae Hotel has a thirdparty lease on the bar and 15 rooms with a rental of $141,000 a year. The owner gets about another $240,000 gross from the 21 new rooms.
‘‘An investor could convert that to another lease for say $90,000 rental or employ a manager. The more someone digs, the better it looks,’’ he said.
The Hutt Park Hotel is on a 3963 square metre site. The vendors had been advised the site could take another 50 onebedroom units. The room rate averages $180 a week.
‘‘Total cash flow from the traditional pub activity and accommodation is close to $700,000 a year.
‘‘There’s a very secure business and investment being offered with these properties and the more someone looks at the history, demographics and future demand the stronger it all gets,’’ said Gollins.
The rating valuations of $1.96 million for the Naenae Hotel and $1.75m for the Hutt Park Hotel were low and did not reflect recent investments in upgrades and adding new accommodation, he said.
The hotels are being sold by private treaty.