The down-sizing ASX-listed Lantern Hotel Group has offloaded yet another pub, settling this week on the sale of Mudgee’s Lawson Park Hotel.
Lantern (LTN) announced its intention to sell non-core assets and rebuild the company structure in November, 2015. Since then it has divested a parcel of land in New Zealand and seven hotels, including three in the process of completion.
This has realised around $43 million for the company, representing an overall book value premium of 14 per cent, most recently being Pelathon’s purchase of the Courthouse for a 28 per cent premium.
The Lawson Park transacted for $4.05, which LTN report is in line with the 31 December, 2015 book value.
This leaves the Group with nine venues, of which seven ‘core’ hotels are owned and operated, and two are passive freeholds.
The two freeholds are Bundaberg’s Central Hotel, which is currently engaged in a sales process, and the Brisbane Hotel, which it listed in May but has since determined to keep, deciding “a better financial outcome” would be to retain it, given the current investment climate and Perth market.
Sale of the Lawson Park was conducted through Manenti Quinlan. LTN CEO John Osborne said “The campaign was tailor made to attract both investors and operators” and did draw 57 interested parties. Gerry Quinlan confirmed that after “a competitive tussle” the buyer was an unnamed investor.
The Hotel was built in 1860 and strives to deliver old-fashioned country hospitality, retaining much of its heritage and history.
The family-friendly establishment has previously won awards for its food service, and came with 15 gaming entitlements, which underpinned the value to the tune of around $1.5 million at today’s prices.