Australia’s biggest publican is back on the acquisition trail, picking up two more Queenslanders in a week.
Australian Leisure & Hospitality (ALH) has been in flux for much of FY20 following the announcement of a plan by parent company Woolworths to merge the hotels business with its drinks distribution business Endeavour, ahead of spinning off the new entity in the near future.
Having received shareholder approval, the ASX-listed WOW proceeded with the plan and the new Endeavour Group Limited (EGL) company was formed.
Amid speculation on plans for the ALH portfolio of 330+ pubs the group has snapped up two more, looking to capitalise on capex upside opportunities and the facility of the satellite bottleshops afforded to Queensland pubs.
The Victoria Hotel in Goondiwindi has been owner-operated by the Klein family since 2006, gaining accolades from both the Queensland and National chapters of the AHA for its pub-style accommodation, and a strong local following. Goondiwindi LGA counts over 10,000 residents, around four hours’ drive west and slightly south of Brisbane.
The pub was originally built in the 1890s, and like many of its era, named in honour of Queen Victoria. A modest single-storey structure, it was gradually expanded in the 1920s by owners at the time William and Margaret Pendock.
“Every now and again they added a few rooms – until they had fifty!” recalled daughter-in-law Nellie Pendock.
The Victoria gradually became the stately two-storey brick and timber building of today, adorned in a criss-cross of black and white exterior panelling, and offering multiple bars, bistro, a function room, gaming room with 28 EGMs, extensive accommodation upstairs, and a drive-through bottleshop.
The long-serving Kleins, looking to take a break and recognising market interest, have now divested their hard-built local to ALH for an undisclosed amount.
“Goondiwindi is a strong and proud town, so opportunity remains to continue to support the town and they will continue to support the establishment,” offers Savills Hotels’ Christian Tsalikis, agent for the sale.
Simultaneously, ALH was negotiating to purchase the Queens Beach Motor Hotel, between Townsville and Mackay, which has been owned and operated by a private consortium since 2015.
Set on a generous 11,800sqm site a stone’s throw from the beach, it is popular with locals and tourists, offering a sports bar and lounge bar, function room, gaming room with 19 EGMs, beer garden and two designated outdoor smoking areas (DOSAs), a drive-through bottleshop and 45 motel-style rooms.
Queens Beach Hotel is ALH’s first acquisition in the precinct, and joins the Victoria in ushering a revision of the group’s vast national portfolio, boding continued confidence in the broader industry amid contracting yields.
“We now are witnessing a number of national and interstate groups actively seeking pubs throughout Queensland,” offers Savills’ Leon Alaban. “The current competitive tension is now providing sellers with good reason to divest.
“Queensland’s regional pub market continues to witness strong sales activity for both strategic and-or quality assets.”
