The good-time Union Jack Hotel and backpackers in Cairns have come to market, as the passive owner looks to downsize for retirement.
A public house was built on the site in the tropical Far North Queensland town in 1926, known as ‘Rusty’s Pub’. It was later renamed ‘The Underdog’ then ‘Shenannigans’ before finding its current moniker, known by locals as ‘The Jack’.
It occupies a generous 1,457sqm lot on the busy corner of Sheridan and Spence Streets in the heart of Cairns, providing a main bar, back bar, bistro and dining area, gaming room with 25 EGMs, and beer garden.
There are 18 hotel rooms on level one, plus 15 rooms in the adjoining backpacker hostel ‘Jack House’, which is included in the sale, on a 653sqm lot on Spence Street. Together they offer 131 backpacker beds.
The Jack is the only pub-style backpacker hostel in Cairns and has seen recent capital injection around $2 million, in works to the roof, beer garden and veranda.
Cairns is considered the gateway to the Great Barrier Reef and Daintree, and the only place in Australia boasting two UNESCO World Heritage Sites located side-by-side, attracting repeat visitation from both domestic and international travellers.
Cairns Regional Council reports the local tourism market has recovered post-pandemic, with domestic passenger numbers returning to pre-COVID levels earlier this year, averaging more than 80,000 passenger movements per week.
Future tourism is underpinned by significant infrastructure projects across Cairns including the refurbishment and expansion of Cairns Convention Centre, the Esplanade Dining Precinct in the city centre, and the expansion of CQUniversity.
Local property investor Ken Harris bought the property in 2011, repositioning it from the Irish theme to an English pub with a focus on sport and live music, and changing its name to the Union Jack Hotel.
While Harris has owned other pubs, he is not a traditional publican, and bought it as a property investment, operating it under management. Now looking to retire, he is said to be scaling back his business commitments.
The capex and improvements at the Hotel bode well for an incoming operator to capitalise on revenue growth.
“The asset is located on the busiest intersection in Cairns CBD and has the largest capacity for a hotel in the inner-city area at 800 patrons – providing a solid platform for trade upside for the new owner,” suggests Savills’ Leon Alaban, marketing the pub.
The freehold going concern of the Union Jack Hotel and Jack House are being sold through an Expressions of Interest campaign, closing Tuesday, 22 November.
