Intrepid country publican Ned Kelly has listed his newly revived and bet-worthy Casino pub, the Tattersalls Hotel.
Casino is a growing town 70 kilometres inland of Byron Bay, around 700 kilometres north of Sydney, on the banks of the Richmond River. It is affectionately known as the Beef Capital of Australia, and home to 12k people and only three pubs.
Established 1859, the Tattersalls is a two-storey all-purpose local on a 1,944sqm block in the CBD. It provides public bar, bistro and commercial kitchen, function space, upstairs accommodation, bottleshop, ample parking, and with 22 machine entitlements the gaming operation is the largest in the region and “future-proofed” through its Band3 status.
Marketing reports a mix of revenue across food and beverage, gaming, accommodation and take away sales.
Kelly & Co Hotels snapped it up mid-2021 for circa $10 million from local publican Craig Lusby, who had held it for a decade.
Kelly said it was one he thought he could “fix up and unlock some value” while restoring some of the natural beauty of the historic hotel.
This has involved bringing back live entertainment, relocating the gaming operation, and overhauling the menu, which came to require replacing the whole kitchen, including the rotten floor. A courtyard bar was built to service the beer garden and foodservice operation.
An existing DA, covering work not yet done, allows for beautiful old spaces to be reinstated as function and private dining rooms. And the site holds favourable planning regulations of B3 Commercial Core zoning and 14-metre height limit.
But Kelly says the true and pleasant surprise was the accommodation. Setting their sights beyond having only permanent residents, renovated rooms began to see polished floorboards and air-conditioning.
The pub veteran notes that accommodation in these pubs can “really add significant weight” to the bottom line, via both direct and flow-on revenue in other departments. The pub has 20 rooms; so far only six rooms have been refurbished, and are reportedly booked out solid.
“I’ve got a lot of faith in the accommodation space,” says Kelly. “If I was staying on, they were going to be next.”
But although the revised foodservice and gaming are going well, and the pub’s somewhat rough reputation is clearly in the rear view mirror, Casino is the furthest chicken from the Kelly roost, representing two days in the saddle for the return trip from home.
He suggests the fact he has grown emotionally attached to the pub is “a bit unfortunate” but that “something’s got to give”.
On the cusp of a lot more time away from family, Kelly says Casino was the clear choice for saving hours in the day, but he is also looking to redeploy capital for some major upcoming projects.
Kelly Hotels properties at Old Bar and Corindi Beach both enjoy large land holdings and have DAs submitted with the relevant councils for multi-million-dollar accommodation-focused developments. The group has forged through a flood, a fire, another flood and a pandemic since taking possession at Old Bar, and suggest it’s about time to unlock some value.
Kelly says he is very excited about the work being planned at Corindi and Old Bar.
“They’re both in incredible growth corridors, so that’s where I think my time is best invested.”
Meanwhile the Tatts – rejuvenated and growing – likely has blue sky to come from the works thus far, beyond its upside potential. Sources suggest it is likely to see a sale price north of $14 million.
It is being marketed by JLL Hotels’ Greg Jeloudev and Kate MacDonald, who anticipate no shortage of suitors.
“We are expecting interest to derive from proximal hoteliers and regional portfolio owners who are seeking to acquire quality hospitality assets underpinned by strong business fundamentals,” offers Jeloudev.
The freehold going concern of the Tattersalls Hotel is being sold via Expressions of Interest, closing Wednesday, 8 March.
