The Snowline Hotel of the Victorian highlands has sold to a bold new entrant to the industry, as prime regional precincts continue to thrive.
Located in Harrietville, between the Mt Hotham ski fields and Bright, which is no longer reliant on snow season and busy every weekend, the Hotel holds a generous 3,315sqm lot.
It offers bars, dining, large indoor and outdoor areas, and 16 well-appointed accommodation rooms, under a 1am general licence.
Last year long-time owners and former operators Bennett and Anna Mountjoy listed the pub. They had assembled a crack management team and taken a step back from day-to-day in recent years. Bennet noted the area had become a “tourism mecca”.
“The lifestyle factor is a real drawcard.”
It has sold now to Paul Hangan, who resides in Melbourne, where he owns and operates a construction business. He has a business partner who manages operations at two caravan parks in Bright, another two nearby, and recently a pub at Wandiligong, purchased at the same time as Harrietville.
“We’re really happy about it,” says Hangan. “I love country pubs. I’ve never owned a pub before.”
The Snowline was listed boasting upside opportunities to increase the trading footprint (STCA) or introduce other tourism-attracting features, such as brewing, distilling, or a café, but Hangan is ruling most of these out – at least for now.
He sees first priorities as covering the deck and refreshing inside, likely including a new but suitably ‘old-looking’ bar. Harrietville is around 20 kilometres from Bright, and Wandiligong about four, and there is a brewery and gin distillery in Bright and wineries all around, so he feels the key is more about getting people to make the trip to the satellite towns.
On that basis he doesn’t see a need to change or add anything, but improve awareness.
“We don’t need to make it something it’s not at the moment. We just need to fix it up and do strategic marketing to people already in area.”
Hangan was negotiating on both the Snowline and Wandi Pub at the same time and reports they both transacted and settled within two weeks of each other – right before the peak season – blessing them with two busy pubs and zero experience in the game.
What they did have was strong knowledge of the area, and a lot of staff. Both pubs are in locations people want to work in, and the company holds a lot of contacts through the caravan parks, and a lot of workers live onsite.
Hangan says he knew they could cover whatever came up, but it has “been a bit hectic” for the past few months.
There has been a ‘Wandi pub’ since 1864, originally called Madison’s. The new owners began renovating right away, albeit on a reduced footprint with popup bars, but after the frantic five weeks following Christmas passed, it was promptly shut for a top-to-bottom renovation.
This was largely needed simply to cope with its anticipated demand. While the interior is being left sympathetic to its structure, it is being opened up to provide more functional space suited to its level of trade.
A popular pub – in the town last seen before heading up the hill to Mt Hotham – the Snowline understandably sees 100 per cent occupancy for four months throughout the snow season. It is fully functional and Hangan suggests they will probably not close it, although there will be a period of disruption while some works are done inside.
Its accommodation helped motivate their decision to buy, and aiming for 20 per cent YOY growth will probably come largely through more marketing.
Both pubs are expected to see at least a half-million in capex in the coming years, but Hangan reports their construction background means they were less concerned about works needed, and could be a bit more relaxed about when reopening happened.
He says they haven’t yet realised all crossover advantages likely to come from the businesses but believes there “will be quite a bit”, including employment.
While not specifically in the market for more pubs yet, they would consider if the right opportunity came up, in the area.
In the meantime, the new publican is liking the appeal of the assets and what draws patrons.
“Pubs have different identities in different area, but in a country tourist area like this, it’s predominantly that ‘pub food experience-plus’,” he suggests.
Sales literature cited the multiple income streams at the Snowline, seeing weeks during 2022 surpassing $100k in revenue, and sale price was approaching $3 million.
CBRE’s Mat George brokered the deal and notes the sale is testament to the popularity of the area and the growth in both tourism and residency seen in Bright and surrounds in recent years.
“Pubs in strong regional locations with a good mix of departmental revenues are enjoying some long-deserved reward with the increase in domestic visitation and spend per head,” says George.
