The heart of a regional hub in WA has hit the market, with the 200-room Newman Hotel likely to attract big interest for a small town.
Around 1200 kilometres north of Perth, the town of Newman is slated by the State Government for expansion over the next two decades that will see it go from 5,000 to 15,000 residents.
A regional hub for mining resources, the Hotel enjoys occupancy over 80 per cent in its 204 guest rooms, and has adapted into “a primarily food and beverage-focused operation” in the wake of the downturn in mining.
“The hotel has been substantially upgraded from the original hotel and is now ready to be run as a great pub and accommodation business, with the potential to service an expanded population of approximately 15,000 in the future,” says CBRE Hotel’s Ryan McGinnity, who is marketing the property in conjunction with Graeme Clarke of Burgess Rawson.
“Newman, like most towns, faced significant change in market dynamics following the mining slowdown, however the hotel is well-positioned to capitalise on a new tranche of projects earmarked for the area.”
Mining is still a major focus in the district, with nine mines surrounding Newman. BHP Billiton’s recent announcement to expand one of its Newman mines is one of a number of recently approved projects that will ensure sustained activity in the town.
Other infrastructure projects in the area include a new shopping centre directly next to the hotel, which is currently under construction.
Built in the 1960s, nowadays the Hotel boasts a TAB, beer garden, multiple bars, function rooms, bistro and no less than three commercial kitchens plus its accommodation on a massive 2.16 Ha block. The title offers opportunity for part of this land to be re-purposed.
Agents report current turnover of around $1.2 million per month, and an alluring $1.25 million annual depreciation on the business, which unlike many regional properties is not “in need of significant capital works”.
The vendor is Marcus Gilmore, who says the decision to sell the popular local watering hole is “bittersweet” ahead of his relocating to Perth to concentrate on his business, MLG Realty.
The Newman Hotel is being offered for sale by Offers to Purchase – ending close of business Thursday, 3 September.
