Weighing into the recent return in pubs activity, Australian Venue Co has struck its first major deal under its new majority owners, buying 10 venues from Hallmark Hospitality in SEQ.
The Melbourne-based group has paid around $50 million for the ten pubs and nightclubs, at Brisbane, Surfers Paradise and the Gold Coast.
In the deal were two Finn McCool’s outlets, the Cavill Hotel, the Lord Alfred Hotel, Sandbar, Lefty’s Music Hall, two Retro’s nightclubs, Hey Chica and Enigma.
As part of the agreement, Hallmark’s existing teams will continue to operate the venues alongside Australian Venue Co.
Director Scott Hempel says they are “proud of the exceptional brands” they have created.
“We are confident that under the stewardship of Australian Venue Co., these venues will continue to thrive.
“Our dedicated team, who have been the backbone of these successful operations, will remain in place to continue delivering the high-quality service and memorable experiences our patrons expect.”
The privately owned group still holds Lost Kingdom and Maggie May nightclubs, and the Spotted Cow hotel.
AVC has become Australia’s second-largest pubs operator, turning over more than $1 billion annually through its portfolio of about 230 venues.
The leasehold model company was acquired by PAG Asia Capital from KKR earlier this year for circa $1.45 billion, and is said to have a hungry war chest courtesy of a new $900 million debt package.
In April CEO Paul Waterson offered that AVC could ‘comfortably’ grow by 20 venues a year. The Hallmark collection will bolster its growing presence in south-east Queensland.
“We look forward to working with the existing teams, who will stay on and continue to operate the venues,” says Waterson.
“From the high-energy Lefty’s Music Hall on Caxton Street to the traditional Finn McCool’s Irish pubs in Brisbane and the Gold Coast, each of the Hallmark Hospitality venues delivers a unique and memorable experience for local customers.”
The sale was managed by Deloitte’s Alex Jordan and HTL Property’s Andrew Jolliffe, who comment on the continued under-representation by corporate models.
“The deal sees Hallmark duly rewarded for its construction of a market leading suite of hospitality assets, and AVC continue to expand their impressive operations into what remains a hugely fragmented market nationally,” says Jolliffe.
