Veteran hotelier Greg Maitland has listed his large-format Paradise Hotel in suburban Adelaide, offering potential in a robust hospitality complex.
The hotel is located on a highly strategic 8,500sqm lot on Lower North East Road, in Paradise, and is equipped with multiple trading areas, providing public bar with TAB facilities, a spacious bistro and recently upgraded commercial kitchen, gaming lounge with 33 EGMs that is licensed for 40, versatile function spaces, an outdoor dining area and parking for 104 cars.
The asset includes 2,500sqm of unused, undeveloped land, on a separate title. The favourable ‘Urban Corridor’ zoning offers strong potential for future development and alternative uses, such as construction of aged care or childcare facilities, residential development, or student accommodation (STCA).
Parts of the property were recently refurbished, but scope remains to apply capex and enjoy uplift in the public bar and other parts of the hotel.
Revenue is led by gaming, bolstered by significant food and beverage turnover – both said to be on “a trajectory of growth”.
Maitland’s GM hotels – formerly under the banner of Independent Pub Group – has previously owned and operated pubs across South Australia and Queensland. Now contained to SA, the group has held the Paradise Hotel since 2009 and also keeps the Whitehorse Inn and Pier Glenelg.
Having spent a decade and a half in Paradise, Maitland has elected to further consolidate and take advantage of the widespread investment interest in South Australian pubs.
The freehold going concern is being marketed by JLL Hotel’s Will Connolly, Ben McDonald and Ben Parkinson, who note its avenues for growth, potentially coming from further capex, the addition of gaming machines, or a new development.
Agents expect strong national interest and report already receiving a healthy level of enquiry from locals, drawn to the opportunity, as well as national hotel groups.
“We’ve witnessed a remarkable surge of interstate capital entering the South Australian pub market in recent years, with many of our nation’s more prolific hotel groups strategically targeting assets of significant operational scale, recognizing both the favourable regulatory environment and value proposition on offer,” offers Connolly.
The Paradise Hotel is to be sold via Expressions of Interest, closing Wednesday, 13 August.
