Popular destination of central western NSW, the Collie Hotel, has sold to a Melbourne-based new entrant to the industry.
Established circa 1862 as the Marthaguy Hotel – a simple, roadside half-way house for travellers – the pub morphed into the Collie Hotel in 1901, set on a generous 4,295sqm site on the edge of the busy Oxley Highway through town.
A single-story brick structure, it includes a public bar, restaurant, and large beer gardens front and rear with a kids’ playground and access to tennis courts, with a 24-hour hotel licence.
There is a three-bedroom manager’s residence on a separate lot, alongside four renovated country-style rooms for up to 14 guests that boast near full occupancy year-round.
Underutilised space provides development upside, with DA plans considered for more cabins or motel units.
Despite having no previous pub experience Tom Hancock and Emily Taylor bought the pub in 2016, occupying the manager’s residence.
The couple built on its benefit of being the only pub in a town, furthering its reputation and creating a social media presence, drawing crowds with events such as the ‘Kingswood Day’. They fostered a large merchandise outlet, complementing ongoing hosted events, including car shows, live music and rodeos, and have come to enjoy consistent year-round patronage from travellers, farm workers and contractors.
What was to be an temporary adventure became “an emotional attachment” lasting eight years, growing a full managerial team and enlisting a sponsored chef, whose partner also works at the pub.
Late 2024 the couple put the asset to market, now saddled with a new young family and looking for a change of lifestyle, offering a solid combination of strong operational performance, untapped development potential and multiple income streams.
Stepping into big shoes is Smith Shah, from Melbourne, who owns motels in regional Victoria and Walgett, in NSW, and has taken the plunge into his first pub.
It’s expected Shah will expand the hotel’s accommodation to meet rising demand, particularly as infrastructure projects such as the inland rail system and nearby wind farm develop, and the Collie is likely to benefit from fresh energy and ideas.
Collie is around 80 kilometres north-west of Dubbo, about six hours’ drive from Sydney, and expansion will enhance its role as the town’s social and entertainment hub.
“This sale underscores the growing demand for well-positioned regional hospitality assets, particularly those offering strong operational performance and upside potential,” offers Savills ANZ’s Hugo Weston, who hails from the region.
Agents would not disclose the sale price, however the freehold going concern was looking to offers north of $1.7 million, and is said to have achieved an exceptional 29 per cent attention-grabbing yield.
“A yield of this nature is exceptional for buyers in today’s market and highlights the resilience and appeal of regional pubs as a viable investment class,” furthers Weston.
“With Sydney being such a tightly held market, we’re seeing more investors look to regional areas for better returns, and assets like the Collie Hotel are leading that charge.”
