The Bay Hotel on the Mornington Peninsula has come on the market, and is likely to attract more investment capital into the pub sector.
Prominently positioned in the heart of Main Street, Mornington, the hotel freehold is tipped to bring in more than $6 million as another landlord determines the market is prime for best price.
The hotel’s tenant is under lease until 2021, with another 20 year option, with the $370,000 annual rental income representing around a six per cent yield on the investment property.
Marketed through Melbourne agents Vinci Carbone Property and Jacobs & Lowe, the 1880s hotel will go to auction onsite on 27 February.
The agents present that Melbourne’s hotel investment market has “remained strong for many years… with income security combined with remarkable underlying land value”.
Speaking to PubTIC, Joseph Carbone reports “some success in hospitality”, most commonly managing freehold investments such as this campaign.
“There’s considerable investor interest in this sector, on the basis that hotels tend to be in prominent locations. Investors with longer-term strategies are happy to invest in locations.
“What’s appealing with the Bay Hotel is certainly its location – in the heart of a highly successful and sought after retail strip.”
