Australia’s largest publican has completed its first Queensland transaction since its ASX listing with Endeavour, making a Commercial decision in another strategic region.
Purchase of the Commercial Hotel Charters Towers is the first settled Sunshine State acquisition for Endeavour Group (ASX:EDV) since demerging from Woolworths last August. It follows the new entity’s first nationally acquired Hotel, being the Terrey Hills Tavern, for nearly $40 million.
The Hotel will be operated by ALH Group, the operational arm of Endeavour, which already counts over 330 pubs in its national stable.
Charters Towers is a town of 8,100+ residents, around 140 kilometres west of Townsville. The area’s major economic driver is beef production, alongside mining, tourism and education industries.
The Commercial provides Endeavour a well-balanced business with diversified revenue streams, through its family bistro, public bar, gaming room, accommodation and a well-established drive through bottle shop.
The sale, by veteran hotelier Peter Bridge, also included two adjoining properties, and a lease over part of the former Crown Hotel Motel.
“The purchasers were drawn to the opportunity as they had no current foothold within the region,” explains HTL Property’s Brent McCarthy, who negotiated the deal with colleague Glenn Price.
Parts of regional Queensland are gaining attention as something of a safe haven amid strong economic activity in select areas, with investment further buoyed by the arbitrage between the cost of debt and often far greater yields than being seen in major population areas.
Observers are finding generational publicans looking to newcomers, to cash in on years of hard work and dedication to achieve returns not previously available.
“We are seeing both extensive depth and breadth in the regional market buyer universe, with the complexion of acquisitive groups, both corporate and private in nature and complemented by individual hoteliers, at an all-time high,” says McCarthy.
“Regional Queensland has been resilient in the face of travel restrictions, which has not gone unnoticed by multiple publicans and pub groups looking to deploy capital and maximize returns,” added Price.
