ALH has divested the freehold going concern of its Brighton Hotel in Mandurah, a strong auction drawing $3.7m for the former Compass pub.
Australian Leisure & Hospitality (ALH) bought up the entire 12-venue portfolio of the failed Compass Group for $86 million in 2011, and has continued operation since on all but one.
The Brighton sits on 1300sqm in an area that has begun seeing the benefits of large-scale residential subdivision and development of around a decade ago, which is now established and occupied.
While it boasts consistent revenue over $50k, with its restaurant, rear public bar and courtyard, and upstairs function area with sweeping views, the Brighton does not have a take-away bottleshop.
Also, it is proximate to one of ALH’s other large hotels with a Dan Murphy’s, making it the Group’s obvious choice for divestment.
“The venue is ideally suited to a hands-on operator that will leverage Mandurah’s growing population to further boost turnover and profitability,” suggested CBRE’s Ryan McGinnity, charged with marketing the listing.
Yesterday (7 December) the pub went to auction, attracting 50 attendees and multiple bidders.
The final bid of $3.675m came from a private buyer reportedly new to the hospitality sector.
“We were very pleased with the auction turnout,” reports McGinnity. “Bidding was contested amongst four parties, with both buyer and seller very pleased with the end result.”
Settlement is expected in February, subject to the successful transfer of the liquor licence.