The ACCC has ruled Australia’s largest publican is allowed to proceed with the acquisition of the Beachfront Hotel.
News came in May 2022 that Endeavour Group (ASX:EDG) had signed to buy the popular hangout just north of Darwin. The deal was one of the first for the board of the newly-listed entity.
“It is an iconic pub and an important part of the local community, and we look forward to working with the existing team to build on the pub’s popularity while maintaining the qualities that make it so well-loved today,” offered Mario Volpe, managing director of EDG’s hotels arm, ALH.
ALH had previously attempted to open a new Dan Murphy’s in Darwin. The move had received a lot of negative media, and after extensive community consultation was not approved.
The group holds several hotels and bottleshops in the region, and concerns were again raised, citing sale of the pub might reduce competition in the area. The Australian Competition and Consumer Commission (ACCC) began a lengthy investigation into the potential conflict.
After what has amounted to nearly a year-long approval process, late February the ACCC passed down its decision green-lighting the sale, finding there was still plenty of competition in the area.
Vendor on the deal was former President of the AHA NT and integral part of Darwin hospitality, Doug Sallis. After 22 years operating the pub, he listed it in March, boasting annual revenue exceeding $10 million.
The Hotel occupies a 7,000sqm site close to the Darwin CBD, providing public bar, beach bar, bistro, TAB and gaming, popular beer garden, and a dual lane drive-through bottleshop. Prior recipient of an award for Best Sports Bar, the property also holds unparalleled ocean views across Nightcliff Beach.
It enjoys a strong local catchment and is set to benefit from $70+ billion in pending local private and government infrastructure.
Sale was through HTL Property’s Glenn Price and Brent McCarthy, who offered congratulations to both vendor and buyer on the approval, and suggest the northern NT coastal transaction demonstrates the Sydney-based company’s reach.
Endeavour already counts more than 220 staff across 20 stores and pubs in the Territory, and says the acquisition furthers its investment in local communities; the group also cites plans to invest in its Darwin pubs the Parap Tavern and the Airport Hotel.
Settlement on the Beach Hotel will finalise in coming weeks.
