One of Newcastle’s classy old dames, the Grand Hotel, is for sale as long-term owner Mike Angus looks to retirement.
Built 1891, the two-storey Grand Hotel is a classic Victorian-era structure on a 340sqm block, stealing the stage as the pick of the 50-odd hotels in the city at the time. Embodying a ‘yesteryear’ charm, it comprises two bars, commercial kitchen and bistro, gaming room with six machines, generous function room, and 17 recently refurbished accommodation rooms, each with ensuites.
The Grand is one of only three pubs in Newcastle East, and only two blocks from the beach. The area is undergoing significant transformation, seen in Iris Group’s massive Newcastle development, just a couple of blocks away, and a large-scale University development across the street from the pub.
Newcastle is already the largest regional city in NSW, and is experiencing an enormous population surge in the wake of COVID-19, making the Grand significant in terms of its location as well as its potential as a busy pub in a growing precinct.
Mike Angus has owned and operated the Grand since 1988. He briefly tested the sale waters in 2018, but is now ready to retire and reportedly committed to divesting, to spend more time with family.
The old Grand is Angus’ last pub asset, and after more than three decades it stands to benefit from a fresh perspective.
The pub currently does not trade on Sundays, and closes early most nights despite its 3am licence. Angus also previously held a DA for a two-storey addition above, to add 15 more rooms.
Market conditions in Australian pub real estate continue to drive yields down and prices up. Some of the strongest activity has been in large population centres north of Sydney, particularly the northern rivers region.
The Grand Hotel is likely to see sale price north of $6 million, underpinned by the value of its real estate.
Angus engaged Newcastle-based Deane Moore, of Moore & Moore Real Estate, in conjunction with JLL Hotels’ Kate MacDonald and Ben McDonald.
“I’m excited for the vendor, and believe the asset will prove an excellent opportunity for someone wanting to enter the Newcastle market, particularly given the very limited number of opportunities available,” suggests Moore.
The freehold going concern of the Grand Hotel is being sold via an Expressions of Interest campaign, closing Thursday, 15 July.
