DB Pubs has listed its large-format Railway Hotel in Armidale as it looks to focus on operations closer to home.
Built 1879 in the Victorian style, with a crested parapet and extensive iron lacework, the stoic two-storey structure is complemented by a modern extension at the rear, set on a substantial 3,819sqm site.
A full service offering, the hotel features a public bar, sports bar with TAB, gaming room holding 13 machine entitlements, a well-equipped commercial kitchen feeding the voluminous 1879 Bistro, providing seating for over 100 patrons, and a drive-through bottleshop. There is also parking for more than 60 vehicles.
The hotel holds a late trading 3am licence, but is currently open until only 10pm most nights, and 11pm on Friday and Saturday.
Benefitting from a large residential and commercial catchment, the Railway generates $80K in weekly revenue. It enjoys a strategic position as the nearest licensed venue to Armidale Base Hospital, which is the largest employer in a region counting population of approximately 30K people, bolstered by a robust agricultural economy and significant educational presence, including the esteemed University of New England.
The title also includes 800sqm of surplus land, on which has been secured a DA for construction of a 16-room motel, granted by Armidale Council in 2021.
The private Roche family’s DB Pubs P/L acquired the hotel in 2021, re-stapling the freehold and lease.
DB Pubs had planned to carry out an extensive capital works program, applying a major upgrade to the gaming offering and constructing the motel. However, the group has since decided to redirect focus toward core assets closer to its base in the Hunter Valley, prompting the sale campaign.
“There exists substantial potential for further revenue growth with a more hands-on management approach,” suggests HTL Property’s Xavier Plunkett, conducting the campaign with co-workers Ben Kennedy and Andrew Jolliffe.
Agents say the New England area is currently “one of the most sought-after regional markets” for hoteliers, and the region has seen significant market activity in the past year, such as the prior sale by DB Pubs of Armidale’s Royal Hotel, to Harley Payne, and sale of the Wicklow Hotel to the Feros Group.
The lack of available high-quality assets in the broader region gives rise to “significant interest” anticipated on the Railway, with agents offering a price guide of circa $9 million for the freehold going concern. Expressions of interest close Thursday, 1 May.
“Strong underlying revenue performance, an extensive landholding, and diversified income streams are some of the most attractive qualities for seasoned hoteliers,” adds Plunkett.
“The Railway Hotel exemplifies these attributes, offering a ‘plug-and-play’ asset coupled with considerable potential for immediate upside.”
