The freehold going concern of the award-winning Railway Hotel in Parkes has come to market amid major local development and opportunity.
The two-storey red brick Railway was built 1915, sporting the traditional stilted veranda on three sides. It occupies a block of over 2,000sqm and holds a 24-hour licence and six PMEs.
The pub offers a public bar, TAB and Keno, bistro, two commercial kitchens, bar and event space ‘Hart Bar’ on the first floor, and a comfortable three-bedroom manager’s residence. There is no guest accommodation, following a revamp of the Hotel decades ago where it was all repurposed.
Sales literature for the asset reports over $50,000 in average weekly revenue for FY21 to date.
Bianca Sheridan and Kasie Ferguson purchased the pub together in late 2010. Their emphasis on the foodservice operation saw the business outgrow the allotted space, leading to a major renovation in 2016 that brought a brand new kitchen to accommodate the growth, and transformation of the underutilised space on the second level.
Here Hart Bar was born, offering an intimate space that incorporates the veranda, seating up to 100 people or catering to up to 180 for stand-up functions.
The foodservice aspect of the business continued to grow, leading to the women taking the AHA NSW Award in 2019 for Best Regional Casual Dining.
“We have always strived to put ourselves on the map as the pub to eat at in Parkes,” offers Sheridan.
By the end of last year, the partners had initiated an online ordering system to help meet the demands of takeaway orders.
When the pandemic struck they quickly pivoted to launch food delivery service ‘Railway Eats’, in March. While virtually all dining outlets in Parkes were completely closed during the shutdown, they serviced take away, pick-up and delivery orders totalling 14,000 meals in the 70 days the regular pub was closed.
The delivery service has continued since the Railway re-opened for trade, and the average number of meals being served per week has increased from 1,300 in (Q1 of 2020) to 2,400 during the September quarter.
Thinking of their three young children, Sheridan and Ferguson have decided a decade may be enough.
“Our dream now, after 10 wonderful years of building our business, is to pass it on to someone else to enjoy so we can begin a new life with our young family.”
Parkes is around five hours’ drive west of Sydney or three hours north of Canberra, on major inland touring route the Newell Highway.
Local population counts 15,000 but is expected to as much as double over the next 10 years, largely as a result of unprecedented investment by all three levels of Government, seen in the $300 million rail upgrade from Parkes to Narromine, $185 million Parkes Special Activation Precinct, and $180 million Newell Highway Bypass Project, beginning in 2021, as well as major private sector developments in Parkes Terminal and Northparkes Mines.
The entry-level freehold is being marketed with JLL Hotels in conjunction with Moore & Moore Real Estate, noting upside in improvement in the gaming room, and in overall management controls.
In the past year the gaming operation has risen over 100 places in the Liquor & Gaming list of NSW pubs, to 982, yet lacks a full smoking solution, TITO and CRT. The precinct is zoned Band 3 (Red), as gaming machine entitlements are seeing market value circa $250k each.
JLL’s Kate MacDonald suggests The Railway is a perfect “turn-key opportunity” for new entrants or groups and expects interest levels to be high.
“Very rarely does a hotel of this quality, in this price bracket, in a major regional town, become available.
“The hard work involved in building a strong brand has already been done, however there are simple quick wins obtainable for growth.”
The Railway Hotel Parkes is being sold via a formal Expressions of Interest Campaign, closing Wednesday, 18 November.
