Sydney publican Mark Duggan has teamed with Gary O’Donnell to secure the large-format North Nowra Tavern for close to $12 million.
Duggan operates Burwood’s Avondale Hotel, and O’Donnell brings local knowledge, having formerly run Nowra’s Archer Hotel, before selling it to ALH.
The sale is a continuation of the expansions being seen by metro operators, the partnership investing in the opportunity afforded by the vendors, a Brisbane-based consortium of three hotel operators.
Having acquired the North Nowra Tavern (NNT) around three years ago at auction, the trio repositioned the hotel, executing the first of three stages of a refurbishment plan. Owner-director Michael Lucas said at the time of listing they had put a “hell of a lot of money” into the pub, and begun realising uplift.
The NNT comprises a public bar, bistro, drive-through bottleshop and gaming operation holding 22 EGMs, turning over more than $7.4m annually.
Located on 6,019sqm in Nowra, around 80 kilometres south of Wollongong, it holds varied potential in an area benefitting from Government spending and residential and commercial development, and already experiencing a shortage in accommodation.
The sale campaign, managed by CBRE Hotels’ national director Daniel Dragicevich and manager Ben McDonald, noted the “strong upward trend of future earnings” and further upside potential.
“The ongoing search for yield in this low interest rate environment continues to fuel demand in coastal pub markets that are easily accessible from Sydney and present stable fundamentals for future earnings growth,” reports Dragicevich.
Duggan and O’Donnell declined to comment on any future plans for the NNT at this stage.
