A large-format hotel in one of Australia’s largest mining regions has come onto the market via receivers, with re-focused opportunity.
The freehold going concern of the recently refurbished Newman Hotel occupies a sprawling 2.6-hectare site in Newman – approximately 1200 kilometres north of Perth, in Western Australia’s Pilbara region.
Located in the centre of town, the Hotel features three independent food and beverage outlets with three commercial kitchens, a beer garden, Newman’s only fully-serviced TAB, and 200 accommodation rooms and extensive operation facilities.
Since the downturn in the resources economy, it has shifted to a greater focus on food & bev, and last financial year enjoyed turnover of over $13 million.
The Newman is being marketed by JLL Hotels national director – investment sales, John Musca, vice-president investment sales Mathew George, and WA director Philip Fogliani.
“The hotel, which is virtually without peer and has undergone extensive renovations and expansion in recent years, offers an incoming owner significant tax depreciation benefits,” said George.
Although pace has slowed markedly in mining, Newman is central to Australia’s iron ore hub and home to BHP’s Whaleback mine, which is the largest open cut iron ore mine in the world. Musca notes Newman is also central to a number of local attractions, such as Karajini National Park and Marble Bar.
“Indicative of the region’s appeal is the fact that more than 1.3 million international and domestic visitors travelled to the north-west in 2015, recording over 13.4 million visitor nights,” he said.
The region is also slated for further development by the State government, with the population expected to grow to around 15,000 in coming years. To this end, BHP has invested heavily in ongoing facilities, including the construction of a new shopping centre in the town expected to be completed later this year.
The Newman Hotel is on offer via public tender, on behalf of receivers and managers KordaMentha.
