The historic Clocktower Hotel in Grafton has been sold by the Dougherty family, who bought a shell, built a pub and operated it for 18 years.
In 1860 the Commercial Hotel was established on the 1,221sqm site now held by the Clocktower Hotel, on the corner of Prince and Pound streets in the heart of Grafton. In 1895 it was renamed the Freemasons Hotel, before changing ownership and becoming the Parkview Hotel in 1977.
Mid-2002 the Parkview was destroyed by fire and the site remained vacant for several years.
In 2007 the Dougherty family purchased the land, transferred a liquor licence from their long-owned Royal Tavern, and oversaw construction of the new Clocktower Hotel, named in honour of the town’s iconic clock tower.
Completed in 2008, the new brick hotel was designed to complement Grafton’s historic streetscape, taking inspiration from local landmarks. The following year it was awarded Best New/Redeveloped Hotel – Country.
Residing on a prominent corner in the CBD, with over 80 metres of frontage and high pedestrian traffic, the business enjoys multiple revenue streams, featuring a public bar, sports bars with high-performing TAB, commercial kitchen, bistro, café, and gaming room with 18 machines (entitlements).
It enjoys proximity to a large council car park for 250-plus vehicles, and upside is seen in extended trading, upgrades and improved access.
Presented in “excellent condition”, reporting strong historical performance and requiring minimal ongoing capex, the freehold going concern marked a strong opportunity in the rapidly growing coastal market.
A sale campaign was conducted by Hugo Weston of Savills Australia, who says the unnamed buyer paid $10.5 million for the asset, representing an 8.4 per cent yield.
Weston notes investors recognising upside in the northern rivers precinct of Grafton, resulting in a “strong result” for NSW coastal pubs. “The sale of the Clocktower Hotel is a strong signal of confidence in the region and highlights the continued growth we’re seeing across the NSW coast.”
