Michael and Megan Chappell have traded up, divesting their popular pub at Narrabri to ALH and securing big new digs at Alstonville.
The stately two-storey Federation-style Tattersalls Hotel at Narrabri was built 1912. Occupying a 1,712sqm block, it boasts multiple revenue streams including gaming with 15 PMEs and a huge drive through bottleshop doing consistent trade.
The Chappells bought the freehold pub from Ian Negline after selling their leasehold interest on the Royal Hotel at Oberon.
Australian Leisure & Hospitality (ALH) operates nearly 340 pubs around the country and was attracted to prospects in Narrabri, a town of 6,500 people at the junction of the busy Newell and Kamilaroi Highways that has seen recent provisional approval for Santos’ $3.6bn natural gas project.
Beyond the operator upside in delivering the already approved smoking solution to the Tatts, ALH, a division of Woolworths majority-owned Endeavour Drinks, is planning to rebrand the bottleshop to a BWS to capitalise on Endeavour’s buying power and distribution network. ALH declined to comment further.
The freehold going concern is understood to have sold for $4.7 million, which is thought to be a record high for the town.
“What Mick and Megan achieved in their relatively short time at the Tatts was nothing short of remarkable,” offers Pub Brokers & Advisory (PBA) director Nick Butler.
“They purchased a solid, honest country pub and through sheer hard work they’ve turned it into a juggernaut.
“Their story gives faith to any young couple starting out in the pub game and while they’re leaving the Tatts with upside that the next owners will surely realise, their next chapter involves owning a pub they only dreamed of buying when they took the keys in Narrabri.”
Having freed up a swag of capital, the Chappells engaged PBA through a buyer’s agency agreement to approach Dr Aldo Castagna – freehold owner of the Federal Hotel at Alstonville, which was being run under management prior to the pandemic.
Reopening for just a month in June, the Federal closed again in July for a multi-million-dollar renovation.
A genuine focal point for the community and something of a destination for travellers, local rags had been opining for months about when or if Alstonville’s iconic pub – the only one in town – would “ever reopen”.
Known locally as The Feddy, the historic two-storey hotel, with elegant wrap-around iron lacework veranda, now sports a brand-new kitchen and “significant cosmetic improvements” across the property, indoor and outdoor facilities, and gaming with 19 PMEs.
While the sale price was not disclosed, the Chappells are confident it reflects the recent facelift and reputation of the pub. Upside remains for them in delivering a better gaming solution and they are confident of capital growth in short order.
The couple had long coveted The Feddy, and sought to join family living in the town. This influenced their decision to opt for an agency agreement through PB&A, with Butler and partner Steve Pursell, chasing the pub they will “likely stay in forever”.
“We need to make it clear who we’re working for in any transaction,” states Butler, “And when we are asked to secure a desired property for one of our clients, it’s usually desired by others.
“The rules are very clear – you sign a BA with us and we’re agreeing to chase that asset for you, and only you.
“I look forward to seeing The Feddy re-opened with two of the best publicans I’ve met at the helm.”
We spent over 26 happy years at the Tatts The Patrons are what makes the Tatts great as has been proven since 1912