One of Coles’ thriving Mackay pubs has come to market, offering an upcoming freehold going concern as the supermarket giant exits.
Located on a corner of Mackay’s main road, Gordon Street, two blocks from the river, the 4,046sqm site contains the Metropolitan Hotel, with drive-through bottleshop, seven motel rooms, a manager’s residence and parking for 47 vehicles.
The Hotel boasts a lounge, bistro with commercial kitchen, children’s activity room, and large gaming room with 40 EGMs, with 2am trading Monday to Saturday.
Coles’ Spirit Hotels has invested heavily in the Mackay region, and currently operates four pubs.
Its lease on the Metropolitan is due to expire in March 2018, and was the obvious choice to divest.
The Metropolitan reports revenue around $2.8m annually under management by Spirit, with clear upsides for an owner-operator or growing hotel group.
The soon to be vacant freehold has been listed with Savills’ Queensland director Leon Alaban, who notes the strength of the region, and the State’s continuation of capital flight into growth areas.
“Some of the larger corporate groups are looking into expanding on a national basis, which includes incorporating regional assets in their portfolios,” suggested Alaban.
Mackay and Townsville are two of the regions seeing counter-cyclical growth, their case bolstered by the advancement of projects such as the Adani mine.
Coles has been reassessing its hotel and gaming exposure, and is ready to terminate its interest at the Metropolitan when required.
“It is unusual for a major operator to divest a hotel asset, therefore this offering presents as a unique opportunity to an incoming purchaser,” adds Alaban.
The freehold of the Metropolitan Hotel is being offered via Expressions of Interest, closing Tuesday 28 November.
