The Don Hodge Group Inc has been announced as purchaser of the coveted Lake Macquarie Tavern in Mount Hutton, for a hot market $33 million.
Mount Hutton is around 140 kilometres north of Sydney, and only 14 from Newcastle CBD, and the hotel is next to Lake Macquarie Square – one of the biggest and busiest retail centres in the city of Lake Macquarie.
Pitching to family-friendly, it offers bars, Portion 31 Brasserie, gaming and a drive-through bottleshop, and a kids’ play area, with maze and slide and Playstation room, courtesy of a refurbishment in 2015.
Vendors on the sale were long-time owners and prominent industry identities Paul Crosbie and Bob Warren, who are two of the names behind hospitality-focused accounting practice Crosby Warren Sinclair, recently rebranded to Pitcher Partners Newcastle.
After more than two decades holding the title, the pair put it to market in February, expecting sale price north of $30 million.
Beyond its strong trading and location, its market appeal was underpinned by its 9,000sqm site, 30 gaming machines and late trading licence, generating a reported 65 enquires and nearly a dozen bids from major operators, family groups and investors.
The sale price is said to reflect a yield of 5.4 per cent.
The family-owned Don Hodge Group (DHG) also has business interests in trucking and aviation. Its Newcastle region hotels portfolio includes Warners at the Bay, East Hills Hotel, Forbes Inn Hotel, and the Belmont Hotel, acquired early 2019.
DHG pubs are under the purview of second-generation hotelier, Don Hodge Jr, and group operations manager Aaron Downey says things are looking good from their end.
The transaction was managed by JLL Hotels’ Ben McDonald in conjunction with Novocastrian Deane Moore, of Moore & Moore Real Estate.
“The Lake Macquarie Tavern was a highly contested asset, and my vendors are extremely happy to see youth follow in their footsteps,” offered Moore.
DHG was approached for comment on plans for the Tavern, but no reply was received in time for publication.
