The growing Don Hodge Group has snapped up the large-format Warners at the Bay, bringing another hotel opportunity to its enterprising portfolio.
Warners at the Bay was established in 1999 on a sprawling 10,790sqm block in the Central Coast community of Warners Bay, around 150km north of Sydney, 14km from Newcastle.
The pub enjoys flexible trading via a central and secondary bar, two commercial kitchens, large outdoor childrens’ covered play area, gaming room with 15 EGMs in full smoking solution, TAB, and 50 4-star motel rooms plus a large manager’s residence, with ample parking.
It sees weekly average revenue of more than $145k, the largest earner being the bottleshop, which won Best Retail Liquor Outlet at the 2017 AHA NSW Awards for Excellence.
Warners has sold for a price sources say was north of $11 million to the Don Hodge Group (DHG), which entered the pub game around 2000 as an extension to its business in industrial development, following wide success dealing second-hand trucks.
DHG operates the huge Forbes Inn and smaller, country-style Commercial Hotel, both in Forbes, after some consolidation in its pubs in the area. Both have been renovated and optimised to suit their strengths. The Group also purchased the East Hills Hotel in Sydney around seven years’ ago, which has been similarly renovated and refurbished, and holds future development potential.
DHG was attracted to the Warners’ big block, and plans to waste no time investing in the potentially underperforming aspects of the operation.
“The Warners at the Bay is a good one for us to sink our teeth into moving forward,” Don Hodge told PubTIC. “We’ll definitely refurbish and clean up the motel, and do a bit of renovation on the hotel side.”
Before any new development, Hodge wants to make use of some space to beef up immediate potential.
“It’s got a big footprint, so we’re looking to expand the gaming room. It’s just had the TAB done, but we’ll likely get TAB onboard and develop a much larger TAB and bring it out into the main area.”
Hodge remarked it was a “pleasure to deal with” Knight Frank’s Kate MacDonald and industry veteran Mike Wheatley, who brokered the off-market transaction, and foresee Hodge making a success of it.
“This pub has it all,” says MacDonald.
“The upside most certainly lies in some improvements to the gaming room and offering, and general layout of the hotel.
“[DHG] will do very well, and we look forward to following their progress.”
