The Kelly group shake-up continues with the outfit putting up the character-laden Centennial Hotel, in the town on the ten-dollar note.
Known affectionately as the ‘Cenny Hotel’, the pub inhabits a prominent corner site in the historic 19th century gold rush town of Gulgong.
Holding a 1,345sqm site, it counts a single bar operation, bistro, gaming room with six entitlements, and seven ensuited accommodation rooms plus an onsite carpark.
Kelly & Co Hotels purchased the Cenny at the start of 2020. Marking the group’s second new pub in as many weeks, following recent acquisition of the Globe Hotel Rylstone, Rodney ‘Ned’ Kelly explained he simply “had to take it” as pubs so rarely come up in the area.
The regional pub specialist subsequently executed plans to reinvent the menu, installing a 100 per cent Mudgee region wine list and serving local produce, and recently a new cool room.
Reportedly ranked 380 in the state on a profit per machine basis, there is substantial upside presented through an approved DA to extend the current gaming lounge and approval to increase the entitlement threshold to eight.
Gulgong is found nearly 300 kilometres northwest of Sydney, in a highly productive regional area around half an hour’s drive north of Mudgee, enjoying economic drivers in mining, agriculture and tourism.
Deemed historically significant, known to have been the childhood stomping ground of the legendary Henry Lawson, the town was previously featured on Australian currency – the paper $10 note – and retains much of its 19th century urban fabric.
The Centennial has similarly remained true to the period, adorned with bush pub essentials including rabbit traps and a mounted boar head. Kelly says it is packed with genuine authenticity.
“It’s a cracking little Aussie pub, with character coming out of its ears and some of the best locals you’d hope to meet.”
After a period of rapid expansion, Kelly has pivoted to focus on a major development at his pub in the sublimely titled precinct of Old Bar, and has set about reluctantly clearing some of the titles from the book, including listing his development opportunity at Corindi Beach earlier this month, as he admits to “getting realistic” about timeframes.
“We’re really proud of what we’ve achieved at the Cenny in our four years and there’s plenty of growth left there,” he says.
“I think, like many pubs, accommodation is a huge opportunity – especially being in the vineyards, and a nine-iron from the two mines.
“Yep, I will regret this one as well,” he replies. “But you can’t have your cake and eat it too.”
While no sale price guidance was provided, marketing literature reports weekly sales exceeding $53k in a campaign through JLL Hotel’s Greg Jeloudev and Edward Browne, who suggest it could be the best entry-level hotel opportunity of the year.
“Not only is this a well performing business, but the significant population growth forecast for the area in the coming years considerably increases the asset’s trading potential,” notes Jeloudev.
The Centennial Hotel Gulgong freehold going concern is for sale via Expressions of Interest, closing Wednesday, 18 October.
