Ned Kelly and friends have struck again, swooping on the re-stapled Criterion Hotel in the wild Weston growth corridor of the Hunter Valley.
The freehold has been owned by Sydney-based Peter Calligeros, owner-operator of Surry Hills’ Trinity Bar and both the Rag & Famish and Treehouse Hotel in North Sydney, while the Criterion has been operated in recent years by Newcastle-based John Campbell, who owns the Fire Station Hotel in Wallsend, around 30 kilometres’ away.
Kelly & Co Hotels secured the business and freehold together in a $4 million deal that suited all involved.
“Some people think this market is a case of the big consuming the small, but in reality, it is more likely the fast consuming the slow,” suggested Calligeros. “That is what Ned and Corey were able to deliver, and I wish them both well.”
Located in the lower Hunter Valley, around 40 kilometres north-west of Newcastle, the Hotel provides a public bar and bistro, large beer garden, gaming with 15 machines, 10 accommodation rooms and a 3am licence.
It’s also proximate to Kelly’s Royal purchase in Scone, in July, furthering the group’s operational advantages.
“I’ve got a huge amount of faith in that lower Hunter growth corridor, and delighted with the purchase,” offers Kelly, original co-founder of well-known Riversdale group, who has been pursuing his own portfolio since leaving in 2014 and now counts six strong regional operations.
The deal was managed by HTL Property’s Blake Edwards, who reports market conditions putting further pressure on yields amid pent-up demand as the year draws to a close.
“This sale has come along a result of a surge in post-COVID-19 buying activity, driven by strong gaming revenue, low interest rates and a general feeling of optimism within the industry,” offers Edwards.
Kelly takes the Criterion with help from silent investor Corey Dunn – making his debut in pub ownership.
The pair believe there is both upside and further potential in the classic two-storey Federation pub, which virtually owns a large local catchment of residents.
“A combination of population boom and factors made the Criterion a compelling buy,” adds Kelly. “This one we can actually have a crack at.
“There have been that many pubs closed in the area, it’s the last man standing … it’s the gold medal-winning Steve Bradbury of pubs!”
Go Ned