Frenetic bush hotelier Ned Kelly has thrown up his hands in the Hunter, offering the freeholds of a pair of Scone pubs poised for potential.
Vendor on the assets is Kelly & Co Hotels, fronted by plundering publican Ned Kelly, who purchased the Royal Hotel while pubs were shut, mid-2020, and the Belmore Hotel early 2022.
It is no accident that the pubs pubs are close, on the town’s eponymous main thoroughfare, Kelly Street. The Royal, on circa 3,000 sqm, provides 10 modernised motel suites and 19 pub rooms, and holds nine gaming entitlements. The well-presented Belmore, adjacent to a large public carpark, includes a large beer garden, nine accommodation rooms, eight gaming entitlements and a late-trading 1am licence.
Besieged with too many opportunities, notably a $5 million DA for expansion at the Amble Inn in Corindi Beach, which was purchased in 2022 with plans to capitalise on the distinct lack of accommodation options in the area, and the Tavern at Old Bar, which he says is “screaming” to have something done, Kelly says it makes more sense to sell up at Scone.
“I’ve just got too many projects, and something has to give,” he laments. “I’ve got to prioritise those that need the most.”
The Royal is ready to ride, holding an approved DA for a new gaming room, altering the floorplan and improving accessibility while enabling additional bistro space. Further upside is possible in general modernisation and cosmetic improvement in the bar and pub rooms, but there is also scope for additional motel accommodation suites (STCA).
At The Belmore, there is an approved DA for a further eight ensuited accommodation rooms, concertina windows in the southern dining lounge, and for an outdoor kids’ area.
Having orchestrated the portfolio and potential and gotten the hard work and approvals done, Kelly suggests there may be considerable “seller’s remorse” after he’s out.
“I identified the opportunity in a town that doesn’t have a dominant pub, with scattered gaming and huge demand for accommodation through the equine industry, and put plans in place to lift both – it’s four-fifths done!”
His sticking point, he says, is the lack of capital backing to do all projects at once, and the complementary portfolio in Scone offers huge flexibility.
“It frustrates me; I can see the vision, but we’re not doing it as trying to do all these things at once. I need to focus and execute.
“I’ve thought about taking on partners, but decided it’s better to lose and back out of one town and do the others on my own.”
Scone is affectionately known as the horse capital of Australia, boasting strong local economic drivers including agricultural, mining and renewable energy. The region is expecting another 100k residents by 2041, and there are substantial projects in the works, such as the Upper Hunter Energy Park, the Hunter Regional Transport Plan 2041 and the Scone Racetrack and Equine Hospital upgrade.
The two pubs are being marketed by JLL Hotels’ Greg Jeloudev, who stresses that rarely do such opportunities arise, with a collective total of 17 gaming entitlements, in a highly desirable precinct such as the Upper Hunter.
“Both the Royal and Belmore Hotel offer their own customised hospitality experience that ultimately cover the entire Scone market, although both assets are offered to market individually.”
The freehold going concerns of the Royal and Belmore hotels in Scone are being sold individually or in-one-line via Expressions of Interest, closing Wednesday, 26 April.
