Kelly & Co Hotels has exited Scone, selling the Belmore Hotel to the same growing Hunter Valley group that recently bought the nearby Royal Hotel.
The Belmore is an impressive suburban local, with sandstone exterior and original pressed tin ceilings. It has a large beer garden, gaming room with eight machines, nine accommodation rooms and late-trading 1am licence, on a 1,555sqm site adjacent to a Woolworths supermarket and large public carpark.
In March the pub was put to market along with the group’s Royal Hotel, Scone. The Belmore also offered approved DA for construction of more ensuited accommodation rooms, taking the total count to 16, modifications in the southern dining lounge, and an outdoor kids’ area.
Known as the horse capital of Australia, Scone boasts strong local economic drivers and substantial projects in the works, and expects another 100k residents by 2041.
The complementary portfolio sale offered huge flexibility.
Ned Kelly bought the Royal Hotel mid-2020, while pubs were shut, and the Belmore Hotel in early 2022.
But besieged with opportunities, notably a big expansion at his Amble Inn, purchased in 2022, and his Tavern at Old Bar, the country publican said “something has to give” and it made more sense to sell up at Scone.
“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,” he furthered on the dual sale.
The buyer of both pubs is understood to be Joel Smith, who already owned the Royal Oak Hotel at Cessnock, and added Kelly’s Royal to the collection last month.
The sales were conducted through JLL Hotels’ Greg Jeloudev and Edward Browne, with McGraths’ Michael Burke, who report regional hotels with GMEs, diversified revenues and consistent trade continue to be in high demand in 2023.
“This unique opportunity enables substantial operational synergies all while enjoying a dominant market share,” notes Jeloudev.
“Both venues have approved DAs, allowing an array of substantial value-add opportunities as well.”
