Lancer Group’s Royal Hotel in regional hub Tumut is being sold with plenty of blue sky, as investor owners in Sydney look to consolidate.
Residing on a substantial 3,250sqm, the Royal is a classic two-storey brick structure built in 1854, with a full-length balcony overlooking Tumut main drag Wynyard Street.
The pub provides a large public bar, bistro and commercial kitchen, function space, gaming room ranked #526 with 20 Band 3 (red zone) machines, outdoor area, 14 pub-style accommodation rooms on the first floor, and 11 motel suites in a detached structure. A significant refurbishment of the main bar and dining area was executed in the past 18 months.
The site holds flexible E1 Local Centre zoning, and to the rear is a dormant detached bottleshop, suitable for re-activation or potential redevelopment.
The operation also offers upside by way of both the pub rooms and motel suites, which are said to be in “original condition”.
Found roughly 400 kilometres south-west of Sydney, Tumut has a population of over 6,600 people and is a regional hub for the greater Snowy Valley area, flush with substantial local agricultural production and continuing to benefit from the ongoing Snowy 2.0 infrastructure project.
The Royal is one of only five pubs in the Riverina town, and reports weekly revenue exceeding $80K, with nearly half derived from gaming.
Lancer Group, headed by Sydney investor Tim Fallon, bought the Royal Hotel & Motel Tumut early 2021 from career hotelier Scott Cameron. The Group also holds the Criterion Hotel at Gundagai.
Sources suggest the freehold going concern interest in the Royal is likely to fetch in the low- to mid-teen millions.
The pub continues to be run under management and Lancer cite consolidation and asset prioritisation as the reason behind the divestment.
A sale campaign is being managed by JLL Hotels’ Greg Jeloudev, Edward Browne and Kate MacDonald, who suggest it’s the “best on-market regional hotel opportunity” for the year.
“The Royal Hotel is a true all round pub business comprising all the desirable trade levers,” states Jeloudev.
“The Band 3 location future proofs the venue from any further competition, thus ensuring longevity for venue performance.”
Expressions of Interest on the asset close Wednesday, 21 August.
