ASX-listed Lantern Hotel Group reports it is on track to turn around, now listing its final Queensland pub as per its strategic divestment of non-core assets.
Last week it put to market its freehold interest of Cairns’ iconic Courthouse Hotel, and now begins completion out of Queensland with the freehold going concern of Bundaberg’s Central Hotel.
“The Central Hotel has been a passive investment for Lantern and is subsequently superfluous to our current business model,” stated CEO John Osborne.
The popular local occupies 1,017 m² in the heart of Bundaberg, with a 3am licence and 14 EGM authorities.
The ‘non-core’ label has meant the hotel has not been part of Lantern Hotel Group’s (ASX: LTN) capex attentions, and agents say investment into the hotel’s gaming facilities and unused upper level would bring significant upside.
“The hotel represents a fantastic opportunity for an owner operator to get a foothold in the local market, with the price point likely to attract a wide range of buyers,” says CBRE Hotels Queensland director Paul Frazer, who is marketing the hotel in conjunction with colleagues Glenn Price and CBRE national director Daniel Dragicevich.
“We believe the market will see plenty of potential in the asset.”
LTN is aggressively pursuing its plan of action to reverse the carnage seen in its share pricing, shedding assets outside NSW, tweaking the remaining assets, and tightening operating expenses ahead of investments in the coming financial year.
The sale of four properties in New Zealand have been completed for around $6.2 million, and the El Toro and Dolphin in Sydney have been finalised for $35.3 million. The Bowral Hotel sale is under contract and the GPO freehold in Fortitude Valley will be transacted this month.
Conversely, 37 per cent (68) of the Group’s EGMs have been upgraded, and gaming revenue is up 18 per cent against the PCP (previous corresponding period).
