The ASX-listed Lantern Hotel Group has listed another “non-core asset” as it executes plans to overhaul its disjointed portfolio.
Situated on a prominent corner in the heart of Bowral, the largest town in the NSW Southern Highlands, the Bowral Hotel is a local landmark.
Lantern Hotel Group (LHG) is currently executing plans to divest elements of its portfolio in order to better capitalise on selected core assets. This most recently included sale of the Brisbane Hotel in Perth, and Dolphin Hotel in Sydney, due to its proximity to LHG’s preferred Crown Hotel.
Although just an hour and a half out of Sydney, LHG doesn’t see its strengths in Bowral. Previously referred to as Sydney’s answer to wealthy New Yorker get-away The Hamptons, Bowral is expected to be a growth region as Sydney real estate prices climb.
The Bowral Hotel is being marketed for LHG by CBRE Hotels, with national pub director Dan Dragicevich teaming with returning CBRE agent and new regional specialist Ben McDonald. Dragicevich echoed ongoing commentary that the quest for a good deal was taking certain publicans regional.
“The current strength of the Sydney metropolitan hotel market and resulting yield compression, is driving active purchasers to look in coastal and regional locations offering higher returns and arguably greater operational and trading upside,” said Dragicevich.
The Hotel’s location in the shopping strip, adjacent to Woolworths, makes the 3,316 m² site suitable for a range of options or expanded concepts. Agents are expecting interest from acquisitive hotel operators, but investors and developers are likely to show interest also.
“An incoming purchaser will benefit from the hotel’s diverse revenue streams and capital expenditure initiatives undertaken by Lantern Hotel Group, whilst being able to capitalise on the potential ‘upside’ on offer through a hands-on management approach and possible hotel redevelopment (STCA),” says McDonald.
Nestled on a tourist route to the coast, between several other thriving towns, Bowral is home to many sprawling historic estates and manor homes. It enjoys an association with cricket deity Sir Donald Bradman due to ‘The Don’ having scored his first ever century in the game, at age 12, whilst playing for Bowral Public School.
The Expressions of Interest campaign on the Bowral Hotel ends Thursday, 5 May, 2016.