Ash Lyons’ Lion Majestic Group has expanded the portfolio and reach with acquisition of the Crown Hotel in ‘gateway’ Wentworth.
Well-known for its authentic country hospitality and modern pub cuisine, the Crown is a classic two-storey country-style hotel, comprising a spacious open-plan public bar and lounge dining area, gaming with five EGMs, commercial kitchen, and attractive grapevine-covered beer garden. Upstairs there is a three-bedroom manager’s residence and facilities.
A drawcard feature of the pub is its vintage Ferguson tractor, proudly on display in the main bar, which serves as a tribute to the pivotal role it played in saving the town during devastating floods in 1956.
Nearly 20 years ago a partnership of local businessmen acquired the hotel and had it operating under a lease arrangement until around two years ago.
Since then, the owners invested substantial capex on renovations and upgrades, remodelling the kitchen and adding a free-standing function room, equipped with its own bar and amenities, adjoining the rear boundary.
Across departments the hotel has been generating annual revenue of around $1.1 million.
Wentworth is a strategic regional hub, considered the gateway to outback New South Wales. Located at the crossroads of three major national highways, at the intersection of South Australia and Victoria, it effectively interconnects Melbourne, Brisbane, Sydney and Adelaide.
The region benefits from strong agriculture and mining industry, and from tourism, seeing over 300k annual visitors, largely drawn to the nearby landmark junction of Australia’s two greatest waterways, the Darling and Murray rivers.
Fitting Lion Majestic’s broader strategy, the new addition to the portfolio takes them into “uncharted territory” in what Lyons describes as “Australia’s refrigerator” and a great part of the world, with influences from three surrounding states.
The Group GM offers they may have “bought the cart before the horse” in adding the Wentworth diamond, albeit with plenty of upside.
“I love what it is and what it has,” says Lyons. “It’s a neat little asset, in a great location with a great community.
“We’ll put it in the company collection, work it out as we go along and find a good use for it in the not-too-distant future.”
While plans are still in flux, the Group has already opted to remove the gaming, Lyons explaining he wanted to show it was sustainable through a good f&b offering.
Lion Majestic’s portfolio boasts the multi-award-winning Oxford Hotel in Bathurst, and recently acquired Lawson Park Hotel in Mudgee.
Lyons believes Australia has taken a fresh look at the industry since the impact of COVID, when all pubs closed. He suggests it was the “shock the industry needed” and has underpinned his resolve to continue to diversify.
A notable contrast to the Bathurst behemoth, he says the Lawson is not too big, not too small, and “really enjoyable to run”.
“We’re finding a lot of joy in these smaller venues. It’s like having a nice car in the shed you like to tinker with on the weekends; the purest form of our industry.”
The sale was the result of an off-market, targeted campaign by country hotel specialist brokerage Chris Tinning & Co’s Nick Tinning, marketed with expectations of untapped potential under experienced management.
Tinning observes that while being a vital environment for mental health and community wellbeing, country pubs have demonstrated continued resilience through challenging economic times.
“There is sustained demand for country hotels, both with and without gaming facilities, attracting experienced hoteliers and newcomers alike,” says Nick.
“Country hotel operations typically yield significantly higher returns compared to other hospitality sectors.”
