The McGuire Hotels family fortune has been on show courtesy of a Supreme Court case, appealing to extend a family trust an additional 25 years as new generations enter the vast and expanding business.
Patriarch and former policeman in Ireland, James McGuire, took on his first pub in Brisbane in the 1880s.
The McGuire Hotels P/L (MH) business today counts ten strong freehold operations in the Queensland capital. Court documents listed them, in order of value as: Calamvale Hotel, Morningside’s Colmslie Hotel, Waterford’s Queenslander, Alexandra Hills Hotel, The Paddo in Paddington, Tugun Tavern, Robina’s RQs Tavern, Logan Village Hotel, and Annerley’s The Junction.
Calamvale, Morningside and Waterford are each worth in excess of $30 million.
It is the largest family-owned and operated hotel portfolio in the state, detailing land, premise, business and stock value the collection is worth an estimated $185 million, making the McGuire’s reputedly one of the richest families in the State. The Courier Mail rich list of 2014 put the family’s worth at $138 million.
As it stands the RJ McGuire Testamentary Trust is scheduled to end on 30 June, 2035. At that time the Trust’s assets will be sold or split between the primary beneficiaries, being the four grandchildren of James McGuire: Richard James McGuire, James Thomas McGuire, Regina Honora McGuire and Thomas Harrington McGuire.
This deadline would likely spell the end of the McGuire family empire and control of the properties, along with bringing a $30 million capital gains tax bill.
MH has applied to extend the lifespan of the Trust until 2060, requiring testimony and affidavit by Tom McGuire, director.
He has offered that when the 2035 end date was chosen “it was not anticipated that younger generations of the McGuire family would be interested in continuing the business”.
Demonstrably, fourth-generation McGuires have begun with the company; two sons of the beneficiaries now directors in the company. Far from ready to wind down, the business slates upcoming expansion into accommodation properties, shopping centres and aged care.
The family application is believed to include amendment to the original Trust to include descendants born out of wedlock and not carrying the McGuire name.
MH currently employs more than 600 staff and is further expanding its footprint in the tightly-held south-east Queensland market through a $15 million greenfield development in Yarrabilba, south of Logan.
The Supreme Court will rule on whether the Trust can be extended, or the 2035 end date honoured. The case will be heard Thursday (20 February).
