Former finance CEO Byram Johnston has furthered the sophisticated investment hitting the sector, doubling his new portfolio with purchase of the historic O’Connell Hotel of O’Connell.
Mid-2022 Byram and Deborah Johnston purchased their first pub, the Tarana Hotel, establishing Johnston Bros Hospitality Group (JBHG).
Buoyed by its success, seeing turnover up more than 40 per cent, JBHG has now bought the O’Connell Hotel, also near Bathurst, from the Derriman family, who acquired it for $600k in 2002.
It is hoped the second hotel, only 20 minutes away, will help the Group be able to share resources such as staff, management and buying power.
“We’re extremely excited to be embarking on a new venture owning and managing the O’Connell Hotel,” the couple posted on social media.
Johnston was CEO of listed funds administrator Mainstream Group, and guided its sale to Apex Group for $415 million in 2021.
Since then, he cites interests in opportunities outside of the capital. In 2015 the couple bought a cattle farming operation in the Fish River Valley district and now call the area home.
Success at the Tarana was said to be a motivating factor behind purchase of the O’Connell. The pub at Tarana has fostered a focus on locally-sourced food, wine and beer. It pitches to the weekend ‘drive’ market, and offers no gaming.
Byram heard that one of his local favourites, the O’Connell Hotel, was closed as a DA was sought to expand the offering. He contacted the Derrimans and a price was agreed for the freehold operation.
The single-storey timber pub was built in 1865 on a sprawling lot of more than three hectares, on the banks of the Fish River. It was first licensed a few years later by Irishman Patrick Dwyer.
The Johnstons plan to revive the hotel’s appearance, while keeping its original character. Already the EGM entitlements have been leased to another pub, and the former gaming room will become another dining room.
“Maintaining the heritage, the traditions and the authenticity of a country pub and its beautiful environment is important to us, and through our experience owning and managing the Tarana Hotel, our family understands what’s needed to return the O’Connell hotel to a fully operational premise.”
The patron’s investment in both hotels is emblematic of the influx of investor capital finding interest in the pub sector, which Johnston has said are “good investments” and better than the stock market. He has reportedly already been approached by other publicans and has not ruled out further acquisitions.
Accompanying the pub is a bakery, with original ovens. It is hoped both businesses will reopen in the next few months.
“Our focus is to reinvigorate the O’Connell Hotel as a focal point for the local community, and to do so as quickly as possible,” he says.
