Newcastle stalwart the Mark Hotel of Lambton comes to market, as its owner-operators look to retirement after a relatively short stint in the industry.
A pub has been on the corner of Morehead and Dickson streets since 1874, first opening as the Marquis of Lorne. The present day two-storey brick structure was built in the mid-1900s and saw a considerable renovation in 2007.
In 2008 the pub reopened as the Mark Hotel.
Occupying a sizeable 1,024sqm, it offers multiple bars and a restaurant on the ground floor, and upstairs Mark Studios – 14 executive-style accommodation rooms, each with ensuites.
Mark Studios is leased to a private operator, generating annual rent of $123k with annual CPI increases, and paying 40 per cent of the Hotel’s outgoings. The lease is until 2024, with two further six-year options.
The rooms are said to be operating near capacity, and underpin trade in the pub.
The lot provides further development potential courtesy of its residential zoning, and the business benefits from its proximity to local retail, on nearby Elder street.
Lambton is a suburb in the north-west of Newcastle around 7.5 kilometres from the CBD, near the university and schools, displaying strong growth and influx of young families.
The private family selling the Mark were new to the pub industry when they bought the asset in 2018, and have been operating it themselves for four years now.
Mark is set to look good to new and existing operators looking to expand or get a footprint in the Newcastle region, at an entry price point of circa $4 million anticipated on the sale.
Colliers Newcastle’s Ben King and Peter Dodds have been engaged to market the property as the vendors get set for retirement.
“This is a real opportunity for the right operator to step in and get some uplift in trade, in a fringe suburb where it’s still achievable for people to live near the city,” offers King.
The freehold going concern of the Mark Hotel is being sold via Expressions of Interest, closing Thursday, 14 July.
