The leasehold interest of the North Eastern Hotel in Benalla is for sale, as newcomers continue to look to pub operation for a lifestyle business tree change.
Established in 1905, the North Eastern is an attractive single storey pub on a large corner lot at 1 Nunn St, also called the Midland Highway, through the centre of town.
It provides a public bar, bistro with indoor seating for 110 and outdoor for up to 50, two lounge areas, each with its own authentic fireplace, a function or conference room, garden courtyard with Vergola-style covering, four motel accommodation units and a four-bedroom, three bathroom residence, plus ample parking for patrons.
Geoff and Philippa Thomas took on a new three-year lease in 2014, and heralding the end of a successful career, are looking to retire.
The lease is now seven years in, with 18 years remaining, including options. Rent is at 4.9 per cent of turnover.
The pub benefits from limited nearby competition, and its multiple income streams generated $1.82 million in revenue for FY19, with EBITDA of $378k. (COVID-affected FY20 generated $1.52 million.)
Marketing on the leasehold puts sale price at $590,000, representing around 64 per cent buyers yield.
Benalla is a bustling regional city in north-east Victoria’s high country, near the snowfields, wineries and Winton raceway, approximately 200 kilometres from Melbourne. The town reports population of around 9,300 people, and greater rural population of 13,700.
The leasehold interest of the North Eastern Hotel Benalla is being sold through McDonald Hotel Brokers’ Dan McDonald.
“The ‘Northo’, as the Hotel is affectionately referred to by loyal patrons, has evolved far beyond the traditional Australian Hotel, capturing all day trade as a result of its movement towards progressive hospitality trends.”
