Growing regional publican Adam Drabarek has bought the Howlong Hotel, in the NSW border town of Howlong.
Established in 1858, the single level brick Hotel occupies a prominent 2,023sqm corner site, with single bar operation, bistro, and gaming room with seven machines.
It is newly refurbished, having seen significant works during the COVID-19 lockdown period.
Howlong is the second pub for Drabarek, joining his large-format Imperial Hotel in Coonabarabran and bringing anticipated synergies through buying power, entertainment and staff placement.
“We’re looking at options to optimise the return, and will certainly look for an operator to help,” he says.
A price was not provided on the freehold going concern, which is a strong trader, and met the goals for a second country pub.
For mor than 17 years it has been owned and operated by Andrew and Bernadette Kelly, who Drabarek says were good operators, and maintained and upgraded all key facilities. This and the simple operation further reduce any need for him to be there day-to-day.
Having missed out several opportunities, amid stiff competition, Drabarek credits a good relationship with his bank manager, who has acted in an advisory capacity, and who he says is crucial for his chances to build a portfolio.
In late 2019 he bought the Imperial Hotel of Coonabarabran, approximately 678 kilometres north-east of Howlong.
Shortly after that, in a strategic play, he bought the rather tired Coonabarabran Hotel and repurposed as a retail clothing store, leaving the Imperial the only pub in town.
Howlong has a similar population to Coona, around 3,000 people. It is a Murray River town on the Riverina Highway, 28 kilometres west of Albury, providing access between NSW and Victoria.
Howlong similarly has only one other pub, a leasehold thought to be destined for other plans by the current owner, potentially leaving the Howlong Hotel another only pub in town.
“The opportunities are hard to come by, and you’ve got to meet the market with your buying strategy,” suggests Drabarek.
“I think it’s now going over what you’d be prepared to pay on some deals, but as the market turns there’ll be more seller leverage.”
As demand continuing to outstrip supply, diminishing is driving capital values, says JLL Hotels’ Greg Jeloudev, who managed the sale.
“Diversification continues to be the theme in 2022, with venues displaying a well-balanced mix of trade being highly sought.
“With unprecedented capital pouring into regional NSW, buyers are actioning aggressive acquisition strategies to achieve scalability.”
