Acclaimed Sydney operator the Feros Group is the latest to stake a claim in regional centres and into Wagga Wagga, snapping up the Red Steer Hotel and Motel.
The relaxed country Hotel offers multiple bars, gaming room with nine machines, a bistro, commercial kitchen and large beer garden.
It also counts a freestanding motel with 13 accommodation rooms plus a three-bedroom manager’s residence, on its expansive 5,000sqm block.
A public sale of the asset was slated for April, via auction, but the vendors agreed to an off-market deal prior to the commencement of marketing.
The new owner is Chris Feros’ group, which operates a collection of venues in Sydney’s south, including The Prince at Kirrawee. Feros sold the Terrey Hills Tavern to a partnership of ALH (now Endeavour) and Charter Hall, last July, to better focus on the south.
A deal was reportedly struck on the Red Steer for circa $10 million, but parties involved are understood to be bound by confidentiality regarding both price and purchaser details.
However, Feros is tipped to be closing the pub briefly for cosmetic renovations, ahead of implementing a new management team.
Key selling points on the deal were said to be the strong growth in the area, notably the Northern Wagga Wagga residential growth corridor, and its proximity to Charles Sturt University, as undercapitalised hotel assets in the right areas continue to show impressive appreciation.
“Strong regional centres such as Wagga Wagga continue to be highly sought after by experienced Sydney-based hoteliers seeking value outside of traditional metropolitan markets,” notes HTL Property’s Xavier Plunkett, who brokered the deal.
This marks the eighth freehold going concern hotel sale in the city of Wagga Wagga in the past two years – all through HTL.
These have included the Laundys and partners picking up the Thomas Blamey Tavern for $25 million in March, and last month Harvest Hotels taking the Victoria Hotel for $29 million.
PubTIC was unable to reach Chris Feros for comment prior to publication.
