The high-performing Royal Hotel in Inverell has hit the market, as its owner-operator looks to exit the industry for health reasons.
Inverell is a thriving agricultural town of over 16,000 people around seven hours’ north of Sydney, slightly off the beaten track, inland from Grafton.
It is something of a hub for surrounding industry, counting the likes of the huge Bindaree Beef abattoir employing hundreds of workers.
The Royal Hotel is one of just four pubs in town, occupying a big corner lot of 4,559sqm that offers around 50 parking spaces in the increasingly congested CBD.
Inside there is a public bar, gaming room with six EGMs (not in smoking solution), commercial kitchen and dining space, a freestanding motel with 20 ensuited rooms and manager’s residence, and a thriving bottleshop.
While the bar sees reasonable trade, the motel rooms have been gradually updated and are barely contributing to revenue. Similarly, the bistro is being operated by a tenant as an Indian restaurant, at minimal rent, due to the vendor’s ill-health.
The bulk of the pub’s $3.3 million in annual revenue is through the popular drive-through bottleshop, turning over $50k weekly. Annual net profit is reported at circa $500k on the whole operation.
The freehold going concern has reluctantly been put to market by the owner-operator, through HTL Property’s Xavier Plunkett and Blake Edwards.
“It’s performing well,” advised Plunkett. “They’ve been building trade, which has been increasing for the last three years.”
Agent guidance on the asset is circa $3 million, with suggestion there are multiple departments holding blue sky.
“There would be real benefit to bringing the kitchen back in-house, which could help with functions – there’s a big function room they don’t use – but there’s upside in food, accommodation and gaming.”
The Royal Hotel Inverell is for sale via Expressions of Interest, closing Wednesday 6 March.
