The troubled Royal Oak Hotel of Cessnock has been sold through receivers to a growing local hotelier.
Built 1922, the pub enjoys a prominent corner in Cessnock – known as the gateway to tourism hotspot the Hunter Valley.
The large brick hotel features a bar, bistro, and spacious rear beer garden, 14 pub-style accommodation rooms upstairs and a separate cafe point of sale at the front, with ample off-street parking.
In the past its restaurant claimed prestigious accolades from both the SMH Good Food Guide, and the AHA NSW and National Awards for Excellence in 2013, 2014 and 2015.
Doctor-publican John Harvey purchased the prominent two-storey brick pub in 2011, sharing resources with his dental practice. In 2019 he became embroiled in a dispute with the ATO over what he labelled “unsubstantiated” tax debt.
In August that year he listed the pub for sale, but in early 2020 the Royal Oak was forced to close, and Worrells Insolvency & Forensic Accountants appointed.
Mid-2020, in the height of the pandemic, the asset went up for sale again, under instruction by the receivers.
Now closed for over 12 months, the vacant freehold interest has been bought by an unnamed local hotelier who already owns two other Hunter Valley freehold hotels.
The acquisition is said to be “a strategic property play” recognising the underlying value of the large land holding, while upside is seen in its earnings potential through more strategic use of the accommodation.
The deal was managed by HTL Property’s Blake Edwards and Xavier Plunkett, who noted its diverse appeal.
“The venue’s proximity to the Hunter Valley Wine Region, and year-round events calendar, created strong levels of enquiry from hoteliers, experienced food & bev operators and alternate use developers alike,” advised Edwards.
