Waratah Hotel Group has successfully divested its acclaimed hotel Royal on 99 to Dave Tomsic’s rampaging Black Rhino group.
Located in the major regional Queensland town of Roma, the purpose-built pub opened in 2016, replacing the former Royal Hotel, which had been destroyed by a fire the previous year. Roma counts local population of around 7K residents, and saw AVC invest in both the Commonwealth Hotel and White Bull Tavern in 2021.
Royal on 99 enjoys a strong food & bev trade and well-patronised gaming operation, as well as an offsite bottleshop.
It marks the third Queensland acquisition for Black Rhino this year, following purchase of the Overlander Hotel in Mt Isa in May and Kalka Palms Hotel in Rockhampton in June, and becomes the group’s fourth Queensland hotel asset.
After recent purchase of the Grand Hotel in Millicent, Roma brings the Melbourne-based Black Rhino’s collection to 44 pubs, across Victoria, South Australia and Queensland.
Tomsic says he’s looking forward to taking over soon.
“It’s an absolutely beautiful hotel,” he reports. “Up there with my best looking pubs.”
On a rapid expansion trajectory, the Rhino explains he continues to look for quality assets in strong areas, with operational growth opportunities.
“We are a family company that understand what it takes to create a successful venue for the community.”
Bolstering the transaction, the value of Queensland Gaming Machine Authorities (GMA) has recently surpassed that of NSW – for this first time. The timing has benefited the vendor, after listing in the sleepy Sunshine State last year.
“We are more than happy with the outcome and will look to re-invest capital into other assets in locations that our Fund considers to be core areas for us moving forward,” offered Waratah’s Darren Baker.
“We wish the Black Rhino Group all the success moving forward, and may the Royal continue to be the local success under their ownership.”
Black Rhino is said to have fought off rival contenders from Queensland and almost every mainland state in the campaign through HTL Property’s Glenn Price and Brent McCarthy, reportedly recognising the “legislative strength and stability” of Queensland’s hotel industry, continued year-on-year economic growth in most regions, and sales yields comparable to those being achieved in the southern states.
“With the new financial year in full swing, the number of Queensland based and interstate hoteliers with a war chest of capital tagged for deployment in FY25 will stimulate a number of sales at the back end of this year,” assured Price.
