Mal and Debra Russell are parting with their Royal Hotel in Richmond, presenting a famished market one of the best gaming opportunities to date this year.
The Royal Hotel occupies a generous 1,760sqm block on the prominent corner of main roads Windsor and East Market Streets, Richmond, where a licensed premise has stood since 1848.
The Royal is in front of the Richmond Club, with its 238 EGMs, and adjacent to Richmond train station, a Dan Murphy’s, Coles and Council carpark.
It incorporates a public bar with 3am licence and ‘early opener’ flexibility, bistro, beer garden, and nine accommodation rooms plus manager’s residence. The operation enjoys balanced revenue around $5.4m annually.
Along with its wagering, the Hotel holds 29 EGMs and has seen its ranking lift 40 places (to #394) since adding six machines just three months ago.
Around half the gaming room is non-smoking, and the area reportedly lends itself to a clear extension and reconfiguration that would roughly double its size.
The Hotel is being marketed by CBRE Hotels’ Sam Handy and Daniel Dragicevich, who note the opportunity to create a “destination gaming room” for the underserviced region.
“There are very few large format western Sydney freeholds available at this price point or with such clear and demonstrable gaming upside,” states Handy.
The Russells bought the pub in 2009 and report they are eyeing retirement, looking to capitalise on market conditions and exit the industry.
Formerly the Royal ‘Family’ Hotel, the pub is prime to benefit from capex, with limited competition in a growing region said to be “under-pubbed”.
Richmond has seen a swathe of land releases to cater to the strong population growth, with the town on the edge of the North-West Priority Growth Corridor, expected to see 250,000 new residents.
The Royal Hotel is being sold via Expressions of Interest, closing Wednesday, 13 September.
