A hot new leasehold has come to market in sunny Surfers Paradise, offering a large-format tavern with gaming beside the 4.5-star Vibe Hotel.
Located around 500 metres from the famous beaches of Surfers Paradise, The Tavern at The Vibe Hotel – previously Helm Bar & Bistro – overlooks the Nerang River, with significant frontage to the Gold Coast Highway.
The site consists of a large public bar, kitchen and bistro including a covered alfresco deck with expansive water views, a designated TAB area and gaming lounge with 35 gaming authorities, function room and management offices, and covered private car park for approximately 30 vehicles.
It is currently licensed until midnight, but there is opportunity to increase trading hours to as late as 4am. As per Queensland licensing, it is also permitted to operate three detached bottleshops nearby.
There are several Top100 gaming hotels in the immediate vicinity, typically operated by private and corporate groups, and the low barrier to entry of a new lease at The Tavern is expected to attract plenty of interest.
“With the compression of yields for freehold going concern assets across the State, astute operators are eyeing alternative opportunities within the sector in order to maximise returns,” notes HTL Property Queensland director Glenn Price – marketing the property with HTL colleague Andrew Jolliffe, in conjunction with Colliers’ Elke Rosen.
“Through the scarcity of opportunities in the south-east, an emerging trend of hotel groups aggressively pursuing assets of a leasehold nature is occurring, as private and corporate groups and individuals jockey to secure a valuable foothold in the marketplace.”
An incoming operator will be able to negotiate a long-term lease, with the ability to re-position the asset as they see fit. Set as a derivative of potential income, annual rent is likely to be in the region of $350-450k, when compared to similar operations in the area.
Citing the record low interest rates and aggressively priced funding available, coupled with the cashflow opportunities and sheer scarcity of comparable waterfront operations, Price believes The Tavern is a “rare opportunity” set to hit its stride.
In recent times HTL has transacted on a number of waterfront properties, including the proximate Coolangatta Sands Hotel, Tweed Heads’ Ivory Tavern, and Queensland’s oldest pubs, the Grand View at Cleveland.
The leasehold Interest of The Tavern at The Vibe Hotel is being offered through Expressions of Interest, concluding Wednesday, 13 November.
