One of Narrabri’s big pubs has come to market through Ray White, with diverse revenue and new opportunities amid NSW’s recently proposed gaming laws.
The Tourist Hotel is central to the North West Slopes regional town of 6,000 people, incorporating a public bar, sports bar, bistro and commercial kitchen, 23 accommodation rooms and manager’s residence, TAB and gaming room with 15 EGMs.
The two-storey 1940s pub has been renovated a number of times, most recently the gaming areas, including a full smoking solution incorporated in 2015.
Its generous 1,953sqm block also holds seven retail tenancies, contributing around $90k annually to the business’ bottom line, reporting just north of $450k net.
Around 500 kilometres north-west of Sydney, Narrabri is best-known for being the centre of a major cotton-growing industry, alongside other agricultural interests, but much of its strength recently is around work at Santos’ $3bn Narrabri Coal Seam Gas Project.
The private syndicate owners have been running the Tourist under management, and following the prominent campaign on the nearby Tattersalls Narrabri, enlisted Ray White’s Xavier Plunkett to market the pub.
The blue-collar freehold going concern is historically ranked around #700 on the L&G list of NSW gaming venues, but the new regulations proposed in parliament to allow country pubs to sell their entitlements to metropolitan areas – at city prices – could dramatically increase the underlying value of many regional businesses with machines.
The pub real estate ‘frenzy’ seen in the past 12 to 24 months has greatly increased focus on strong regional areas, with sale price on the Tourist likely to reflect a yield around 15 per cent.
“Based on comparable sales in the area, we expect this to go for mid- 2 millions,” suggested Plunkett.
The freehold going concern of the Tourist Hotel is for sale via Private Treaty.