GM Hotels Group have helped Adelaide hit a record dollar amount in pub sales, offloading three of its hotels for a combined $75 million.
Adelaide notched about $100 million in sales after GM Hotels’ Emu Hotel and Bottleshop in Morphett Vale, Christies Beach Hotel, and the Lodge Hotel were sold, alongside the sale of the Aussie Inn.
The Emu Hotel and Bottleshop’s leasehold was sold for $32 million to ALH Group and Charter Hall Group.
Morphett Vale is 25km south of Adelaide.
The hotel has a drive-through bottleshop in the next door Morphett Vale Shopping Centre, 40 entitlements for gaming machines and sits on a 7300sq m site.
It has public and bistro bars, a bistro, entertainment room, gaming room, and an onsite drive-through bottleshop in addition to the one in the shopping centre.
RD Jones Group picked up Christies Beach Hotel, 30 km south of Adelaide. It includes a motel and a drive-through bottleshop on the 4250sq m site along with 35 gaming machine entitlements.
The pub has a bar, bistro, bistro bar and gaming room.
The Lodge Hotel, in Brahma Lodge, 19km north of the Adelaide CBD, was picked up by Harvest Hotels via its Harvest Pub Fund 3 that recently raised $50 million.
The 12,000sq m site with 34 gaming machine entitlements is Harvest’s second buy outside NSW, the first was the Aussie Inn in Hackham .
The Aussie Inn was sold by an Adelaide private syndicate and has 40 gaming machine entitlements, bar, lounge bar, a bistro, TAB auditorium, beer garden and a Thirsty Camel branded drive-through bottleshop on the 1.3ha site.
Christies Beach Hotel, Aussie Inn and The Lodge Hotel were all sold by JLL Hotels and Hospitality.
JLL managing director John Musca said the trio sold for a total of $78 million and, with the sale of the Emu Hotel for $32 million, set a record of more than $100 million in total pub sales for Adelaide.
“No matter where you are in the country, the largest, quality hotel assets will always attract the most astute capital and operators due to their irreplaceability, and the Emu transaction is no exception to this acquisition approach,” Musca said.
Sales figures for The Lodge Hotel, Christies Beach Hotel and the Aussie Inn were not disclosed.
Harvest Hotels has eight properties in NSW,—its most recent purchase was the Windsor Castle Hotel in East Maitland for $51 million.
Harvest Hotels director Chris Cornforth said that its move into Adelaide's pub market had been planned.
“Our market entry has been measured and methodical and has resulted in securing some quality suburban Adelaide assets for the fund, so we’re thrilled for our investors,” Cornforth said.
Pub sales have boomed recently as Sydney’s The Oaks Hotel was listed for an eye-watering $175 million and the Honeysuckle Social in Newcastle was sold for an unlisted price while the former Sydney lord mayor Nelson Meers bought Casula’s The Crossroads for $160 million.
