After kicking off with a five-star acquisition near Brisbane’s NRL cauldron, the Australian Rugby League Commission is already circling strategic hospitality assets in other cities.
According to industry sources, the property play by the NRL’s controlling body to broaden its revenue base is in full swing and focused on “wherever they enjoy strong patronage”.
The acquisition of the landmark Gambaro Hotel—only 300m from Suncorp Stadium—on Brisbane’s Caxton Street in a deal reportedly worth more than $25 million is the ARLC’s first move as part of a new investment strategy.
Bought from the Gambaro family, an institution in the city’s food and beverage scene since opening a fish and chip shop in the 1950s, the boutique hotel has 68 rooms.
It also comprises an award-winning seafood restaurant and private function facilities.
“The transaction represents the commission’s first investment to strengthen the game’s financial position and acquire assets that protect the game and provide new revenues for reinvestment in the game,” a statement from the ARLC said.
“The ARLC has a focus on strengthening its balance sheet with stable, secure investments that provide steady income, long-term capital growth and to protect the game against major interruptions.”
Under the deal, the Gambaro family will continue to operate the asset’s food and beverage facilities “to take advantage of their successful brand into the future”.
The hotel’s accommodation operation will be rebranded as the NRL with themed rooms named after the game’s legendary players.
Gambaro Group director John Gambaro said, “We are delighted with the sale of our hotel after operating on Caxton Street for over 60 years, and as a family we are equally as excited about the prospect of working with the ARLC in order to continue and grow the operation".
Nic Simarro, Glenn Price, Brent McCarthy and Andrew Jackson from HTL Property negotiated the foundation deal in the ARLC's new investment strategy.
HTL Property managing director Andrew Jolliffe said the deal had been achieved through behind-the-scenes negotiations over many months.
“[The ARLC] are, and necessarily, extraordinarily discreet about what they do,” he said.
“This obviously forms part of a broader strategy and the molecular detail and methodical way in which this asset acquisition was approached is symptomatic of how they might be thinking about growth prospects in this regard.”
Glenn Price said the strategic play by the commission came as Brisbane was enjoying wide-scale investor focus, given the many infrastructure projects under way.
“The materiality of both the Olympics and Women’s World Cup Football events, as well as the regularity of new NRL franchise the Dolphins home games, to be hosted here in the not too distant future underpins downstream revenue,” he said.
Nic Simarro said, “The ARLC were very focused upon acquiring an asset which could in and of itself independently trade profitably over a sustained period but, importantly, also one which could enjoy the benefits of new revenue creation following the activation of many levers it has at its disposal”.
The Gambaro Seafood Restaurant has been on the site at 29-39 Caxton Street since 1972 and after an extensive refurbishment the Hirsch Bedner-designed hotel was opened in 2014.
The family's hotel asset was previously taken to market in 2019 with a price expectation of $30 million to $35 million.
