John Musca JLL National Director said “South Australia has one the lowest number of hotels and gaming machines per capita of any of the gaming approved states, has the preferred perpetual gaming authority model and no club culture to speak of and the group delivers an immediate large-format suburban pub network with substantial earnings”.

The portfolio includes:

Two freehold hotels: 

• Christies Beach Hotel, 12-13 Gulfview Road, Christies Beach
• The Lodge, 1572 Main North Rd, Brahma Lodge

Four leasehold hotels subject to long term leases:

• Tower Inn, 621 Magill Road, Magill
• Crown Inn, Old South Road, Old Reynella
• Emu Hotel, 132 Main South Road, Morphett Vale
• Beach Hotel, Commercial Road, Seaford

With 203 electric gaming machines across the hotels and numerous top ranking venues, the group offers a significant immediate share of state gaming. In addition with seven retail liquor outlets, over 20,000m2 of site area and a large on-premise business the group delivers an underpinned balanced revenue spread. Many of the assets have had significant capital investment and refurbishment over the past 5 years with the award-winning Beach, Lodge and Tower Hotels setting new standards in the Adelaide hospitality space.

See also: "Continued transactional appetite expected for the NSW pub market in 2019" - John Musca, JLL Hotels

Musca continued, "Not since the privately held Saturno hotel portfolio was sold to ALH in 2007 for a reported $110 million has there been a pub group of this scale available on-market for acquisition in Adelaide, where hotel assets are traditionally tightly held. The two most recent large hotel sales have been ALH groups’ acquisition of the Watermark Hotel for circa $25m and the sale of Lockleys Hotel for $16 million both on sub 9% cap rates, evidencing the ongoing market demand for the larger format hotels in the capital city."

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John Musca JLL National Director

"South Australia has some for the highest barriers to entry of any jurisdiction nationally for new hotel developments with associated gaming approvals, so these capital city businesses become more coveted and irreplaceable with the passage of time”, Musca said.

"The hotel portfolio space has been devoid of scale opportunities with notably the Zagame Hotel portfolio in Victoria being offered to market and the listed Redcape group courting the acquisition for a reported $240 million, despite the states much debated non-perpetual gaming model. In the meantime the Australian Venue Company, backed by a JV between Bruce Dixon and US investment bank KKR, completed the acquisition for the Coles and Spirit hotel group pubs nationally with plans to list the group in early 2020."

See also: Portfolio of 87 Coles pubs sold to Australian Venue Co for $200m

GM Hotels Managing Director Greg Maitland said, “On the back of numerous direct approaches we’ve had for the group the timing seemed right for the stakeholders to divest as the businesses demonstrate a sound earnings trajectory and present well, and on the back of some significant recent sales in the local market."

“It’s an exciting and liquid time for the industry as stakeholders realise that ongoing aggregation and consolidation is tightening the supply of these sought-after assets in every state,” Musca suggested. JLL are experiencing this liquidity first hand with over $400 million of pub assets currently under agreement or negotiation nationally, 85% of which are transacting in an off-market format.

To discuss the sale in further detail, contact John Musca of JLL via the below contact details.

This is a Feature Property

See other pubs for sale across Australia:

Manly beachfront pub 'Hotel Steyne' for sale - Gus Moors, Colliers International

Sydney pub The Duke of Gloucester 'Dog' Hotel for sale - HTL Property

Sydney Pub William Wallace Hotel for sale - HTL Property

See sold pubs across Australia:

Newcastle pub portfolio sold to Iris Capital for $30m

Woollahra Hotel and Bistro Moncur sold by Public House Management Group

Grandview Hotel Bowen sold by Savills Hotels

Newcastle pubs the Belmont Hotel and Salamander Tavern sold for $20m by HTL Property

Salisbury Hotel Sold by Andrew Jolliffe and Dan Dragicevich HTL Property