Apollo Bay Hotel sells as demand for coastal pubs grows
The Apollo Bay Hotel has sold, while owners have accepted an offer for the Gellibrand River Hotel.
The appetite for good food and drink is driving healthy interest in coastal pubs on the Great Ocean Road and hinterland.
The Apollo Bay Hotel is the latest pub to sell, with five groups driving the price significantly more than the $10m-plus guide for the venue.
The owners are selling after more than 30 years.
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JLL Hotels vice president Will Connolly said the pub drew more than 150 inquiries nationally from private operators to some of the industry’s most well-known operators.
The Apollo Bay Hotel has sold after winning the AHA best regional pub bar award in 2021.
It provides another example of the premium placed on coastal hotels nationwide.
A Victorian-based publican who has chosen at this stage not be disclosed secured the hotel.
“The level of inquiry and buyer participation was certainly testament to the reverence held to the Apollo Bay Hotel,” he said.
The Apollo Bay Hotel overlooks the beach on the Great Ocean Road.
“We received five incredible offers at the culmination of our EOI campaign and with just the right level of competition, we were able to produce an acceptable result for our delighted vendors at a level significantly above our original price guide of $10.5m plus.”
The owners picked an opportune time to sell given the expected growth in local tourism.
Mr Connolly said it looks to be another strong year of pub sales, with operators wanting to put the challenges of 2021 behind them.
The Apollo Bay Hotel has sold after more than 30 years with the same owners.
The venue offered a strong revenue base with multiple trading zones such as a front deck overlooking the beach, a large family bistro, a public bar, multiple function spaces along with a newly added rear beer garden.
The 2369sq m property has a Commercial 1 zoning, which provides potential for future expansion by increasing the accommodation offering to cater to the extreme demand of year-round tourism.
The bistro is one of the multiple trading zones within the hotel.
The Apollo Bay Hotel sale continues the momentum in demand for coastal pub assets.
Justin Hemmes’ Merivale Group’s acquisition of Lynch’s Hotel in Narooma, New South Wales, was announced last week.
Merivale also secured the Lorne Hotel for $38 million in mid 2021.
Meanwhile, owners of the Gellibrand River Hotel have accepted an offer from Melbourne-based buyers for the Otways hotel.
CRE Hotels broker Rohan Pertzel said the pub attracted huge interest during the campaign, with plenty of inquiries from people thinking it might be a good time to buy a country pub.
Owners have accepted an offer from Melbourne buyers for the Gellibrand River Hotel.
But the $1.1m-$1.2m price guide for the freehold with vacant possession may have been a bit high.
“From the inquiry and the comments, everyone was dreaming about buying a pub in Gellibrand at one point,” he said.
“It has gone under offer with a couple from Melbourne who own a restaurant.
“They are hoping to get some good food down in the Otways when they get it back up and running.”
The expressions of interest campaign was due to close on March 25, but the offer was too good to pass up, he said.
