Pubs sell for up to $68m as hospitality industry rebounds from Covid lockdowns

Pubs in NSW have been changing hands for up to $68m as the impact of Covid has been winding down alongside restrictions.

The hospitality sector was one of many industries that suffered due to lockdowns, with many pubs and clubs subjected to changes to mask mandates, occupation limits and vaccination requirements for staff and patrons.

Things took a turn in 2021 as pub transactions totalled $1.427 billion – up 143.88 per cent on 2020 results.
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The Beach Hotel in Merewether sold in 2021 for $40 million.

Speaking with The Daily Telegraph, Ray White Commercial Head of Research Vanessa Rader says momentum has increased in 2022 with records continuing to be broken and new highs achieved across coastal, regional, and metropolitan markets.

“Confidence across NSW has dramatically increased in the wake of COVID-19 restrictions slowly falling away,” Ms Radar said.

“New players entering the market aren’t just buying pubs in the city, they’re branching out to other areas to mirror the increased numbers of people who are travelling interstate.”

Former Sydney Lord Mayor Nelson Meers shelled out $160m to buy the Crossroads Hotel – the largest single pub deal in Australia.

“As the population shifts towards regional areas due to affordability and work flexibility, the commercial sales have followed suit.”

The highest value transaction was recorded late in the year for the Vineyard Hotel in Windsor, a pub that enjoyed a development upgrade which sold for $68 million.

Situated on Windsor Rd, Vineyard, northwest of Sydney, the commercial property holding is located within a 5km radius of about 30,000 new homes envisioned within the Gables, Box Hill and Hills of Carmel major housing estate developments.

As people increasingly move to regional areas, commercial opportunities such as this Caves Beach Hotel have become more sought after.

According to HTL Property managing director and marketing agent Andrew Joliffe, hospitality businesses were able to survive the period of Covid through a combination of strong and collegiate relationships with their clients and responding to the challenges posed by switching to take away meals and drinks.

“The record sale in Vineyard commenced and concluded in lockdown … we’re now seeing 14 pubs selling in 14 days. This goes to show that the volume and frequency of these sales has remained consistently strong over the past few years,” Mr Joliffe said.

“This year’s sales may surpass 2021, the only barrier for these establishments is low staffing levels. The return of international travel may bring in greater numbers of people who would be willing to fill in these gaps.”
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