Wagga Wagga hospitality staple Romano’s Hotel is being offered for sale, delivering what is expected to be one of the most anticipated pub opportunities across regional New South Wales in 2021.
HTL Property’s Blake Edwards and Sam Handy have been exclusively appointed to steer the campaign, which has been timed in order to capitalise on the current market conditions driven by Metropolitan publicans looking to powerhouse regional centres such as Wagga Wagga for acquisition opportunities.
The tightening of yields and diminishing availability of Metropolitan pub stock has seen Sydney buyers scouring regional New South Wales for hotels in busier locations, boasting larger footprints and offering better value and upside.
“With well above average transactional volumes across both Metropolitan and Coastal hotels over the last 24 months, the availability of quality stock is rapidly diminishing with operators now seeking quality regional assets as opposed to potantially lesser Metropolitan and Coastal opportunities” suggested HTL Property Director, Blake Edwards.
Romano’s Hotel was acquired by a private consortium in 2016 which immediately executed a strategic $1.6 million renovation and refurbishment of the hotel. The subject renovation has obviously resonated well with the locals, with the riverside precinct business now generating annual revenues of ~$3,200,000.
The business is licensed to trade until 3:00am and has 15 x gaming machines attached to the licence. The hotel features a bar, bistro, gaming room, beer garden, street side alfresco dining and first floor function rooms with a dedicated kitchen. Significantly, the first and second floors offer 45 x accommodation rooms that are currently unused by the existing owners.
The private ownership syndicate has received multiple recent unsolicited approaches to acquire the hotel, leading the group to now formally market the hotel for sale.
‘Strong trading conditions, a low interest rate environment and debt liquidity are aligning with the investment timelines of some of the shareholders within our group” advised Romano’s Sydney based owner, Gareth Collins.
“Whilst we’re more than happy to continue operating the hotel, we have received several unsolicited approaches to acquire the hotel over the last six months and thought we should test the market with a formal process” Collins concluded.
The hotel is prominently located on a 2,189 sqm land holding with obvious redevelopment upside underpinned by its B3 Commercial Core zoning, and a 16 metre height approval. Romano’s Hotel is situated adjacent the recently approved Riverside Wagga Wagga development, comprising 67 apartments across 17 levels.
HTL Property’s Director Sam Handy encouraged any buyers currently assessing other regional pub opportunities to make contact and measure those against Romano’s Hotel.
“We anticipate that there will be a mixture of local interest, buyers from some of the larger surrounding regional centres and most definitely from Sydney. Unequivocally, there won’t be another regional pub with these core trading attributes and this level of upside coming to the market in the foreseeable future” Handy advised
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