Hotel in Mackay Presents Prime Opportunity for Buyers

03 November 2017

An opportunity for an experienced multi-venue or owner operator has hit the market in North Queensland with a local Mackay Hotel on offer.

Located at 17 Gordon Street, the Metropolitan Hotel is being presented for sale via an Expressions of Interest campaign run by Leon Alaban of Savills.

Savills Director of Hotels in Queensland Leon Alaban said the Metropolitan Hotel presents a great opportunity for buyers as it attracts business from a stable local patronage following.

“We have monitored an improvement of the local economy and predict this to continue, making the Metropolitan Hotel a great prospect for the future owner,” Mr Alaban said.

Mr Alaban said the regional hotels market has been flat in recent years, however the recent improvement is largely credited to the news of the Adani Mine, which has created a spike in activity for regions such as Townsville and Mackay.

“This news has in turn created an investment shift from both individuals and multi-venue operators seeking value in these regions.

“Some of the larger corporate groups are looking into expanding on a national basis which includes incorporating regional assets in their portfolios,” Mr Alaban said.

The Metropolitan Hotel sits on a large 4,046sq m corner site with facilities including a drive-through bottle shop, a large main gaming room with 40 electronic gaming machines, a lounge and bistro area, pool room, and a children’s activity room.

“Along repositioning the asset, there is upside for a purchaser to improve on premise trade and given that there are 40 gaming machines there is scope to maximise higher returns,” Mr Alaban said.

The estimated revenue of the Metropolitan Hotel is approximately $2.8 million per annum inclusive of gaming.

Additional facilities include seven motel rooms, administration and Back-of-House amenities, a commercial kitchen, plus a one bedroom unit manager’s residence.

Built circa 1978, The Metropolitan Hotel is partly split over two levels and has been extended and renovated over different times, and now features on-site parking to accommodate 47 vehicles.

The Hotel is currently leased until March 2018 by Spirit Hotels (Coles) who are due to cease business operations at the expiry of the lease, however will terminate prior if required.

“It is unusual for a major operator to divest a Hotel asset, therefore this offering presents as a unique opportunity to an incoming purchaser.

“Coles operate three other pubs in town, so divesting the Metropolitan was the most logical choice as it was coming to the end of its tenure,” Mr Alaban said.

The Metropolitan Hotel is licensed to operate Monday to Saturday 10am to 2am, and Sunday 10am to Lounge 12am.

Offers to purchase the Metropolitan Hotel close at 4pm on Tuesday 28 November.

 
 

Key Contacts

Leon Alaban

Leon Alaban

Director
Hotels

Savills Brisbane

+61 (0) 7 3002 8951