Hahndorf’s historic German Arms pub bought by Duffield family
One of the state’s historic pubs has been sold to a local Adelaide Hills family, while several other iconic SA pubs are expected to change hands in the coming weeks.
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Hahndorf’s Duffield family has gone back to the future, buying back the historic German Arms hotel two decades after selling the historic Adelaide Hills venue.
The family plans to breathe new life into the hotel, with renovations planned 30 years after the last major upgrade.
With a history dating back to 1839, the German Arms is the latest in a string of iconic SA hotels to hit the market, with Rundle St establishment The Austral currently under contract and the Scenic Hotel in Norton Summit under offer.
Buyers are being sought for CBD watering hole Saracens Head, while Ian and Debbie Alexander are seeking offers of about $975,000 for The Hahndorf Old Mill Hotel business just metres from the German Arms.
The Duffields currently operate The Haus restaurant on Hahndorf’s main strip and several accommodation facilities in the town.
Jason Duffield, who heads the family’s hospitality business, said the family had a long history with the German Arms, which has been operated by Wayne and Jenny Francis for about 14 years.
“The hotel has always held a very dear spot in our family’s history in Hahndorf,” he said.
“Uncle Robin Duffield bought the pub in 1975 when it was known as Hotel Ambleside - the name got changed from the German Arms during World War II.
“He owned it until Noel (Jason’s father) and his family bought it in 1990 and they owned it for ten years and did the last major renovation.
“Now we’re looking forward to reinvigorating this beautiful historic hotel. It’s going to be family run with a strong emphasis on local produce, food, wine, gin and cider.”
Mr Duffield said up to $300,000 would be spent on upgrades, with investment from a group of hospitality leaders including executive chef Naman Tyagi who has spent the past seven years at The Haus.
“There’ll be a rebranding, there’s some cosmetic alterations, the garden, there’ll be a refresh with signage, there’ll be some kitchen renovations – we’ll certainly be breathing new life into it.
“We’ve probably invested, over the years, $30m of our own money in the town and feel quite confident about its future despite the current challenges.”
Last month The Lion Hotel in North Adelaide was acquired by the newly-formed Duxton Pubs Group, while popular regional pubs are also attracting buyer interest.
ALH Group recently paid $9.3 million for the Hotel Victor in Victor Harbor and $12.8 million for the Western Hotel in Port Augusta.
Langfords Hotel Brokers managing director John Langford, who’s selling The Austral, the Scenic and The Hahndorf Old Mill hotels, said while there was plenty of interest from buyers, they often found it difficult securing bank finance.
“The reason there’s less hotels selling now than 10 or 15 years ago is because of the banks,” he said.
“I’m getting good interest. Some of the interest is from people who have lost their jobs or aren’t sure of what they want to do.
“But gradually we’ve got to a stage over the last couple of years where there’s no interest at all from the banks in funding buyers into hotels.”
CBRE Hotels director Mathew George listed the Saracens Head for sale in March at the onset of the COVID-19 pandemic.
He said impending changes to the state’s gaming laws, including rules to allow gaming machines to accept bank notes, were attracting interest from interstate buyers.
“A few of the people we’ve been dealing with are from interstate and they’ve obviously had trouble coming across to inspect the pub in recent months,” he said.
“There’s been local interest as well but the gaming sector in Victoria is very tightly held and pricing is currently more attractive in South Australia for gaming assets.
“People are seeing there’s an opportunity in South Australia because of gaming changes coming in coupled with zero stamp duty.
“It’s safe to say that in Victoria and even in bits of South Australia there’s probably mixed feelings about it (COVID-19 and the pub industry) at the moment ... but I’m very confident the industry is going to bounce back.”
