Mapped and profiled: The major operators who own South Australia’s pubs
Several iconic SA hotels have changed hands in recent months, with pubs in the CBD, Brompton and the South-East the latest to be snapped up. Explore our updated map of more than 200 hotels to see who owns your local.
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Family dynasties have been built on the back of suburban and country pubs across South Australia, but corporate investors from the eastern seaboard are expected to ramp up their interest as the industry emerges from the COVID-19 crisis.
Melbourne-based Black Rhino Group has been among the most active groups since the onset of Covid-19, lured to South Australia by its affordable pricing and recent gaming reforms.
Since acquiring Port Adelaide’s Newmarket Hotel in April 2021, the group has swiftly added four more venues to its growing South Australian portfolio, including the Portside Tavern in Port Pirie and the Barmera Hotel Motel.
David Tomsic, who runs Black Rhino with wife Deborah Mathieson-Tomsic – the daughter of pub baron Bruce Mathieson – said the company had a 10-year plan to expand its holdings across the state, and was already in progressed talks to acquire three more regional pubs.
“I’ve had to diversify because I’ve got so big in Melbourne and I’ve always loved Adelaide,” he said.
“The entry price is very affordable and I think with all this stuff going on around Australia at the moment, I think a lot more people are going to move to Adelaide.
“For me there hasn’t been a lot of money spent on pubs in South Australia, and what I do here in Melbourne is I go to areas and I do the best I can in that area - I put the best offer in and that’s why I’ve been so successful in Melbourne.”
Mr Tomsic said recent gaming reforms were a key reason for his company’s expansion into South Australia.“Since it’s gone from coins to notes, 100 per cent I’m interested,” he said.
“But I’ve gone to Adelaide on a 10-year plan – to buy over there, to buy freeholds.
“There’s a lot of great hotels in Adelaide but I like going to regions, putting $2m, $3m, $4m into a hotel, getting the menu right and keeping everything very simple.”
Another highly active investor has been Duxton Pubs, the investment fund established last year by investment banker Ed Peter and local hospitality operators Brett Matthews and Martin Palmer.
The state’s fastest growing pubs group has added a string of hotels to its growing portfolio in recent weeks, including the Saracens Head in the CBD and the Royal Oak in Penola.Buoyed by improving trade, Duxton Pubs is planning millions of dollars’ worth of renovations across its expanding portfolio.
A major revamp of the Saracens is planned for next year and the group is considering a major investment in the Royal Oak to make it a “destination” regional hotel in the South-East.Mr Matthews said strong local community support had helped the group’s venues bounce back from the pandemic, and it was currently considering further acquisitions.
“We’re continuing to review all opportunities and have a pipeline of projects under due diligence – both in the city and regional areas,” he said.“We’re not precluding any regions, but we are particularly bullish on larger footprint suburban venues and the Yorke Peninsula.
The sweet spot is being less than 2.5 hours out of Adelaide.“We are not focused on gaming venues the way interstate groups are.
Our sustainability model is based on whole-of-hotel sustainability - food, beverage and accommodation where applicable.“We look more holistically and we are genuinely looking at properties that connect with the community.”?
The latest spending spree follows a recent analysis of more than 200 South Australian pubs, which revealed local family groups continue to operate the lion’s share of venues across the state, despite rising interest from corporate investors on the eastern seaboard.
According to ownership details, the cashed up corporates already have a significant stake in the local industry.
Woolworths-backed ALH Group is the biggest pub operator, managing more than 30 of the state’s 600 or so venues.
Last year it added two more regional pubs to its portfolio, paying $9.3m for the Hotel Victor in Victor Harbor and $12.8m for the Western Hotel in Port Augusta.It followed the $25m purchase of the Watermark Glenelg in 2019 – the biggest local hotel sale in 20 years.
Australian Venue Co. – backed by Australian businessman Bruce Dixon and US private equity giant KKR – took over six local pubs in 2019 as part a national acquisition from Coles, and recently acquired the historic Robe Hotel in the state’s south-east and the Parkside Hotel.
Another corporate investor, GM Hotels, was seeking offers of more than $70m for six of its suburban pubs in 2019, but after failing to find a buyer, retains ownership of 11 venues.
McGees Property hotels director Grant Clarke, who has spent more than 40 years in the industry, says interstate groups are circling and expects them to up their stakes as the Covid-19 crisis eases.
“The interstate buyers have been the most active in the past 15 years,” he says.
“Because of their buying power, they can easily outbid the mum and dad buyers, and I can tell you they are actively looking for other venues in South Australia.
“But in saying that, the major families are the ones who have maintained their own large portfolios – and due to them I believe we have the most upgraded and best presented pubs in the country.
“A lot of these large owners are very smart operators, and with things like the introduction of small bars there have been challenges, and they’ve had to adjust and change their venues.”
In the 1990s, Mr Clarke managed the sale of more than 100 freehold hotel properties previously owned by SA Brewing Company.
Tenants were given the first option to acquire the properties, with 89 operators, including the Hurley, Fahey, Matthews, Francis and Brien families, securing control of the bricks and mortar assets.
Mr Clarke says together with the introduction of gaming machines during the same period, the deal was a game changer for local publicans.
“The 1990s shaped the ownership structure we have today,” he says.
“People like Peter Hurley and Greg Fahey were instrumental in getting that deal up.
“It was really the backbone for these guys to upgrade their hotels and take advantage of the introduction of gaming in 1994 – it really is a great South Australian story that these pubs were able to be retained in South Australian ownership.”
Ownership data reveals the large family groups continue to operate the lion’s share of Adelaide’s suburban pubs and many in regional areas.
The Kelly family, which operates the Cross Keys Hotel, paid $16m for the Lockleys Hotel in 2019, while the Dean Group purchased the Boathouse Tavern at Taperoo last year.
Meanwhile, the five biggest family operators – the Jones, Hurley, Matthews, Plush and Fahey families – operate more than 40 pubs across suburban Adelaide and in regional areas including Mount Gambier, Port Pirie, Whyalla, Yankalilla and Roxby Downs.
The Matthews family, like many other family operators, have their roots in country pubs. Family patriarch Seymour Matthews and wife Doris acquired their first pub, the Hotel Bay View in Whyalla, in 1942, before going on to operate up to 27 hotels by the 1960s.
Grandchildren Lisa, Scott and Ward Matthews now oversee Matthews Hospitality’s eight hotels including the Feathers, Maylands and recently acquired Salisbury Hotel.
Their uncle Guy and cousins Shaun, Brett and William recently acquired the Flagstaff and Mansfield Park hotels, while Brett has partnered with prominent hoteliers Ed Peter and Martin Palmer on several other projects.Scott says the most successful operators are those with a deep passion for the industry.
“I think you’ve got to be thick skinned and have the ability to push the boundaries – the innovation comes from being prepared to take a risk,” he says.
“You’ve got to live it and breathe it – it’s almost a 24 hour a day job, seven days a week.“Our father (Tony) did that with us. We’d work 90 hour weeks when we were younger – you didn’t have annual leave, you didn’t have days off – it was just out and work.”
The Matthews family is credited with offering the first counter meals in Australia in the 1960s, at the Largs Pier Hotel, as well as the first smorgasbord – at the Buckingham Arms.
In the 1950s, the concept of a drive thru bottle shop was also born at the Largs Pier, which later pioneered the live music scene, hosting iconic bands including AC/DC and Cold Chisel.
New money is also making its mark in the local hotel industry, led by Ed and Julie Peter.Since returning to Julie’s home city in 2013, the pair has led the award-winning upgrades of the Crafers and Uraidla hotels.
More recent acquisitions include the Kincraig Hotel at Naracoorte and the District Hotel at Nairne, where the Peters are partnering with Brett Matthews and Mr Palmer on major upgrades.
The couple made their first foray into the local pub sector at Crafers in 2014, after reconnecting with Mr Matthews and his wife Sarah – a childhood friend of Ms Peter’s.
“We were chatting with Brett and Sarah and Jules, and they mentioned the Crafers was for sale and they were looking at it,” Mr Peter says.
“It’s walking distance from my house and I thought if we could make it nice, then I don’t have to go very far and I could walk home if I had too much to drink, and so we bought it.
“People like to be able to access a family friendly venue near them – to have something nearby that’s nice, that’s not cookie cutter, that’s a little bit different, and something you can be proud of.
“The offering has to be good, but local with soul, and then your locals are going to support you because you’re their tourist attraction.
For us it’s a case of figuring out where’s the tourist attractions that aren’t yet there.”
Last year, the Peter, Matthews and Palmer trio acquired The Lion Hotel in North Adelaide, with ambitions to ramp up investment in the state’s hospitality sector through the creation of Duxton Pubs.
The investment group has ambitions to become one of the country’s top three pub owners and plans to list on the Australia Securities Exchange within four years.
While large hoteliers are actively investing, smaller family groups from interstate are also looking for buying opportunities, according to long-time broker Mary Birnie from Birnie Sanders Hotel Brokers.
“We’ve always advertised our hotels interstate but we never really get interstate buyers – but now we’re getting interstate buyers too,” she says.
“At the lower end of the market people are selling their houses in Victoria and buying a little country pub here.
“South Australia has been seen as very good value for money, very good return for investment and such a stable industry.”
John Langford, who has been selling pubs in SA for more than 40 years, is confident the state’s pubs will bounce back from Covid-19.
“I really believe human beings are creatures of habit and people I speak to say they are really pleased things are getting back to normal,” he says.
“They say they want to meet with family and friends, and be looked after by the publican and their staff, and I’m certain that things will rebound.”
Ms Matthews agrees, and believes pubs will play an important role reconnecting families and friends as restrictions ease.
“A lot of people outside the industry are saying how this has been a bit of a reset, mentally, about what’s important in life,” she says.
“I think it’s a bit of a reset for us as well, around the culture and why we actually exist as hoteliers, which is to create a really great environment and for people to have fun.
“Testament to that was when we were able to open, people just came swamping back as if it was something they had been deprived of, this connection with other people, and that’s what we’re all about.”
WHO OWNS YOUR LOCAL?
LOCAL FAMILIES
Hurley family
Perhaps the best known and one of the most influential pub operators in Adelaide, Peter Hurley left a career in teaching in 1975, and bought his first pub the Wudinna Hotel. Peter and Jenny Hurley now operate eight suburban pubs, the Pretoria Hotel at Mannum and the Port Lincoln Hotel. In the 1990s, Mr Hurley was instrumental in formulating a deal to offer tenants of SA Brewing Company-owned properties the opportunity to acquire their freehold pubs. It was a game changer for the industry, allowing major hoteliers to invest in major pub upgrades throughout the 2000s. The Hurleys have partnered with AFL footballers including Mark Ricciuto and Simon Goodwin, who have co-invested in several pub upgrades including the Alma and Port Lincoln hotels.
Matthews family
The Matthews family has operated hotels for more than 70 years, since patriarch Seymour Matthews and wife Doris started investing during World War II. The family is credited with offering the first counter meals in Australia, at the Largs Pier Hotel, the first drive-thru bottle shop, and the first smorgasbord – at the Buckingham Arms, which the family still owns. Matthews Hospitality, run by siblings Lisa, Scott and Ward Matthews, operates seven pubs in Adelaide, Whyalla and Mount Gambier. Following a recent succession plan, their uncle Guy and cousins Shaun, Brett and William have taken over the Flagstaff and Mansfield Park hotels, while Brett has joined forces with prominent hoteliers Ed Peter and Martin Palmer on a number of other projects.
Jones family
Richard and Denise Jones founded the RD Jones Group in 1982 with the purchase of the Grosvenor Hotel in Victor Harbor. The family now operates ten pubs in SA and one in Melbourne. The family has invested millions in upgrades of its pubs in recent years, including at The Moseley at Glenelg, The Gully, The Woodcroft and The Bartley hotels. Along with its hotel ventures, the Jones’ launched the Jackpot Club and J Card in 1995, creating a loyalty system for hotel customers. Following Richard’s passing in 2016, the business continues to be run by Denise and her family.
Fahey family
With roots in country pubs, the Fahey family now operates popular CBD venues the Exeter and Havelock hotels, as well as The Maid at Stepney, the Lakes Resort Hotel at West Lakes and The Pastoral Hotel at Port Augusta. In the 1990s, third generation hotelier Greg Fahey worked with Peter Hurley and others to formulate a deal to offer tenants of SA Brewing Company-owned properties the opportunity to acquire their freehold pubs. It was a turning point for the industry. Greg’s sons Jason and Trent are part of the family business.
CORPORATES
ALH Group
Backed by supermarket giant Woolworths and billionaire hotelier Bruce Mathieson, ALH Group is the biggest pub operator in South Australia. It operates more than 30 pubs, mostly across suburban Adelaide, including the Ramsgate, Archer and Enfield hotels. In 2019 the group paid $25m to take over the Watermark Hotel at Glenelg. Last year it added the Hotel Victor at Victor Harbor and the Western Hotel at Port Augusta to its portfolio, paying a combined $22.1m for the two country pubs.
Australian Venue Co.
After taking over the Coles portfolio of pubs in 2019, Australian Venue Co. has amassed more than 150 pubs across the country. The venture, backed by Australian businessman Bruce Dixon and US private equity giant KKR, operates seven pubs in suburban Adelaide, including the Payneham Tavern and Hampstead Hotel, and also owns the Western Tavern in Mount Gambier. It recently acquired the Robe Hotel and Parkside Hotel and is understood to be looking to expand its portfolio in SA.
GM Hotels
Fund manager Blue Sky Alternative Investments bought a majority stake in SA hotelier Greg Maitland’s Independent Pub Group in 2015, taking an interest in ten local pubs under the GM Hotels banner. In 2019 the group put two freehold hotels and four leasehold hotels on the market, including the Tower Hotel at Magill and the Beach Hotel at Seaford, but a buyer could not be found. At around the same time it boosted its portfolio with the acquisition of the The Rosemont on Hindley St, later rebranding it to The Rosey.
HILLS AND COUNTRY
Peter, Matthews and Palmer families
Investment banker Ed Peter and wife Julie are relative newcomers to the SA pub scene, but have already had a major impact. They have overseen the award-winning revamps of the Crafers and Uraidla hotels, both of which have helped transform the respective Adelaide Hills towns. More recent acquisitions include the Kincraig Hotel at Naracoorte and the District Hotel at Nairne, where the couple are partnering with prominent hoteliers Brett Matthews and Martin Palmer on major upgrades. The partnership group has worked on several projects together, and last year launched Duxton Pubs – an investment group with ambitions to become one of the country’s top three pub owners. Duxton Pubs has already added eight venues to its portfolio, including The Lion at North Adelaide, the Cremorne Hotel and the Saracens Head. It is actively looking to acquire more venues across the state.
EDP Hotels
Backed by SA businessmen Graham Hobbs and Ian Tregoning, EDP Hotels operates 17 venues across the state, including nine in regional areas including Whyalla, Port Pirie and Port Augusta. The group recently completed a $45m redevelopment of the Bridgeport Hotel at Murray Bridge.
Plush family
Chris and Andrew Plush operate a string of pubs in the Barossa Valley, including the Barossa Brauhaus and Angaston Hotel in Angaston and the Tanunda Hotel. They also operate the Old Spot Hotel at Salisbury Heights.
INTERSTATE GROUPS
Black Rhino Group
The Melbourne-based group runs more than 20 gaming venues, pubs and nightclubs across Melbourne and regional Victoria. Since acquiring Port Adelaide’s Newmarket Hotel in April 2021, it has quickly added four more venues to its South Australian portfolio, including the Portside Tavern in Port Pirie and the Barmera Hotel Motel. Recent gaming reforms and attractive pricing was the lure for former bricklayer David Tomsic, who runs Black Rhino with wife Deborah Mathieson-Tomsic – the daughter of pub baron Bruce Mathieson. They have a 10-year plan to expand their holdings in South Australia.
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