The Mathieson, Laundy and Hemmes families are making big hotel purchases as the boom rolls on

Billionaire pub dynasties are swooping on more properties in Queensland and NSW with renowned heritage-listed hotels and coastal assets in their sites.

The pub boom is drawing all comers but many of the industry’s most famed operators are also still buying properties.

Just in the past week big purchases have come from the Mathieson family and a branch of the Laundy family, while Justin Hemmes’ Merivale operation added its fourth pub in the NSW township of Narooma.

The pubs which are being picked up range from inner-city haunts to coastal retreats, with the commonality being that theyare winners from the coronavirus crisis.

Buyers have chased the pubs because they spin off steady returns from gaming in the city and the regional properties are alsobeing rerated due to the surge in domestic travel.

While the durability of these trends is yet to be proven up, the properties are benefiting from changes in how people areliving.

In Brisbane, the Mathieson family bought the freehold going concern of the RedBrick Hotel in Woolloongabba from the HakfoortGroup for about $7m.

The purchase is the Mathieson family’s fourth in South East Queensland over the past six months.

Billionaire Bruce Mathieson entered the hotel industry in 1974 and he and his son Bruce Jnr ran the ALH empire with Wooloworths.

They launched the listed Endeavour Group and Bruce Jnr stepped down late last year to focus on the family business. HakfoortHotel Group bought the RedBrick Hotel in 1999 and operated it on and off over the following decades.

Inside the RedBrick Hotel.

In 2017, they kicked off substantial works to revitalise the landmark 680sq m site, reopening after a nine-month renovationboasting a reinvigorated bar, full commercial kitchen, bistro and lounge dining seating up to 120 patrons, stylish functionrooms on the first floor, and a state-of-the-art gaming lounge.

The company offered a lease to market in April last year, while still holding a suite of five other Queensland hotels.

The hotel was sold by Savill’s Tony Bargwanna and Leon Alaban, who said the Redbrick Hotel held great cultural and historicalvalue.

“Even after undergoing significant refurbishment over the years, the hotel maintains its original charm while still offeringhigh-end modern finishes,” Mr Alaban said.

In NSW, the next generation of the billionaire Laundy family has also been buying, with Arthur Laundy’s daughter DanielleRichardson and husband Shane snapping up the Orana Hotel in Blacksmiths, north of Sydney, for $13m.

The Orana Hotel has 11 gaming machines and a large beer garden and in a sign the pub boom is still roaring, the campaign byJLL Hotels’ Kate MacDonald fielded more than 50 inquiries.

JLL Hotels’ John Musca, who assisted with the sale, noted the continual strong demand for coastal assets in NSW had drivenunprecedented transactions and he noted the desire for sea-change lifestyles in the post-Covid world.

JLL has sold a series of pubs from Sydney to Newcastle recently including the Lucky Hotel Newcastle ($19.5m), the Duke ofWellington New Lambton ($16m), the Grand Hotel Newcastle ($6.15m), and Woy Woy Hotel ($32m).

Merivale has been buying coastal pubs and picked up its fourth venture on the NSW South Coast – Lynch’s Hotel, one of Narooma’soldest and most historic buildings, for about $6m.

“Every great town needs a great local pub,” Merivale chief executive Justin Hemmes said. “We have been looking for a heritagepub to further our continued investment in the region and our commitment to the wonderful people who call it home.”

Lynch’s Hotel joins three other South Coast venues owned and operated by Merivale, including the tiki-inspired Quarterdeck,The Whale Inn, including Queen Chow, and The Inlet. Merivale takes the keys to Lynch’s Hotel later this month and a refurbishmentis on the cards.

The hotel sits in the heart of the township on a 2300sq m site with JLL brokering a series of the deals. The firm’s Ben McDonaldsaid the flight to coastal hotel assets was not only a statewide but also a national trend.

“We are literally in the midst of negotiations on over $150m of coastal hotel assets around the country, having just exchangedanother coastal asset in Victoria only this week, which will also soon be announced – so the investor appetite appears relentless,” he said.