Darwin’s iconic Beachfront Hotel hits the market

A hugely popular Darwin pub has hit the market, and one pundit is tipping an eye-watering sale price for the iconic Rapid Creek location.

DARWIN’S hugely popular Beachfront Hotel has hit the market, with one pundit tipping an eye-watering sale price in the “high 20s” of millions of dollars.

Listed by national agency HTL Property, the 7000 sqm commercial land holding is located on the foreshore in Rapid Creek, offering patrons picturesque views of Nightcliff beach.

Territory businessman Doug Sallis is understood to be the majority shareholder of the establishment, with Guy Dunne and Andrew Case also holding controlling stakes.

The trio maintain an impressive portfolio across the Territory, with ownership over the Humpty Doo Tavern, while Mr Sallis is also understood to own Pit Lane Liquor.

The Beachfront Hotel in Darwin.

“This will be the first significant freehold going concern hotel sale seen in Darwin for over 10 years, and as such we expect strong local and interstate interest given both the quality of the property and the patent growth in the region,” said HTL Property director Brent McCarthy.

The well-known watering hole draws its revenue from multiple streams, including food, beverages, gaming and drive through liquor.

Its open format beer-garden out front which overlooks the ocean has cemented its place in Territorians’ hearts as a premium sunset location.

“Annual revenue generation already exceeds $10m per year, and the opportunity to draw upon additional revenue levers exists in clear fashion” added Mr McCarthy.

Glenn Price, also a director at HTL Property, said prospective owners would benefit from a predicted 30 per cent population spike in Darwin by 2030.

“In addition to the pace of population growth, the $43bn private and government infrastructure spend will double the GDP; and is underwritten by the $8bn defence allocation and $22bn ASEAN power link project,” Mr Price said.

The hotel’s listing comes as several flagship Top End hospitality venues are set to change hands, including the recent listing of the well-established Cavanagh Hotel in Darwin’s CBD, which pundits say will likely fetch a seven-figure price.

In 2020, the Woolworths-backed ALH Group dropped a hefty $19.7m on the Parap Tavern, taking over the land containing the pub and adjoining bottle-o from previous owner Terry Downer.

“We hold the considered view that wholly superior and sustainable returns are available to active investors willing to assess unique opportunities in Darwin such as this one,” said HTL Property managing director Andrew Jolliffe.

International expressions of interest for the Beachfront Hotel will close on March 30, 2022.

Historic Darwin CBD pub set to be sold

THE Cavenagh Hotel, one of the Top End’s oldest and best-known buildings, is up for sale.

Real-estate pundits say the famous pub, which used to be The Don and hosted Darwin’s first casino, is expected to fetch a seven-figure price.

Agents Colliers will auction the property on Tuesday April 5 at 11am. The triple-frontage, 3645 sqm CBD freeholding includes two separate bars, drive-through bottleshop, restaurant, outdoor dining, 20 gaming machines and 80 hotel rooms.

The property’s building area is 4234 sqm.

The 27-year lease with options, which is currently due to expire on June 14 2023, attracts more than $565,500 annual rent.

The current leaseholder is Salsa Holdings.

It underwent a $2m facelift several years ago, reopening in 2016, which added more pokies to the gaming room.

Built at its current site in around 1970, The Cav is predominantly rendered brick with concrete flooring and suspended concrete slabs to the first floor with a corrugated metal roof.

In the early years of Self Government The Don Hotel was acquired by Federal Hotels and became the Don Casino – the nation’s first mainland casino before a dedicated building was constructed at Mindil Beach in the early 1980s.

The Cavenagh Hotel is up for sale. Picture: Camden Smith.

Later in the 80s and 90s the building was one of Darwin’s top nightspots when it hosted Darby’s.

Among The Cav’s selling points are Darwin’s strong tourist profile – 3.6m visitors spent the night in Darwin City in 2019-20 – and the almost 60,000 jobs located in the CBD at the end of June 2020.

The Territory economy is expected to benefit from more than $4bn investment in mining and over $20bn in Defence investment anticipated in coming years.

Collier’s prospectus points to a catchment of 92,941 people living in approximately 28,826 households with the average household income, $148,634, 35 per cent higher than the national average.

The average age in The Cav’s catchment area is a little over 34.

Agents Chris Hyland and Craig Inkster said The Cav auction represents a rare opportunity to purchase a sizeable CBD block in an Australian capital city.

“It’s pretty obvious why this is a great opportunity for investors to get a high-quality CBD location,” he said.

“The Cavenagh represents a rare opportunity to secure an iconic establishment in a prime Darwin location.

“Confidence in Darwin’s future continues to grow and Collier’s anticipates strong engagement with investors locally and nationally.

meant property in the CBD of an Australian capital city on the cusp of increased investment.”

The agents reserve the right to sell prior to auction.