Country pubs revival attracts local and interstate investors
Country pubs are reporting roaring trade as the economic recovery gains momentum, and that’s attracting a new wave of investment.
A revival of country pubs across the state is attracting a new wave of investment from locals and interstate buyers, according to specialist hotel broker Mary Birnie.
Ms Birnie, who runs Birnie Sanders Hotel Brokers, said JobKeeper had been a “saviour” for many regional publicans, who were now reporting roaring trade as the economic recovery from COVID-19 builds momentum.
“When COVID hit we were pretty quiet with hotel broking because of the fear of the unknown – we had a bit of a break really,” she said.
“We chat to the publicans all the time and as soon as they got JobKeeper that was a boost for them. They were doing takeaways and working with their local communities – it really kept them going.
“And now with everyone travelling locally, all the pubs’ figures are up and in hotel broking we’re as busy as we’ve ever been.”
Recent country pub sales include the Wirrabara Hotel in the Southern Flinders Ranges, the Hamley Bridge Hotel and the Wunkar Golden Grain Tavern in the Riverland.
Major hotel groups including Ed Peter’s Duxton Pubs, Melbourne’s Black Rhino Group and Australian Venue Co were all looking for opportunities, Ms Birnie said, while family buyers from interstate were also active.
“We’ve always advertised our hotels interstate but we never really get interstate buyers – but now we’re getting interstate buyers too,” she said.
“At the lower end of the market people are selling their houses in Victoria and buying a little country pub here.
Mapped and profiled: The major operators who own South Australia’s pubs
“South Australia has been seen as very good value for money, very good return for investment and such a stable industry.”
Staci McKenzie and father Richard Turner recently took over the Kersbrook Hotel – their fourth pub acquisition in the region in less than four years.
They also run the Prince Albert, Williamstown and Mount Pleasant hotels, and have plans to transform their most recent purchase into a venue for weddings and other events.
“I’d always been interested in hospitality and then about four years ago dad retired and so we put our heads together and decided to give the pub thing a crack,” Ms McKenzie said.
“We bought our first pub, the Prince Albert, and expanded from there really.
“Kersbrook was a really good opportunity. There will still be a front bar but the focus will be to develop the outdoor area and create a more event-style environment.”
Renovations are under way, and the venue is expected to open in about three months.
Ms McKenzie said trade across the family’s pubs had increased in recent months in line with a surge in domestic tourism.
“We’re on the edge of the Adelaide Hills and the Barossa Valley so we get a lot of tourists and a lot of motorbike riders.”
Ms Birnie expects country pubs to continue to trade well while international travel restrictions are in place.
A highlight among her current listings is the recently renovated Gungellan Hotel on the edge of the Barossa Valley.
The pub featured in TV series McLeods Daughters, while a spin-off movie will be shot in and around the venue later this year.
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