Rye, Bendigo, Warrnambool: Well-known hotels sell for combined $90 million

Three popular regional pubs have changed hands, with the pub market tipped to remain buoyant in 2024.

The country hotel scene has well and truly shaken the Covid blues with a string of popular pubs changing hands in the second half of 2023.

Pandemic pain for operators due to lockdowns and patron limits have been consigned to the past with one agent clinching a sale this month for one of the Mornington Peninsula’s largest venues, the Rye Hotel, for close to $50 million.

The Rye Hotel on the Mornington Peninsula has sold for close to $50 million.

It followed the same agent, JLL, being involved in sales of Warrnambool’s Whalers Hotel and Bendigo’s Foundry and National hotels for a combined figure of close to $40 million.

JLL agent Lachlan Persley said a clear trend had emerged with investors keen on pubs that had additional revenue streams such as accommodation.

“It’s a massive trend at the moment,” he said.

“Everyone is looking for rooms attached.

“They provide dual revenue streams and they are quite profitable.

“Pubs in regional areas with accommodation are the flavour of the month at the moment.”

Hotels with gaming machines were also highly sought after.

The Rye Hotel ticked every box for its new owners, the Endeavour Group, with food, beverage, TAB, pokies and accommodation.

Warrnambool’s Whalers Hotel has been sold to Cook, Beaumont & Partners. Picture: Facebook

Bendigo’s National Hotel has 24 motel units and sold to a Melbourne investor and the Foundry Hotel’s features include a 200-seat bistro, sports bar and pokies and sold to the Mercury Group.

The Whalers Hotel’s mix of food and beverage and pokies was snapped up by Cook, Beaumont & Partners, which owns two other Warrnambool pubs.

Mr Persley tipped the pub market to remain buoyant in 2024.

“It’s already looking like we’re going to be really busy,” he said.

“No one talks about Covid anymore.

“It wasn’t fun for anyone, but we’ve gone past that now.”

Australian Hotels Association (Victoria) chief executive Paddy O'Sullivan.

Australian Hotels Association Victorian chief executive Paddy O’Sullivan, said there were still challenges to running a country pub.

“The challenge faced by all pubs in 2023, not just regional-based operators, is the steady increase in the cost of running the business, which includes significant increases to utilities and insurance, council rates, WorkCover premiums, liquor licence fees, as well as the flow-on effect of the increasing cost of goods like fresh produce and meats,” he said.

“(In 2024) we expect to see continued enthusiasm towards Victorians travelling and holidaying in their own backyard, being regional and rural towns.

“With the economic environment we are currently in, with cost-of-living pressures increasing and a focus on receiving great value for discretionary dollars spent on travel and social occasions, country pubs and regional tourism are perfectly placed to welcome visitors and provide them with genuine, long-lasting positive experiences.”