Hunt Hospitality buys Newcastle pub
The Hunt Hospitality Group has extended its operations in the NSW Hunter Valley, taking control of one of Newcastle’s leading hotels, the Duke of Wellington Hotel in New Lambton.
Hunt Hospitality put together a private syndicate to buy the freehold pub for about $8.5 million.
The group has contributed equity to the syndicate and will operate the pub for a management fee.
The Hunt family, which has managed pubs for three generations and runs the Kent and CBD hotels in Newcastle, put together a similar private syndication to buy The Rutherford Hotel in Maitland earlier this year.
Hunt Hospitality managing director Stephen Hunt said the Duke of Wellington was “a great hotel with a strong food and beverage offering and very well established management team” and would add to the group’s growing portfolio of Hunter region pubs.
The Duke of Wellington generates about $1 million a year in EBITDA which equates to a yield on the purchase of about 11 per cent.
The hotel was sold off-market by a private consortium, through CBRE Hotels national director Dan Dragicevich and Knight Frank hotel sales and consultancy director, pubs and hotels, Mike Wheatley.
Mr Dragicevich said a number of established hoteliers had created boutique pub funds to buy quality assets, with some equity in venture and management responsibility.
“Peak Investments and Bondi AM in Sydney are two prime examples and with Hunt Hospitality it is evident the model also works well in strong regional towns,” he said.
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