Such is pub life: Ned Kelly expands his portfolio
Rod “Ned” Kelly is the founder and CEO of Kelly & Co Hotels and owns Kelly’s Irish Pub in Mudgee, NSW.

Such is pub life: Ned Kelly expands his portfolio

Regional pub specialist Rod “Ned” Kelly has expanded his footprint in the thriving NSW pub sector after snapping up the Amble Inn at Corindi Beach in Coffs Harbour. He also opens the popular Belmore Hotel in Scone next week.

The Kelly & Co Hotels group, comprising Kelly and investor Corey Dunn, paid $12 million for the Amble Inn. The beachside pub sold for the first time in its history, having been built by the family operators in 1985. Kelly and Dunn also own the Criterion Hotel in the Lower Hunter Valley town of Weston.

Last year, when the pub sector was hit hard with enforced lockdowns during the pandemic, Kelly bought the deeds to the Belmore Hotel in Scone for about $5 million, in a return to where it all began for the industry veteran and his former partner at the Riversdale group, Paddy Coughlan.

He will add the latest purchase to his portfolio of eight pubs, including Kelly’s Irish Pub in Mudgee, the Tattersalls Hotel Casino and Gulgong’s Centennial Hotel.

Kelly was a co-founder of Riversdale with Coughlan, but he left in 2014 to focus on running his regional hotel group.

“We’re absolutely delighted with the purchase,” Kelly said.

“There are some exceptional operators doing some great stuff on that part of the NSW coast, always large-format hotels, and it’s just a case of trying to find a house on their street you can afford.”

Kelly added that Dunn was building his cleaning empire in Maroubra when he and Coughlan were “cutting our teeth in Redfern, and he sold to private equity around the same time we sold out of Riversdale”.

“He obviously did a better job as I’m still working,” Kelly said.

Regional pubs are proving as popular as their city cousins, with close to $200 million changing hands during the COVID-19 years. Now, with more people opting to travel within the state, the local pubs are very busy with day- and weekend-trippers.

Dunn said he and Kelly are both “super-excited” to fulfil a goal of purchasing a “banger of a beachside hotel” at Coffs Harbour.

“We have proven a successful partnership with the Criterion Hotel purchase, although both are very different offerings – so by putting Ned’s industry experience and vision to work, we’re looking forward to making Corindi Beach a real destination pub for all to enjoy,” Dunn said.

Kelly added that the most significant change for regional pubs – COVID-19 aside – is that for the most part the group is part of the metro marketplace now.

“There’s not a regional centre now with a ‘pop’ over 10k that doesn’t have a Sydney operator already there or targeting the pubs, which regularly includes consolidation of the pubs in town,” Kelly said.

JLL Hotels senior vice president Ben McDonald and vice president Kate MacDonald steered the sales campaign and advised on the Amble Inn sale. They said the Amble Inn sits on 16,000 square metres of land, about 30 minutes north of Coffs Harbour, and is the last pub heading north for 50 kilometres.

“Demand for quality assets underpinned by a genuine growth narrative is continuing to strengthen the case for acquisition for hoteliers and investors with a long-term investment horizon,” MacDonald said.

JLL is also selling the freehold interest in the Caledonian Hotel in Singleton, NSW, on behalf of husband-and-wife team Helen and John Hill.

Ray White head of research Vanessa Rader said demand for pubs took a positive turn in 2021 and this trend is set to continue in 2022.

Looking at NSW alone, $1.427 billion’s worth changed hands in 2021 – up nearly 144 per cent on 2020 results. The highest value transaction was recorded late in the year for the Vineyard Hotel for $68 million.

“With 2022 starting off with a bang, momentum has continued at a rapid pace, with records continuing to be broken and new highs achieved in value for assets in metropolitan, regional and coastal markets,” Rader said.

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