The Broken Hill Pub has made a surprise entry into the local real estate market, the latest large hospitality business to be offered for sale in the outback city.
- The owners of the Broken Hill Pub are taking expressions of interest for the venue
- Several large hospitality businesses in the city have been put up for sale over a short period of time
- Real estate agents say high prices for gaming machine licences may be influencing some listings
Its owners are believed to have spent millions on upgrading the building on the corner of Argent and Oxide Streets.
Real estate agency JLL Hotels and Hospitality Group has been tasked with taking expressions of interest for the business, only weeks after it announced it had sold the Junction Hotel.
Several other venues have been listed recently, including The Astra, which is expected to receive offers of more than $3.5 million.
Despite movement in the market, well-known establishments such as The Palace Hotel have searched for years for someone to pass the keys on to.
Real estate agent Jim Hickey says assets appear to be a trending factor in the success of local venue sales.
“The Junction is totally different because of the pokie machines. I think it’s about $450,000 per pokie machine licence now.
“I think they had about nine of those so you can do your sums, it’s pretty simple.
“The other two big hotels, one’s got accommodation and one hasn’t.
Are the sales a good or bad sign for the local industry?
Broken Hill Musicians Club general manager Michael Boland believes business owners are selling up for multiple reasons, including the lingering impacts of COVID-19.
“With staff shortages and the consistent changes around restrictions, it’s put a lot of pressure on venue owners and operators.
“However, I think a lot of venues are taking the opportunity of a very robust hospitality market in New South Wales with certain assets within the industry higher than they would be normally,” he said.
Mr Boland says despite difficulties, there should be light at the end of the tunnel with events and film projects returning to the region.
“Certain movements like that sometimes do worry businesses but I think Broken Hill is very robust.
The ABC has contacted JLL Hotels and Hospitality Group for comment on the sales.