Home' Australian Hotelier : AH December 2016 Contents 8 | DECEMBER 2016 AUSTRALIAN HOTELIER
TO BE BROKEN UP
In what has become a trend for 2016, another
pub fund is placing its entire portfolio on the
market – in this instance the Australian Pub
Fund, which runs its twelve venues through
The pub fund is run by Geoff Dixon, John
Singleton and Mark Carnegie, who filled their
portfolio with under-performing venues in
attractive locales in Sydney and Brisbane. It
now comprises 12 pubs.
In what has been deemed a bullish market,
the powers-that-be behind the fund have
decided that now is the time to cash out,
with the pubs valued significantly higher and
performing much better than when they were
The first to be placed on the market are The
Marlborough Hotel in Newtown and Kinselas
Hotel in Darlinghurst. Both are in suburbs just
outside of Sydney’s entertainment precincts,
and as such are not subject to the lockout laws.
Both areas have seen an increase in traffic due
to the dispersal of patrons looking for late-
This is not the first time this year that a
pub group or fund has placed their entire
portfolio on the market, with Redcape
engaging Goldman Sachs to sell their
portfolio, and Lantern Hotels Group’s
stakeholders approving the sell-down of
its hotels. Keystone was also placed into
receivership and has had the majority of
its portfolio sold to Dixon Hospitality, the
Jamie’s franchise restaurants to be sold back
to Jamie Oliver, and the remaining venues still
on the market.
Andrew Jolliffe of Ray White Hotels, who
has been engaged to head the Marlborough
and Kinselas sales campaigns, explains why
hotel portfolios are attractive.
“Hotel portfolios are unmistakably
scalable business models, for which
many revered examples exist within the
Talking specifically about Riversdale assets,
he added: “However equally, and whilst
identifiably scalable, amalgamations of A grade
hospitality assets such as those enjoyed by
Riversdale are not arrived at easily, or cheaply;
hence they deserve to enjoy a premium.”
Interest in Riversdale assets is expected to
“Clearly these Riversdale sponsors have
formed a view that the investment cycle
for their capital deployed in this vehicle is
maturing. Accordingly, and indexed directly
to asset quality, we believe interest will be
robust,” stated Jolliffe.
Jay Beecroft, group operations manager for
Riversdale Group, declined to comment at the
time of publishing.
TOPS AHA VIC AWARDS
The Australian Hotels Association Victoria (AHA Vic) State Awards 2016 were held last month at The
Palladium at Crown Casino, with more than 1200 attendees present.
Peter Burnett OAM, president of AHA Vic, said that attendance had increased by 20 per cent from
last year, and that the number of nominees for various awards had increased by 15 per cent, reflective
of a vibrant Victorian hotels industry.
“The pleasing part about that is that so many more young people and their employers are getting
involved, so it gives them something to aim for. It was a really relaxed and enjoyable evening.”
With over 40 awards presented on the night, one of the big winners was Zagame Corporation, which
took out four awards, including Best Hotel Group Operation and Overall Hotel of the Year – Metropolitan
for Zagame’s Berwick.
“We were incredibly proud of our team for winning these awards, the hard work, dedication and
family culture we create is great to be recognised,” stated Janelle Beard, operations manager for
Victor Zagame summed up the group’s achievements in his speech for the Best Hotel Group
Operation win, stating: “When you surround yourself with beautiful, loving, caring and very passionate
people you can achieve success in many different ways.”
Cardinia Park Hotel in Beaconsfield took out Best Overall Hotel – Regional, and also picked up Best
Bistro – Regional. Frank Deegan, owner of the Cardinia Park Hotel was pleasantly surprised by the win.
“It was completely unexpected but we’re overjoyed – it’s fantastic.”
The Nikakis Award, established in 1997 in honour of Nick Nikakis, recognises “an individual or
organisation who by their sustained performance and commitment serves as an inspiration to all in
the industry”. This year’s recipient was Mark Robertson OAM, who has been an hotelier for more than
30 years. Robertson is involved in the Lower Plenty Hotel, Epping Plaza Hotel, Mail Exchange Hotel,
Welcome Stanger Hotel and Watergardens Hotel, and is also the metropolitan vice president of AHA
Victoria. He also established HotelCare, which has seen the AHA Victoria raise over $2 million for
Burnett was full of praise for the Victorian hotels industry, stating that it was vibrant and one of the
best in the country – but that should not mean that the industry should get complacent.
“The beauty of Melbourne hotels is that we trade nearly up to 24 hours a day. We have small bars
and street cafes, and it’s very vibrant. The good thing about us is that we don’t have the lockouts, and
we respect that. But it’s not a given that we’ve got it forever. If we muck up, like a lot of states we’ll be
closing down at 12 o’clock at night. You don’t want that – with tourism booming the way it is, you need
to be able to compete with other countries around the world. I think Victoria does it as well, if not better,
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