The Covid pandemic has sparked a trend that has seen people moving out of the cities and into the regions … and that’s been good news for the country pub.
The Sydney Morning Herald reports that the social shift is driving a series of million-dollar makeovers of rustic venues … and new patrons are expecting a gourmet dining experience.
Savvy hospitality operators are reportedly snapping up iconic regional pubs and spending big dollars transforming them amidst a flurry of activity in the regional pub market for the first half of 2021.
Hannah Rose, Knight Frank’s specialist hotel and hospitality valuer, told the SMH that larger corporate groups were typically purchasing from generational independent operators, with the intent to increase profitability through capital reinvestment, purchasing power and economies of scale.
“Critical to success is a depth of permanent population, or high visitation, and for venues to meet both markets in terms of appointments, decor and offer,” she said. “There are very few country pubs that successfully create their own destination driver.”
Ms Rose said customers were typically looking for a unique experience and they’re expecting the conveniences of major cities in tree/sea change locations, including paddock to plate, a well-curated drinks and wine list, and an on-trend venue aesthetic.
And that’s what’s happening at Victoria’s Portarlington Grand Hotel. The property was bought in 2019, by Paul Little, chairman and founder of Little Group, who is now embarking on a $10 million-plus renovation.
“A good town deserves a good pub, and a good pub helps make a good town,” he told the SMH. “The original building will be restored with a magnificence that draws you in.”
Similarly, Sorrento’s Continental Hotel is also undergoing a major refurbishment, and the Portsea Hotel has just undergone a sophisticated $7 million makeover.
And the SMH reports that Sydney pub baron, Justin Hemmes, recently secured his first Victorian pub investment – The Lorne Hotel – through his Merivale Group.
“The Lorne Hotel is an iconic venue in a truly spectacular location,” Mr Hemmes told the SMH. “We feel honoured to continue their legacy and help usher the pub into the next phase of its incredible 145-year history.”
Transacting the purchase, Will Connolly, JLL’s vice-president of hotels said that while metropolitan Melbourne and Sydney are squeezed for opportunities in the pub market, it’s a different story in regional Victoria.
“There’s less of a barrier to entry,” he told the SMH. “And operators are looking to go to regional Victoria for opportunities, which can only be a positive for the towns.”
The main reason nomads enjoy visiting these country hotels is the rustic look and good country service and price of their meals. Changing the look and meals to yuppie type meals will drive the nomads away.
Don’t change country pubs. Can’t imagine enjoying Ms Rose serving me and talking sense over the bar. No plumbs in my mouth lady. You sound like a real centre of the city inhabitant by your reported words you use sobest stay put.
Don’t change
A simple pub and simple meals are best.
Don’t rely on the city yuppies as a long term customer. They won’t always travel remote no way.
I love outback and regional pubs.
Some of them have a lot of historical photos of times gone by.
Its like having a beer in a museum. The real Australia…having a counter lunch, game of pool, meeting and having a yarn with some of the locals.
Not far to go home with the Van parked out the back, or just down the road…somewhere!
I was recently at Tottenham Hotel in NSW, Uncrowded, nice wide upper verandah, and genuine country hospitality. Please leave the city airs and graces in the city. Why change something into the very thing you are escaping? Seems like madness to me.