Seven South East Queensland Hotels

PUB operator ALH Group has moved to offload seven hotels across southeast Queensland including the Benowa Tavern and Commercial Hotel at Nerang.

The listings, thought to be worth a total of more than $75 million, are set to go to auction on April 22.

It is the first time the group has offered any freehold assets for sale since Woolworths acquired ALH in 2004.

The pubs are leased to ALH, which is 75 per cent owned by Woolworths and 25 per cent owned by the Bruce Mathieson Group, under recently signed 20-year contracts at undisclosed rates.

ALH director Bruce Mathieson said the decision to list the hotels was part of a strategy to sell off some of their freehold assets to free up capital.

“We have strategic commitments to be met within the business, including the acquisition of gaming entitlements in Victoria,” he said.

“By creating these brand new affordable leases we can provide superior opportunities for investors and retain our quality businesses.”

The properties also include Beenleigh’s Imperial Hotel; Australian National Hotel in Woolloongabba; Springfield Tavern; Warner Tavern; and Kensington Junction Tavern in Crestmead.

ALH spent more than $44.4 million acquiring the properties in separate deals between 2001 and 2007.

The Benowa Tavern property, at 117 Ashmore Road in Bundall, cost the group $13.2 million in 2002.

The hotel comprises a sports bar, restaurant and games room.

The Commercial Hotel sits on a 4124sq m property at 16 Price Street opposite Bischoff Pioneer Park in Nerang.

The holding cost the group more than $4.8 million in 2002 and features a sports bar, gaming lounge, bistro and bottleshop.

Ray White Hotels Australia boss Tony Bargwanna is managing the marketing campaign for the seven hotel properties, in conjunction with Ray White Commercial Gold Coast.

Mr Bargwanna said that the hotels were expected to attract significant investor interest.

He said the long-term lease agreements and the quality of ALH Group as a tenant created a strong investment proposition.

“Each of the holdings boasts a strong lease,” said Mr Bargwanna.

Photos: Seven South East Queensland Hotels - click to enlarge