Five Tassie pubs for tree changers

If you’ve ever wanted to own your own pub without breaking the bank and in a beautiful part of the country, a collection of properties in the top half of Tasmania may just be what you’re looking for.

Tree changers have been flocking to the island state for years attracted by Tassie’s natural charms, slower pace of life and cheaper property. Some land on a hobby farm, or in a small town running accommodation or some other business. Others continue their careers working remotely.

The opportunity to run a pub does not come along too often. Especially in areas where tourism is starting to take off again after two years of pandemic disruptions. While there are opportunities in Hobart, such as the Duke Hotel and in Launceston, many are being drawn to smaller communities.

Interest in pubs is high. There’s been a marked increase in the number of searches to buy and lease hotel/leisure assets on realcommercial.com.au in Tasmania.

Searching for the ideal pub

Searches to buy hotel/leisure in Tasmania were 41% higher in 2021 compared to 2020, and 47% higher than 2019. Growth in searches to lease hotel/leisure property in Tasmania was even stronger. Lease searches were almost double that of 2021 compared to 2020 (92%), and 112% higher than 2019.

In comparison, Australia-wide lease searches for hotel/leisure only increased by 11% between 2020 and 2021.

The Duke Hotel in Hobart  sold recently. Picture: realcommercial.com.au/sold

REA Group economist Anne Flaherty said interest in Tasmania is strong as investors and tree-changers recognise opportunities in untapped tourism areas.

”Over time awareness of what Tasmania has to offer has increased,” Ms Flaherty said. 

”In addition, the cost of property is still significantly lower than the mainland, which is obviously attractive.”

The Buckland Inn which sits on the main road from Hobart to the east coast, sold to a Queensland buyer just before COVID restrictions hobbled Tasmania’s tourism industry. Despite that, business has been strong for 180-year-old pub, thanks to locals and a steady stream of rock climbers attracted by climbs at nearby Sand River. 

The Buckland Inn sold to a Queensland investor. Picture: realcommercial.com.au/sold

Confidence returns after COVID

Knight Frank’s Tasmania head of hotel and business development, John Blacklow, has been selling hotels in the state for more than 30 years and knows the industry better than most.

He says while the past two years have been stagnant for bigger hotels, smaller pubs valued at less than $1.5 million offer a good lifestyle for smaller investors.

”Figures are not as good as they could be because of COVID, so vendors have been selling on the basis of 2019 figures for yield etc,” he said.

”[But] current trade is starting to get back to that level. It’s just a matter of confidence.”

Confidence seems to be returning in the state’s northeast.

The popularity of mountain biking around Derby and surrounding towns is driving a property boom in Tasmania’s northeast. Picture: realcommercial.com.au/sold

Derby, about an hour’s drive from Launceston, is the epicentre of the state’s internationally-recognised mountain biking scene. More than 30,000 enthusiasts a year visit the former tin mining town to ride trails in the surrounding hills.

Properties are at a premium. One of the town’s two pubs, The Dorset, built in 1911, was put on the market recently and is currently under offer from a Hobart buyer.  The bar is popular at weekends with riders dropping in to quench their thirst after tackling the various trails around town.

For tree-changers, the following pubs are worth a look.

Imperial Hotel, Branxholm

A 20-minute bike ride down the road [or 5-minute drive] from Derby is Branxholm, where the Imperial Hotel has just come on the market and is attracting a fair bit of interest from buyers.

Branxholm’s Imperial Hotel is poised to cash in on a resurgence in visitor numbers. Picture: realcommercial.com.au/for-sale

Built in 1909, the landmark building  which features a wraparound balcony, classic verandah entrance and north facing beer garden, is being offered as a freehold hotel with liquor licence.

Agent Justin Wiggins, of Knight Frank said with Derby’s mountain biking just 7km away, and tourism opening up again, there was plenty of scope for expansion for tree changers looking to buy a local business.

Winnaleah Hotel, Winnaleah

This country pub, which is just 9km from Derby, is a rare opportunity to purchase a freehold hotel for less than you could buy a house anywhere else in Australia.

The Winnaleah Hotel is being marketed as offering the perfect lifestyle opportunity for a tree changer. Picture: realcommercial.com.au/for-sale

On the market for offers north of $535,000, the Winnaleah Hotel is being billed as perfect for someone wanting a lifestyle change, providing ”a home, job, immediate income, and fantastic lifestyle”.

The property features a public bar, lounge area, dining room, six hotel rooms and a 3-bedroom owners residence upstairs.

St Marys Hotel, St Marys

Ideal work-life balance is the promise for this landmark pub in the fast-growing rural community of St Marys which sits at the junction of the Tasman Highway and the Esk Highway about 10km from the east coast. It also means most visiting the north of Tasmania will drive past the pub. 

The St Marys Hotel is a landmark in the east coast community. Picture: realcommercial.com.au/for-sale

The hotel offers 15 rooms, guest lounge room and several bathrooms all upstairs enjoying the wraparound verandas and views. A caretakers/managers apartment is also available downstairs for a buyer who may wish to live on site.

Yolla Tavern, Yolla

This former butter factory is the local hub for the farming community in the state’s northwest. On the market for less than $500,000, the 1930s building has a bar, large function room, dining room, commercial kitchen, cool room, bottle shop and onsite accommodation for a manager. 

The Yolla Tavern, which is in a converted butter factory, is close to the coast and on the way to several scenic tourist attractions. Picture: realcommercial.com.au/for-sale

The Yolla pub has a loyal local customer base but has potential to expand as Yolla is only 10 minutes from the coast and on the tourist route through the Hellyer Gorge and Tarkine Wilderness to Cradle Mountain or the Tassie’s west coast. 

Bush Inn, New Norfolk

Tasmania’s oldest continuously licensed pub  is looking for somebody to take over the lease. 

New Norfolk’s Bush Inn has a rich and fascinating history as  one of the country’s oldest pubs. Picture: realcommercial.com.au/for-sale

The Bush Inn, which has been trading since 1815,  is a landmark in New Norfolk, half an hour’s drive from downtown Hobart.

The pub is at the heart of the Derwent Valley, a popular destination for foodies, wine lovers and adventurers. The pub has multiple bars, 20 rooms, a large deck with river and mountain views and a managers unit. Oh, it also has a ghost.