Sold: Tas buyer secures city pub amid national competition
THE opportunity to secure a historic Hobart CBD pub is not something that investors will let pass by unnoticed.
Knight Frank’s Claude Alcorso said the sale campaign for the Shamrock Hotel attracted inquiries from all over Australia.
“It was a really strong campaign, with lots of interest from mainland-based investors and locals,” he said.
“People are still looking to park some money in Tasmania as it is seen as a safe haven.
“There are numerous pressures in 2023, but our commercial property market as a whole is holding up really well.
“Build costs are high, but in Tassie it is possible to buy an asset for less than the replacement costs — this is seen as really good value for money.”
While interest in the pub was broad, it was ultimately sold to a local buyer.
Property records show Liverpool St’s Shamrock Hotel was sold for $4m. This represents a yield of 5.1 per cent.
The Shamrock is one of Hobart’s best known hotels, having poured its first beer in 1823.
At the time it was called the Britannia Hotel.
The name was changed a couple of years later to the Vine Tavern and then, in 1886, it became the Shamrock Hotel.
The original building is still standing. However, it now has an art deco facade, which was added in the 1930s.
Today, the Shamrock Hotel is a charming, traditional inner-city pub.
No bells and whistles, no gaming, just a comfortable, unpretentious hotel with open fireplaces and lovely leadlight windows.
Due to its prime CBD location, and lack of nearby hotel competition, the business is described as “a proven performer” with consistently high revenue over a long period of time.
The current tenants are well known in the industry and from August 2022 they signed a long-term lease of 10 years with three further options of five years.
Meanwhile, other recent Tassie hotel sales include the Horseshoe Inn at Cambridge, the Imperial Hotel at Branxholm, the Scamander Beach Resort and Gretna’s Heartlands Hotel.
The iconic Cascade Hotel in South Hobart is among the pubs currently listed for sale. Outside of the city, buyers have the opportunity to purchase Cygnet’s Commercial Hotel, Bridport Hotel, St Marys Hotel, and Nubeena Tavern.