JLL Hotels & Hospitality Group announce the sale of the freehold going concern interest in the Centennial Hotel in Gulgong. Affectionately known by locals as ‘The Cenny’, the venue was sold on behalf of Kelly & Co Hotels who continue to action their strategic portfolio consolidation mandate. The hotel was sold via a highly competitive on-market Expressions of Interest process where interest was garnered by existing portfolio owners, single asset owners and new market entrants.

The Hotel was purchased by new market entrants, the O’Brien family. Headed by brother and sister team Deb and Glen O’Brien, ‘The Cenny’ was a strategic acquisition which compliments existing hospitality assets in the region.

Situated on a prominent corner site with excellent street frontage, the venue enjoys average weekly sales exceeding $53,000 ex. GST, comprising of gaming, food and beverage and accommodation income. The sale includes a total of 6 gaming machine entitlements, with the hotel being a proven performer in the gaming department (with the venue ranked 3/42 in all of NSW for hotels with 6 GMEs). There is also a gaming machine threshold in place to further increase the total GME count to 8. The approved threshold increase proved a lucrative incentive to acquisitive parties particularly for those who prioritise gaming revenue. Complementing the gaming offering is a single bar operation as well as 7 ensuited accommodation rooms. A detached manager’s residence is also included in the sale which provides flexibility for housing on-site staff or additional short stay patrons. The venue resides on an expansive 1,345sqm block and incorporates an on-site carpark.

‘The Cenny’ was sold exclusively by JLL NSW regional hotel brokers Greg Jeloudev and Edward Browne, with Mr Jeloudev noting, “The Cenny unsurprisingly attracted interest from a wide breadth of purchasers due to the excellent trade and underlying asset features of the hotel. As debt serviceability and cash flow continue to be at the forefront of the 2023 pub investment landscape, the venue easily satisfies many of the stringent criteria required in the current lending sphere.”

Gulgong is located a short 23-minute drive north of Mudgee and 293km northwest of Sydney. The town is historically significant and retains much of its 19th century urban fabric, with the streetscape keeping its original 1800’s façade. The region boasts excellent economic drivers with substantial energy, agriculture and tourism industries underpinning the area.

The transaction of ‘The Cenny’ is JLL’s second sale in Gulgong in as many years which follows the sale of the Post Office Hotel in April 2022.

JLL Hotels thank Kelly & Co Hotels for entrusting the firm with this important mandate and congratulate the O’Brien family on their new acquisition.

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