Hotel Property Investments has entered into agreements to acquire three hotel properties for a combined total of $63.3 million across both Queensland and Victoria.

The three properties, Queensland’s Mango Hill Tavern & First Choice Liquor, along with both and The Jubilee Tavern in Airlie Beach as well as the Summerhill Hotel in Metropolitan Melbourne, represent a weighted average capitalisation rate of 6.40 per cent for the fund.

The pubs were introduced by Cushman & Wakefield's Nick Spiro, HTL Property's Glenn Price and Brent McCarthy, and CBRE's Scott Callow, respectively.

Situated in the Mango Hills/North Lakes part of Brisbane, Mango Hills Tavern is a single-level pub with bistro, sports bar, gaming and bottle shop that also includes a Shell Service Station.

The site was purchased for $31.3 million reflecting an initial yield of 5.65 per cent and a combined WALE of 6.6 years.

At the Jubilee Tavern, Airlie Beach, Australian Venue Co are the lessee, with the venue one of more 150 hotels they operate around Australia.

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HPI CEO Don Smith with AVC Managing Director Paul Waterson. Source: HPI

Paul Waterson, AVC Managing Director, said the Jubilee Tavern was one of Airlie Beach’s true locals pubs.

"We see Airlie Beach and the North Queensland market as a great place to invest particularly as border’s open up," he said.

"The acquisition continues our strong partnership with HPI with both companies keen to continue to grow together”

The Summerhill Hotel is located in Reservoir and includes public bar, bistro and gaming, while the Francis Hotel Group are an experienced pub operator, having run a number of pubs in Melbourne for the last 30 years.

The venue was sold for $22.7 million.

HPI CEO Don Smith said the acquisitions demonstrated HPI’s ability to source pub opportunities which were well located and leased to quality operators on attractive lease terms.

“We will continue to monitor the market for further acquisition opportunities which meet our investment criteria and improves the overall quality of our portfolio," he said.

"The acquisitions announced today represent the continuation of HPI’s strategy of acquiring high quality properties in attractive markets which are leased to quality operators on long lease terms."

The two Queensland assets are expected to settle by the end of this year, and it is understood the Melbourne asset will settle Q1 2021.

HPI’s recent transactions have included the purchase of the Gregory Hills Tavern, Sydney ($40M) & The Acacia Ridge Hotel, Brisbane ($20M) also through HTL Property in March 2020.