Specialist National Brokerage Firm HTL Property has released its annual research document. Highlighting a renewed optimism for investors in 2025. Having been at the forefront of the majority of pub  transactions across Australia in 2024, HTL Property is well positioned to offer insights on each state’s market across the country.

Transaction volumes across the country have been well down on the peak of 2022 (but well up on 2023) and despite challenging trading conditions brought about by increased cost-of-living, the pubs sector  continues to offer investors attractive and enticing opportunities, together with robust fundamentals that have proven resistant to economic pressures.

Metropolitan sales totalled $1.03bn in combined transaction value, with an average sale price of $29m across 35 transactions. The highest metropolitan combined sales total in a decade. 

Regional and Coastal sales totalled $111.2M and $59.9M respectively; with the combined average sale price of $7M across 25 transactions.

Sydney accounted for nine of the ten biggest pub sales of 2024 nationally, including Redcape Hotel Group offloading the El Cortez Hotel for about $100 million, and the Cabramatta Hotel for around $90 million just  before Christmas. Both pubs were acquired by Rich Lister Sam Arnaout’s Iris Capital

Notably, pub fund Redcape Hotel Group was the vendor of seven of the 10 biggest sales of 2024. 

Some notable commentary within the report highlights the enduring resilience of the sector “the Pub and  Hospitality industry has showcased remarkable resilience; achieving a 12.56% increase in revenue over the  three years following the CV-19 period. This is in a stark contrast to the broader real estate sector and  comparable real estate industries, many of which have struggled with significant value decline or at best  minimal recovery” offers HTL Property Managing Director, Andrew Jolliffe.

Looking to 2025, HTL National Director Dan Dragicevich advised “we expect a 25-50bps sharpening in cap  rates generally across all markets over the course of 2025.” Further fuelling this optimism is the fact that  the majority of banks are back in the market, motivated to lend into the sector and are aggressively chasing the  business of experienced and qualified groups. This has led, in the past six months especially, to traditional  private buyers returning to the marketplace and actively seeking assets.

Highlights for HTL Property in 2024 included:

• HTL Property sold 76% of NSW Pub Sales
• HTL Property sold 80 % of the top 10 Sales for 2024 (Nationally)
• #1 Largest Sale for 2024 – El Cortez, Canley Heights
• #2 Largest Sale for 2024 – Cabramatta Hotel, Cabramatta
• #3 Largest Sale for 2024 – Tea Gardens Hotel, Bondi Junction
• #1 Largest QLD Sale for 2024 – Lucky Tree Tavern, Durack
• #1 Largest Regional NSW Sale – Area Hotel, Griffith

Related readings 

Record Pub Sale Sydney’s Tea Gardens Hotel sold by HTL Property announced

Another three market defining Pub transactions by HTL Property

Regional record pub sale by HTL Property