Hotels proving popular with buyers in Queensland property market

Cairns' iconic Heritage Hotel is one of several attracting interest on the Queensland market

Bars and hotels are increasingly popular purchases in Queensland, according to Peter Power of hotel and motel agency Power Jeffrey & Co.

Mr Power said his firm had placed five venues under contract in the past six months, including the Rainbow Beach Hotel and Agnes Water Tavern.

"We are experiencing an increase in buyer interest, particularly from private companies and individuals buoyed by the record low interest rate environment and the return to higher investment yields in a more stable market place," he said.

Link Business Brisbane business broker Frank Willett said character pubs always drew interest, but there was more to running a venue than buying the building - namely a liquor licence and a suitable personality.

He said liquor licences usually cost between $2000 for a small venue and about $20,000 for a hotel, and the licensee was subject to a police check.

"To obtain one you need to be a person of good character and part of that process is a police check," he said.

"They make sure that anybody who serves alcohol is a responsible person."

He said potential buyers should also be a "people person" for business reasons.

Dan Reeves, who owns the Australian Hotel in Gympie with wife Karen, agreed people looking to buy a pub should be able to relate to everyone.

"You need an easy outlook on life and to be able to adjust to different kinds of people," he said.

The Reeves' 120-year-old pub is on the market after seven years in their hands.

Mr Reeves said the best part of running it was interacting with the customers.

"We're just a good country pub. The focus is on a good bar trade and a good TAB," he said.

"The tradies drink here. It's the locals' pub."

Gympie Real Estate agent Billy Mitchell is marketing the hotel and said its key drawcard was its position at 1 Lady Mary Tce.

"It's up the top of the hill with good passing traffic," Mr Mitchell said.

"Everybody knows it and has been there."

He said there had been interest in the business from locals and Queenslanders more broadly.

"I think a lot of blokes dream to own a pub one day … especially an iconic one," he said.

The Heritage in Cairns, from the same era as the Australian, is also on the market.

Built in 1890 as the Bank of North Queensland, it is the second-oldest building in the city.

Owner Simon Friend-James has had bars and clubs in Sydney and Kings Cross but said he enjoyed it was nice working in Cairns.

He said the location was also ideal for the market and that was the most important factor first-time pub owners should keep in mind.

"If you've got the right location and the heritage it can be a good business," he said.

The Heritage has multiple bars, a fully operational kitchen, a two sided balcony, a licence to trade late on weekends and council approval to split into two night clubs.

It is listed for offers over $1 million.

Source:  theaustralian.com.au - 29 December 2013