The Grand Hotel in Kiama has hit the market for the first time in over 20 years.
The Grand Hotel in Kiama has hit the market for the first time in over 20 years.
The iconic hotel first opened in 1891 and has been a favoured watering hole for tourists and locals ever since. One of just two pubs in Kiama, the Grand Hotel is being offered for sale by Wollongong based hotel brokers, Tourism Property.
Broker Matt Davidson says Kiama carries an unrivalled appeal and rare tourism assets in the council area are always hotly contested. His agency was responsible for the sale of the Sebel Kiama in 2017, plus three sales of the Jamberoo Resort (now known as “The Lodge”).
Mr Davidson suggests the Grand Hotel is ripe for a new owner to maximise its potential, noting that Kiama is dreadfully under-supplied for tourist accommodation with less than 200 motel rooms in the town.
“There are 20 traditional hotel rooms on the top two floors of the hotel. We feel that a renovation into boutique rooms with ensuites would add great value to the property.
He describes the hotel as having a mix of old world charm, steady income and serious potential.
The current owners have prepared concept plans for renovations, but have decided to seek a new owner for the property.
Kiama was recently named “Best Small Town in Australia”, with Bernard Salt picking the seaside tourist hot spot as the top of 752 small towns (below 50,000 population). In March 2023, Mr Salt noted “Kiama has above average entrepreneurship, below average unemployment, higher than average income”.
Davidson continued:
“Pubs have been so tightly held in recent years, creating a fairly solid sellers market due to limited availability of assets for sale and historically low yields. Obviously Kiama is an iconic seaside town and we’re hearing from buyers who can see huge potential in The Grand.
Publicans are increasingly looking at diversifying their income streams, with accommodation offering a much higher profit margin than food, beverage and gaming.
“The pub has 15 gaming machine entitlements, which are highly valued of course, but we think there’s a strong opportunity to capture improved food and beverage trade in what is a wealthy town.
Offers to purchase The Grand Hotel Kiama close Thursday 29th June 2023.
TLDR:
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Grand Hotel Kiama offered for sale by Wollongong hotel brokers, Tourism Property.
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The iconic freehold hotel is heritage listed and first opened in 1891.
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First time offered for sale in more than 20 years.
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Strong trend currently for publicans to diversify their income streams, with accommodation additions and renovations.
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Offers to purchase The Grand Hotel Kiama close Thursday 29th June 2023.
Tags: selling accommodation tourism listicle
About the author
Matt Davidson
Matt started his hospitality career in Dunk Islandresort in tropical North Queensland in 1996 and has genuinely done it all in the industry since ...
