Savills News

29% Yield Signals Strong Appetite for Regional Pubs as Collie Hotel Changes Hands

A standout opportunity in regional hospitality has been snapped up, with the Collie Hotel in Central West NSW selling to a Melbourne-based private buyer, achieving an exceptional 29% yield. The hotel’s combination of strong operational performance, untapped development potential, and multiple income streams made it a rare acquisition in today’s tightly held market.

Located at 21-23 Bathurst Street in Collie, the venue was sold by local operators who ran the business for over a decade before deciding to pursue a lifestyle change. With new owners stepping in, the hotel is expected to benefit from fresh energy and ideas, enhancing its role as the town’s social and entertainment hub.

The deal was negotiated by Hugo Weston, Sales Executive at Savills Australia and New Zealand who said, “Achieving a remarkable 29% yield, this sale underscores the growing demand for well-positioned regional hospitality assets, particularly those offering strong operational performance and upside potential.

“A yield of this nature is exceptional for buyers in today’s market and highlights the resilience and appeal of regional pubs as a viable investment class

“With Sydney being such a tightly held market, we’re seeing more investors look to regional areas for better returns, and assets like the Collie Hotel are leading that charge,” Weston said.

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