Queens Hotel, Goondoon Street, Gladstone. Photo Brenda Strong / The Observer
Queens Hotel, Goondoon Street, Gladstone. Photo Brenda Strong / The Observer Brenda Strong

Interstate investors could buy Gladstone's million-dollar pub

GLADSTONE'S iconic Queens Hotel could attract a buyer from interstate, as a nation-wide campaign for its sale launches this week.

This week CBRE Hotels launched a national campaign in a bid to attract investors keen to buy the popular Gladstone pub.

CBRE Queensland director Paul Fraser and managing director Glenn Price say the pub could fetch up to $5 million, but said considering Gladstone's market, the price an investor pays "could be anyone's guess".

Mr Price said the Goondooon St pub could lure investors from as far as Sydney looking for a bargain.

Current owners Queensland Town and Country Pubs are selling off all of its hotels, with the Queens Hotel and Sarina's Tandara Hotel the final two.

"They are here to be bought," Mr Price said.

"These two will be sold at market value ... The owners aren't testing the waters, they're not holding out for a price above market value."

TRIP BACK IN TIME: The Queens Hotel was built in the 1860s but in 1925 on October 30, it was destroyed by fire.
TRIP BACK IN TIME: The Queens Hotel was built in the 1860s but in 1925 on October 30, it was destroyed by fire. Contributed

Mr Fraser added the Queens would likely sell at "considerable discount".

He said an investor would buy the pub with its long-term future in mind, awaiting Gladstone to "fire back up".

"We all agree property in Gladstone and resource-centric areas recalibrated ... The smart buyers will come in on that assumed downside to pick up with upside in the Gladstone area when it returns."

While they couldn't reveal dollar figures on the Queens Hotel returns, they said it had a "very strong bottom line".

"The heavy days of yield driven sales in areas like Gladstone have vanished," he said.

"It's all about the underpinned value of the asset."

Mr Fraser highlighted the projects that could get Gladstone's economy firing - including Southern Oil's biofuel plant, the shale project and Casper Oil's investment in a brand new oil

The Queens Hotel, on the corner of Goondoon and Williams Sts, has 23 gaming machines, 27 motel style accommodate rooms, a bar and dining and function rooms.

The campaign will close April 12.

EARLIER: 

GOONDOON St's popular pub the Queens Hotel is up for sale.

CBRE Hotels has launched a public expression of interest campaign in a bid to sell the Gladstone pub.

CBRE Hotels Paul Fraser said it would be an "attractive investment opportunity" for one or a number of buyers.

Mr Fraser added the Queens would likely sell at "considerable discount" given Gladstone's current economy.

He said already "astute buyers" were looking into investing in regions like Gladstone because of the cheaper property options.

"We are already seeing astute buyers looking back into these markets as an opportunity to create strong a cash flow business over the short to medium term and wait for the economy to fire again," he said.

"As such, properties such as Queens will value at a considerable discount versus what they were some years ago providing absolute value for money."

Mr Fraser highlighted the projects that could get Gladstone's economy firing - including Southern Oil's biofuel plant, the shale project and Casper Oil's investment in a brand new oil

The Queens Hotel, on the corner of Goondoon and Williams Sts, has 23 gaming machines, 27 motel style accommodate rooms, a bar and dining and function rooms.

The Gladstone pub is one of two hotels for sale by Towns and Country Pubs, with the other being Sarina's Tandara Hotel.

"The strong underlying intrinsic value in land property and gaming authorities presents a very compelling and surety in a market that has had more than its fair share of head winds," Mr Fraser said.

The expressions of interest campaign closes on April 12.



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