Venues in major metropolitan areas and even some in regional and coastal towns have changed hands at eye-watering prices since reopening after the pandemic lockdowns ended.
stunned many investors by setting a national record for a freehold pub, achieving a price more commonly seen with a major office tower, large shopping mall or logistics facility.
“The last few years has shown the importance of spending time together with friends in great hospitality venues,” he says. “Significant cap rate compression [or lower yields] over the last two years has been the primary reason behind heightened asset prices,” he says. As operating businesses, pubs make money from a variety of revenue sources, including food and beverage sales, gaming, retail sales and accommodation.