Hotel group tipped to fetch 'at least' $8m
One of the South Island's biggest hospitality and gambling groups has put its entire portfolio of eight bars and restaurants up for sale, including two in Richmond and two in Motueka.
Northend Hotels, headed by long-standing hotelier Tony Crosbie, owns pubs from Motueka to Te Anau, including two in Canterbury.
Its pubs for sale in Motueka are the Post Office Hotel and Motty Malones Bar, and in Richmond the Star & Garter Tavern and Armadillos Bar Restaurant.
The company is the biggest privately-owned gaming operator in New Zealand, with about 130 machines across the eight venues. The gambling revenue they produce forms 37 per cent of trust Pub Charity's South Island turnover. Some of the bars also contain TAB outlets.
Crosbie lived in Christchurch and was already building up his South Island portfolio when he lost two city pubs in the earthquakes - Churchill's Public House in Sydenham and the Bourbon Street Bar in Manchester St. Both have since reopened at the back of the Sydenham site.
In the meantime, Crosbie moved north to Nelson and continued buying and running hospitality businesses at the top of the South Island.
His co-shareholders are family members and a consortium of Christchurch investors.
Crosbie now says he is "looking for a new direction". However, he would like to continue running the group for a new owner under a management contract.
Hotel broker Peter Harris of Bayleys described the sale as a "substantial offering", and expected the price to be at least $8 million.
The group is managed from a central location, allowing the owner access to financial transactions across all the businesses, with on-site managers responsible for day-to-day operations. It employs up to 168 staff on a mix of leased and freehold sites.
Harris said the business had room to grow and would be ideally suited to a hands-on operator. He expects the buyer to be a corporate entity or investment group.
Richard Pearse Tavern – Timaru
Churchill's Tavern – Christchurch
Post Office Hotel – Motueka
Motty Malones Bar – Motueka
Star & Garter Tavern – Richmond,
Nelson Armadillos Bar Restaurant & Function Centre – Richmond,
Nelson Springlands Tavern – Blenheim
Moose Tavern – Te Anau