Colliers International appointed to sell leasehold for popular inner north gastropub
Popular North Fitzroy gastro pub The Terminus Hotel is in the market for a new pair of hands to guide it into its next phase.
Colliers International’s Guy Wells and Will Connolly have been appointed to sell the leasehold interest of the Terminus Hotel at 492 Queens Parade in North Fitzroy. The business is offered for sale via Expressions of Interest closing Wednseday 23rd September.
Mr Wells said the sale of the Terminus Hotel business offered an opportunity to acquire a strongly trading hotel in a popular location with clear upside and future growth.
“The opportunity to acquire this hotel provides an operator the luxury of a solid business with no capital expenditure required in the short term,” he said. “Very rarely does a true food and beverage pub of this scale get offered to the market.
“The strength of trade witnessed over recent years is testament to the quality establishment that has been developed by the vendors. With a focus on craft beers and numerous trading spaces, the Terminus Hotel appeals to all facets of the hotel market."
The Terminus Hotel is a traditional gastro pub which has been renovated to provide a traditional dining room and public bar, along with a recently added craft beer bar and outdoor courtyard. The first floor provides a private function room with adjoining kitchen and a separate manager’s residence.
The hotel is situated at the corner of Queens Parade and Brennand Street, within the inner city suburb of North Fitzroy. It is positioned in close proximity to the bustling Clifton Hill retail precinct and is surrounded by established residential housing and commercial properties fronting Queens Parade.
Just 4km from the Melbourne CBD, the hotel is well serviced by public transport in the form of trams and busses on its doorstep, along Heidelberg Road, and both Rushall and Clifton Hill Train Stations within walking distance.
“The surrounding precinct of Clifton Hill, particularly that fronting Queens Parade, is continually evolving as a number of retail and commercial properties are redeveloped and replaced by residential apartments,” Mr Connolly said. “Of note, two sites on Queens Parade in close proximity to the hotel have recently been approved for 11 and 12 storey buildings.
“The ongoing residential development and increased density to the area will only further fuel appetite for quality food and beverage pubs in the area."
The business is subject to a long term lease with 26-plus years remaining, inclusive of options.
Vendor Russell Griggs said after 11 years, it was time to move on to new projects.
“I am keen to spend more time and energy on my largest and newest project to date, Foresters Hall,” Mr Griggs said. “I'd love to see the Terminus in the hands of someone who can devote the resources and energy it deserves – there are great opportunities and possibilities to explore new ideas in a large venue such as this.
“The Terminus has been an amazing journey. Building the business from only $5,000 a week turnover to where it is today, building a strong local community customer base as well as drawing patrons from all over the state, and even internationally, has been really satisfying.
“We have been called the “best pub in Melbourne”, consistently appeared in the Good Food Guide, and we have a great reputation for our craft beer selection. And there is still so much scope to do more.
“We have made many physical changes at the Terminus in recent years but, more importantly, we have built a strong business on the back of consistent quality of both service and food and beer offerings, in a comfortable and relaxed environment.
“Probably the biggest physical change has been the development of the craft bar and beer garden. This has almost doubled the size of our floor area, and is a lively, contemporary, light-filled space offering an Asian-inspired menu. It provides a nice contrast to the traditional areas of the pub and really is a great hit with the younger customers as well as families."
Mr Griggs said the Melbourne hotel scene had evolved considerably over the past 11 years.
“There is now an amazing variety of venues and the quality overall keeps improving, with good beers and great food, in many styles, now available in most suburbs,” he said. “Small bars and niche venues have grown exponentially, and ‘pop ups’ and ‘speakeasies’ are thriving.
“One of the biggest changes and one I'm most excited by has been the rapid rise of craft beer. It's been a pleasure to be involved with the passionate brewers behind this resurgence, especially the many who are based in Melbourne."
Mr Wells said the Terminus Hotel embodied the changes seen across the broader Melbourne pub scene over the past decade.
“We have seen the traditional pub with drive-through bottle shop and basic accommodation rooms making way for a food and beverage focused venue that appeals to clientele with modern offerings, quality produce and passionate staff, winning awards and accolades along the way,” he said.