The freehold interest in the Barham Hotel in regional New South Wales has sold off-market, as the country’s pub market refuses to fall out of investor favour.

The Barham Hotel sits on a 2,019sqm corner site with B2 Local Centre planning and includes five gaming machine entitlements, a 24-hour hoteliers license, as well as 14 accommodation rooms, a three-bedroom manager’s residence and a drive-thru bottle shop.

The hotel sits in the centre of the township of Barham, which is located on the Murray River and is a 3.5-hours north of Melbourne.

Greg Jeloudev and Kate MacDonald from JLL Hotels & Hospitality managed the off-market sale on behalf of the vendors, private owners Kent and Vicki Bassett who in 2016 installed a tenant to operate the pub.

The Barham Hotel has a lease covenant for 20 years, including options, reflecting a yield of 6.38%.

Barham itself is the commercial centre of the Riverina region’s fat-lamb, cattle, cropping and dairy producers, sitting 823km south west of Sydney.

Over October alone, JLL Hotels & Hospitality team has facilitated pub sales including Newcastle’s historic Duke of Wellington Hotel for $16 million, the Boronia Hotel in Melbourne for $24 million, the Empire Hotel in Annandale and the Woy Woy Hotel on the Central Coast for $32 million.

With group recently revealing more than $1 billion in hotel transactions made over 2021, JLL Hotels & Hospitality has boosted its team with the appointment of Mark Walsh as Vice President at their Brisbane office.

JLL also recently reported that the group has over $300 million of hotels in various stages of negotiation, as the pub sector’s flurry of transactional activity reaches the one year mark and  continues to push down yields.

“The sale of the Barham Hotel reflects strong investor demand for quality regional hotel assets. It has been well documented, with the majority of real estate asset classes, low costs of debt and supply shortages continue to drive capital values. This transaction is no exception,” said Jeloudev.