AUSTRALIAN
AUSTRALIA’S NATIONAL HOTEL INDUSTRY MAGAZINE
Vol. 38 No. 1- February 2021
THE 2021 ANNUAL INDUSTRY LEADERS FORUM
IN THIS ISSUE: 2020 ROUND-UP | INDUSTRY INSIGHTS | 2021 PATRON BEHAVIOUR
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“There will be so much knowledge in the room.” Mel Porter, Porters Plainland Hotel
SUMMIT 2021
MONDAY 22 MARCH 2021 DOLTONE HOUSE, DARLING ISLAND, SYDNEY
8:30am Ñ 9:20am
Registrations open
9:20 Ñ 9:30am
Welcome and Opening: Vanessa Cavasinni, Australian Hotelier and Luke Butler, Hastings People.
9:30 Ñ 10:30am
Keynote Presentation: The Post-Crisis Kickstart by Michael McQueen.
10:30 Ñ 11:00am
Dealing with the Unknown: How Pubs have Responded to the COVID Crisis. (Marcello Colosimo, Momento Hospitality; Steven Speed, WDS Hotels; Jen Russell, W. Short Hospitality; David Thompson, Tilley & Wills)
11:00 Ñ 11:15am
Presentation: Trends Impacting the Pub Industry by Stevan Premutico, me&u.
11:15am Ñ 11:45am
Morning Tea
11:45 Ñ 12:00pm
Presentation: Making Informed Decisions about your Asset: Understanding Market Evidence by John Musca, JLL Hotels & Hospitality.
12:00 Ñ 12:10pm
Live-streamed Q&A: Pub Sustainability Practices with Melissa Porter, Porters Plainland Hotel.
12:10 Ñ 12:30pm
Corporate Sustainability: Committing to a Greener Business (Nicholas Wright, Lewis Land Group; Councillor Jess Miller, City of Sydney; Kent Anderson, The Glenmore)
12:30 Ñ 1:00pm
Presentation: Accruing and Utilising Data by Morgan Kelly, KPMG.
1:00 Ñ 1:15pm
Live-streamed Presentation: Retail Brewing - Own your Own Beer by Julian Sanders, Spark Breweries & Distilleries
1:15 Ñ 1:30pm
Presentation: The Future of Gaming by Darren Kwan, Australian eSports League.
1:30pm Ñ 2:30pm
Lunch
2:30 Ñ 3:00pm
Let Us Entertain You: A Changing Landscape. (Kerri Glasscock, Sydney Fringe Festival; Matt Rule, Music + Booze Co; Ed Loveday, Solotel)
3:00 Ñ 3:30pm
Retail Matters: Key Considerations for a Pub Bottle Shop. (Chris Cheung, C!NC; Jason Bush, Merivale; Jeremy Goodale, ALM; Brydie Allen, National Liquor News)
3:30 Ñ 3:45pm
Live-streamed Q&A: Social Responsibility and your Brand in the Community with Rose Kentish, Sparkke Beverage Company.
3:45 Ñ 4:00pm
Presentation: Social Media Intelligence and Actionable Customer Insights by Greg Daniel AM, KPMG.
4:00 Ñ 4:30pm
The New F&B. (Marcello Colosimo, Momento Hospitality; Toby Chick, Hotel Rose Bay; Chris Cheung, C!NC; Debbie Higgins, Merivale)
4:30pm Ñ 6:00pm
Networking Drinks
AN INFORMATIVE AND DYNAMIC EVENT FOR THE PUB SECTOR
www.publeaders.com.au
ON SALE NOW! Secure your spot at the Pub Leaders Summit to gain insights and inspiration to take back to your venue.
SUMMIT 2021
Monday 22 March Doltone House Darling Island, Pyrmont
www.publeaders.com.au THANKS TO OUR SPONSORS PLATINUM SPONSOR
GOLD SPONSORS
SILVER SPONSORS
CONTENTS & ED’S NOTE
WE ENCOURAGE RESPONSIBLE DRINKING Get the facts DrinkWise.org.au
Contents
P10
SPECIAL FEATURES
21
Tilley & Wills
8
24
Hallmark Group
2020 Recap: A timeline of the industry’s toughest year ever.
INDUSTRY PARTNERS
28 Consumer behaviour: Adapt your business to post-COVID patron trends
11
Intrust Super
to capture trade.
14
Gaming Technologies Association
16 Hostplus
OPERATORS
20 MAX
10
Australian Venue Co.
22 Kegstar
12
MA Hotel Management
25 JLL
17
The Royal Hotel
26
18
Momento Hospitality
Paul Kelly Design
things were looking up
gamut of experiences, talking to operators as
for the industry after
different as the director of the Royal Hotel in
an incredibly difficult
Perth after one years’ operation (p 17), to the
year. Publicans and
well-established east coast corporate entity
patrons alike were
that is MA Hotel Management (p 12). We also
looking forward to a summer of long pub
speak to key industry partners to get their
lunches and festivities. And then the Northern
perspective on what’s ahead, plus new post-
Beaches outbreak and the three-day Brisbane
COVID data illuminates changes in patron
lockdown brought everyone back to the
behaviour (p 28). Check it out. Here’s hoping that the year ahead brings an upward trajectory for us all. Cheers,
examples is that a quick, localised response seems to be the way forward, and will minimise
Vanessa Cavasinni
the disruption for business in the ongoing
P: 02 8586 6201
battle against the pandemic. And with vaccines
E: vcavasinni@intermedia.com.au
hopefully around the corner, the outlook for 2021 is overall a more positive one. In this issue, we speak to various operators around the country about how they handled the crisis last year, and what their plan of
6 | Australian Hotelier
NATIONAL SALES MANAGER: Jason Wild Tel: 02 8586 6213 jwild@intermedia.com.au GENERAL MANAGER SALES – LIQUOR & HOSPITALITY GROUP: Shane T. Williams GROUP ART DIRECTOR – LIQUOR AND HOSPITALITY: Kea Thorburn kthorburn@intermedia.com.au
SUBSCRIPTION RATES
attack is for the year ahead. We get the full
ahead, what has been assuring from these two
EDITOR: Vanessa Cavasinni vcavasinni@intermedia.com.au
PRODUCTION MANAGER: Jacqui Cooper jacqui@intermedia.com.au
AT THE end of 2020,
While there may indeed be more setbacks
PUBLISHER: Paul Wootton
GRAPHIC DESIGN: Alyssa Coundouris alyssac@intermedia.com.au
Editor’s Note
sobering reality of the ongoing pandemic.
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‣ Entertainment ‣ Pub Leaders Summit ‣ Accommodation Average Total Distribution: 4,743 AMAA/CAB Yearly Audit Period ending 31 March 2019.
We have been helping Australian hotels throughout uncertainty and into recovery. For a FREE Super Health Check for you and your business, contact our service team: service@intrust.com.au I 0448 528 647
2021
The Super Health Check service is available even if you’re not an Intrust Super client. Issued by IS Industry Fund Pty Ltd | MySuper Unique Identifier: 65704511371601 | ABN: 45 010 814 623 | AFSL No: 238051 | RSE Licence No: L0001298 | Intrust Super ABN 65 704 511 371 | SPIN: HPP0100AU | RSE Registration No: R1004397
YEAR IN REVIEW
Goodbye and good riddance
If you look up annus horribilis in the dictionary, no year in recent memory serves as a better example than 2020. Here’s a timeline of the major events that impacted the industry the most last year. 7 July After outbreaks in retirement homes and quarantine accommodation send community transmission soaring in Melbourne, Premier Andrews announces that greater Melbourne and the Mitchell Shire will enter a second
25 January
lockdown for six weeks, meaning pubs in those venues were open
The first case of SARS-COV-2 (COVID-19)
for a maximum of six weeks between shutdowns.
is recorded in Australia, with three more diagnosed less than 24 hours later.
On 2 August, the Premier would announce a state of disaster, with regional Victoria also entering the shutdown. Pubs in Victoria would not reopen until 27 October, meaning many Melbourne venues were forced to shut for a minimum of four
23 March
months collectively in the year to date.
As case numbers begin to double every few days from mid-March, Prime Minister Scott Morrison announces a national
1 November
shutdown of non-essential businesses
Australia records it first day of zero cases of
including pubs to “stop the spread”. Retail liquor and takeaway
community transmission – also known as a
food are the only permissible options for pubs. Initially, the
‘doughnut day’- since 9 June. By this stage, many
shutdown is expected to last until September.
states have had staged easing of restrictions, with WA at a 2sqm rule, and Queensland enjoying the a 2sqm rule in outdoor areas. States like NSW and South Australia follow within
30 March
the next month in time for the holiday trading period.
The Federal Government announces the JobKeeper wage subsidy of $1500
16 November
per fortnight per employee retained, for businesses who are adversely affected by the pandemic. This
SA Premier Steven Marshall unexpectedly
first stage of the scheme is worth $130 billion, making it the
announces a six-day lockdown of the state,
most expensive stimulus package in Australian history. The
after a case is reported of a QSR worker.
announcement comes one week after JobSeeker (formerly
The industry is given no notice of the decision
NewStart) is also increased to $550 per fortnight.
and is forced to get rid of fresh produce and cancel events. The lockdown is abruptly ended three days later as more details of the COVID case come to light.
Mid-May After a significant curtailing of community transmission across the country, individual states
18 December
and territories announce the winding back of
After effectively eliminating community
restrictions. For pubs, most jurisdictions move to
transmission across most of the country,
a 4sqm rule and stringent maximum capacities
Sydney’s Northern Beaches is declared a COVID
per venue; as well as the need to remain seated while eating
hotspot as more than 30 cases are linked back to the suburb of
and drinking, table-service only, and the continued closure of
Avalon. Northern Beaches residents and businesses enter a strict
gaming rooms. Many pubs across the country don’t find this
lockdown, and the 4sqm rule and capacity caps are reintroduced
first stage of reopening viable, and remain closed.
in greater Sydney.
8 | Australian Hotelier
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AUSTRALIAN VENUE CO.
Currumundi Hotel on Queensland’s Sunshine Coast
OPERATOR
A regional focus
Paul Waterson
CEO Australian Venue Co.
With domestic travel predicted to rise in Australia in 2021, Australian Venue Co. is looking to extend its regional portfolio and continue key CBD venue renovations. AUSTRALIAN VENUE Co. (AVC) has set
worth of capital into renovating venues
its sights on regional property investment
across Australia.
as one of its key focuses for 2021.
Acknowledging Australians’ love
With a cloud of the unknown
Industry could face workforce shortages in 2021
for outdoor spaces and rooftop bars,
An emphasis on investing in local
surrounding future international travel,
Waterson says it’s the perfect time to
Australian training will help venues
CEO Paul Waterson believes domestic
reinvigorate many of its venues.
avoid being understaffed in 2021,
travel will continue to rise, and with it,
“We want to invest in outdoor spaces,
according to Waterson.
visitation to some of Australia’s most
beer gardens and rooftops because
beautiful remote locations.
once again we think there’s going to be
this year when venues revert to high
“People aren’t going to be able to travel
The CEO believes there will be a time
a long-term shift to outdoor dining and
capacities and, unless they invest more
overseas, hence why we’ve developed
we’ve really found a way to activate
in local help, will be left shorthanded.
staycations and experiences to the best
those outdoor spaces over all seasons.
of our ability to try and replicate what
“The bulk of the renovations we’re
“We aren’t going to have these working holiday visa workers coming
the travel experience would be. I think
doing is in the Coles portfolio [in
through and I think it’s really met that
you’re going to see more domestic travel
Queensland] that we purchased
inflection point, whereby as an industry
for quite a while to come, which is why
in 2019, and we can see a huge
we need to invest in young people –
we really like the potential to buy more
opportunity in that portfolio because
giving young people experiences and
assets in coastal, regional and tourist
there are much loved pubs in great
bringing them through hospitality – even
areas where we think there’s just going
geographical areas but they’re quite
if it’s only as a career for 2-5 years.
to be a long-term benefit of Australians
run down. We want to reposition those
travelling domestically.
pubs to become more family-centric
is always someone asking for people
and more representative of what the
with two or three years’ experience,
local community is.”
which I just don’t think is realistic
“We’re looking for unloved, older beautiful pubs in great geographical areas that we can take and do quite
Waterson added: “We’ll continue to
“I noticed in every hospitality ad there
anymore,” Waterson commented.
substantial major renovations on and
invest in that driving experience and
just bring some of these great pubs
hope that continues our organic revenue
to work together to invest and train young
back to life.”
growth as well. Our renovations are
people who want to spend some time in
In addition to its intention of
“I really think as an industry we need
done on a pub-by-pub basis to see
their career in hospitality because that
expanding its portfolio, AVC is also
where there is the potential to improve
will all pay off for us in the longer term.”
hoping to invest about $10-15 million
the performance of the pub”.
10 | Australian Hotelier
Supporting industry and individuals In the midst of uncertain revenue and work, Intrust Super provided the ‘rainy day’ coverage that many in hospitality needed.
Brendan O’Farrell CEO Intrust Super
BY ITS very nature, superannuation is a long-term investment,
administration processes. We’ve also been providing free Super
and thus will from time to time come across market fluctuations.
Health Checks to hospitality staff, helping them consider their
But the pandemic in 2020 was a whole other level of crisis to hit
fees, review their investments and check their insurance cover
super. Market volatility affected super funds across the board,
during the COVID-19 recovery period. The Super Health Checks
but Intrust Super did its best to minimise the damage and keep
were delivered via new virtual channels to provide timely support
members’ savings relatively intact and keep people apprised of
and help members better understand both their current position
the assistance available to them.
and options to rebuild their savings.”
“We worked to provide remote service support during the peak
Intrust Super also made arrangements with its income
of the pandemic in Australia, and created new servicing strategies
protection insurer to ensure members receiving JobKeeper
to provide our members and business partners with helpful
payments would continue to be covered under PayGuard, even if
information about their super, their investments and insurance
they were not currently receiving super contributions.
arrangements,” explained Intrust Super CEO Brendan O’Farrell.
Assisting in different ways
Forecasts for 2021 While it looks like this year will hopefully be a recovery period
As an emergency measure, the Federal Government allowed
after a year of crisis, Intrust Super is forecasting that it will be a
Australians to make up to two $10,000 withdrawals from their
slow and steady return to normal for the industry.
super in 2020. Intrust Super was on hand to help its members with their withdrawal claims. “It was critical that the Fund met the needs of members
“We recently conducted a survey of our business clients to find out how COVID-19 was impacting their operations. The results showed that almost half of hospitality employers had to reduce
who needed financial support during this time. Although the
staff hours by at least 20 per cent. Sixty per cent said they didn’t
announcement was unexpected, we were well-prepared for the
think staff levels would return to normal until 2021 or later. So,
increase in claims that followed. Through a strongly diversified
while we all hope we’re moving into a recovery period, times are
investment strategy, combined with ample liquidity, we ensured
still uncertain.”
that our members could access the money they applied for as quickly as possible,” stated O’Farrell. As of 6 December 2020, Intrust Super had paid more than 40,000 claims, totalling more than $289 million. The bulk of applications received were from hospitality workers. Intrust Super also implemented various other initiatives to
O’Farrell see two possible sources of further uncertainty for the twelve months ahead – further closures of interstate borders stymying trade, and geopolitical instability (particularly in the US) further exacerbating the COVID crisis. Of the former, O’Farrell said: “Now that infection rates have decreased and restrictions are easing, it’s important that our
help its business clients throughout the crisis, including the
domestic borders remain open, to ensure our hospitality and
#supportyourlocal campaign. The social media campaign
tourism industries can recover. Domestic tourism will be critical in
highlighted many of the special services being offered, such
helping to fill the gap created by the loss of international tourists.”
as takeaways and safer delivery options, and helped direct
After the events of 2020, and the financial impacts of
customer traffic to its clients’ businesses. Other tools have helped
COVID-19, Intrust Super would like to do everything it can to
businesses cut costs – a vital service in 2020.
support hospitality workers. This year, the fund is rolling out its
“To help our business clients focus on their recovery, we’ve been providing free Business Super Health Checks to business owners in the hospitality industry. These brief, 15-minute discussions can result in hours of weekly savings in payroll and
Service Program, designed to help staff maximise their financial health while integrating seamlessly into workplaces. “The program is fully customisable – we’ll work with each venue to tailor a program that best suits their needs.”
February 2021 | 11
INDUSTRY PARTNER
INTRUST SUPER
MA HOTEL MANAGEMENT
MAHM’s community program Publinc was rolled out in 2020
Adding value(s) COVID barely slowed MA Hotel Management (MAHM) down – including its ASX-listed Redcape Hotel Group – in 2020, as the business continued to add to its portfolio and experience record quarters.
OPERATOR
MAHM KICKED off 2020 still in the glow
This was achieved through the
Dan Brady
CEO MA Hotel Management
shopfronts – effectively buying an entire
of its record-breaking transaction for the
ramping up of a project to digitise its
block within one of the City of Sydney’s
Beach Hotel in Byron Bay, one of the most
customer base that enabled direct
main entertainment precincts.
famed pubs in Australia. The $104m hotel
and targeted communication with its
was the first unlisted fund for MAHM and
customers. The group also used the
these assets have in common is that the
plans for the overhaul of the hotel kicked
lockdown period to conduct a virtual
organisation can foresee areas in which
into high gear at the start of the year.
roundtable with 1400 customers to get
they can add value. In the case of pubs
feedback on what they valued.
like The Gladstone and O’Donoghues,
But while COVID disrupted the best laid plans of the industry from March onwards,
“We took a view through shutdown that
According to Brady, the one thing all of
the added value will likely take form in
MAHM was able to use that time to refine
they were not our customers anymore
focusing on both the staff and customer
its systems, accelerate its technical
and we had to win them back. We had to
propositions. For the Taylor Square fund,
capability, digitise its customer platforms,
take the view that the world had changed
it will be in creating a new gateway to the
sharpen different focuses and pay even
and they may elect to do very different
Oxford Street entertainment precinct that
more attention to certain programs –
things so we had to be vigilant and
has been in need of revitalisation for some
including launching its new community
humble to their needs, and make sure we
years now.
program named Publinc – all of which
came back with an offer that was in line
allowed it to have a more positive and
with their values.”
profitable year than any bystanders would have imagined possible.
New community program For a business with such a significant venue
Both the community program and an
Further opportunities MAHM’s plans for 2021 mainly consist
investment in staff training contributed to
of the further building out of those
Redcape – the largest and listed portion of
opportunities it took advantage of in
the MAHM group – having two significant
2020. It will continue consulting with the
quarters of EBITDA in 2020.
local community in Byron Bay to evolve
portfolio, a priority of 2020 was creating a
“I put the success down to being a
bespoke community program for its pubs.
performance-driven organisation that’s
Hotel, and with the City of Sydney on how
“We are a large corporate organisation,
really got its mindset on learning, and if
best to make Taylor Square come to life.
and to that end part of the experience
we keep to that philosophy we’ll be able to
It will also focus on the new workforce
of management is that we are actually
tackle all sorts of challenges,” states Brady.
it will take on as its stable of venues
publicans at heart. We understand that the success of a pub is about appealing to
Valuable acquisitions
and engaging with its local community,”
MAHM added several pubs to the
explains Brady.
Redcape portfolio in the second half
“So while as a large organisation we have
and refine what it wants from the Beach
grows. Of course, all projects share the goal of adding value – whether that be for shareholders, customers or staff. “Opportunities still knock and our
of the year, including the Shafston and
ability to grow is still there as long as it’s
to have things that are streamlined and
Aspley Hotels in Brisbane, and the
measured and we’ve got the ability to add
corporatised to some extent, the front end
Gladstone and O’Donoghues Hotels in
value,” states Brady.
of our businesses are not. It’s about having
Sydney. It also created its second unlisted
our systems and communities program
fund, the Taylor Square fund, which
around how we are growing – albeit the
designed so that they can be bespoke for
saw it acquire the Courthouse Hotel
opportunities in the last part of last year
communities no matter where they are.”
and Kinselas, as well as the adjoining
were very pleasing.”
12 | Australian Hotelier
“So there’s still a real capital discipline
Gladstone Hotel
Duke of Gloucester Hotel
Four in Hand Hotel
Dulwich Hill NSW $38,000,000
Dulwich Hill NSW $32,200,000
Paddington NSW $8,250,000
Emerald Hotel
Grosvenor Hotel
Lion Hotel
South Melbourne VIC $6,025,000
St Kilda East VIC Confidential
North Adelaide SA $7,000,000
over$400M
in National hotel transactions since onset of COVID-19 in Australia. Our on-the-ground expertise, market intelligence and esteemed relationships enable us to achieve superior results for our clients.
Hotel Victor
Aspley Hotel
Shaftson Hotel
Victor Harbor SA $9,300,000
Aspley QLD $27,500,000 (portfolio sale)
East Brisbane QLD $27,500,000 (portfolio sale)
Contact our team of market leading specialists today.
NATIONAL John Musca
+61 424 257 004 John.Musca@ap.jll.com
NSW Ben McDonald
+61 414 182 848 Ben.McDonald@ap.jll.com
Kate MacDonald
+61 412 726 676 Kate.MacDonald@ap.jll.com
QLD Tom Gleeson
VIC, SA, TAS Will Connolly
Scott Parker
WA Chloe Mason
+61 449 289 846 Tom.Gleeson@ap.jll.com
+61 411 657 949 ScottJ.Parker@ap.jll.com
+61 432 116 287 Will.Connolly@ap.jll.com
+61 466 610 729 Chloe.Mason@ap.jll.com jll.com.au/hospitality
GAMING TECHNOLOGIES ASSOCIATION
INDUSTRY PARTNER
Preparing for any scenario The Gaming Technologies Association is readying itself for an innovative and COVID-Safe Australasian Gaming Expo (AGE) in August.
Chris Muir
CEO Gaming Technologies Association
GAMING TECHNOLOGIES Association
be received or how attendees would fare
interest from new ones. At the time of
(GTA) CEO Chris Muir says rescheduling
with the technology,” states Muir.
writing, the restriction is one person per
AGE 2020 was the hardest thing he
“AGE Seminars 2020 showed us there
four square metres with social distancing
has had to do in his time leading the
is a demand for content, not just as
of 1.5 metres. AGE has access to 19,000
organisation, with the event such a big
something to do while attending the AGE,
sqm of exhibition hall space, so it still has
part of the gaming industry’s calendar.
and we were delighted at the interest at a
ample room for record visitor attendance.
time of uncertainty.”
As such, the GTA is taking all necessary
“AGE has a 30-year history, right back to 1990. In the end, the government’s Public
The virtual seminars helped the GTA
Health Order prevented us from opening
form a better understanding of what its
the doors in 2020. Still, leading up to that,
attendees want to gain from those sessions.
we had to run through many scenarios for
precautions to ensure that AGE is as COVID-Safe as possible. “We are working closely with the venue
“We’ve learnt that there is a demand
and our suppliers to ensure COVID Safety
how a COVID-Safe AGE could unfold in
for the right content. Attendees showed a
Plans are robust and accommodating, and
2020 if we were able to proceed.”
strong interest in both big picture and very
ready to be scaled up or down dependent
practical sessions.”
on August’s requirements,” explains Muir.
AGE 2021
of large exhibitions before AGE in August,
Muir says the past 12 months have been the toughest the gaming industry has ever faced. “2020 was undoubtedly the most
“The ICC will have a significant number
While continuing restrictions and border
so we’ll be able to learn from those events
challenging year for gaming in our
shutdowns have shown that this year will
to keep AGE safe, but also be productive
lifetime. Every venue has had its first-
not quickly return back to normal, Muir is
for visitors and exhibitors.”
hand experience of preparing for a
confident that it will still be a better year
COVID-Safe gaming environment.
than last, and as such is confident that
attendees, Muir believes publicans will
GTA’s members worked closely with
AGE 2021 will go ahead.
once more find inspiration at AGE 2021.
clients to assist, especially through the use of new technology.”
Demand for content
“Governments appear to be preferring
With plenty of innovations in store for
“Readers know better than the GTA how
short shutdowns, or general tightening of
best to serve their customers, but I’m sure
restrictions, over open-ended shutdowns.
they could find an idea or three at the AGE.”
This gives GTA every confidence that
While AGE was not able to go ahead
AGE will proceed in 2021, and hopefully
last year, its seminars component was
gives hoteliers confidence to open
delivered virtually, at a time when
to serve their patrons and provide
AGE 2021
operators were hungry for information.
employment for their staff.”
When: 10-12 August 2021
“The sessions have always been
The industry is confident too, with
an addition to the event, so we were
commitment from many regular exhibitors
uncertain how standalone sessions would
buoying the event, as well as renewed
14 | Australian Hotelier
Save the date Where: ICC Sydney More info: austgamingexpo.com
61 2 9660 8299 paulkellydesign.com.au
Captain Cook Hotel
HOSTPLUS
INDUSTRY PARTNER
Stability and resilience Hostplus’ financial strength allowed the Fund to respond quickly in supporting its members through a period of significant crisis.
David Elia CEO Hostplus
THE FINANCIAL security of Australians was
longer-term top quartile results remain
to 216,000 at the end of the financial
put to the test in the first half of 2020 as
market leading,” assured Elia.
year. During that period its funds under
lockdowns forced businesses to temporarily
With the tourism and hospitality
management increased by $4 billion to a
shut up shop and release or stand down
industries bearing the brunt of financial
their workforces. In response, the Federal
pressure due to COVID, Elia and his team
Government announced the Early Release
were devastated to watch as its core
strategy for 2021 to deviate too much
of Superannuation (ERS) scheme, which
industries were so negatively affected. The
from its current operations.
allowed people to withdraw up to $10,000
Fund quickly swung into action to provide
from their super – once in FY19/20, and
as much support as it could.
once in the first half of FY20/21.
“Throughout 2020 we prioritised staying
total of $48.8 billion. As such, Hostplus doesn’t expect its
“By and large our strategy and core focus hasn’t altered materially as a result of the pandemic. We reviewed
As of 31 December 2020, Hostplus had
connected to those businesses and our
and refreshed our business strategy
paid out $3.06 billion to 311,000 members
members, either virtually or in person
in 2020 which included refining our
through both tranches of the ERS scheme.
where possible.”
implementation of our strategy over the
The average early release payment was $7,200 across both tranches. “I’m very proud of the way Hostplus
Hostplus ensured regular communications through its website
coming three years,” explains Elia. “Building on our existing plan, our
and social media channels, and set
refined strategy continues to focus
was able to quickly and efficiently support
up a webpage dedicated to providing
on our core objective of optimising
those of our members that had made
employers with updates and information
retirement outcomes for our members.
the tough decision to access their super
relevant to their relationships with us. It
We principally aim to achieve this through
savings to meet pressing financial needs
also launched a new and bespoke mobile
a variety of ways, including continuing
during 2020,”stated CEO David Elia.
app for members, as well as launching
our approach to identifying and making
webinars providing educational sessions
high quality investments, a commitment
resources to manage these payments
“Our response included mobilising extra
direct to members as well as through
to keeping our fees and costs low and
which saw us achieve 97 per cent of
partner channels. The Fund has also been
an ongoing leveraging of scale to ensure
payments being made to our members
investing in scholarships with partner
we’re constantly improving our offerings.
within five business days.”
tertiary education institutions to support
Our strategy also encompasses a
emerging talent in the industry.
significant investment in our own business
In response to government policy decisions, Hostplus did take steps to adjust
innovation and transformation program.”
its asset allocation to minimise risk, ensure
Continued growth
adequate liquidity and continue to maximise
Despite funding over $3 billion in
of the hospitality industry and how it will
its portfolio’s returns for the long-term.
withdrawals, Hostplus continued to grow
fare in the year ahead, as it adapted so
These steps temporarily affected its longer-
in 2020. In the 2019/20 financial year its
quickly in moments of real crisis.
term strategies and settings, which in turn
membership grew to nearly 1.3 million
“I’ve been inspired by the spirit and
had an impact on its investment returns for
– an increase of eight per cent from the
resilience shown by businesses and some
the year to 30 June 2020.
previous year. 28,000 new employers
of the creative ways through which they
Elia is also heartened by the resilience
“However, I’m pleased to say that our
also entrusted Hostplus to manage their
remained connected to their customers,
short-term performance has since picked
employees’ superannuation, taking the
employees and community through
up appreciably and, importantly, our
total number of contributing employers
periods of restrictions and beyond.”
16 | Australian Hotelier
THE ROYAL HOTEL
Image by Jacqueline Jane
The Royal Hotel owner John Parker is hoping to build on a successful opening year and believes his staff are the key to improve visitation and enjoyment.
IT DIDN’T take long before the pub industry started
The Royal Hotel was only open four months before
Royal Hotel in Perth has introduced. In fact, in its
the national lockdown shut its doors temporarily.
first 12 months since reopening, The Royal Hotel
“We were just starting to find our way with
was awarded Perth’s Best Hospitality Venue and
staffing and cash flow [before the lockdown]. I had
its restaurant Fleur, the Restaurant Award at the
a lot of concern for my staff when we were closed.
Australian Hotels Association Western Australia’s
I had to fight for all my staff to get JobKeeper
2020 Hospitality Awards for Excellence.
because we’d only been trading for four months
“It was surreal to be honest, and humbling to get
and I had 60-odd staff on the books.”
unexpected as there was some great competition,
Stakeholders key to 2021 success
but hats off to everybody. I’ve got a great team, and
Happy with The Royal’s overall concept,
I try to give the staff ownership and decision-making
Parker is now focusing on all its stakeholders.
power. I think we do things a little bit differently to
As hospitality continues to rebound, the publican
your normal pub. We’ve got the creativeness of a lot
believes it’s important to welcome patrons back
of small bars in one big pub,” stated Parker.
with open arms.
Having been in the works for more than two
“Since we reopened the Perth public have been
years, The Royal Hotel was opened in mid-
amazing and been really supportive over here. I
November 2019, with Fleur later opening in
feel we have an obligation to be open for people
February 2020. As one of the oldest pubs in Perth
to come and be able to spend time and catch
that has been closed for about a decade, reopening
up with friends or family. I’m happy with our
caused quite a stir.
product. And the delivery is great, but now’s the
“There was a lot of interest from the public sector when it reopened. It’s been sitting here for a long time – she’s been boarded up for years and
John Parker
Director The Royal Hotel
While it may have been well-received by the public,
recognising the unique style and delicious food The
there. I was very proud and happy. It was a little bit
OPERATOR
A royal reception from locals
time to put the focus back on the people and on the staff,” Parker said. “Our staff are the ones that make the difference.
years. As she was unveiled slowly during the fit-out
You can have the quirkiest, most interesting venue
process it brought buzz back to the CBD and the
and the best food or the craziest natural openness,
response from people coming through the venue
but unless you’ve got good staff who can deliver it,
has been overhwhelming,” added Parker.
it falls over.”
Our staff are the ones that make the difference. You can have the quirkiest, most interesting venue and the best food… but unless you’ve got good staff who can deliver it, it falls over.
February 2021 | 17
MOMENTO HOSPITALITY
Forward thinking Momento Hospitality responded to the COVID-19 crisis very quickly, and its team were rewarded for their efforts.
Marcello Colosimo
OPERATOR
CEO Momento Hospitality
PIVOTING A pub’s business was vital in keeping venues tenable
or learn certain kitchen skills, with the monies raised donated to
throughout 2020, and none did so as quickly and creatively as
hospitality workers not supported by JobKeeper or JobSeeker. It
Momento Hospitality in north-west Sydney. The group’s executive
was able to raise $40,000, and once the Sydney market was back
team had foreseen that a lockdown was on the way in February,
on its feet, it directed $15,000 in funds raised to workers affected
and immediately began planning for how it would get through an
in Melbourne.
extended shutdown period. “Fundamentally, we made the commitment to keep as many
Opening and reopening
people employed as we could for as long as we could,” explains
Keeping a lot of the staff employed throughout the lockdown
CEO Marcello Colosimo.
period was a huge boost for Momento. Colosimo knew that the
The plans were drawn up so quickly that its first initiative – a
industry would have a tough time recruiting once they could
drive-through, contactless supermarket-like offering at Bella Vista
reopen, and having personnel in place made the shift back to on-
Hotel called Essentials Express – was able to open on the day the
premise work easier.
national lockdown was announced. “That really buoyed the staff, and then the other ideas started
Colosimo says all of the group’s 2020 initiatives not only kept its business going, but helped keep new projects alive as well. The
flowing. And the main question in our meetings always was how
group had begun work on a small neighbourhood pub called the
do we keep one more person employed?”
Duke of Dural at the beginning of the year, and they were able to
From one idea to the next
convince their financiers to allow them to continue with it. “We went to the bank and said ‘This is what we’re doing, this is
When the team was not able to support its visa workers from
how we’re keeping our people employed, this is how we’re paying
its kitchens, Colosimo suggested to the group’s executive chef
our bills’ and showed them those initiatives in the hopes they’d
Sam Youngs that they lend those workers a food truck that the
keep supporting us to finish the Duke of Dural. They did, and we
business was not using, so that they could try to make themselves
were able to open just as we came out of COVID.”
some money. Youngs expanded on that idea, creating Food Truck Express in the Bella Vista Hotel car park – allowing any local
Full steam ahead
business with a food truck to set up outside the pub and sell their
After a massive 2020, Momento Hospitality has no intention of
food to the local community.
slowing down this year. Both The Governor and Hillside Hotel
The initiatives piggy-backed off each other from there.
currently have DAs lodged to significantly expand both venues
Essentials Express and Food Truck Express led the group to
by about 50 per cent. The group is also working on a couple of
making takeaway cocktails, selling about 10,000 during the
new greenfields projects, with at least one set to open this year.
lockdown. Momento then developed a new business called Vice
Colosimo says it all comes down to renewed faith that pubs are a
where staff members taught people how to make cocktails over
great business, no matter the circumstances.
Zoom. Vice is still in operation, having found a receptive market in the corporate world.
“Pubs are good in good times, but they’re also good in bad times. Because people want to be able to come out and enjoy
Momento also has an RTO called LearnHospo that it pivoted
themselves and create memories, no matter what’s going on. So
from a B2B training platform to a B2C one called HelpOutHospo.
our industry is just amazing and we’re proud to be part of it and
It sold videos to consumers, teaching them to make certain meals
proud to be growing.”
18 | Australian Hotelier
Low admin fees Strong long-term returns
More super for you
Hostplus. We go with you. Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198. This information is general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS), available at www.hostplus.com. au before making a decision about Hostplus. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a superannuation fund. INH 1219 0920
MAX
INDUSTRY PARTNER
Game on for 2021 After a challenging year for any business, MAX’s focus on data, analytics and insights is more significant than ever for its clients. LIKE IT was for so many other
“Our aim was to provide as much
Paul Carew COO MAX
Collecting and using data is key in both
businesses, 2020 was a challenging
continuity as possible, given the
identifying and adapting to consumer
year for MAX. The constraints of the
circumstances our customers, and the
behaviour changes, and MAX has been
pandemic forced it to take extraordinary
MAX business, were facing.”
partnering with venues to support well-
measures, including standing down much
executed and data-driven decisions that are
of its workforce (as did many hotels), and
Adapting via data
then welcoming back it’s people once it
Since pubs began reopening in June
was possible to do so.
2020, MAX’s Data and Insights specialists
environment, venues will need to
identified several key shifts in customer
constantly evaluate how they are spending
impacted by the pandemic in early
behaviour among returning patrons,
their capital and marketing budgets to
2020, COO Paul Carew ensured that the
including: greater representation of
ensure no dollar is wasted.”
complete solution platform was on hand
younger customers; a shift to daytime
to help venue operators through the
visitation; and the public choosing
Refocusing in 2021
lockdown and beyond.
to patronise local venues rather than
MAX is kicking off the year with a new
travelling further afield.
focus on more ways to engage with its
As many of MAX’s clients were heavily
“MAX has always remained committed to supporting our customers and the
“Adapting to these shifts and
necessary for venues to remain competitive. “In this more volatile post-COVID
customers to optimise the running of their
gaming industry at large, implementing
understanding the motivations of
venues. It’s also exploring new ways to
a number of measures in response to
these customers is essential for venues
reach its customers more regularly, and
how our clients were being affected,”
to meet the needs of their customers,”
this year MAX will activate more digital
stated Carew.
suggests Carew.
opportunities to connect, including
In particular, MAX suspended all relevant fees while gaming venues were
thought-leadership and keynote webinars and delivering product training online.
fee relief as venues recommenced
New pub visitation behaviour trends
operations, which was part of a wider
Since lockdown, the MAX Data and
value, and we are bringing digital to the
Tabcorp initiative with its TAB and
Insights team has identified three major
forefront,” states Carew.
Keno businesses. In some jurisdictions
changes to patron visitation to pubs:
MAX was able to perform pre-opening
• There has been an upsurge in
in lockdown and provided ongoing
maintenance visits, provide venuereadiness information, and deliver online briefing sessions to help its venue
with our clients and providing added
“Additionally, our work continues with simplifying and consolidating our
younger patrons visiting their
product portfolio to provide clients with a
local venues
clearer view of the efficiencies and upside
• A shift in visitation time has
partners prepare to start trading again.
been observed with daytime
Where possible, MAX continued to
visitation increasing
conduct further work while in lockdown
“MAX is dedicated to staying in touch
• Customers are choosing to go
we can deliver.” Data and insights remain a key focus as well, with MAX providing a number of services including NEXT STEP, which
for clients, including EGM installs and
local when heading to the pub,
sees its analysts apply their expertise in
moves, and the deployment of MAX’s
highlighting their support for
evaluating venue performance and data to
Ticket-In, Ticket-Out solution and other
local, community businesses.
help operators and managers make more
new technology.
20 | Australian Hotelier
informed decisions.
TILLEY & WILLS
Diversify and de-risk 2020 WAS an incredibly tough year for the pub
formerly known as The Elephant Hotel – to its
industry, but Tilley & Wills’ overarching strategy of
stable of pubs. The move into the Brisbane market
diversification served it well throughout the crisis.
was made to chase better yields, and to diversify
As venues reopened, the group was able to negate
and de-risk the group’s portfolio.
the revenue streams that were hit the hardest by
into an “eight-bar collective” that includes a
and some new ones they were able to add quickly.
cantina-style food offering, a sports bar, beer
The business was not left entirely unscathed
garden, cocktail lounge and a live-music venue.
though, with CEO Nick Wills recounting the impact
With so much space to play with, Wills said it
it had on the group as a whole.
made sense to ensure that a variety of tastes were catered for in the venue.
affected our revenue significantly, it affected our
“The venue is so big that targeting one or two
bank valuations, it’s obviously affected our staff
demographics just wasn’t going to cut it. We saw
morale and culture, and certainly we’ve had to
the opportunity to create something pretty special,
think more conservatively than we did at the
and basically cater for everyone under one roof.
beginning of 2020.”
One thing Simon [Tilley, co-founder] and I have
The biggest impact of the crisis was felt at its
never done is take ourselves too seriously, and it’s
Verandah Bar and Greenwood Hotel venues, located
important that people don’t forget that pubs really
in Sydney’s CBD and North Sydney respectively. The
need to be fun venues,” states Wills.
two venues normally have a significant corporate
“So we made sure that anyone would have fun
patronage, but with people working from home most
within The Prince Consort. Whether you want to
of the year, the venues had to pivot pretty quickly.
have a cocktail party, enjoy some rock and roll,
While Verandah lost a lot of its functions
sip on some tequila or drink a slushy, have an
market, it’s F&B offering has kept loyal customers
upmarket experience, enjoy a beer outside or
returning, and the venue has focused on hosting
watch some sport (we’ve got the biggest sporting
smaller groups rather than larger functions.
screen in southern Queensland) – there’s something
“At the Greenwood we’ve focused a bit more on the locals, which we’ve never done before. We
for everyone. It’s a really special place.” With a relatively sound balance sheet, the group
put a big screen in there on the weekends, which
is looking to continue to expand in 2021, with
is great for live sport viewing. We’ve had to adjust
another two or three venues to be rolled out in the
but the fundamentals are still the same – great
new year. The group is also planning on expanding
food, great service and the venues present very
Verandah Bar, with the addition of a café to
well,” explains Wills.
capitalise on the early morning CBD crowd, as well
Brisbane bound The New South Wales-based group also made its
Co-founders Tilley & Wills
Image: The Prince Consort Hotel, Fortitude Valley
The large-format hotel has been reconfigured
restrictions by the others it already had in place
“It was obviously a shocker of a year. [COVID]
Simon Tilley (left) and Nick Wills
as expanding the footprint of the venue’s main bar. For Tilley & Wills, bigger is better. “Our underlying strategy has always been that
first interstate purchase in 2020, adding The Prince
we like venues with scale so that you can do things
Consort Hotel in Brisbane’s Fortitude Valley –
bigger, better and more efficiently.”
The Prince Consort snapshot In line with Tilley & Wills’ overarching strategy of diversifying revenue streams, The Prince Consort is broken down into several mini venues: • The Parlour Bar public bar • The Garden Bar beer garden • Prosperity 88 gaming lounge • Greaser live music bar • 400 Rabbits cantina/small bar • La La Land cocktail lounge/ supper club • The Yorke Suites private office suites • The Prince Cellars bottle shop
February 2021 | 21
OPERATOR
The Tilley & Wills strategy of diversifying on the macro and micro levels served it well throughout the COVID-19 crisis.
KEGSTAR
INDUSTRY PARTNER
Helping get more great beers to even more happy drinkers During an incredibly tough year, Kegstar has kept its focus simple: keep close to people, stay on top of what can be controlled, and be ready to go for customers, partners and venues.
Christian Barden
Chief Kegsecutive Officer Kegstar
AS ON-PREMISE venues the world over suffered major lockdowns
supply chain will help us all to do it better. We have an exciting
in 2020, the need for kegs plummeted – particularly in the first
technology and growth journey ahead,” Barden adds.
half of the year. Throughout, Kegstar was doing what it could to
Chris Hill, Head of Customer Kegsperience added: ‘’Knowing
support both the brewing and hospitality industries, and getting
this project can lead to a fresher beer reaching a customer’s glass
ready for the day when pubs would reopen and kegs would begin
is what makes it worthwhile. We’re giving our customers access
flowing once more.
to potentially game changing live data, showing exactly what’s
“The danger of a ‘Groundhog Day’ like this is that we internalise, lose focus and over-complicate stuff,” says Kegstar’s Chief Kegsecutive Christian Barden. “We’ve probably done all of that over the last 12 months until
happening to each keg on route to venues. Meaning we can all work together towards the perfect draught pour, every time.’ The device has three radio transmitters to cover every wireless environment, from city-wide locations right down to where each
we’ve lifted our heads up collectively, got focused on the good
keg is in a facility – helping Kegstar ensure that breweries and
stuff and found ways to move forward in a better way to help get
their venue partners are able to get good quality, fresh beer to
more great beers to more happy drinkers.”
their customers.
Next-gen tracking
Do two lots of good with scan and support
Towards the end of the year, the start-up keg rental business
Kegstar also announced in late 2020 that it had pledged to donate
Kegstar launched Project Starlight, its new IoT-enabled keg
two cents for every one of its kegs that’s scanned for dispatch or
tracking system. The Kegstar team has spent several years
collection in Australia and New Zealand to the local chapter of the
developing this tracking technology, which not only provides
Pink Boots Society. The not-for-profit organisation supports the
the exact real-time location of every keg, but also gives detailed
careers of women in the beer and fermentation industries.
information of what’s inside it. The bespoke-designed IoT device is connected to the keg
The two-cent donation will be made every time a keg is scanned via the mobile app, both when leaving full from a brewery and
chime through a welded bracket to avoid impeding couplers,
when empty and ready for collection at a hospitality venue. Pink
cleaners, fillers or lifters, and is resistant to high-pressure
Boots Society will use the money to fund educational resources or
cleaning. The launch rolled out to more than 11,000 kegs globally
scholarships for their members in both Australia and New Zealand.
before Christmas, with many more to come in 2021. With this new technology, customers can tap into data showing
Karen Tierney, Kegstar’s senior commercial analyst in Australia and New Zealand and a treasurer for Pink Boots, said:
the location, temperature and orientation of each keg. It can also
“It’s fantastic to be among a growing number of women in this
show whether the keg has been cleaned or filled, is being off-
industry, who are all so passionate about what they do, and who
loaded from a truck or is ready for collection at a venue. It forms
really want to see each other succeed.”
part of Kegstar’s ongoing drive to use the latest technology to turn kegs faster with a better customer experience. “With over two decades in beer and hospitality around the
“Good people, exceptional service, trusted technology, smart kegs and great beer continue to be the priorities for the Kegstar team” said Barden. “We’ll keep looking to up weight the talent
world and I’ve always thought it would be fascinating if kegs could
and capabilities of our teams whilst bringing new and improved
tell their story. Knowing exactly how each keg travels through the
initiatives to our expansion plans through 2021 and beyond.”
22 | Australian Hotelier
Get the solutions, data and insights you need to succeed Let MAX take the headache out of data and decision making with our industry leading capabilities. Speak with our expert team today to build a plan for success.
To learn more, visit max.com.au max@tabcorp.com.au
max.com.au
/maxcomau
© 2021 Tabcorp Holdings Limited. This document contains proprietary information belonging to Tabcorp Holdings Limited and its subsidiaries (MAX) and is being shared for the purpose of providing information in relation to MAX’s product and service offerings. MAX does not warrant or guarantee the future performance of the venue and accepts no liability for any loss or damage incurred as a result of any reliance on the information. It is recommended that the venue undertake its own due diligence and seek independent professional advice about the content of this document, as required.
HALLMARK GROUP
The Cavill Hotel, Surfers Paradise
Building on success
Scott Hempel Director Hallmark Group
OPERATOR
Despite severe repercussions from COVID-19 restrictions last year, Hallmark Group continued to produce results and build its impressive on-premise portfolio. HALLMARK GROUP’S 11-strong venue portfolio spent long
New venues popular with locals
durations of 2020 either closed or under strict capacity
One of Hallmark Group’s premier venue purchases last year
restrictions. Director Scott Hempel said while it was an incredibly
included The Spotted Cow. It has proudly served as the iconic
tough year, he remains committed to bringing the best experience
watering hole for patrons in Toowoomba for more than 120 years.
for customers at all Hallmark Group locations. Defying the pandemic’s financial domino effect, Hallmark
After purchasing the venue earlier last year, Hallmark Group renovated the iconic venue with a fresh and modern touch.
Group was able to follow through with pipelined venue purchases,
Hempel said the renovations were a big hit with its customers
adding the Lost Kingdom, The Cavill Hotel, The Spotted Cow and
after reopening its doors in December.
The Lord Alfred to its portfolio in 2020. Hempel said he is eager to maintain momentum in 2021 and
“The Spotted Cow is a Darling Downs institution – a place to have a yarn with a neighbour and sink a schooner… it was also
build on the success of Hallmark Group’s current venues while
paramount for Hallmark Group and myself that the renovations
remaining open to opportunities to expand the company’s
still honoured the venue’s history and charm,” he added.
footprint as the market rebuilds following COVID-19.
Adjusting to the ‘new norm’ With ever-changing restrictions and an unprecedented social
Hallmark Group also opened The Cavill Hotel in the old Melbas site in November 2020 and it is quickly becoming one of Surfers Paradise’s most loved venues. “The Cavill Hotel is an establishment for everyone, whether
environment, Hallmark Group found ways to constantly adapt its
young or old and is far more than a watering hole with a
operating structure and make quick and savvy business decisions.
breathtaking sports bar with the biggest screen in Surfers
Hempel said while Hallmark Group is in a fortunate position and have opened several venues last year, COVID-19 still hit the
Paradise, a delicious modern menu, and an impressive gaming lounge,” Hempel exclaimed.
company hard and like many of its neighbours in the industry, it has a lot of trading down time to make up for. He said loyal customers were key in Hallmark Group’s venues quickly recovering after lockdown restrictions, along with each venue’s ability to adapt. “COVID-19 meant we had to constantly adapt to changing restrictions and our operating structure was in a state of flux. “It also taught us to be adaptive, amid restrictions lifting,” he added. “We even introduced the Retro’s Fun Police who dressed up in high vis and were armed with sanitiser and 1.5m pool noodle distancing tools to ensure our venues were still fun, but safe. “Fortunately, our community have been supportive of our venues and once restrictions started to ease our patrons came back in spades which has helped us to trade as effectively as possible under the restrictions in play.”
24 | Australian Hotelier
The Spotted Cow, Toowoomba
JLL HOTELS & HOSPITALITY
INDUSTRY PARTNER
The Shafston Hotel in Brisbane was sold to Redcape in 2020
A national network
Despite a global pandemic, JLL’s contacts and knowledge of the market helped it transact half a billion dollars worth of hotel assets in 2020.
LEADING INTO 2020, the pub market demonstrated significant
John Musca
National Director JLL Hotels & Hospitality
“The JLL hotels team’s achievement in the sale was a
capital momentum and investment appetite, which was only halted
further demonstration of why dealing with the largest specialist
by the closure of hotels and the uncertainty that surrounded
hospitality real estate platform in the world offers unique benefits
foreseeable earnings. Despite these most challenging circumstances,
to market-leading clients on all sides of transactions.”
JLL Hotels & Hospitality Group transacted on 35 hotel assets for its clients throughout the year. National director John Musca puts this
Current market conditions
tremendous feat down to its established network of contacts among
Pub transactions really began to pick up again in the last quarter
operators, investors and financiers across the country.
of 2020, once hotels reopened and there were reinstated
“The key to this has been strong relationships with, and
sightlines into pent-up community demand, the manageability of
sightlines to, capital sources and funding capabilities and
trade restrictions around social distancing and future revenues,
maintaining connectivity to market decision-makers on a national
plus the restoration of transaction levels reflecting the sheer
basis where local conditions presented both opportunities and
weight of capital.
challenges at various stages throughout the year. The year
“This will continue into 2021 with only the ambiguity surrounding
highlighted the value of offering a truly national agency platform
any further waves of COVID trade restrictions providing a short
and access to market-leading advisory and intelligence.”
hiatus in market demand and liquidity,” suggests Musca.
It was indeed an eventful year for JLL, with both the doubling
Trade across metropolitan and regional areas rebounded
of the pubs team nationally, and landmark transactions in various
strongly in the second half of 2020, with only the CBD markets
states including the sale of the Delaware North Brisbane portfolio;
feeling the loss of corporate crowds. The JLL director is hopeful
the Gladstone Hotel and Good Beer Co hotels in Sydney;
that all markets will be trading well by the second half of this
the Victor and Lion Hotels in Adelaide; and the Emerald and
year, as vaccines negate most of the risk associated with COVID.
Grosvenor Hotels in Melbourne.
Standout transactions
Musca also expects that capital values for freehold pub investments are likely to see yield contraction directly related to cost of debt, underlying business and lease covenant strength this
For Musca, there are two transactional highlights for 2020 – both
year. Freehold going concern hotels are likely to see an increase
of very different natures. The first is the sale of the Good Beer Co
in value, reflective of trade growth post COVID re-openings and
portfolio in Sydney for $40.45 million.
mounting evidence of tightening transaction yields.
“The [two] businesses offer very different propositions, one as
“The interesting thing about this cycle is that the spread of
a local food and beverage institution, and the other in a high-
balance-sheet strength amongst private, public and corporate
density, under-pubbed area offering significant scope for trade
industry stakeholders has not been seen since 2005/2006 and
uplift. The off-market, invitation-only sale process garnered
as a result we believe that, alongside cashed-up larger private
bids from a diverse range of buyer profiles, both publicly-listed,
portfolio owners nationally, specialist funds and specifically
private and corporate with the differing motivations of each
those representing offshore capital are likely to establish a market
driving a great outcome for the client and delivering exceptional
presence in 2021.”
opportunities to the purchasers.” The other highlight was the sale of the AccorInvest portfolio to Iris Capital for a whopping $175 million.
Regardless of the conditions, Musca said that the entire JLL team will continue to work closely with clients to find ways to transact this year and into the future.
February 2021 | 25
PAUL KELLY DESIGN
The Longueville Hotel
INDUSTRY PARTNER
Forward vision There’s nothing like a crisis to really make you scrutinise every concept and design of a venue, as Paul Kelly knows firsthand.
Paul Kelly
Director Paul Kelly Design
IN EARLY 2020, Paul Kelly Design was
separate division of the business: Paul
working concurrently on about 40 different
Kelly Design Gaming. It allowed the firm
few pub projects lined up this year, with
projects. When the national shutdown
to delineate its gaming work – both for
the vast majority of these projects being
was announced, about 95 per cent of
clients who are only interested in updating
long-term, large-scale master-planning of
those projects were put on hold. It was
gaming rooms, and also for F&B or retail
venues that redefine what a pub business
a tough pill to swallow, but as savvy
clients where gaming has no relevance.
is all about.
operators realised it was the perfect time
Paul Kelly Design already has quite a
Gaming rooms made up over 60 per
“We’re creating these very complex
to move ahead with construction, the
cent of the firm’s hotel work last year,
business models for customers based
firm remained busy. Since then, projects
and Kelly found that the design of these
around the future of pubs without such a
in earlier stages have slowly started to
spaces continues to become more
heavy reliance on gaming. So we’ve got
return, with numbers almost reaching pre-
elaborate – and that there’s a direct
a number of projects that are completely
COVID levels in November.
correlation between these extravagant
new business models – mostly in suburban
spaces and turnover.
areas – specifically around sports and
“People are really starting to talk about reinvesting now. It’s starting to look up
“The level of the saturation of the
sports bars. We’re really focusing on the
again which is promising,” stated founder
design is almost at 100 per cent now,
link between sports bars and gaming, the
Paul Kelly.
where you’ve got joinery elements, timber
link between sports bars and beverage,
ceilings, lighting coffers and custom
then beverage and saloon bars. So it’s
Gaming focus
everything. It’s a very intense in experience
almost bringing back the old models of a
Back at the beginning of the shutdown,
now, and what we’re finding is that the
traditional pub in these venues, with the
Kelly quickly identified what he believed
more intense we make the experience, the
idea that one venue can suit all. So it’s
would be a medium- to long-term issue
more saturated, the higher the turnover.”
very exciting.”
reopening people would be wary of sitting
Whole-of-venue concepts
professional sporting fixtures available,
so close to one another. In response,
One of Kelly’s favourite projects this
Kelly says these concepts are looking to
the firm created Gaming Guard, acrylic
year was the Longueville Hotel in north
cater to crowds of 300-400 watching a
screens which divide patrons, sitting in
Sydney, which was a total revamp of the
sporting event at any one time, and thus
between existing gaming machine bases
hotel, including the addition of an outdoor
need to consider things like where facilities
and machines.
balcony bar, The Villa. While the project
are positioned and how easy it is to get
was completed in late 2019, COVID meant
F&B. Post-COVID, and every little detail of
customer base, and even coming up with
that the venue’s transformation was only
a pub’s business model is being scrutinised.
the idea for Gaming Guard positioned us in
enjoyed for a couple of months before
a way that hoteliers saw us as still having
shutdown. Publican Graham Campion and
success of the venue is the most important
the ability to come up with alternative
Paul Kelly Design took that time to tweak
topic right now. Big designer elements
solutions and have forward vision in
the offering a second time.
are understood to be important, but
for pub gaming rooms, in that even after
“It was important to be relevant to our
regards to the gaming industry, which continues to be a big part of our business.” Gaming is such a big part of the firm’s business, that in 2020 it also created a
26 | Australian Hotelier
“That’s the second time we’ve worked on
With the amount and quality of
“The business modelling and the
the ability for venues to maximise every
that hotel with Graham Campion and it was
particular section of their business is the
really nice to go back and do a complete
focus right now. We’re putting the whole
and thorough job of the entire hotel.”
pub under the microscope.”
CONSUMER BEHAVIOUR
Change now before the ship sets sail
Manly Wine
The COVID-19 lockdown has forced consumers to rethink their priorities. With the wave of change already upon us, have you made the necessary adjustments? Daniel Hughes reports. RESEARCH RECENTLY carried out with on-premise patrons
Localisation
across the country has shown how consumer behaviour
Many consumers have become reluctant to travel far and are
has changed since the start of the pandemic, with various
actively trying to support nearby businesses. CGA’s report
demographics responding differently to pubs, as well as
identifies a major shift towards supporting local pubs and drinks
reprioritising their spend . The insights into these post-lockdown
brands. Before lockdown, 56 per cent of 35 to 54-year olds
changes in consumer habits offers publicans an opportunity to
visited pubs, bars and restaurants near to where they live on a
make the necessary change to various parts of their offer in 2021.
weekly basis —but that figure has now risen to 67 per cent. Two
UK-based data and insights consultancy company, CGA, recently expanded its consumer research to Australia with its latest survey including an on-premise COVID-19 recovery study.
in five consumers say it is more important to them that their drink is Australian than it was prior to COVID-19. “Our research around the world consistently shows how the
The report gives retailers and suppliers critical insights into the
pandemic has led consumers to stay close to home when they eat
evolving dynamics, expectations, and preferences of pub-goers.
and drink out,” stated Loudon.
Reassuring hesitant and safety-conscious consumers will be
“This makes it important for retailers and suppliers to focus
crucial to building footfall to accompany the early positive signs
range and marketing strategies on local preferences; and brands
of the consumers’ drinking habits, according to the research.
that can emphasise their community connections have a great
“It’s very clear that COVID-19 has altered the mindsets of
chance to win the spend of the valuable 35 to 54 year-old age
consumers in the on-premise,” CGA’s managing director EMEA &
group in particular.”
APAC Graeme Loudon said. “Understanding both the fast-changing preferences of returning drinkers and the hesitations of those who haven’t yet been back is going to be absolutely vital, and CGA’s research has a pivotal contribution to make. The months ahead are likely to be
Target the right demographic
challenging but staying attuned to people’s needs and wants will
46 per cent of pub goers aged between
put operators and suppliers in good shape to succeed during the
35 and 54 years-old said they visit
remainder of the pandemic and beyond.”
the pub more frequently since venues
With plenty of time to think and reflect on their drinking habits
reopened. This is far beyond the 18-34 and 55+ groups, in
during on-premise lockdowns, consumers have returned with a
which the former group maintained pre-COVID visitation
changed mindset, which hospitality owners and managers are
levels, while the latter has basically stopped visiting altogether.
being urged to consider.
28 | Australian Hotelier
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CONSUMER BEHAVIOUR
Beer sales have remained steady post-COVID
Patrons are sticking to local pubs and brands
Value for money While pre-COVID visits to the pub were
Diverse and premium drink orders
mainly driven by the quality of food, followed by value for money and price
Also emerging from the data is a new patron emphasis on maximising occasions
points, the priorities have evened out to have
and treating themselves. Among consumers who have visited pubs weekly since
almost equal importance post-lockdown.
reopening, two in five have chosen more expensive drinks, while more than
As financial security remains a long-term
50 per cent say they are very likely to upgrade their drinks to a higher quality
concern, pub menus should have a decent
option – 10 percentage points higher than before COVID-19.
range of meals at lower price points to keep
Another post-lockdown trend has been a desire to experiment with new
patrons dining in-venue.
drinks. Just under a quarter of consumers who have visited pubs weekly say they have been more experimental with their drinks choices, and a quarter have changed the brands they chose to drink, 12 percentage points higher than the average consumer. The one category to see very little change is beer. The CGA survey revealed only eight per cent of weekly consumers say they have been drinking beer less frequently. It’s a significant finding considering consumers’ cuts in purchases of wine and spirits by 16 and 15 per cent respectively. This reflects a big change in the way people use pubs, away from celebratory and late-night occasions and towards low-key visits in small groups. “After so long in lockdown, it’s no surprise that consumers are keen to treat themselves and try new drinks. Retailers and suppliers need to respond to the increased demand for premium brands and fresh cocktail combinations, while ensuring that beer selections meet the needs of people who are returning to pubs for more relaxed drinking and seeking the familiarity of trusted brands.” The pandemic has hit the reset button on the on-premise industry, and now
Healthy eating a larger concern for consumers
that it has rebooted, consumers may never return to their old habits completely.
An opportunity to redefine and recalculate
The post-lockdown data has shown already how much of their behaviour
your menus has presented itself in the post-
has evolved, and has provided an opportunity for publicans to change as the
COVID lockdown consumer market. 28 per
consumer has.
cent of weekly pub visitors said they are
Australians are adopting new habits and are prioritising new experiences – 2021 is the time for venues to listen to the data and adjust quickly and accordingly to capture that trade once more.
30 | Australian Hotelier
searching for more availability of healthy options on a menu since venues reopened.