Pub & Hotel Hospitality Market and Commercial Finance Update

While the market is below its 2022 peak, and a tough interest rate environment still exists, pubs are still in big demand. 

CapStack has been instrumental in helping clients secure optimal debt solutions for their diverse real estate projects and acquisitions.

Ray White head of research Vanessa Rader recently hosted a webinar titled "Between the Lines Live" where a panel of experts discussed the hotel and tourism market. Vanessa was joined by HTL Property managing director Andrew Jolliffe and HTL Property national director for investment management James Smithers. 

We've taken four key points from the discussion which we believe are pertinent for commercial property investors, and for firms such as CapStack which assist these investors in sourcing, negotiating and structuring optimal commercial funding for their investments.

1. Resilient Pub Market

Despite a cooling market in 2023 due to interest rate rises, the pub market is bouncing back in 2024, driven by high demand, especially in regional and metro areas, with generational families and sophisticated investors leading the purchases.

2. Diverse Income Streams

Pubs offer multiple revenue streams—food, beverage, gaming, retail, and accommodation—making them valuable and resilient investments. Sophisticated investors can optimise all these streams for increased profitability.

3. Attractive Commercial Finance Terms

Pubs are seen as good bets for lenders due to their prosperous cash flows and the ability to influence revenue and profitability, making them attractive assets in the eyes of banks and financial institutions.

4. Strategic Development Opportunities

The strategic use of pub spaces, including the air space above and transitioning high-street locations into versatile precincts, presents significant development opportunities, crucial for adapting to changing consumer needs and demographics.

Considering an investment in the industry? Let's talk.

Call CapStack even before you have found a property to target. Our team can assist in helping you understand how much you can borrow and can guide you through the process towards an optimised funding position.

How can CapStack help?

CapStack works with investors to secure finance for land acquisitions, development projects, and subdivision initiatives. We have access to a wide network of lenders, including banks, private lenders, and alternative financing sources, and can help clients navigate the complex process of obtaining funding.

CapStack sources funding solutions for a range of projects and sizes, from a single residential property into two separate titles subdivision to the rezoning of extensive tracts of land into numerous individual lots for residential or commercial use.

CapStack provides comprehensive assistance to developers throughout the entire process. This includes sourcing land acquisition finance, financing engineering and infrastructure works (roadworks, sewage, and electricity), development construction finance, and ultimately refinancing once the project is completed.

Let's talk finance. CapStack is ready for you.

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Why CapStack?

When it comes to securing the right financing for your business or commercial property acquisitions and projects in Australia, CapStack is the partner you can trust. With unparalleled expertise, a vast network of lenders, personalised service, and data-backed insights, we are committed to your success. Get in touch with CapStack today and unlock the full potential of your commercial ventures with our expert property finance services.

CapStack can assist with bank, non-bank, or private financing. Start here to connect with us and send through some basic information to get the ball rolling or email us directly. Our lenders are Australia-wide and ready to fund investments acquisitions and development projects. CapStack help's developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing. CapStack works directly with developers and investors who need access to capital markets.