Hotels and Pubs Investment

Investing in hotels and pubs can be an excellent way to diversify your commercial property portfolio. With the right property and strategy, these assets can generate consistent returns and capital growth. However, understanding the market, identifying the right opportunities and managing potential risks are crucial.

That’s where an experienced hotels and pubs buyer’s agent adds value. At Costi Cohen, we offer the insights, due diligence and negotiation expertise needed to navigate this sector. Whether you’re considering a city hotel catering to business travellers or a suburban pub with strong gaming revenue, working with a dedicated buyer’s agent ensures you’re making an informed, future-ready investment.

+ What is a hotel or pub investment?

Hotels and pubs are hospitality-focused properties that cater to distinct markets. Hotels provide short-term accommodation, often for business travellers, tourists or event attendees. Examples range from boutique hotels in city centres to large resorts near coastal or regional attractions. Pubs typically serve as social hubs, offering food, drinks and often entertainment. Some pubs also feature gaming machines, which can significantly enhance profitability.

+ Recent trends in hotel and pub investments

Hotels: Occupancy rates in Australian hotels have steadily increased as tourism recovers post-pandemic with an average occupancy rate for commercial accommodation of 70% in 2023, according to Tourism Research Australia. Business travel and tourism are driving demand, especially in capital cities and popular regional areas.
Pubs: Pubs with a strong food and beverage focus have thrived as community gathering spots. Properties with gaming licences are especially attractive to investors, given their potential for higher returns.

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Forecasting future potential for
hotel investments and pub investments

The future for hotels and pubs looks bright:

Hotels: Continued international tourism growth, combined with Australia’s appeal as a business destination, should drive demand for well-located properties.
Pubs: Suburban population growth and consistent gaming revenues make pubs resilient even during economic downturns.

As your buyer’s agent for hotels or pubs, we help you capitalise on these trends by identifying high-performing assets, conducting detailed assessments and securing favourable terms that align with your long-term investment goals.

Why buy
hotels and pubs?

Buying hotels and pubs as investments comes with several potential benefits. Their ability to generate multiple income streams is a major drawcard. Hotels can combine room bookings with event hosting and dining revenue, while pubs often supplement food and drink sales with gaming income. Additionally, hospitality properties tend to benefit from consistent demand, particularly in well-chosen locations.

However, they’re not without challenges. Hotels and pubs often require substantial upfront capital for renovations or upgrades. Assessing profitability is critical, as poor management or a dated offering can impact returns. Investors need to carefully evaluate a property’s historical performance, its reputation in the market and its future potential before committing.

To maximise your returns, it’s important to select properties in high-demand areas. A pub located in a vibrant suburban hub or a hotel near major attractions will generally see stronger occupancy and revenue. Furthermore, maintaining a focus on operational excellence — such as improving customer service, modernising facilities and offering live entertainment — can significantly enhance profitability.

Key considerations when
buying hotels and pubs

Location is one of the most critical factors in the success of a hotel or pub. A hotel’s proximity to business hubs, transport links and tourist attractions directly influences occupancy rates, while a pub’s performance will often depend on the demographics and preferences of the local community.

Equally important are the financial and regulatory aspects. Investors should conduct a thorough revenue and profitability assessment to understand how the property currently performs and what upgrades may be needed to improve results. Capital expenditure can be a significant outlay, particularly for older properties, so factoring in renovation costs is essential.

Regulatory requirements can also impact the investment process. Hotels and pubs must comply with zoning and land-use regulations, and obtaining the necessary licences and permits — such as liquor and gaming licences — requires due diligence. The reputation of the property is another consideration; a strong brand or positive customer reviews can provide a significant competitive edge. Working with one of our specialist hotels and pubs buyer’s agents will ensure these factors are thoroughly assessed before any purchase.

Why buy with
Costi Cohen?

Buying a hotel or pub is not just about finding the right property; it’s also about navigating the complexities of the market, conducting thorough due diligence and negotiating the right deal. While some investors attempt to go it alone, this approach can lead to costly mistakes, such as overlooking zoning restrictions or overestimating revenue potential.

At Costi Cohen, we specialise in commercial property investments, including hotels and pubs. Our team has extensive experience in the hospitality sector, and we guide our clients through every step of the process. From identifying high-potential properties to negotiating favourable terms and assisting with compliance requirements, we help ensure that your investment journey is stress-free.

How to finance your
hotel or pub investment

One of the key challenges of investing in hotels and pubs is securing finance. Depending on the property’s features, such as whether it includes gaming facilities, lenders may offer loans covering up to 65% of the purchase price. Banks and financial institutions will also assess the property’s location, revenue potential and your financial position as part of their approval process.

At Costi Cohen, we work with a network of trusted financial professionals to help our clients secure competitive financing. Whether you’re a first-time investor or looking to expand your portfolio, we can connect you with the right solutions to fund your purchase.

Ready to invest in hospitality?

If you’re eyeing a boutique hotel or a high-performing pub, a hotels and pubs buyer’s agent is key to making a confident, well-informed purchase. Partner with Costi Cohen for exclusive opportunities, expert negotiation and personalised support aligned with your investment goals. Contact us today to get started.

Explore some of our
Hotel and Pub Purchases

FAQs

What is involved in buying a hotel or pub property?

Buying a hospitality property like a hotel or pub requires navigating a complex set of variables. Key steps include evaluating the asset’s historical performance, understanding lease structures, reviewing licences (liquor and gaming), assessing operational management and negotiating terms.

Renovation needs and regulatory compliance must also be factored in early. At Costi Cohen, we handle the entire process on your behalf with our commercial buyer’s agent services.

Why work with a buyer’s agent for hotel and pub acquisitions?

Hotels and pubs are operational businesses as much as they are property investments. A hotels and pubs buyer’s agent brings deep market insight, risk awareness and negotiation expertise to ensure you’re not overpaying or overlooking key red flags.

Our buyer’s agents help you find the right opportunities, assess risk and execute deals with confidence. See examples of past investments in our property portfolio.

What key factors affect the value of a hospitality property?

The value of a hotel or pub is shaped by a combination of factors:

Location (tourism, transport, suburban hubs)
Revenue performance and margin structure
Liquor and gaming licences
Brand reputation and customer reviews
Operational costs and staffing models
Capital expenditure requirements (refits, upgrades)

Our hotels and pubs buyer’s agents work closely with property development consultants and finance experts to ensure these variables are fully considered before you commit.

More FAQs

How do you evaluate the profitability of a pub or hotel?

We take a comprehensive approach that includes:

Reviewing historical revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation)
Analysing occupancy rates and average daily rates (for hotels)
Assessing food, beverage and gaming contributions (for pubs)
Projecting future demand based on location and market trends

Do you assist with both leasehold and freehold pub investments?

Yes. Each model comes with its own risk-reward profile. Our team will help you determine the best fit and structure the deal accordingly.

Do you assist with management or operator reviews?

Absolutely. The strength of the operator is crucial to long-term success in hospitality investments. We assist in reviewing existing management arrangements or helping you find a suitable operator through our trusted partner network. This includes assessing their experience, operating history and alignment with your goals.

How important is liquor licensing in the buying process?

Very. Liquor licences — and gaming licences where applicable — are essential to the profitability of most hotels and pubs. Our hotels and pubs buyer’s agents ensure all licensing requirements are reviewed and transferred appropriately. We also flag any potential zoning or compliance issues early with the help of development site specialists.

Can you source off-market hotel or pub opportunities?

Yes, more than 80% of the properties we secure are off-market or pre-market, meaning our clients often get early access to premium assets not publicly listed. This includes boutique hotels, regional pubs with gaming licences and high-traffic metro properties. Gain an edge in a competitive market by working with a Costi Cohen buyer’s agent backed by strong industry relationships.

Are regional pubs a good investment?

They can be. Regional pubs, especially those with gaming licences and community ties, can offer strong yields and loyal patronage. However, success depends on local demographics, tourism and operator strength. Costi Cohen helps you assess these risk factors and identify regional assets with real upside. Explore regional market trends in our Insights hub.

What’s the typical ROI on pub and hotel investments?

Hotels and pubs typically deliver net yields between 5% and 9%, depending on location, lease strength and operational performance. Industry data shows hotels have achieved average returns of around 5.8%, with long-term averages nearing 9% per annum. Meanwhile, regional pubs with gaming licences and strong community footfall can offer particularly strong yields.

At Costi Cohen, we help investors secure high-performing hospitality assets with solid fundamentals and long-term growth potential.

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