Australian Hotelier February 2021

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.

PUBLISHED BY: Food and Beverage Media Pty Ltd 41 Bridge Road GLEBE NSW Australia 2037 Tel: 02 9660 2113 Fax: 02 9660 4419

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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.

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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.