Nationwide interest in small-town New Zealand pub sale

Big-city executives wanting a peaceful slice of rural New Zealand, hospitality entrepreneurs from around the provinces, and Canterbury publicans wanting a new life, were among those
who registered interest in buying an historic pub close to the famous Central Otago Rail Trail.

But at the end of the day, the new owners who fronted up with the best offer to buy the hotel came from a pub some 16 kilometres away at a neighbouring town.

Patearoa Hotel in the hamlet of the same name is some 18 kilometres from Ranfurly to the North-West of Dunedin was taken to the market for sale by Bayleys Wanaka in June.

The pub - just a few kilometres from where the Central Otago Rail Trail tracks through the countryside - dates from 1928 and is on the site of the original ‘hostellery’ - built by Thomas Newton in 1887 - which burnt down in 1927.

The quaint country hotel is one of the biggest accommodation providers in the district – with eight bedrooms within the main building, and a further seven chalets in its grounds targeted at budget travellers. The hotel also operates a 24-seat restaurant fully serviced by a commercial kitchen. The freehold hotel on 1.3 hectares of land has a rateable value of $310,000.

After receiving interest from around the country, The Patearoa Hotel was sold to husband and wife pub operators Stephen and Sarah Jones who run the stylish Waipiata Country Hotel some 16 kilometres away.

The couple intend running both pubs consecutively and jointly marketing them for their proximity to the fast-growing Central Otago Rail Trail cycling and hiking route. The Patearoa Hotel’s vendors, Ron and Lee Hamill, are retiring after 20 years behind the bar, and are moving to Alexandra.

Bayleys Wanaka director Mat Andrews said the pub had attracted interest from corporate executives in Auckland – who expressed their keenness to “get away from the rat-race” – as well as potential buyers from Rotorua, Christchurch and Dunedin.

A confidentiality clause excluded Mr Andrews from revealing the sale price.

“The potential buyers coming in to look at the hotel were blown away by the spirit of the town and the friendliness of its locals. Patearoa is the sort of place where everyone knows everyone…. and the hotel is the centre of all community activity,” Mr Andrews said.

“The Aucklanders in particular said they couldn’t believe that this sort of community still existed in New Zealand. It was like another world to them. At the end of the day though, it was ironic to see Stephen and Sarah extend their presence in the district.”