Hotel Gracelands in Parkes, where the town’s Elvis Festival began, has sold for $2.38 million at auction on Tuesday.
Hotel Gracelands, at 7-9 Bushman Street, has a 30-year lease to the hotel operator that began four years ago, with options until 2064. The tenant is paying more than $190,000 plus GST in rents.
Burgess Rawson selling agent Dean Venturato, who had the listing with Sam Horwitz, said such a long-term commitment from the tenant was “really, really rare”.
“Often we’ll see a 10 or a 15-year lease and they are pretty good, but to have a 30-year lease, plus options, is extremely rare,” he said.
“I’ve been in property for close to 40 years, I could count on one hand leases that I’ve seen that are longer than 20 years, and this would be one of them.”
The 3726-square-metre site includes accommodation, a restaurant and a wine bar.
The idea for the Parkes Elvis Festival started in the building – then known as Gracelands Restaurant – during a party in 1992, and the first festival was held the following year.
The event attracted 26,500 people in 2018.
The property was refurbished extensively in 2014 and had development approval for a 30-room extension, which has now lapsed.
“With country councils, it’s easier to resurrect a DA, they are far more pro-development and business-minded than Sydney or capital city councils. They want development, they want growth, expansion and employment,” Mr Venturato said.
“Parkes has the benefit of a good population based there, there’s agriculture, there’s mining, there’s tourism, education, health services.”
About 70 groups had requested information before the auction and prospective buyers included private investors, as well as hotel and motel operators.
The commercial property was one of 21 to go under the hammer at Burgess Rawson’s portfolio auction in Sydney.
This story first appeared on the Sydney Morning Herald website.