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Covid - 19 OUR INDUSTRY

Author: Nick Tinning
News Date: 1/6/2020 5:43 PM
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This is an unprecedented time for the hotel industry with Covid - 19

 

Mar 19  Federal Government closed hotels in Australia

 

May 8    Federal Government announced 3 stage plan for return to "normal" trading.

                "It is hoped that normal will be achieved in July - State Governments to call the shots."

 

June 1   NSW Government permits hotels to re-open all facilities subject to social distancing and max 50 people per trading area.

 

During this unprecedented time Chris Tinning & Co has continued to support the hotel industry:

  • ·         Providing extracts from AHA, NSW Government, Australian Government clarifying announcements and correcting rumour
  • ·         Landlord/Lessee rental negotiations
  • ·         GME Landlord/Lessee rental negotiations
  • ·         Sales of GME's
  • ·         Leasing of GME's
  • ·         Re-negotiation of property sales that were to settle during the shutdown period.
  • ·         Enquiries regarding future purchase of hotels.
  • ·         Sale of one new leasehold and one investment hotel.

 

Discussions with vendors for the majority of our hotel listings resulted in the sales process being hibernated during the shutdown. Buoyed by the restricted opening many vendors have now agreed that their properties can again be presented to the market.

 

Our industry body the AHA NSW should be congratulated on their management   through this period. The information provided to assist shutdown then restart, discussions with industry suppliers and negotiations with Government have resulted in some marvellous concessions that allow hotels to again recommence trading, far earlier than first predicted. It is now up to the operators not to "stuff this up" and prove that we can operate in a safe manner.

 

The hotel industry has proven to be extremely resilient. Never before have we faced a trading shutdown whilst still occurring holding expenses, it has been a long road. As foggy as a crystal ball would be: I do not see a lot of hotels suddenly for sale, nor do I see values falling.

 

Possibly during this initial re-opening there may be some operators who don't want to continue, yet many will just roll up their sleeves and keep pouring beer.

 

So now the show must go on …. After a productive break the industry is back to it.

 

For factual and practical advice regarding the hotel industry then please contact me at any time.

 

 

 

 

Nicholas Tinning

0417 252199

 

Hospitality Brokerage, Liquor Applications, Management Consultant

 


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Chris Tinning & Company
117 Byrnes Road
North Wagga NSW 2650
Ph: +61 (02) 69 710032
Fax: +61 (02) 69 710032