By Burgess Rawson Sales Executive, Romanor Falconer
Australia’s country pubs are enjoying a spirited resurgence, driven by the growing popularity of domestic tourism and a shift in investor focus towards regional towns.
Once the lifeblood of rural communities, these pubs are again becoming vital hubs for locals and travellers alike, while also proving their value as commercial assets. Driven by an uptick in domestic travel and the expansion of regional centres into cultural destinations, the investment landscape for country hotels has shifted notably over the past 12 months.
The numbers tell the story. Average yields for pub and hotel assets have tightened significantly, falling from 8.06% between May 2023 and May 2024, to 6.24% over the past year to May 2025.
This 182-basis point drop reflects surging demand for well-leased, strategically located country pubs. Investors are recognising their dual appeal: reliable income from strong tenancy covenants, and long- term upside in towns undergoing economic and cultural transformation.
The Morwell Hotel, leased to national operator ALH Group, was recently sold by Burgess Rawson for $3.5 million, achieving a sharp 4.96% yield. Located in Victoria’s Latrobe Valley, Morwell is benefitting from affordability and infrastructure investment, with a median house price of just $335,000 and strong residential yields. These fundamentals are increasingly appealing to investors priced out of metropolitan markets but still seeking secure, income-generating assets.
Meanwhile, towns like Mildura, Ballarat, and Bendigo are redefining themselves as tourism and cultural powerhouses. Mildura, now branding itself as “Tropical North Victoria,” enjoys more sunny days annually than the Sunshine Coast and draws around 600,000 visitors a year, including thousands from overseas. Ballarat’s visitor economy has soared beyond pre-pandemic levels, recording a 22.9% increase in total spend compared to 2019. Bendigo’s thriving arts scene and heritage appeal continue to attract both tourists and creative industries. These cities are no longer seen as outposts, they’re emerging lifestyle destinations in their own right.
As these regional centres evolve, so too does the narrative around their pubs. No longer just watering holes, they’re becoming institutional-grade investments offering compelling returns and community relevance. Backed by strong leasing covenants, robust local economies, and a growing tourism base, the country pub is no longer a nostalgic memory—it’s a modern investment success story.
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