Red Sands Tavern and Accommodation Park offered for sale

27 April 2023

The Red Sands Tavern and Accommodation Park has been listed for sale by local vendors as the Northwest gears up for its next cycle on the back of strong resource demand from around the world.

The tavern and accommodation park at 1982 Newman Drive sits across two sites, totalling 10,159sqm. The 83-hotel room accommodation facility is on one 4,127sqm site and the tavern on the other 6,032sqm site, complete with a drive-through bottle shop and alfresco areas.

CBRE’s Ryan McGinnity and Aaron Desange are managing the sale via an Expression of Interest campaign closing June 1 2023.

“Being one of only two taverns in town and one of three bottle shops, the Red Sands is a high cash flow business with huge upside,” Mr McGinnity said.

“Looking back over the last four years, the tavern has performed very well with the security of multiple income streams. The 2023 forecast revenue is over $7 million with an EBITDA in excess of $2 million, budgeted to increase into 2024.”

Newman was established in the late 1960’s to support the Mt Newman Mining Company (BHP) and is now home to 5,000 permanent residents and a much larger fly-in-fly-out workforce, all supported by the world’s largest open cut iron orn mine, Mt Whaleback.  

Mr Desange added, “Newman and the greater Northwest region of Western Australia are considered the economic powerhouse of the Nation.”

“The Red Sands Tavern and Accommodation Park comprise Newman’s, newest short stay accommodation, providing a high standard of amenity to corporate guests, fly-in fly-out workers and travellers passing through the town.”

The WA resources sector contributed $231 billion in 2021 / 2022, driving the national economy with $137B of this revenue from iron ore. An increase in workers over the coming years is expected with mine site developments including Western Ride, which has estimated construction costs of $2 billion, requiring thousands of additional workers.