Historic heart of northern town in need of fresh blood

The Hikurangi Hotel has a Victorian exterior largely unchanged from when it was frequented by gumdiggers, sawmillers and coalminers. Photo / Supplied

The lessee's interest is for sale in the 120-year-old Hikurangi Hotel, which has a Victorian exterior largely unchanged from the days when it was frequented by gumdiggers, sawmillers and coalminers.

The land and buildings, 15km north of Whangarei, are owned by an Auckland investor and it is just the long-term lease interest being sold, says Bruce Young of Bayleys Whangarei, who is marketing the business opportunity.

"The current lease has rights of renewal through until December 2028," Young says. "The chattels are included in the sale of the lessee's interest while stock will be separately valued on settlement and will form an additional part of the purchase price."

Young says the retiring publican, Melva Amos, is making plans to move closer to her Hawkes Bay-based family after 12 years in the business.

Since the death of her husband a couple of years ago, Amos has kept the business ticking over but now there is an opportunity for a new lessee to revitalise the popular local watering hole and get all the various strands of the operation back up and running.

"Only the public bar and bottle store are open at the moment.

"The lounge bar, restaurant and accommodation side of the business are not currently trading so a new owner has plenty of upside to factor in to the operational and financial equation," Young says.

"All reasonable offers will be considered as Melva's motivation to move on is definitely high and I believe she has realistic and current market-related expectations.

"Melva has also indicated she may look at leaving some bridging finance in place for an approved purchaser.

"A long-term manager already working in the hotel is willing to stay on if a new owner wished," he says.

The two-storey wooden building with sash windows and upper veranda was built in 1880.

Young says it has been well-maintained and is characteristic of many 19th-century country pubs still seen in New Zealand's hinterland.

"The Hika", as the hotel is called by locals, is a focal point for the area's largely farming community.

"It certainly does a good trade and figures for the last period are quite impressive considering we are merely talking about dollars from the public bar and bottle store," says Young.

"Keen buyers need to look past the current trading profile and really consider where value can be added to the business.

"With the infrastructure all in place for the other arms of the business to be regenerated, it wouldn't take much to kick-start the Hika back into life - and back into the accommodation and food game."

The well-equipped commercial kitchen has a current food licence and when the 50-seat bistro was running it was well-patronised by locals, contractors working in the area and the recreational pool players that take part in the inter-hotel pool challenges in the Whangarei region.

"There is a definite market for good, wholesome, no-frills pub food or, if someone wanted to 'rev' up the food side of the business, then the fundamentals are all in place for that to happen." Young says.

The hotel has a traditional old pub layout and an ambience to match.

An extensive memorabilia collection will stay with the hotel - including a preserved whale's penis, more than 100 years old, believed to be from the last commercial whale harvested in the area.

Next to the lounge and public bars is a beer garden or smoking area with two fireplaces. An outdoor gazebo is ideal for a DJ or similar specialist entertainment.

The hotel hosts 13 upgraded multi-game gaming machines and a self-service TAB machine.

Traditional Kiwi hotel accommodation is available on the first floor with seven rooms - each with basins - and shared bathroom facilities.

"There is no other hotel accommodation in the Hikurangi area, with Whangarei the closest option for travellers, contractors and the like," says Young.

"There's something to be said for good old fashioned hotel accommodation - clean and functional, but without the bells and whistles.

"The only reason the accommodation side is not currently active is that Mrs Amos has opted to down-scale the day-to-day operation to streamline her business now that she's effectively running it on her own."

A self-contained owner's or manager's flat is separate to the hotel accommodation and could possibly be sub-leased if a new owner chose not to live on site.

The recreational side of Hikurangi township seems to revolve around the Hika. The hotel has two pool tables and three teams run out of the hotel as part of the Whangarei Pool Association competition. Two visiting teams are hosted by the hotel each Wednesday night and there is an annual pool competition for the Les Dobbs Trophy.

A sports tipping competition, normally with about 30 players, runs twice a year for 15 weeks ending in a special prizegiving, while the September pig hunt has always been one of the biggest weekends of the year at the hotel.

"This event also now includes a fishing contest and runs Friday to Sunday with a biggest eel competition for the children and live music each night. It's a much-anticipated weekend and one for the whole family to be involved with," says Young.

"The hotel is still a pretty vibrant place and all credit goes to Mrs Amos for keeping the activity levels high.

"The locals have a soft spot for the hotel and a new owner has a great base to build upon."