Australia’s pub sector sees renewed transactional momentum in 2025
The Australian pubs, bars and nightclubs industry, which is valued at approximately $20 billion, is navigating a dynamic period shaped by evolving consumer preferences, economic headwinds, and regulatory changes.
James RubenNational Director, Specialised AssetsFollowing a shift in market sentiment in late 2024, the Australian pub market entered renewed momentum this year with a continued increase in activity anticipated
Our latest report is out now, finding that the Australian pubs, bars and nightclubs sector is seeing renewed transactional momentum in 2025 after seeing a shift in market sentiment in late 2024. M3 Property’s Australian Pubs, Bars & Nightclubs Insight – October 2025 highlights that, as of September 2025, total national transaction volume has reached approximately $1.717 billion across 95 transactions, already surpassing the 2024 total of $918.07 million from 98 transactions. Over the next five years, industry revenue is expected to grow at 1.9% annually.
“The Australian pubs, bars and nightclubs industry, which is valued at approximately $20 billion, is navigating a dynamic period shaped by evolving consumer preferences, economic headwinds, and regulatory changes,” said James Ruben, National Director, Specialised Assets at M3 Property. “The sector is now dominated by private investors, accounting for 100% of transactions this year, with institutions stepping back amid rising capital costs and yield compression.”
The report highlights that institutional interest remains strong, as evidenced by Charter Hall’s recent takeover bid for Hotel Property Investments (HPI), signalling confidence in the sectors’ long-term income stability. Private capital has also been highly active, with prominent groups such as AVC, Solotel, Star Hotels, Thomas Hotels, and the Francis Group executing strategic off-market acquisitions.
“The sale of the Bath Arms Hotel in Burwood for $43 million further highlights continued investor interest in well-located suburban assets – particularly those benefiting from major infrastructure and residential growth. Performance fundamentals remain sound, with non-electronic gaming revenue now underpinning broader market strength.
“Looking ahead, expected RBA interest rate cuts combined with an expanding buyer pool and an increase in public sale campaigns point to a more liquid and active market environment over the remainder of 2025,” said Mr Ruben.
View the full report at the link below
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