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Local watering hole 'The Hika' ripe for some new blood

Tuesday 18 May 2010, 4:07PM

By Bayleys

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Hika Hotel
Hika Hotel Credit: Bayleys

WHANGAREI

The lessee’s interest in the historic Hikurangi Hotel 15 km north of Whangarei is for sale through Bruce Young of Bayleys Whangarei as the retiring publican makes plans to move closer to her Hawke’s bay-based family after 12 years in the business.

Young says since the death of her husband a couple of years ago, publican Melva Amos has kept the business ticking over but the opportunity now exists 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 looked at as the motivation to move on is definitely high and I believe the vendor has realistic and current market-related expectations. There is also a long-term manager in place who would stay on if a new owner so wished.”

The Hikurangi Hotel was built in 1880 and its exterior appearance remains largely unchanged from the days when it was frequented by gum diggers, saw millers and coal miners. The two-storey wooden building with sash windows and upper verandah has been well-maintained and is characteristic of many country pubs still seen in New Zealand’s hinterland. The land and buildings are owned by an Auckland investor and it is just the long-term lease interest which is being sold.

“The current lease has rights of renewal through until December 2028. 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. Mrs Amos may look at leaving some bridging finance in place for an approved purchaser,” explains Young.

‘The Hika” - as the hotel is referred to by locals – is a focal point for the largely farming community in the area.

“It certainly does a good trade and figures for the last period are quite impressive considering that we are merely talking about dollars from the public bar and bottle store. Keen buyers need to look past the current trading profile and really consider where value can be added to the business,” Young says.


“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.

The hotel has a traditional old pub layout and an ambience to match. An extensive collection of memorabilia – including a 100-year old plus preserved whale’s penis believed to be from the last commercial whale harvested in the area – remain with the hotel.

Adjacent 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 operates 13 upgraded multi-game gaming machines and there is also a self-service TAB machine.

Traditional Kiwi hotel accommodation is available on the first floor of the building 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. There’s something to be said for good old fashioned hotel accommodation - clean and functional, but without the bells and whistles. The only reason that 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 around 30 players runs twice per year for 15 weeks ending in a special prize-giving and function, 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.

“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.”

ENDS