Vibrant city hotel is steeped in local history

The Naval & Family on the corner of Karangahape Rd and Pitt St has had a full exterior makeover and renovation of the bar and function rooms. Photo / Supplied

The Naval & Family Hotel, known locally as "The grand old lady of Karangahape Rd", is being offered for lease through Murray Kidd of Affiliated Business Consultants.

"Situated on the prime corner site of Karangahape Rd and Pitt St, this landmark property's leasehold business is for sale priced at only $260,000 including stock," Kidd says. "This is a classic city pub that oozes Victorian era character yet possesses fully modern amenities and represents a fantastic business opportunity."

The ornate three-storey building, constructed in rendered brick, is steeped in history. The heritage building was constructed in 1896 and carries a Category II Historic Places classification. It stands on the site of K Rd's oldest pub, the Naval Hotel, first licensed in 1862, and it has one of the longest continuous licences operating in the city.

"Previous owners undertook a major $1.4 million upgrade, that included a full exterior makeover and renovation of the bar and function areas," Kidd says. "As a result it's expected new owners won't need to allow for anything more than the usual repairs and maintenance."

The main bar area is on the ground floor and the whole facility has a 24 hour liquor licence. The pub also contains a separate gaming room licensed for 18 machines.

"The bar is generously proportioned and the kitchen is being used to prepare pub grub," Kidd says. "But the kitchen is currently under-utilised and it could generate an increased revenue with a revamped menu.

"The hotel has an outdoor licence from 10am until 12 midnight allowing al fresco dining, or patrons can sit outdoors and simply enjoy a drink while watching the world go by on K Rd.

"All the fixtures, from the beer storage and delivery system to the surround-sound system are top of the range," says Kidd. "Absolutely everything is included in this business opportunity right down to the coffee espresso machine."

The hotel's accommodation suites have also been refurbished and comprise seven guest bedrooms with shared bathroom facilities. Kidd says the layout allows for a fully self-contained, three-bedroom manager's apartment and four rooms available to let out to guests. All the rooms are currently rented and bring in a combined $60,000 per year equivalent.

Access to the accommodation and function areas is gained through a separate entrance off K Rd allowing for private, after-hours access.

"The upstairs function room has also undergone a complete makeover," Kidd says. "It is luxuriously appointed with sophisticated light and sound systems that will enhance any event. The space also has fantastic natural light allowing it to be used for all manner of functions.

"The bathrooms are like those in five-star hotel suites. I have never seen such an opulent fit-out in a city hotel-pub like this," Kidd says.

"There is a great outdoor area upstairs which is a real bonus allowing it to be well utilised by smokers."

Kidd says the K Rd area attracts a diverse mix of artists, students and professionals and it has the reputation of being one of Auckland's premier late-night inner city hospitality areas.

"The Naval & Family enjoys a varied clientele from the growing local residential population and alternative lifestylers for which the area is famous," he says.

Kidd believes the sale of the Naval & Family business lease represents an excellent opportunity for either an experienced operator or someone new to the hospitality industry.

"All the hard work has been done and the money has been spent. The business is presently fully managed and is easily overseen.

"At $260,000 it offers a terrific return on investment and there is still plenty of opportunity to add value."