SUBURBAN HOTEL

Grey River Argus, 23 September 1944, Page 3

SUBURBAN HOTEL

SALE AT £ll,OOO An application by Joseph McGrath to sell to E. A. and H. K. Gillman the property situated on the corner of Tainui and Murray Streets, Greymouth, known as the Suburban Hotel for a consideration of £ll,OOO (land and buildings £1,500; goodwill £9,500) was granted for the tuil amount by the Westland Land Sales Committee at Greymouth yesterday morning. Mr. Mark Wallace presided and asassociated with him were Messrs JMulcare and J. W. Greenslade. Mr. Basil King, Commissioner of Crown Lands, appeared for the Crown, and Mr. J. W. Hannan represented the applicant. Evidence was given by A. F. Jamieson who kept vendor’s books. Outgoings in wages, he said amounted to £4 10s a week.

Tiie vendor said he had been licensee of the hotel since 1937, and only employed a barman and a maid. His wife who had assisted him was not in good health and it was due to this that he was selling. The business was better now than when he had purchased the hotel. If he had been a younger man he would ask for another couple of thousand or would never leave. He estimated that wages allowed to himself -and his wife amounting to £5OO per annum would be reasonable. He thought that his price was cheap. If the hotel were in Chirstchurch it would sell for £15,000. The turn over of the hotel did not increase for a month or so after he had taken over, when he changed the beer. Mr. Greenslade “Your predecessor made himself popular with schooners didn’t he?”

“I put on schooners for two years and made more than I am making now,” replied witness. (Mr. Greenslade A case of the more you give away the more you make.

Mr. King said that 1 the Crown , estimate was: Lessee’s interest £236; buildings £Bl6, other improvements £ll5, total £1,167, as compared with the £1,500 asked' for. Ashley Warnes, valuer, who inspected the property a week ago, said that the locality was excellent and the site good. Three good building sections could be obtained from tne property, which he valued at £750 as a freehold. He detailed the buildings and their condition. To Mr. Greenslade: He had allowed depreciation at 70 per cent, on a table basis, the buildings, being about 50 years old. To Mr. King; The southern wall of the building was badly affected by borer. Had reasonable maintenance been carried out this state of affairs would not have been allowed to exist. After some fifteen minutes deliberation, the chairman announced that the Committee had decided to grant the application for the full consideration of £ll,OOO. “The property was acquired in 1937, for £10,000,” he added. “A statement of profit and loss, which has been certified to shows a gradual increase in turn ovei and profit From this angle there seems to be justification for the ” lc J eass ; ?L £I Co°i “e 1 S.S S’ *l5OO O" the lond and j improvements.”