Clinton hotel the Oak Tree Inn will soon be up for sale, after owner the Clutha Licensing Trust (CLT) received an approach from potential buyers.
The complex, including a bar, bistro, bottle store and nine motel rooms, sits at the intersection of Gorge Road and State Highway 1, at the heart of the rural South Otago town between Balclutha and Gore.
Trust general manager Mike Curtis said an independent valuation for the ‘‘freehold going concern’’ was ‘‘north of half a million dollars’’.
Mr Curtis did not provide any further details about the potential buyer, and it was not clear whether they had yet made an offer.
He said the hotel would go on the market during the next fortnight.
‘‘The trust regularly reviews its strategies for its businesses and assets. The most recent strategy review highlighted that now may be an appropriate time to sell the Oak Tree Inn. If it doesn’t sell for a price acceptable to the board, the trust will continue to operate the venue in its current format.’’
He said the trust had asked the inn’s staff for feedback on the proposed sale before taking any further steps.
No feedback had been received, and steps towards a sale would now proceed.
Mr Curtis said he did not expect any redundancies as a result of the process.
Proceeds from the sale could be earmarked for an anticipated rebuild of Balclutha’s Hotel South Otago.
The CLT-owned hotel occupies a prominent location at the northern entrance to Balclutha’s main street, on SH1.
Sites opposite the hotel will soon be occupied by a new Countdown supermarket and the $24 million Clutha Community Hub, both under construction.
Mr Curtis said funds raised from any sale of the Oak Tree Inn would be ring fenced for ‘‘future capital purchases or redevelopments’’.
About $320,000 raised from the sale of the Bridge Tavern in Kaitangata in 2019 has also been set aside.
Although he would not be drawn on specific plans or timings for changes to the Hotel South Otago, he confirmed the trust was considering its redevelopment.
‘‘The trust has long held aspirations to redevelop the Hotel South Otago and continues to hold such aspirations.’’ richard.davison@odt.co.nz
