Valuations for Melbourne pubs and hotels, with liquor, gaming and property treated as the separate things they are.
For selling or buying a hotel business, a partner leaving, separating the freehold from the operation, or succession. Fixed fee, set by turnover.
A Melbourne pub is valued on the profit from each trading stream, bar, bistro, bottle shop, accommodation, functions and gaming, after a market rent and market wages for the operators. Our valuers test whether the liquor licence and any gaming approvals can pass to a buyer, treat outstanding gaming entitlement payments as part of the price, and keep the hotel business separate from the freehold, which a property valuer in Victoria values. The result shows a buyer exactly what they are paying for.
The business, the building and the difference between them
Pubs change hands in two ways: the operating business alone under a lease, or the freehold with the business inside it. A freehold going concern price includes real estate, and much of it can be property value rather than business value. The valuation separates the two. It sets a market rent for the hotel, deducts it from the earnings even where the operator owns the building, and values what remains as the business. A leasehold hotel in Fitzroy or Richmond is tested against its actual lease: term, options, rent reviews, outgoings, make-good and any tie to a brewer or supplier. Property is valued by a property valuer in Victoria. Where the freehold sits in a company or unit trust, the State Revenue Office's landholder duty rules may apply to a sale of shares or units once the entity's Victorian land is worth $1 million or more. That is for your lawyer or the SRO.
Each trading stream has its own margin
A hotel is several businesses under one roof. Beverage margins differ from food margins, the bottle shop runs on thin retail margins, accommodation carries cleaning and maintenance costs, and functions depend on bookings and staffing. The valuer works through each stream from point of sale and gaming reports, checks that wages, penalty rates and owner hours are costed at market rates, and looks at trends since the venue was last refurbished. Owners who work the bar and the floor six nights a week are costed as staff, because a buyer will need to replace them. Where a kitchen is subleased to a separate operator, the sublease income and its terms are valued rather than the kitchen's turnover.
The liquor licence transfer
No pub trades without its licence, and it does not pass on signing a contract. Liquor Control Victoria says the incoming owner normally applies to transfer the licence, Victoria Police has a month to object, and a transfer can be granted in full or pending the applicant's right to occupy the venue. The buyer must not supply alcohol until the transfer is granted and they have the legal right to occupy. An appeal against a refusal must be made within 28 days of the decision. The valuation assumes the transfer will be granted and says so plainly, because a buyer who cannot obtain it has no hotel to run. The steps and timing are for the parties, their lawyers and Liquor Control Victoria.
Gaming machines: entitlements and the VGCCC
For a gaming hotel the gaming room can be a large share of profit, and it rests on approvals as much as trade. The Victorian Gambling and Casino Control Commission says each poker machine entitlement allows a venue operator to run one machine, and entitlements are transferred through the Entitlement Transfer Market, which is open to venue operator licensees. A buyer needs VGCCC approval before settlement, the premises must be included on the buyer's venue operator licence, and the regulator must be told the settlement date at least 14 working days ahead. A transfer is final only when recorded on the Entitlement Transfer Market Register. Outstanding entitlement payments can be paid out or taken over by deed of assumption, and entitlements are forfeited if the holder stops being a licensed venue operator or misses required payments. The valuation separates gaming earnings, treats unpaid entitlement instalments as a liability in the price, and states that the gaming value depends on the approvals being obtained. Gaming regulation is for the VGCCC and your lawyer.
When Melbourne hotels are valued
- ·Sale or purchase of a leasehold hotel business
- ·Separating the freehold from the operating business before a sale
- ·A partner or family member leaving the hotel
- ·Restructuring the operating company or property trust
- ·Succession to the next generation
- ·Market value evidence for small business CGT concessions on exit (your accountant applies them)
Common questions.
How much is my pub worth?+
The business is worth the profit it can keep earning after a market rent and market wages for everyone working in it, including you, capitalised at a rate that reflects the venue's risk. Gaming, food, beverage and accommodation are each tested. If you also own the building, its value is assessed separately by a property valuer in Victoria and added alongside the business value.
Are poker machine entitlements included in the sale price?+
Usually they are part of the deal for a gaming hotel, because the gaming earnings depend on them. The VGCCC says entitlements can only move between approved venue operators, and any unpaid instalments are either paid out or taken over by the buyer. The valuation shows gaming value separately and deducts unpaid instalments, so it is clear what the buyer is paying for.
How long does a liquor licence transfer take in Victoria?+
Liquor Control Victoria asks applicants to apply at least eight weeks before the change should take effect and says decisions usually take about five to seven weeks, longer if police object or more information is needed. The buyer cannot supply alcohol until the transfer is granted. Your lawyer will usually make settlement conditional on it.
Is a freehold pub valued differently from a leasehold one?+
The business inside is valued the same way in both cases, after charging a market rent. The difference is that a freehold sale also includes the land and building, which a property valuer in Victoria values. Keeping the two apart shows how much of a freehold price is property and how much is the hotel business, which matters for finance, duty and tax advice.
Can the buyer start trading the hotel before the approvals come through?+
Not for alcohol or gaming. Liquor Control Victoria says alcohol cannot be supplied until the licence transfer is granted and the buyer has the right to occupy, and the VGCCC requires its approval before settlement of a gaming venue. The valuation assumes those approvals are obtained, and your lawyer manages the timing in the contract.
What does a hotel valuation cost?+
The fee is fixed before work starts and set by annual turnover: $1,495 + GST under $2 million, $2,495 + GST for $2 million to $3 million, $3,495 + GST for $3 million to $10 million, and a written quote above $10 million. Small reports take 2 business days and medium and large reports 3 business days, counted from when payment and all required information have been received.
- ·Transfer a liquor licence or permit, Liquor Control Victoria (vic.gov.au)
- ·Transferring ownership of a gambling venue, Victorian Gambling and Casino Control Commission
- ·Poker machine entitlements, Victorian Gambling and Casino Control Commission
- ·Understanding landholder duty, State Revenue Office Victoria
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Last reviewed 11 November 2026 by Business Valuations Melbourne, Level 7, 55 Collins Street, Melbourne.