CBH Group poised to buy country hotel, pub and restaurant to house staff and contractors amid housing crisis

Grain juggernaut CBH Group has unveiled plans to buy a 60-bedroom hotel in Geraldton and reserve half of it for staff and contractors amid one of the toughest housing markets in WA history. The co-operative — which posted its biggest profit in history last year — revealed in an email to its 3400 grower members on April 18 it had “entered an agreement” to buy the Geraldton Motor Inn on Brand Highway. It plans to reserve about 50 per cent of the motel rooms for CBH employees and contractors, and contract a local hospitality operator to run the facility, which includes a restaurant, bar and bottleshop. The remainder of the rooms will continue to be available to tourists and short stay guests. In the email to growers, CBH said the purchase would ensure there was “suitable accommodation” for those working on the “multi-year” Geraldton Street Silo Project. It declined to comment on the cost of the motel, however it last sold for $2 million in 2018. A CBH spokesman said the company was in the settlement period and would be able to provide more information when that was complete, with the process understood to be in the final throes. He said the purchase would support the co-operative’s Path to 2033 Strategy, with the Geraldton Port Zone in line for a range of network investments designed to help lift CBH’s WA export capacity to a maximum of 3 million tonnes per month by 2033. “There is currently a highly-competitive market for accommodation in Geraldton and surrounding areas as companies undertake significant infrastructure and resource projects that require a large workforce from outside of the region,” the spokesman said. “Accommodation will still be available at the 60-bed motel for tourists and short-term stays, with the restaurant, bar and takeaway bottleshop operating as normal to cater to guests and the local community. “CBH will engage a local hospitality operator to run the business and all existing 35 employees will be retained to continue with normal operations.” CBH is one of many businesses looking at unique ways to house workers, as Australians deal with the lowest rental rate in history. It has the cash to spend after last year racking up a record $497.7 million to the year ending September 30, including a bumper $437.9m from its marketing and trading division on the back of the Russia-Ukraine war. The company plans to spend $250 million per year for the next five years investing in its network. Recent analysis showed essential workers including cleaners, childhood educators and aged care workers, were being forced to spend more than two thirds of their income on average on renting a place to live. Shadow housing minister Steve Martin said CBH’s decision was another sign of the tight housing market facing regional communities and businesses across the State. “There are now a number of examples of companies in regional WA buying motel-style accommodation to meet the housing needs of their staff,” he said. “Together with a growth in short-term accommodation, a private rental squeeze and serious building delays, regional economies are being hit by housing shortages. “The State Government needs to act to address crippling headworks charges and delays in land and building approvals to ease the crunch.”