Club Sapphire is forging ahead with plans to future-proof its business and place in the community, constructing a new commercial building for tenants and planning a tourism-driven hotel.
The initiatives are part of the club’s overall strategy to diversify and create new revenue streams, with the goal of reducing its reliance on gaming.
Recently approved by Bega Valley Shire Council is construction of a commercial building on the northern side of the existing club, on a 6,343sqm plot. It will become a single-storey development housing two commercial premises and parking.
The Club intends to build the facility, before leasing the space to Super Retail Group, which will install two tenants.
While construction tenders have not long closed, it’s thought the new stores could open in 18 to 24 months. Club Sapphire CEO Damien Foley says they are working with architects and engineers “to ensure it’s as financially viable as possible”.
Once details are finalised, the Club will meet with its members to seek approval to take on the investment.
“Leasing the commercial premises will support the club’s viability as we move away from gaming, while bringing new business and jobs to Merimbula,” Foley told ARN Bega Bay.
Separate to the commercial premise, in response to research on local tourism revealing a gap in the market for a new hotel, Club Sapphire is also proposing to build and integrate a 100-room 4-plus star five-storey hotel atop the existing (two-storey) club facilities. It’s intended that it would be run by a national hotel operator.
Found between Bega and Eden, Merimbula is a popular NSW south coast holiday destination, with local population of about 4K people and peak season population of around 20K.
The hotel would represent an appreciating asset for the club, and serve as a revenue source, while bringing more people to its facilities and events.
Community consultations took place late 2023, and final approval is still in the works.
Foley explains that the developments stem from an economic perspective, with the steady decline in gaming revenue since its peak at the club in FY2006. Although still accounting for approximately 45 per cent of revenue, bolstering the bulk through food & bev, its predicted the gaming will continue to fall, putting further pressure on the club’s future viability.
The CEO believes clubs need to diversify their income, offering that an increasing number are similarly investing in diversification projects.
