March 2013 Resort Brokers Informer by iformat

No. 69 | November 2012

INFORMER

No. 70 | March 2013

Australiaâ&#x20AC;&#x2122;s No.1 tourism & business

Australiaâ&#x20AC;&#x2122;s economic lifeblood:

The unique challenges & rewards of family businesses

Gold Coast lustre returns:

A bumper summer holiday season & growth in tourism numbers the Gold Coast starts to shine again

resortbrokers.com.au

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Pre-built Masonry Motel Rooms Delivered Connection Ready! From $42,000 ex GST Architecturally designed using reinforced, concrete filled Ritek XL wall panels over a concrete slab floor with subfloor services. High quality masonry Motel Rooms can often be considered transportable buildings and depreciated at up to 30% pa.

In my 35 years of selling motels I have never come across such an outstanding idea, this will revolutionise motel construction” Ian Crooks RESORT BROKERS AUSTRALIA

Minimal site preparation required – simply plug and play on suitably compact level ground. Heavy weight durable nature of the concrete floor and concrete filled wall system satisfies fire and sound ratings and can be simply stacked for multi-level projects.

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Magic spark returns

W Ian Crooks

MANAGING DIRECTOR

The estimated combined wealth of Australian family firms is $4.3 trillion. Their contribution to Australia is enormous. But for too long they have gone unrecognised, and largely unsupported by government policy. So what are the challenges and rewards unique to family businesses, and what changes are needed to protect and promote such a vital social and economic force?

elcome to the first Resort Brokers’ Informer of 2013, a year of tremendous promise. We finished 2012 with a feature entitled ‘Green Shoots’, predicting a steady return to tourism growth. I’m delighted to see our positive view was recently confirmed by Tourism Australia’s chairman Geoff Dixon. “I believe Australian tourism is getting its mojo back, with growth rates getting closer to the halcyon days of the 1980s and 1990s,” he told the Committee for Economic Development of Australia. Dixon urged us to accept the high value of the dollar and find innovative ways to stimulate the industry, while calling for greater labour market flexibility and more infrastructure investment. For both investment and innovation, Australia relies heavily on the resourcefulness and determination of families, or more precisely, family businesses. This is certainly so in the accommodation industry, where many businesses, like ours, are family owned and operated. Did you know over two-thirds of all businesses in Australia are family businesses? In this issue, the Resort Brokers’ Informer looks at the challenges and rewards unique to this vast sector, and explores the likely outcomes of a recent Senate inquiry. Let’s hope it leads to specific government policies that will support and help family businesses to thrive. Given the positive tourism outlook, and

signs of increasing activity, Resort Brokers is continuing to expand our ‘family’, as we like to think of our staff. Inside, you’ll read an upbeat outlook for a revived Gold Coast and meet two new team members there. We also welcome James Carrick to the NSW Central Coast and Gerard Hurry to cover central and north-western Victoria. A one-time Balmain Tiger, James built a fantastic sales career with Coca Cola, Guinness and Bundaberg Rum, before joining Austar, then Foxtel. Based in Port Macquarie, he’ll specialise in motel sales in central NSW from the coast to the bush . Gerard is turning his talents to accommodation after 12 years as a hotel sales specialist in Victoria, where he handled a number of substantial gaming and hospitality property sales. As always, the Resort Brokers’ Informer is packed with news and information. We take an inside look at Choice Hotels Australasia, which now has more than 280 properties across Australia, New Zealand and Singapore. This feature is the first in a news series we are launching on hotel groups in Australia. Another feature that has run in numerous editions now is the popular ‘many faces of the accommodation industry’. In this issue you’ll meet a real doyen of the industry, Tony South. Tony and I met when we were both with Colliers back in the 1980s, and I am delighted to call him a good friend. Finally, we welcome to the Resort Brokers’ Informer one of Queensland’s most popular columnists, Mike O’Connor. After 40 years+ as a journalist, Mike has retired from full-time work at the Courier Mail, but keeps his hand in writing the Backchat column for its Qweekend magazine. Now you can enjoy his irreverent and witty insights into tourism and leisure right here. We’re about to head over to the HICAP (Hotel Investment Conference Asia Pacific) in Singapore to catch up with the latest trends and developments. It’s where the region’s pre-eminent players and investors meet to network, explore opportunities and exchange ideas. I can’t wait to tell you all about it! Please send your feedback to: carlacook@resortbrokers.com.au or PO Box 5004, West End Q4101

INSIDE GOLD COAST ARTICLE

MIKE O’CONNOR COLUMN

FEATURE: FAMILIES IN BUSINESS

HOTEL GROUP SERIES - CHOICE

NEW MODULAR BUILDING SYSTEMS 36 MANY FACES OF ACCOMMODATION 40 AGENT PROFILE

RELIEF MANAGERS

INDUSTRY SPECIALIST

EXCLUSIVE LISTINGS

OUR TEAM

DIRECTORY

RESORTBROKERS.COM.AU 3

EXCLUSIVE

allarat Mews comprises of 9 x serviced villa units (1 is used as office/ reception), built around an internal courtyard with secure on site parking at the rear of the property. It is situated opposite the world renowned tourist facility of Sovereign Hill in Ballarat, Victoria. Built during the 1980’s the apartments incorporate a large living/dining area with adjoining fully equipped kitchen, tiled bathroom and laundry on the ground floor. The first floor level of each apartment contains 2 bedrooms with a common bathroom. Ballarat is well located in central Victoria as it is only 1½ hours (110 kms) from Melbourne, infact it is the state’s largest inland city. It provides all the necessary infrastructure, retail, educational, medical, tourist, sporting and business facilities expected of a large rural city. With occupancy levels in excess of 70%, Ballarat Mews has an excellent mix of corporate, tourist and sporting clientele. It would suit a hands on operator or would work well as an add on to a local accommodation provider.

4 RESORTBROKERS.COM.AU

Boutique serviced apartments leasehold IN THE EVER POPULAR BALLARAT • 9 x 4 star, 2 bedroom, 2 storey villas set in landscaped gardens • Each townhouse is comfortably appointed with a fully equipped kitchen, lounge/ dining, 2 bedrooms, bathroom and laundry • Facilities include BBQ, beautiful internal garden courtyard area and onsite undercover car parking • Lease - 16 years (1 year plus 3 x 5 year options) • Occupancy 73% • The property trades as Quest Ballarat Mews and it is intended that on sale the property will be de-branded to enable a successful purchaser to operate it as an independent business

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au Nett profit: $82,760 Turnover: $344,623 PRICE: $280,000

REF: LH002221

Insight : Ideois : Networking

23rd-25th July 2013 Hilton Sydney

New. Focused. Fresh. HotelsWorld Australia New Zealand and Hotel Franchise World have been created to bring together the accommodation industry’s leaders and those who want to listen to, meet, learn from and grow with them.

HotelsWorld Australia New Zealand and Hotel Franchise World will comprise two days of unparalleled industry meetings. Working under a theme of What’s New, What’s Next? the two events will deliver insight, ideas and networking through innovative event programs and quality speaker rosters, including key decision makers across the entire hotel, resort and serviced apartment sectors in the region and beyond. The two events have already secured the highest level of industry support ever achieved in this region from most of the leading hotel company owners, operators and suppliers in the region. Held in Sydney from 23 to 25 July 2013, over 400 owners, developers, operators, lenders and advisors, are expected to join over 30 Sponsors, Exhibitors and Supporters to hear from and network with over 70 global, regional and local speakers and panelists.

HotelsWorld Australia New Zealand and Hotel Franchise World will be part of Megameet 2013, a series of co-located and linked industry events over 3 days in Sydney and which include the 2013 Tourism Accommodation Australia (New South Wales) Awards for Excellence and the IT based Ted Event. For further information, visit www.hotelsworld.com.au or call conference chair John Smith on 0418 447 222. GOLD SPONSORS

SILVER SPONSORS

HOSTED BY

PLATINUM SPONSORS

EXCLUSIVE

arely do you come across a holiday property that ticks all the boxes that an astute purchaser looks for. This 10 story rise, located directly on the golden sand of one of the most iconic beaches in the world, does just that. It is impossible to underestimate the value of absolute beach frontage. One of very few properties in Surfers to offer direct beach access, you will be almost guaranteed a good occupancy rate as certain holiday makers will consider nothing less. It is also only a 5 minute walk to the centre of Surfers (Cavill Mall). A great selling point of this building is the extremely pro-active and supportive nature of the BC committee. There is an extensive upgrade programme currently underway, improving the property structurally and aesthetically as well as adding facilities. Planned in small stages, this will not impact on the functioning of the business, but will improve it substantially.

6 RESORTBROKERS.COM.AU

Absolute beachfront Surfers Paradise THE BEST HOLIDAY M.R. IN IT’S RANGE The current managers are highly professional and have worked hard to bring this property up to the standard that it is today. There are no surprises with this one; well-run, well-priced, superb location, room to grow, great BC relationship and lengthy agreements. • 22 units in letting pool, 8 lock-ups, 3 owner occupiers • Agreements topped up to 19 yrs at last AGM • The best location you will come across • Well-presented 2 bed managers unit with private garden • Minimal caretaking work • Substantial upgrade programme underway (non-disruptive) • Very well-run, professional business. • Priced to meet the market

Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

Nett profit: $274,695 PRICE: $1,680,000

REF: MR002293

EXCLUSIVE

No.1 motel on Tripadvisor BUY LEASEHOLD OR FREEHOLD

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

LEASEHOLD PRICE: $950,000 FREEHOLD PRICE: $2,995,00

REF: FH002315

n offer is both the freehold going concern and leasehold of Lismore’s most popular motel. This is an easily run business with revolutionary foolproof systems in place for operating under management. The property’s rooms and suites are nestled in a tranquil tropical setting. The motel enjoys year round high occupancy, strongly supported by corporate return guests. The freshly refurbished studio, superior and family suites all overlook the refreshing saltwater pool, tropical gardens and BBQ area. Car parking is conveniently located directly in front of the rooms. Lismore and its surrounding hinterland is known as the Rainbow Region. This label reflects the regions diversity and penchant for natural living. Often referred to as the birthplace of eco-tourism, the Rainbow

Region contains nearly a third of NSW forest reserves and has some of the most picturesque scenery in the state. • $97,000 just spent on total refurbishment of all 21 queen rooms and 2 bed suites • 3.5 star AAA rated in quiet CBD fringe • University city, just 30 minutes to beaches • 70% occupancy • Under full management or perfect for a couple to operate • Highly powerful on-line presence with booking tool listings on over 100 websites, including full images, data and package deals • Strong repeat rep / medical / uni trade • No restaurant but well known for optional evening meals to rooms • 2 bedroom managers residence overlooking tropical gardens New 30 year lease • Rent $175,000 • Net profit $272,914 • Turnover $648,000 Freehold going concern • Net profit $447,914 • Turnover $648,000 RESORTBROKERS.COM.AU

MAKE THE RIGHT CHOICE IN 2013 Our three steps tO success

ATTRACT MORE gUESTS InCREASEd gUEST lOYAlTY And AVERAgE SPEnd

REdUCEd OPERATIng COSTS More than 100 preferred suppliers Cost effective GDS connectivity Zero commissions for Choice reservations (excludes travel agent & loyalty cards)

Choice Privileges loyalty program Qantas Frequent Flyer & Virgin Velocity partnerships Professional support and local intelligence Advanced technology and systems to grow yield In depth training programs

Brand power and guest recognition Powerful online distribution channels Corporate & Government tender opportunities Effective sales and marketing Network of referrals Preferred status with key corporate travel agents Melbourne based call centre with local knowledge

Choice Hotels is the largest mid-market franchised hotel group in Australasia with more than 270 hotels, motels, resorts and serviced apartments, under the Econo Lodge®, Comfort™, Quality™ and Clarion® brands. Quality Hotel Talyors Lakes (Melbourne)

WHAT OUR PROPERTIES SAY

“

e looked at a number of brands and decided to affiliate with Choice due to their strong reputation and commitment to franchisee success. We have experienced enormous efforts from the Choice team into key areas which benefit our business including sales, marketing, branding, support and general business intelligence. Since joining we have seen a steady increase in growth due to the broad reach of the online network in particularly the

corporate sector resulting with a strong increase in yield. The relationship with Choice has been fantastic. The company has a great systematic approach to running its business and this format suits us extremely well.” Eric Visscher Hotel Operations Manager Quality Hotel Taylors Lakes

We offer operators and investors like you the support and backing of Choice’s powerful brands and global network. Our collective goal is to increase the properties’ room night demand from key market segments including corporate, government, domestic and international, resulting with higher room rates and long term asset value. This is why more than 85% of our property managers recommend Choice Hotels (Business Intelligence Group, 2012 Australasian region franchisee survey). Take the first step and contact me today for a Choice Hotels information kit and a no obligation discussion. Brett Salter Senior development Manager

RESORTBROKERS.COM.AU

Email: brett_salter@choicehotels.com.au Mobile: 0408 563 527 Web: www.choicehotels.com.au

Editorial

Up, up & away BY ALLY McDADE - LANDMARK WHITE Australia’s $100 billion tourism industry suffered a double whammy following the Global Financial Crisis. Economic turmoil in Europe, the United States and Japan saw travellers to Australia from these traditionally active markets decline markedly and record numbers of Australians took advantage of the high Australian dollar (refer to below graph) and competitive airfares and headed overseas. Thankfully however, a significant shift in the source of overseas arrivals and the re-emergence of domestic travel has Australian tourism currently performing well. This is reflected in improving occupancy and room rates within the accommodation industry. Favourable currency movements, the rise in the number budget airlines, and the intense airline discounting competition which follows, has seen temporary resident departures increase by over 100% in the past decade. The number of Australian’s holidaying abroad reached record levels during the most recent year to November

2012, equivalent to 35% of the Australian population taking an overseas holiday. Nearby Asian countries reaped the rewards with South East Asia accounting for 31.5% of Australian travellers. Inexpensive flights to these nearby countries, accommodation, goods and services are attractive drivers of demand from Australian travellers. However, although Australians continue to travel overseas for holiday periods, domestic travel in the year to September 2012 indicated a revival. Domestic overnight trips increased by 4.1% following a 4.6% rise the year prior, returning domestic overnight travel to levels just below the peak of 2007. This indicates that Australians are not substituting their domestic holidays for an overseas one, but that current market conditions are allowing them to travel more, both domestically and internationally. As the economic climate attracted Australians overseas, one would assume the high $AUD and declining economic

International Visitor Arrivals V Resident Departures 800,000 700,000

$1.00 $0.80

500,000 400,000

$0.60

300,000

$0.40

200,000 $0.20

100,000 0

Arrivals

Departures

$AUD/ $USD

Source: Australia Bureau of Statistics & LandMark White Research

Jun - 12

Dec - 11

Jun - 11

Dec - 10

Jun - 10

Dec - 09

Jun - 09

Dec - 08

Jun - 08

Dec - 07

Jun - 07

Dec - 06

Jun - 06

Dec - 05

Jun - 05

Dec - 04

Jun - 04

Dec - 03

Jun - 03

Dec - 02

$0.00 Jun - 02

Total Visitors (monthly)

600,000

Exchange Rate ($AUD/$USD)

$1.20

conditions abroad would result in an equal decline in short term visitor arrivals to Australia. Weak demand is experienced from historically active markets such as United Kingdom, Japan and the United States who continue to record negative growth since the Global Financial Crisis. Japan recorded the most significant decline - a factor of economic conditions, natural disasters, an aging population and a comparatively smaller market visiting friends and relatives. Interestingly however, international visitor arrivals peaked at the most recent year to November 2012 with falling arrivals from the historically active markets offset by increasing visitor numbers from Asia, particularly China. The growing economy in China has resulted in an expansion of the middle class with estimates indicating income levels have tripled over the past decade with over 300 million residents now with a disposable income to travel overseas. This has resulted in arrivals from China up 16.7%, taking China’s contribution to short term arrivals to 10%, surpassing the United Kingdom as the second highest contributor for the year. China is now Australia’s most valuable market with regard to visitor numbers, nights stayed and dollars spent. Despite current negative net arrivals to Australia, strength in the international visitor market and recovery of domestic tourism has the accommodation industry positioned well. Australia wide, the hotel, motel and serviced apartment market (15+ rooms) experienced record results for the year to September 2012. Occupancy peaked at 66% and takings from accommodation reached a record high of $8.1b. Average daily rates (ADR) and Revenue per available room (RevPar) also achieved record results of $148 and $98 respectively. Across major eastern capital cities, occupancy rates are higher ranging from 75% - 85%. The average length of stay however has remained stable. Current occupancy is a promising result, particularly given the disparity between mid week and weekend trade in major city centres. Capital city accommodation is predominantly business related and therefore operates at a considerably higher occupancy from Monday to Thursday (221 days p.a.). Applying the lowest of the capital city occupancy rates (75%), and assuming 40% occupancy over weekend periods (144 days p.a.), mid week occupancy trades at an estimated 98%. There is no single factor contributing to stability in the accommodation sector. LandMark White determined that the major contributors are: •D omestic overnight travel has increased by almost 10% over the past two years. This follows declines in 2008 and 2009. > Please go to next page RESORTBROKERS.COM.AU 9

Editorial

CAUTION: Small business scams TONY ROSSITER - HOLMANS ACCOUNTANTS

Office supply scams These will involve the receipt and billing of non-ordered goods that are usually and regularly purchased by the business. Such items may include paper, printing or maintenance supplies and advertising. The caller will claim to be the company’s regular supplier and offer “limited time only” offers that are in fact overpriced and of bad quality. Requesting an order number, inspecting the quality of goods and checking that they were actually ordered before paying any invoice is good idea. Direct entry / unauthorised advertising scams A scammer sends a subscription proposal, disguised as an invoice or renewal notice, for listings and advertisements in magazines or on questionable websites and business registers that were not authorised or requested. These are often overseas requests and, although sometimes appearing to be free, will demand payment after the subscription is signed off on. The scammer may even call to confirm details of a pre-booked advertisement or offer a “free trial” for which they will in fact charge you for later. Company records should always be checked to ensure that these orders were actually placed and any ‘free trial’ offer should be checked for hidden terms.

The number of scams targeting small businesses has grown in recent years and the importance of owners preparing for possible threats is something to be considered. Without taking the necessary precautions and being in the know about the most common signs to look for, businesses are left exposed and vulnerable to a variety of scams. Mum and Dad businesses are at the top of the list – Management Rights operators and Moteliers are a prime target. Scams targeting small businesses come in many different forms and often scammers will go to great lengths to convince businesses that their offers or requests are legitimate. Since a lot of these scams look like the real thing, many are able to take advantage of busy office environments and succeed in stealing company money. Some of the most common scams getting around at present include the following: Refunds scams These will usually request a confirmation 10 RESORTBROKERS.COM.AU

of personal details or an up-front payment in order to reclaim overpaid fees or tax. The scammer will usually pretend to be from a government agency, bank, telecommunications company or private law firm. To protect a business from such scams, personal information should only be given out to those that are known and trusted or to those that were in fact contacted by the business owner or employee themselves. Searches at abr.business.gov.au can provide ABN numbers and Deductible Gift Recipient (DGR) details to confirm that the organisation is legitimate. Over-payment scams A scammer will purchase goods and services from a company and send a cheque, money order or credit card payment for more than the agreed price. The scammer will then request a refund for the overpaid amount in hope that the owner will do so before realising that the cheque in fact bounced or that their money order or credit cards were phony.

Domain name scams A business will be sent an unsolicited invoice for an internet domain name registration or renewal. The notice could be from a domain name supplier attempting to trick them into signing up to their service, or from a scammer trying to steal money. Businesses should always match renewal notices with their current domain name and look for differences such as “.com.au” instead of “.net.au”. To ensure that a business is protected, business owners should also: • Keep their filing and accounting systems well organised so that they can easily detect bogus accounts; • Limit the number of people authorised to place orders and make payments for the business; • Ensure that computer firewalls and protection software is up to date; and • Report any known scams to the appropriate government agency by visiting the SCAMwatch website ATO Crack-Down on Cash Businesses that fail to declare or report all their cash transactions will be exposed as the ATO continues their crack down on the cash economy. An estimated 110,000 taxpayers who are suspected of participating in the cash economy will be contacted by mail in efforts to deal with under-reported or omitted

and contracts; • Identify the assets that will be affected by the new laws; • Identify any transactions which need to be registered; • Update their procedures for making new transactions; • Update their existing arrangements, not currently considered to be security interests, and ensure that they are registered; • Review and redraft their standard terms; and • Ensure that registered security interests do not exceed expectations Businesses and individuals with ownership of an affected security interest and those that use retention of title arrangements in their business operations, or have used one which will remain in place when the PPSA commences, should seek professional advice now. Failing to prepare for and accommodate these new laws may result in a loss of assets. The information, recommendations, opinions or conclusions provided above are generic in nature and do not express individual advice. You should always consult your professional representatives before taking any action. Holmans welcome any queries you may have in relation to the above matters.

Businesses and individuals will need to: • Review their business arrangements between group entities; • Review their terms of supply; • Review their financing arrangements

> From page 9

Editorial Aust. Mining Investment V. Aust. Accommodation Occupancy

68% 66%

$140,000 $120,000

64% 62%

$100,000 $80,000

60%

$60,000 $40,000

58%

Jun - 12

Jun - 11

Jun - 09

Jun - 08

Jun - 07

Jun - 06

54%

Jun - 05

56%

Jun - 04

$20,000

Accommodation occupancy (%)

$180,000 $160,000

Jun - 03

Mining Expenditure ($mil)

Australia Mining Investment Australia Accommodation Occupancy Source: Australia Bureau of Statistics & LandMark White Research

Australia - Hotels, Motels & Serviced Apartments Total Demand & Supply

$100

140,000

$95

120,000 100,000 80,000

$90

60,000

$85

40,000

$80

Rooms Nts Available

Rooms Nts Occupied

Sep - 12

Sep - 10

Sep - 09

Sep - 08

20,000 0

RevPAR ($)

160,000

Sep - 07

establishments now exist in the market. In this same five year period, circa 2,000 additional guest rooms have been added p.a. whereas room nights occupied have increased by circa 117,000 p.a. If the $AUD moderates to long term averages (as forecast by Deloitte Access Economics), and if global economic conditions improve, Australia’s tourism market has the potential to advance with a larger, more profitable pool of international visitor markets. For this to occur, we will need to see a continuation of arrivals from China, a re-emergence of traditional markets, but more importantly, a continued recovery in domestic tourism. This will be very much dependent upon a fall of the $AUD and the continued strength of the resource industry in Australia to drive employment and business travel. As mid week occupancy in major capital cities trade at an estimated 98% and development of accommodation projects remain stagnant, the potential for the often discussed under-supply of accommodation is

Room Nights ‘000s

• I nternational arrivals and nights spent have now reached record highs and visitors are choosing to stay longer. •V isitors from China are now the second highest contribution to total arrivals behind New Zealand. Chinese visitors not only stayed the longest of all markets, but spent the most on accommodation. •D omestic business travel and international employment arrivals have experienced the most significant growth across all main purpose of journey categories for both visitor numbers and nights stayed. It is unlikely these groups would have experienced such considerable growth, if any, without mining investment and the comparatively strong economic positioning of Australia. •D omestic accommodation expenditure increased to its highest contribution of total expenditure over the past decade. It has also experienced the highest increase across all expenditure categories over the past 4 years. • International visitor accommodation expenditure is second to airfares as the highest contribution to overall expenditure. • Limited supply of establishments in Australia. During 2007 there were 4,220 accommodation establishments recorded across Australia. As at 2012, 4,222 establishments were recorded. This indicates that only two additional

Jun - 10

Personal Property Securities Act (PPSA) The Personal Property Securities Act (PPSA) came into effect in October 2011, dramatically changing the way security is taken over personal property, impacting many businesses and individuals nationwide.

The PPSA reform requires all forms of security interest, in respect to personal property, to be registered under the Personal Property Securities Register, a new and single online register controlled by the Insolvency and Trustee Service Australia. Replacing almost all existing Commonwealth, State and Territory laws and registers, the PPSA affects such securities as: • Company charges; • Motor vehicles; • Stock mortgages; • Crops and livestock; • Bills of sale; • Intellectual property; • Licences; • Household items; • Business and retail stock; • Financial instruments such as shares; • Business equipment; and • Other securities, both tangible and intangible, which affect personal property rights Those that are refinancing, leasing assets, selling goods on credit or providing them on consignment should be most aware and should take the necessary steps to protect the interests of their business and to ensure compliance with the new provisions.

Sep - 11

income, and cash transactions used to hide or evade tax obligations. Business taxpayers will be identified through one of the ATO’s cash economy indicators: • Small business benchmarks; • Data matching; and • Allegations of tax evasion by members of the community The majority of letters sent will be to businesses identified as reporting outside the small business benchmarks for their industry. Letters will contain information on how their business transactions compare with key benchmark ratios, the selection process for business auditing, how benchmarks are used to calculate default assessments and how they can correct their mistakes or make voluntary disclosures. Eight thousand letters were sent to businesses that had reported transactions outside the small business benchmarks for their industry and plenty more are to come. Taxpayers are encouraged to review their records to ensure they have correctly reported all income – especially cash transactions.

$75

RevPAR

Source: Australia Bureau of Statistics & LandMark White Research

a strong possibility in some cities. The evidence suggests the Australian tourism industry will need to adapt quickly to the emerging Chinese market. All indications are it’s a promising journey ahead. RESORTBROKERS.COM.AU 11

EXCLUSIVE

n offer is the dual opportunity to acquire a high-performing, corporate driven, short-term accommodation business AND to become a part of the Quest brand, one of the most successful franchise systems in Australia. Built in 2004, this 10 storey serviced apartment building is being offered to the market for the first time. Located on the water in the heart of Townsville’s dining district, the property benefits from an array of local cafes, restaurants and dining facilities. This property is ideally placed to benefit from the growth potential of the Townsville short-term accommodation market. As Australia’s largest urban centre north of Brisbane, Townville hosts a significant number of major government offices (i.e. Department of Defence, Queensland Rail), major business offices (i.e. BAE Systems, Suncorp), as well as being a major mining hub and a central focus to the country’s armed forces.

Quest Townsville: $1,250,000 nett (approx.) LANDMARK CBD LEASEHOLD Run predominately under management in recent years, this business holds significant upside potential for an enthusiastic, handson operator. The extensive, professional support on offer from Quest will greatly assist in seeing this potential realised. • 142 dual-key apartments (71 X studios, 71 x 1 bed apartments) • 4.5 star rated high-rise in central CBD location • 83% of apartments on 20 year leases, 10% on 15 years, 7 % on 10 years. • Professionally trained and highly experienced staff team in place. • Current occupancy, revenue and room rate up on last year

Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $1,250,000 (based on average of 2010/11, 2011/12)

PRICE: Offers over $5,000,000

REF: LH002294 12 RESORTBROKERS.COM.AU

EXCLUSIVE

Oodles of upside $190,000 NETT - APPROXIMATELY 40% ROI

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

Nett profit: $190,000 Rent: $140,000 PRICE: $485,000 REF: FH001965

n offer is the leasehold to a Queensland style hotel, established in 1928. In operation is a large public bar, front and rear beer gardens, drive through bottle shop, TAB, Keno, 12 gaming machines and 3 bedroom manager’s residence, all located on 2550sq metres. As the property is currently run under management there is good upside for a hands on operator. Just in the last month the vendor has started operating the drivethru on Sundays. This has resulted in approximately $1500 - $2000+ in sales that were not previously achieved.

There are negotiations underway with a large pizza franchise to operate from the kitchen area. The accommodation upstairs has also been locked-up which presents an opportunity for overnight or permanent accommodation. Currently, the owner resides in Cairns and only spends 2-3 days per week at the hotel. Located on the Mossman River, Mossman is a growing residential area. It is approximately 70km north of Cairns and provides easy access Far North Queensland via the Daintree and Cape Tribulation. • Brand new 30 year lease - rent $140,000 • Good opportunity for owner operator • Commercial license • Drive-thru ‘Bottlemart’ bottleshop • Glycol beer reticulation system with two service points and 12 beer taps • New TAB, keno and 12 gaming machines • Opportunity for increase in accommodation, food service and takeaway

As another upside, the kitchen has never been opened by the current vendor and guests have always used nearby food outlets. RESORTBROKERS.COM.AU 13

Editorial

Gold Coast lustre returns BY CATIE LANGDON A bumper summer holiday season on the Gold Coast capped a year of steady growth in tourism numbers, visitor spending and accommodation earnings. The consensus among tourism leaders is that the lustre is back, and the ‘glitter strip’ is set to shine again. ‘No Vacancy’ signs were a welcome sight up and down the Gold Coast this summer. The city’s peak tourism body, Gold Coast Tourism (GCT), reported the DecemberJanuary period was the best in five years. Some say it was even better than pre-GFC levels, with summer holiday bookings between 5 and 15 per cent higher than the previous year. Mantra Group, which operates 20 Peppers, Breakfree and Mantra properties on the Gold Coast, registered occupancy was up 8 per cent overall. Incredibly, bookings at its flagship Peppers Broadbeach climbed a whopping 52 per cent. Mantra also revealed the Gold Coast was the top Australian holiday destination among its 110 hotels and resorts. The busy summer season consolidates big gains already achieved in the preceding 12 months. The Gold Coast attracted 11.8 million visitors in 2012, an increase of 9.4 per cent on the year before. Visitor spending rose 8.4 per cent, up from $361 million to $384.4 million. Happily, the surge wasn’t caused only by an increase in day-trippers and the drive market. It seems the lure of cheap overseas holidays may finally be fading, and Aussies are increasingly making the choice to holiday at home. 14 RESORTBROKERS.COM.AU

Good news for the Gold Coast is also coming from other sources. It beat both Brisbane and the Sunshine Coast to rank number one in Queensland for the most online bookings in the Wotif.com annual Top Destinations List. “The Gold Coast attracted one in three of all hotel rooms booked in Queensland’s top 10 destinations last year,” said GCT CEO Martin Winter. “Across Australia, it ranked third place for most online bookings in 2012 behind Sydney and Melbourne. “These online figures cap off what has been a fantastic year for our tourism sector, and as we head into 2013, we’re seeing the market go from strength to strength.” In January, accommodation industry advisory group Dransfield predicted Australia’s hotel, motel and serviced apartment market would achieve an average 5.2 per cent increase in room revenue nationally over 2013. The forecast rate of growth in revenue per available room (RevPar) for the Gold Coast of 6.4 per cent was the nation’s second highest, behind Darwin (7.1%). “New quality stock such as Soul, Oracle and The Hilton have seen a higher room rate achieved and that is allowing other operators to increase price and open up the market to a broader range of guests,” director Dean Dransfield told the Australian Financial Review. Resort Brokers managing director, Ian Crooks, identified other positive influences on room rates, including multi-million dollar upgrades to two of the Coast’s fivestar hotels, Marriott Surfers Paradise and

Sheraton Mirage. “The Marriott has reported a 19 per cent surge in occupancy compared to last year, after its $20 million upgrade, and word has it Sheraton Mirage is enjoying a similar boost after its new owner, Pearls Australasia, invested over $62 million in refurbishment. “There is clearly rising confidence at every level, from the top down,” Mr Crooks said. Sea World Resort reported a 9.3 per cent lift in occupancy in the second half of 2012, over the same period in 2011, and a rise of 7.3 per cent in room rates. On the strength of that, Village Roadshow has since announced a spectacular new ride, the Storm Coaster, will open in September. For Resort Brokers Australia, the positive activity has triggered expansion to meet rising demand for accommodation property in Southeast Queensland, and particularly on the Gold Coast. “The Gold Coast’s apartment market has also started to move, showing a 14 per rise in new apartment sales over the December quarter, according to a Colliers International report,” Mr Crooks said. “The boost in visitor numbers seems to have breathed new life into the apartment market too. Both Hilton Surfers Paradise and The Oracle at Broadbeach, operated by Mantra as Peppers Broadbeach, saw solid unit sales numbers over the holiday season. “We see the positive movement in the two primary Gold Coast economic drivers – tourism and property - together with increased inquiry to our office, as a clear sign the management rights market is poised to rebound. “Enquiry has really picked up. In response, Resort Brokers Australia has increased its service capacity in the area and appointed two new consultants to cover the region making a total team of four dedicated brokers on the coast” he said.

Editorial

How long is yours? BY GLENN MILLAR - RESORT BROKERS AUSTRALIA

ANDREW McQUALTER Former star St Kilda AFL player Andrew McQualter is now set to make his mark in real estate, covering the southern Gold Coast region for Resort Brokers Australia. A long-time interest in property and sales has lured Andrew out of first grade football, after playing in 2012 for the Gold Coast Suns. And while he’s kicking sales goals in the accommodation sector, he’ll stay in training playing semiprofessionally for the Southport Sharks in 2013.

CAROLYN GRIFFITH Expert sales consultant Carolyn Griffith joins Resort Brokers Australia with almost 30 years sales experience under her belt. After excelling in newspaper advertising sales and in car sales for Audi Gold Coast, Carolyn will specialise in management rights sales on the Gold Coast, from north of Burleigh Heads to Surfers Paradise. Carolyn says she “loves knocking on doors”, so expect to hear from her soon!

“When owning management rights, it is impossible to underestimate the importance of maintaining a lengthy term on your agreements”. Management rights transactions can range in size from a few hundred thousand dollars up to several million. Whatever the value, you can count on the fact that the people making the investment regarded it as a sizable sum. The investment often constitutes the biggest asset the buyer will own, and sometimes involving their entire life savings. The value of this investment, at the time of purchase and years later at the time of sale, is reliant on a number of factors. ‘The state of the market’ is often heralded as being the key factor. However, as we all know, there’s nothing anything any of us can do about the market…it’s bigger than all of us. The only remedy is to focus on what you can control… your business. There are numerous business strategies you can put into place to improve its value. This article focuses on just one...and it can be a relatively easy one; keeping your agreements topped up. At Resort Brokers we can testify that over the last few years, buyers, financiers and valuers have been placing an increasing emphasis on the length of agreements. More so, it seems, than any other aspect of the business. So, what is regarded as a decent length of tenure? Well, properties on standard modules must keep their agreements regularly topped up to their 10 year maximum, particularly if looking to sell. Buyers will be heavily discouraged, even if only down to 7 or 8 years. Once upon a time, properties on accommodation modules (25 year maximum) would be deemed as acceptable as long as they had 14+ years left. Now, 17 or 18 years is often needed to achieve full sale potential. ‘Who is controlling this’, you may ask. Well, it’s not us (the agents). As with many things in life, the common consensus is that the banks have a fairly big say. In these postGFC days, financial institutions are looking to

cover themselves as much as possible. If you borrow a large chunk of money from them, they want to make sure that you will be able to pay it back. The longer the agreement, the more secure their loans are. Some manager will argue that we are stating the obvious. Good! You know what you’re doing and you’re probably managing your relationship with the body corporate committee well. Other managers will be saying, “All well and good, but topping up agreements is easier said than done”. Well, we hear you. Indeed, this is where the dilemma lies. Although a top-up can sometimes be passed via flying minute, it normally requires a vote that all unit owners are permitted to take part in. This will typically take place at an AGM or EGM. In most cases this will be by way of a secret ballot, so the unit owners can express their opinion without any fear of repercussion. Unfortunately for some managers, the unit owners vote is not always based on performance. They may not realise that security of tenure for the manager is intrinsic to the well-being of their complex. They may only see the top up as a bonus for the manager, who is earning a good salary anyway. They may take the decision to vote against the topup, without realising its importance. Unit owners like this will always exist. However, what managers don’t always realise is that they do not necessarily form these opinions because they are unsatisfied with the level of service or because they think the manager represents poor value for money. They often form these opinions because they do not understand and because they are uneducated. So, although you must treat your management agreements like gold, you must also treat the relationships you have with the BC committee and with the unit owners like gold. Take the time to get to know them and to teach them a bit about the industry. After all, a healthy and secure management rights business is the safest way of ensuring a well-run complex. RESORTBROKERS.COM.AU 15

EXCLUSIVE

esort Brokers Australia have been exclusively appointed to sell the management rights of this architecturally designed, low level, 61 apartment complex. Built in an elevated position above the CBD of Yeppoon, it commands the best ocean views imaginable. Central Queensland has a diverse economy with strong agriculture, health sector, financial services, education, mining and tourism. This property is located in the heart of the Capricorn Coast - Yeppoon is the business and leisure playground for a region rich in resources. Major mining centres are located within 400km providing a massive demand for accommodation! Yeppoon is also the gateway to world leading national assets including national parks, the Great Barrier Reef and Great Keppel Island. The majority of the 61 units have now been sold and this management rights offers a unique situation where you do not have to buy real estate, as you can rent a magnificent 1 or 2 bedroom apartment.

16 RESORTBROKERS.COM.AU

Superb off the plan management rights

CENTRAL QUEENSLAND BEACHSIDE However, you would be strongly advised to secure the conference room lot which has a body corporate income of almost $60,000 per annum before you even hold a function. This is a fantastic opportunity for a progressive husband and wife team who have previously owned management rights and are looking to move to the next phase of their career. With this property you will be assured of capital gain. • 61 x 1 and 2 bedroom apartments that can be converted to 71 keys • Set over 5 levels • 2 lifts • Beautifully landscaped in-ground swimming pool • Body corporate duties are supervisory only • Units will be fully furnished to a ‘turnkey’ situation

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au Trudy Crooks EXCLUSIVE AGENT Mobile: 0477 882 210 Brisbane office: (07) 3878 3999 Email: trudycrooks@resortbrokers.com.au Projected nett profit: $580,000 PRICE: $1,995,000

REF: MR002316

Are you buying or selling Caravan Parks, Motels, Management Rights or Hotels?? David Burrough and his team are the most respected legal advisors for those about to buy or sell an accommodation business. Why not give them a call today?

T: (07) 3220 1144 E: email@hillhouse.com.au

www.hillhouse.com.au Many thanks to Queensland Tourism for providing the image of Brisbane RESORTBROKERS.COM.AU 17

On offer is a very well presented 11 year old motel, located in western Queensland. The property consists of 18 rooms, with a 45 seat restaurant and licensed bar open to the public. However the majority of meals are served to the in-house guests. The motel is complimented by a 3 bedroom residence with a separate kitchen bathroom, lounge and dining area. Dirranbandi is a town in South West Queensland, Australia, located in the Shire of Balonne. It sits on the Castlereagh Highway and the Balonne River and is approximately 6 hours west of the Queensland capital of Brisbane.

The west for dough, the coast for show LEASEHOLD & FREEHOLD FOR SALE It is notable for the population increase each year as seasonal workers come to work on the extensive cotton fields. • Huge returns • Only 12 years old • Buy the lease, freehold going concern or investment • Being run by husband and wife plus casual cleaner • Leasehold ROI 56% • Freehold ROI 30%

Nett profit - freehold: $316,000 Nett profit - lease: $185,000 Turnover: $487,000 FREEHOLD PRICE: $1,060,000 LEASEHOLD PRICE: $330,000

Lindsay Cooper Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

EXCLUSIVE

What a buy - only a 2.8 multiplier MANAGER’S APARTMENT WITH OCEAN VIEWS Nett profit: $87,000 PRICE: $720,000 Tyler Millar EXCLUSIVE AGENT Mobile: 0411 271 761 Brisbane office: (07) 3878 3999 Email: tylermillar@resortbrokers.com.au

REF: MR002303 18 RESORTBROKERS.COM.AU

The complex boasts a magnificent view of the ocean and is centrally located opposite popular Kings Beach on Queensland’s Sunshine Coast. Each apartment has a lockup garage and facilities include a heated pool and BBQ area. It is conveniently located only 1 hour’s drive north of Brisbane or half an hour’s drive from the Sunshine Coast Airport . The managers apartment is a spacious 3 bedroom apartment with wrap around

style outdoor area with office on title, not to mention the amazing ocean views. Perfect introduction to management rights easily run buy two people and enough room for a small family. • Opposite popular surf beach • 16 apartments with 13 in letting pool • Heated pool in landscaped gardens • 3 bedroom managers residence and airconditioned office (on title) with ocean views • Accommodation module agreements • Ideal first time business opportunity!

EXCLUSIVE

This is a large imposing property situated on the north side of a northern NSW town, on a major highway. It boasts 46 units, 13 of which are new and self-contained, and is both a destination and a stopover motel. Occupancy sits at 83% and continues to grow. It sits on 2.08 hectares of grounds, which are landscaped and well maintained. Unlike many regional towns in NSW, Moree has the advantage of having a completely reliable water supply which permits those with a green thumb the opportunity to garden to their hearts content. It also means it is one the richest agriculture areas in Australia with local crops such as cotton and wheat as well as sheep and cattle livestock.

Passive freehold showing 9.79% yield $31,625 RENT PAID MONTHLY Along with general businesses, both government and private, a variety of visitors are attracted to the town. • 46 units including 13 new self contained • Fully licensed restaurant can seat up to 98 • Excellent depreciation for investor • 3 in-ground pools including artesian spa pool • Major renovations have been recently completed • Rendered concrete block construction

Nett profit: $379,500 per annum PRICE: $3,875,000

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

REF: INV001897

EXCLUSIVE

This 19 room freestanding villa / donga style motel complex is situated in the heart of booming Mt Isa. The motel consists of 18 single self-contained rooms and 1 double self-contained room, each with their own ensuite. There is also a detached laundry and 2 bedroom managers unit. The initial 9 rooms were constructed in 2007, with an additional 10 rooms constructed in late 2008. The current vendor runs the business remotely from Brisbane. All rooms are currently booked on a long term basis. There are 2 staff members – 1 full-time and 1 part-time. The business is easily managed and there is a growing demand for accommodation in the town.

Mt Isa outstanding freehold opportunity 22.5% RETURN • 19 self-contained units and 2 bedroom managers unit • Low-set timber framed vinyl and hardiplank clad buildings • Built in 2 stages in 2007 and 2008 • No restaurant or food • Tariffs at $110 / night - the best price in town • Located in the Mt Isa CBD

Nett profit: $417,500 PRICE: $1,880,000

Steve Campbell EXCLUSIVE AGENT Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au

REF: FH002185 RESORTBROKERS.COM.AU 19

Editorial

Soft pillows, hard beds & light fingers BY MIKE O’CONNOR

We had just walked into the hotel in downtown Barcelona when the manager’s voice boomed across the crowded foyer. “Meester O’Connor’’ he cried in a voice that could have been heard on the street. “I have your trousers!”. To underline this, he waved a pair of black pants in the air as several dozen pairs of eyes swivelled to see if Meester O’Connor was naked from the waist down. Ah yes, the trousers. I’d left them in the hotel a week earlier, being incapable of checking out of a hotel without leaving part of my wardrobe behind. Sometimes it follows me. A pair of shorts I left in Nice pursued me around France for two weeks, arriving at each stop on my itinerary the day after I had left. A jacket left in Port Elizabeth in South Africa chased me for 10 days, catching up with me at Johannesburg airport as I was about to fly back to Australia. I once stayed at a hotel in Singapore. I didn’t leave anything in the room when I left but did manage to misplace the entire hotel when, after a particularly social evening, I discovered the keycard would not open my door. I went down to the front desk and demanded a new card whereupon the 20 RESORTBROKERS.COM.AU

duty manager pointed out that while I had indeed found the right floor and the right room number, I was in the wrong hotel. My tendency to leave hotels with fewer possessions than I arrived with places me at odds with that considerable proportion of the population inclined to “souvenir’’ anything not bolted to the floor. I once travelled with a female business associate to Kuala Lumpur where we stayed at an impressively luxurious hotel at someone else’s expense. “How good were those pillows’’ I remarked as we drove off in a cab the next day. “I slept like a child.’’ “I know,’’ she said. “I’ve got one in my suitcase.’’ “You stole a pillow?’’ I said. “But they were massive.’’ “It took a bit of squeezing but I got it in,’’ she said. I’ve a friend who was once general manager of a five star hotel in Brisbane and who fought a constant battle of wits with his larcenous guests. He conceded defeat when in the course of having the rooms refurbished, the beds were removed to reveal that a guest had been systematically stealing the carpet.

Whenever they would stay in a room, they would cut the carpet from beneath the bed and then replace the bed. No one ever noticed and he got away with enough carpet to cover a house. And then there are hotel beds. I once stayed at a hotel in Mexico in which the mattress appeared to have been carved from a solid block of granite. I spent three nights there and then flew back to where I was living in Los Angeles. I got home, had a shower and bent over to pick up the soap. At this point my back, aching after three nights of torture on the rack that had been my hotel bed, decided to rebel and refused to straighten. I tried desperately to stand up but it was impossible. Still bent double, I managed to get out of the shower and naked and dripping water, grab the phone. “Henry’’ I said, calling the apartment block manager, “ I’ve got a small problem’’. Henry came around and got me dressed, no easy task when you are touching your toes, and to the accompaniment of my shrieks and screams of agony, rolled me into the back seat of his car. I shuffled around like a chimpanzee for several weeks until eventually Henry’s chiropractor managed to unlock my back. I love hotels and there are few travel experiences which compare with the thrill of checking in and finding you’ve been given the room with the best view. Imagine my joy recently when my partner and I checked into our hotel on a resort island in Thailand. It was dark when we arrived and the next morning we walked out onto the balcony and took in the sweeping, sunlit vista of a rubbish dump complete with overpowering stench and several million flies. There was a moment of silence before I uttered those words spoken a million times in a hundred countries around the world every day. “Gee,’’ I said smiling bravely to my partner. “It looked different on the Internet.’’

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LREA RLA? Why RLA when you can LREA? BY NICK BUICK - THE PROPERTY MANAGER When I got my full Real Estate Licence a couple of years ago it took a few weeks of study, cost under a thousand dollars and I did the training online from my office whenever I had a few spare moments. Pretty quickly, I had accumulated all the training and accreditation I needed to become the principal of my own real estate agency. If you already hold a Restricted Letting Agent’s licence, it’s even easier as most training courses recognise prior learning and previously completed modules. Despite this, it surprises me how many onsite managers are still operating (or should I say, ‘struggling’) under the limitations of a Restricted Letting Agent’s licence. Namely being unable to transact sales and unable to

let outside their own complex. To circumvent these restrictions, I often see onsite managers engaging in bizarre hand-shake arrangements with licenced real estate agents where they feed the agent sales listings in their building in return for kickbacks or heavily taxed commissions and assurances that the agent will only sell to investors. It’s ridiculous to see people doing this when simply obtaining their own licence is such a fast, easy and affordable procedure. …and the benefits of doing so are massive. You can expand your management business outside your own complex to develop a valuable rent-roll of additional property, effectively doubling your income and also building a second highly valuable asset.

Editorial Not only that, but you can also legitimately sell apartments in (and outside) your own building and turbo-charge your earnings with proper sales commissions paid directly to you. You can run your own show on your own licence. Our mission at TheOnsiteManager.com. au is to help you realise these opportunities. As a property marketing agency, we offer powerful marketing tools to supercharge the businesses of both RLAs and LREA onsite managers. From marketing your rental or sales listings on RealEstate.com.au and Domain.com.au, to delivering your own dedicated website and online presence. We provide powerful analytical tools like RP Data so you can identify prospective rental and sales listings in your local area and generate professional comparative market reports for your vendors. Best of all with The OnsiteManager.com.au, you’re free to market any residential sales and rentals with us, we don’t restrict you to just listings in your own complex… and when you do make sales you can keep 100% of the commission for yourself! Our members include both RLAs and LREAs so we can help you with your listing marketing, no matter what licence you hold. But I always encourage managers to get their full licence. If you want any further info. on how we can help you with your listing marketing, as an onsite manager, please don’t hesitate to contact me at nick@TheOnsiteManager. com.au or call 07 3868 4047. RESORTBROKERS.COM.AU 21

EXCLUSIVE

his property has a prime position on the main approach to Townsville, whether travelling north, south or west. The Tuscan inspired exterior offers great street appeal and is unique to the area. Along with Anita’s restaurant, it is a very popular stop over and dining experience. It is in close proximity to the largest army base in North Queensland, the racecourse, the university and hospitals. Townsville is the largest tropical city in Australia - recently, $28 million dollars has been spent on the Strand, casino and international airport, making it one of the most exciting cities in Queensland. Another consideration is the private entrance to the residence which offers the lessees a level of privacy not often found in motels. With 3 bedrooms, large lounge room, kitchen / private dining area and balcony, this is a business that offers a family home as well as an income.

Townsville’s best positioned motel LEASEHOLD OFFERING •3 1 units including disabled, self contained, deluxe and standard executive • L icensed restaurant and bar with separate entrance for the public (useful for functions) •B athrooms have all been re-tiled and refitted and walls re-plastered •G ardens and landscaping are appropriate and lush • Private conference and function room • In-ground swimming pool • Sealed driveways and courtyards • New 30 year lease

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

Nett profit: $240,000 (2012) Turnover: $839,638 (2012) PRICE: $775,000 REF: LH002339

22 RESORTBROKERS.COM.AU

EXCLUSIVE

The diamond of Emerald! THE AGRICULTURE & MINING CAPITAL OF THE WEST

REF: INV002166

e are delighted to offer the investment opportunity to this outstanding 3 year old motor inn, located in Central Queensland’s most prosperous mining and agricultural area. This property consists of 63 self-contained units, all beautifully presented to a 4 star standard. The motel is supported by an attractive cocktail bar and 60 seat restaurant, with a large alfresco dinning area. The restaurant area can double as a conference room and is very popular for meetings with the commercial clientele. This is the ‘go to’ accommodation property in the region! Ideal for family investments or small superannuation funds, motels as a

commercial investment have been extremely popular for over two and a half decades in Australia. The tenant pays all outgoings and the business is non-transferable. When you compare it to an office building or shopping centre there is always 100% occupancy in your investment. The tenant maintains the appearance, which is integral to the ongoing success of the business. The current owners are staying on as the lessees and will sign a new 30 year lease on settlement of the investment. This underpins the strength of the tenant as they built and know the business well. The income is a whopping $500,000 per month (approximately). • Only 3 years old • Swimming pool and separate spa • Beautiful restaurant and alfresco dinning area • Shows a massive 9.5% return, increased by CPI yearly • Current owner operating the lease RESORTBROKERS.COM.AU 23

Editorial

Queensland tourist accommodation performance update BY OWEN BARBLER - M3 PROPERTIES The ABS recently released tourist accommodation data for the September quarter 2012. We’ve taken the opportunity to analyse and report this information for each tourism region in Queensland (and we’d be very happy to assist readers in other States with information for their market – please see our contact details at the end of this article). Our clients are optimistic about the accommodation sector, and even those in the more difficult markets have been reporting improvement in trading performance. Occupancy 2011-2012 Average occupancy across Queensland increased 2.15 basis points from 63.5% to 65.7%. All regions recorded increases in occupancy with the exception of the Northern (Townsville region) tourism region declining 2.70 basis points, and the Fraser Coast tourism region essentially remaining steady. The greatest increases in occupancy were the mining-influenced Mackay and Central Queensland tourism regions, which increased 5.79 and 5.77 basis points respectively. Average Daily Rate 2011-12 The average daily rate achieved across Queensland increased 3.18% from $135.60 to $139.91. All regions recorded increases in average daily rate with the exception of Sunshine Coast (declining 1.36%). The greatest increases in average daily rate were again in mining/gas24 RESORTBROKERS.COM.AU

TOURISM REGION

1 YEAR CHANGE

5 YEAR CHANGE

ADR

Occupancy

RevPAR

ADR

Occupancy

RevPAR

4.12%

0.76bp

5.15%

20.81%

-2.20bp

17.45%

Bundaberg

2.12%

3.92bp

9.28%

12.71%

1.64bp

15.90%

Central Queensland

13.58%

5.77bp

23.95%

41.52%

3.62bp

49.35%

Darling Downs

8.67%

1.96bp

12.13%

33.61%

5.40bp

46.02%

Fraser Coast

2.45%

-0.46bp

1.46%

18.38%

-9.15bp

-0.76%

Gold Coast

2.27%

2.33bp

5.91%

5.80%

-2.45bp

2.11%

Great Barrier Reef

0.75%

2.51bp

5.87%

17.08%

7.67bp

2.01%

Mackay

0.65%

5.79bp

8.81%

19.87%

4.01bp

26.44%

Northern

2.55%

-2.70bp

-1.61%

20.34%

-7.34bp

7.94%

Outback

4.40%

3.53bp

10.84%

24.66%

4.79bp

35.31%

Sunshine Coast

-1.36%

0.72bp

-0.07%

6.93%

-4.50bp

-1.11%

Tropical North Queensland

0.67%

2.98bp

5.99%

-9.39%

-2.97bp

-13.72%

Whitsundays

3.71%

3.44bp

10.85%

20.79%

-8.79bp

3.70%

Queensland

3.18%

2.15bp

6.67%

11.77%

-1.75bp

8.88%

Brisbane

m3property Research Source: Australian Bureau of Statistics. Data is for ‘Hotels, Motels and Serviced Apartments’ with 15 or more rooms. ADR = Average Daily Rate |= RevPAR = Revenue per Available Room. | BP = Basis Points Please contact us for further information on our analysis (e.g. where geographic scope of ABS Tourism Regions has changed).

influenced tourism regions such as Central Queensland (13.58%) and Darling Downs (8.67%). Revenue per Available Room 2011-12 This measure of overall accommodation takings reflects the impact of both occupancy and average daily rate. With good growth in both having occurred, Queensland’s revenue per available room grew by a solid 6.67%.

Unsurprisingly the best performers in the state were the mining/gas-influenced tourism regions including Central Queensland (23.95%); Darling Downs (12.13%) and Mackay (8.81%). The Outback tourism region (which includes a mix of leisure and mining/gas related tourism) grew strongly (10.84%) and Bundaberg also performed well (9.28%). Some of Queensland’s leisure-based tourism markets have shown strong

growth including Whitsundays (10.85%), the Gold Coast (5.91%), Tropical North Queensland (5.99%) and Great Barrier Reef (5.87%). Five Year Analysis Over the past five years, results in Queensland’s tourist accommodation industry have been very mixed, depending on the drivers in various regions. Looking over the past five years of data, we can see how these drivers have influenced performance in each region. In Brisbane (the largest tourism region by supply), there was a period of decline following the GFC, but since then we’ve generally had an improving market in both occupancy and average rate. While there are some sub-markets that have underperformed the average (due to micro-issues such as entry of new supply) most operators have achieved at least satisfactory or good growth in their accommodation revenue. The key strength in Queensland has been the mining and gas industries, and it is no surprise to see regions hosting mining and gas activity (including Central Queensland, Darling Downs, Mackay and Outback) performing extremely well over the past five years. Operators and developers with the foresight to move into these regions (as well as those already operating in these markets) have been well rewarded with quite outstanding growth. The leisure tourism markets in Queensland (we include Tropical North Queensland, Great Barrier Reef, Whitsundays, Fraser Coast, Gold Coast and Sunshine Coast) were hardest hit during the GFC, particularly as some of these regions have traditionally relied heavily upon international visitation. International ‘holiday’ visitor numbers to Queensland remain about 20% below the peak of 2007 (although they are staying longer, and visitor nights are down about 7%), however the past 12 months have been the first year since 2007 where growth in international holiday visitors to Queensland has been recorded. For several of Queensland’s leisure tourism regions, the past 12 months has been the strongest in five years and these destinations (with the exception of Tropical North Queensland) are now at or around their pre-GFC level of accommodation takings. This is a welcome result after what has been a very difficult trading environment. m3property will be happy to assist readers with further information about the latest tourist accommodation statistics, including notes on our analysis, definitions of the geographic regions, or providing data for smaller areas. Please contact us at casey.perkins@m3property.com.au (research enquiries) or owen.barbeler@ m3property.com.au (valuation enquiries).

Editorial

A word on market trends BY MIKE PHIPPS - MIKE PHIPPS FINANCE Interesting developments in the accommodation industry lately, particularly with the lenders. After the GFC most lenders really restricted lending to business unless they had real estate based security. So called specialised lending for assets such as motels, caravan parks and managements rights was impacted by the events of 2007 – 08, particularly for leaseholds. Over the ensuing years bank credit policy has slowly improved and the appetite for funding these assets is now as good as it’s been for years. We are seeing a real slow down in bank home lending credit growth and some of the lenders are attempting to continue to grow their loan portfolios by being a bit more adventurous with business finance. The flow effect for purchasers of accommodation assets has been mainly positive as a result. Just to set the record straight, current bank policy gearing ratios for most lenders is as follows... •M anagement Rights Qld: 70% of combined value of unit and rights •M anagement Rights NSW (and elsewhere): 65% of combined value of unit and rights freehold •C aravan parks: 60% • Freehold motels: 65% • Leaseholds: 50% • Supporting residential security: 80% Now here’s the thing. We have recently settled management rights deals in Queensland and New South Wales at gearing ratios in excess of these guidelines. We have settled leasehold motels up to 60% gearing and we currently

have a freehold motel approved at 75% gearing. Given that we assist clients all over Australia, we’ve got a pretty good feel for what’s happening with the banks and here it is. While one major bank has reduced gearing on leaseholds to 35%, two of the other majors have decided that the accommodation industry is a good bet credit risk wise and they have told me that they will be as flexible as possible in order to do deals. The bottom line is simple. Money is cheap and the yields on these assets are at least twice the cost of debt in most cases and in the case of leaseholds up to 4 times the cost of debt. Given these returns borrowers can afford to gear up and then reduce debt quickly to bring debt levels down to standard bank policy levels. Of course, if you are new to the industry and have no business management experience then gearing levels will ultimately reflect this. The other thing to think about is this. If you have equity in your home or investment property now is perhaps not the best time to sell. The banks will happily look at lending against your property assets and in some cases will provide 100% finance + costs provided you have enough equity. This scenario works particularly well for leaseholds where the returns can be over 30% and the net cost of debt as low as 7%. If you want to learn more about gearing, debt servicing and your capacity to purchase just give me a call. All discussions are obligation and fee free. Contact Mike Phipps at Mike Phipps Finance. RESORTBROKERS.COM.AU 25

EXCLUSIVE

Artist impression

his fully renovated property is ready to fire. The Leumeah Motel has 25 spacious self-contained rooms and is located in the goldfields of NSW. It has undergone a major facelift which includes new bathrooms, kitchenettes, carpets and large flat screen televisions. The property also boasts a large 3 bedroom, 2 bathroom house that is separate from the motel and has it’s own private access and yard. It is an outstanding residence for a young family. Blayney is a quaint regional town close to both Orange and Bathurst and benefits from the nearby mining activity and Nestle factory. It is only minutes to the Orange regional airport. This motel is perfect for a first time operator, as well as an excellent opportunity for the seasoned motelier. With further development set for the Blayney area this motel represents an outstanding opportunity.

26 RESORTBROKERS.COM.AU

Beautifully renovated motel in the gold fields of NSW ALL THE HARD WORK ALREADY DONE This sturdy double brick and tile motel has a great foundation for a great performing business. Some features include: • 25 refurbished rooms • Strong corporate and mining clientele. • New carpet • New paint • New kitchens • New bathrooms • New beds • Large separate residence • Undercover BBQ area Don’t miss this opportunity. Lease options

also available, please contact broker.

Shane Wynhoven EXCLUSIVE AGENT Mobile: 0424174592 Sydney office: (02) 9904 8224 Email: shanewynhoven@resortbrokers.com.au

Net Profit: On request Turnover: $236,388 PRICE: $1,500,000 Lease options available – contact broker REF: FH002309

EXCLUSIVE

Property returns above industry averages IN THE COUNTRY MUSIC CAPITAL OF AUSTRALIA Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $443,782 PRICE: $1,500,000

REF: LH002328

uest Tamworth is an ideal example of the old adage “on the coast for show, inland for doe”. This 40 unit serviced apartment business continues to enjoy the significant growth being achieved in Tamworth, a vibrant and prosperous city some 400 kilometres from Sydney and 600 kilometres from Brisbane. With a resident population of 58,000 it is the corporate centre for the New England/ North West region. The city provides many of the major shopping brands available in Australia today. Some retailers to have recently opened in Tamworth include Kathmandu, JB Hi Fi, ALDI, Poolwerx, Maggie T, Petbarn and Spend Less Shoes. In addition, Bunnings opened a new store some 2.5 times the size of the old store.

Recent government initiatives have included a new cancer treatment centre, upgrades to the New England University and agreement to renew the BAE/ADF air training facility at Tamworth Airport. Tamworth provides many modern sports and cultural facilities in addition to annual tourism events. Of course is the most famous being the Tamworth Country Music Festival,welcoming many international and national tourists to the event in January each year. • 40 x 4 star serviced apartments: 4 x 1 bedroom, 32 x 2 bedroom and 4 x 3 bedroom. Each apartment has spacious lounge/dining area, bathroom (2 in the 2 & 3 bedroom apartments) and laundry • Spacious reception and office, conference room, in ground pool, BBQ and onsite parking for 56 vehicles • 38 leases have tenure of 25 years from 1/10/12, 3 leases have 20 years from 1/10/12 and 1 lease, 15 years from 1/10/12. Market rent

RESORTBROKERS.COM.AU 27

Editorial

Family business: Economic lifeblood brings unique challenges & rewards BY CATIE LANGDON Family. It is the fundamental unit of society. For many, it is also the foundation on which their business is built. Family businesses, in all their shapes and sizes, dominate the private sector in Australia. Few might stop to think global giants like Toyota and Samsung are family companies. In Australia, the names Pedder (automotive), Angove (wine), Cooper (brewing), Haigh (chocolate) and Kennard (equipment hire) are substantial family brands. They are part of our $4.3 trillion family business sector, the nation’s biggest employer. There was a time when a ‘family business’ was the only kind of business. BDO Australia (accounting) reminds us family business has dominated commerce since the dawn of trade. The family business model is the oldest and biggest business model in the world. 28 RESORTBROKERS.COM.AU

When Japan’s Kongo Gumi closed its doors in 2006, it ended more than 14 centuries of continuous family operation. The company had been in the business of building Buddhist temples since the year 578, making it the oldest family-operated business in the world. Family Business Australia (FBA) tells us family businesses account for 70% of all businesses in Australia. So the sector has a major, direct bearing not only on the strength of private enterprise, but on the health of our whole economy. Recognition of this has grown only fairly recently in Australia. The sector is now gaining more attention from the wider business community, academia and finally government. As the Resort Brokers’ Informer goes to print, a Senate inquiry into family business

is preparing to table its report in Parliament. “This inquiry aims to put the spotlight on the family business sector and to provide Parliament with the information it needs to support Australian family businesses into the future,” said Deputy Chair Senator Sue Boyce. According to the Federal Department of Tourism, which lodged a submission, a significant number of Australia’s 238,000 tourism businesses are family-operated. Families are certainly a driving force in the accommodation industry, where a family partnership can be the ideal model for handling 7-day operational demands. Best Western Wyndhamere Motel in Shepparton, Victoria, has been owned by the Mangiameli family since 1979. Current hosts Sebastian and Cam grew up in the industry, gaining a strong work ethic from

their parents Sam and Rosa, who handed over the business in 1997. Now Sebastian and his wife Connie, and Cam and wife Angela, have taken the business to new heights. A wing of executive spa suites was added in 2006, along with a major upgrade to Sebastian’s Restaurant. Then followed a new motel façade, development of Wyndhamere Apartments, and refurbishment of all remaining rooms. “The business has undergone major changes throughout the years, but the one constant you can guarantee is that the Mangiameli family will continue to provide the service guests have come to expect over the years, well into the future,” the family says. That level of pride and long-term view is perhaps the greatest difference between family businesses and the rest of the commercial world. “As they tend to take a longer term view, interested in growing the family wealth and having a different set of strategic goals compared to non-family owned private companies, their long term economic contribution is significant,” KPMG’s 2012 Private Companies Survey concluded. “For many family businesses, the ability to plan long term can give them a huge competitive edge.” Resort Brokers Australia managing director Ian Crooks agrees. He has discovered the overwhelming personal and business rewards family involvement brings. For more than 25 years, Crooks was solely responsible for steering the company ship. Now, with his wife Karin, three grown children and a son-in-law all in senior roles, Resort Brokers has emerged from the GFC stronger than ever. And Crooks doesn’t mind telling you he’s happier and more motivated than he’s ever been. “There are six people who care deeply about the business and about our staff’s welfare and wanting them to do well. By sharing the load, we are far stronger, and it’s the happiest situation I’ve ever worked in.” KPMG’s survey also showed family companies were often able to be more innovative. “The agility with which a well-run family business can take decisions quickly means that many are in a better position than the corporate sector to ride out economic downturns.” Richard Jay Laundry Equipment, established in 1969 by the late Richard Jay and his wife, now has the second and third generations working in the business. Australia’s only family-owned national commercial laundry equipment supplier has been quick to expand and diversify. Richard Jay imports and distributes the quality Maytag range. More recently, the family launched Equipe Solutions to import dispensing solutions, became the Australian and NZ distributor for LG commercial laundry equipment, and established a third company to offer finance and breakdown service packages on new laundry equipment. “All three companies are growing and we are always on the lookout for more opportunities,” said marketing manager Libby

Baldwin (nee Jay).

Richard Jay sisters (from left) sales executive Kathie Smith, marketing manager Libby Baldwin, and managing director Carolyn Kirk – a rare breed in a nation where 89.3% of family business owners are male, and sons are over five times more likely than daughters to take over. (MGI Family and Private Business Survey 2010)

For many of the 38 organisations, advisers, academics and family businesses who made submissions to the Senate inquiry, the sector is long overdue for attention. “Australian governments have thus far failed to recognise and appreciate the importance of the family business sector, let alone introduce innovative policy,” FBA told the inquiry. At the very least, the inquiry is almost certain to call for more official ABS data to be gathered to inform policy debate and decisions. Currently, virtually all information on family businesses has been gathered or sponsored by the sector itself. So let’s look at what is known. One of the key challenges is communication between family members. Differentiating between work and home – maintaining family harmony balanced with the competing demands of business – can be tricky. Crooks says, while the family hasn’t laid down formal rules at Resort Brokers, conflict is avoided because each family member has a distinct role. “We respect each other’s expertise and don’t stray into the other’s field”. “I will admit, though, it can be all consuming. We are always talking and thinking about work. Sometimes it can be hard to get some proper downtime.” A 2010 MGI Survey found 86% of family enterprises do not have set rules, 72.1% do not hold regular family meetings, and 57.7% do not have a formal board of directors. Richard Jay is one company that does. “We have a board and management team which meet every month,” Ms Baldwin said. “It is most important to have an effective business plan along with a board and management team.” Some submissions to the inquiry spoke of a lack of appreciation for the importance of business structure, governance and risk management. As one put it, family enterprises often grow “organically and reactively rather than pro actively.” It remains to be seen whether the government might attempt to address this through either regulation or education. Ultimately, generational change is expected to raise the level of formal management. A 2010 KPMG Survey of the Next Generation of Family Business showed a

high proportion of the next generation has tertiary qualifications, and most are more highly trained than their predecessors. The survey also found the next generation’s top priorities for change and growth were business strategy, governance and management structure. Which brings us to the next big issue concerning family business – succession planning. Some have gone as far as suggesting Australia is facing a looming leadership crisis, with control of most family businesses vested in aging owners. FBA says studies show 81% of owners intend to retire in the next 10 years, generating a wealth transfer worth $3.5 trillion. Family business exit planning is essential, but also fraught, given the relationships involved. Surveys show around 40% intend to pass on the business, but 60% would consider selling. Sometimes the interests of both the current owner and the wider family might be better served by selling to realise the business value. That’s not the case at Resort Brokers. “We definitely have a written succession plan,” Crooks said. “It is vital to set up the business soundly and to get professional advice.” What comes into play here are the other issues that dominated virtually all inquiry submissions – funding and taxation challenges unique to the family business situation. PWC Private says most family businesses think there are unfair obstacles that threaten their long-term competitiveness. “Family businesses want the government to level the playing field in regards to accessing finance, and removing the tax advantages enjoyed by (public) corporations,” PWC said. Many are hoping the report will call for a review of tax rules affecting trusts, which are commonly used in private family businesses as a way of protecting the family’s assets. Family businesses can be hit with stamp duty and capital gains tax bills on the transfer of assets, even though the transfer to the next generation may not generate cash in the same way a regular business sale does. Deloitte Private recommended the government consider “structural reform of the taxation of trusts and the taxation of family groups to create certainty and simplicity.” Submissions also called for the appointment of a Minister for Family Business, greater promotion of family business-specific education, and helping family businesses source qualified independent (non-family) directors. What is clear is how much Australia needs to value and support its family businesses. Research has shown the attributes of family business are viewed very positively and many people prefer dealing with family businesses. The Senate inquiry has at least shown the government wants to be better informed so they can tailor policy specifically to a sector that is literally the nation’s economic lifeblood. To access family business resources, visit www.fambiz.org.au. RESORTBROKERS.COM.AU 29

EXCLUSIVE

This is a unique opportunity to purchase an easy to run business in the highly desirable suburb of Highgate Hill. Guests love the colonial charm, the breezes on the veranda or chilling out in the common areas. This property exudes a special ambience while still providing clean, comfortable accommodation at guest house quality. This beautiful Queenslander consists of 14 rooms with a mix of singles and doubles. Completely renovated throughout including bathrooms. Additionally all internals in the house have been repainted. Ample free onstreet parking directly in front of the property plus some onsite parking.

Inner city leasehold accommodation BRAND NEW 25 YEAR LEASE Enjoy the quietness of Highgate Hill or duck off to the smorgasbord of eateries, super-chic cafes, bars and entertainment precincts. South Bank, West End and Brisbane city within walking distance which is a big draw card for return business. • Great manager and cleaners in place if desired, though easily run by a couple • Ideal for new comer to the industry or semi retirement

Nett profit: $105,000 PRICE: $370,000

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

EXCLUSIVE

This one has great up-shot

MANAGEMENT RIGHTS - PORT DOUGLAS Nett profit: $130,000 PRICE: $ 770,000

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

REF:MR002032 MR001967 Ref: 30 RESORTBROKERS.COM.AU

Looking for a great holiday accommodation business in Port Douglas? Right near the beach and close to town? Coral Apartments is being offered to the market exclusively by Resort Brokers and presents itself as a great opportunity with on-going benefits. Owned by the Latitude 16 group, this property offers a sole operator the advantage of being a part of a larger buying group, with benefits incorporating costs structures, laundry and marketing.

Coral Apartments consist of 24 apartments in a 3 level walk-up. The manager’s residence is a large ground floor unit with 3 bedrooms, 2.5 bathrooms, large patio and office attached. The premise will have new 25 year agreements on settlement. Trading has shown year on year growth over the last few years and the property is ready for a new operator. • 24 apartments • New 25 year agreements • Large 3 bedroom managers residence • Office attached and on title • Located only minutes from 4 mile beach • EZI-REZ • Unit valued at $370,000

EXCLUSIVE

On offer is the leasehold interest to a large 28 room motel on a large parcel of land (20 acres). Also, it includes a 3 bedroom residence that can be let, plus a 3 bedroom manager’s residence with a wonderful alfresco living area. There is a stunning dining or function room that overlooks a huge lake. The restaurant has a full bar and open fire. It’s a fantastic setting in both winter and summer. Surrounding the lake and motel, is a six hole golf course. Also, there is an indoor heated pool and tennis court. Magdala Motor Lodge is the quietest motel in Stawell as it is set back from the highway.

The oasis of the Wimmera LEASEHOLD OFFERING Each ground floor unit has a beautiful water frontage/outlook. • Resort style: golf course (6 holes), tennis court and indoor pool • Excellent lease terms with landlord responsible for items such as airconditioners, pool pump, toilets, water heaters and spas • 3 1/2 star (AAA rated) • Genuine upside - opportunity to build turnover and improve profitability with hands on management

Nett profit: $130,034 Turnover: $487,173 PRICE: $425,000 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

REF: LH002197

EXCLUSIVE

Massive 11.46% return EARN $166,214 PER YEAR FROM PASSIVE INVESTMENT Rent: $166,214 PRICE: $1,450,000

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

REF:MR002032 INV001175 Ref:

Situated in the Callide Valley this passive investment offers a monthly return of $13,851.24 exclusive of GST and paid monthly. The lessee pays all outgoings including rates and insurance. Biloela is located 120 kms inland from the port city of Gladstone and 1.5 hrs south of Rockhampton. It is a thriving rural town on the Burnett Highway (A3). A major presence in Biloela is the Anglo Coal Callide Mine which is fully owned by Anglo Coal and employs an average of 350 employees

and around 100 contract personnel. The coalfields cover an area of 176 sq kms and contain seams up to 24 metres thick of sub-bituminous steaming coal with good combustion properties mostly used for domestic power generation. For tourists and visitors to the Callide, Biloela offers The Cultural Heritage Trail which includes the Callide Lookout as well as the Greycliffe Homestead and Museum. • Brick and timber construction • 20 hotel and 5 motel units • 4 bedroom residence and large dining room • 4 poker machines owned by freehold owner • Biggest take-away bottle shop in Biloela RESORTBROKERS.COM.AU 31

Editorial

The right choice PART 1 IN A NEW SERIES - ALEX COOK - RESORT BROKERS AUSTRALIA In this edition of the Resort Brokers’ Informer we embark on a new series of articles, each focussing on one of Australia’s leading short-term accommodation operators. We aim to gain an understanding of their position in the marketplace, their hopes and expectations for the future and also an insight into current market conditions. To start the series off, I was fortunate enough to catch up with Trent Fraser and Brett Salter (CEO and Senior Development Manager, respectively) of Choice Hotels Australasia at their Melbourne head office. Choice Hotels Australasia came into fruition a decade ago primarily through the acquisition of the Flag Inns chain. These motels were rebranded under the ‘Comfort’ banner and today make up Choice’s largest brand. Over the last 10 years, the group have added the Econo Lodge, Quality and Clarion brands and now have around 280 hotels, motels, suites and resorts across Australia, New Zealand and Singapore. Despite Choice’s relatively short history in Australasia, the group has much deeper roots. They are backed by the US based parent company Choice Hotels International, one of the most successful accommodation 32 RESORTBROKERS.COM.AU

franchisors in the world. With over 70 years of experience, more than 6,100 hotels open or under development, representation in over 40 countries and a stock market capitalisation of over $2.5B, it is clear that the Australasian division has some serious backing. When asked about Choice’s growth over the last decade, Trent points out that the situation today is not quite what it was back in the early days. “Whereas almost all new hotels to come on board with us used to require us seeking out deals, talking to new parties, hunting out the properties that we wanted…we find prospective franchisees are increasingly coming to us”. Trent estimates that about 40% of new franchises are now instigated by operators approaching them. One of the biggest attractions of Choice for any prospective franchisee is the variety of brand options on offer. With 4 distinct brands spanning a range of property types, it is very likely that any given property will find a suitable brand match. Choice’s newest brand is Econo Lodge, which comprises predominately of regional properties in the 3 star - 3.5 starrange. Although they may have breakfast facilities, the service inclusions are relatively limited. Launched in 2009, there are currently about

30 properties under this banner. The market space for Econo Lodge came about due to the number of properties looking to join the Comfort brand, but not coming up to the required 3.5 star - 4*. Due to the large number of regional properties falling into this 3 star - 3.5 star range, Trent sees the Econo Lodge brand as having particularly strong growth potential for the future. Nonetheless, Comfort is currently by far the largest brand, with around 150 properties. With about 80 hotels, the Quality brand is the next largest brand, and is targeted towards more mid-market, corporate driven properties. They will typically be located in capital or gateway cities and will have extended hours of reception (often 24 hours) and a restaurant. With currently 15 properties in the Clarion brand, these hotels will fall in the 4 star - 4.5 star range. Choice is also set to launch a new marketing initiative in the next couple of months. The ‘Ascend Collection’ range is targeted at properties that are historic, boutique or unique in nature, that would not typically fit into an existing Choice brand. In contrast to the other 4 brands, Ascend will allow the properties in the group to maintain their individual character

by keeping visible branding to a minimum. Choice franchisees benefit from a considerable degree of operational support. In each regional area, there is an operational Field Support Manager (FSM) who works with the owners to make sure they get the most out of their property. This can involve anything from checking service standards, to reviewing housekeeping costs, to looking at sales/ marketing opportunities. As well as 3 – 4 detailed reviews each year with their assigned FSM, franchisees will also benefit from group workshops involving other franchisees in their area and the annual conference, facilitating an excellent degree of information sharing and camaraderie between franchisees. An obvious question that follows is, ‘what does it cost to be a part of Choice?’. Well, for all franchisees, the fee is worked out as percentage of room revenue. Given the fact that properties in the group have annual incomes that range from $200,000 up to $12,000,000, it is understandable that this percentage is applied on a sliding scale. The litmus test is not the actual fee, but how much the franchise relationship

improves the bottom line. “It shouldn’t be looked at as a cost”, explains Trent, “it should be seen as an investment into your business.” The greatest advocates of Choice Hotels Australasia are the franchisees themselves. Annual surveys amongst franchisees indicate an extremely high level of satisfaction. When asked what sort of operator Choice would appeal to, Trent makes an interesting point. “There’s scope for a variety of operators to improve their business through us. If you’re new to the accommodation sector, we can provide an extensive range of support and training. Successful existing operators often gain just as much from us by exposing themselves to our supply networks; this can open them up to new corporate markets, driving both tariffs and occupancy”. One of the most telling factors of Choice’s success is the amount of franchisees that have gone on to bring additional properties into the group. In actual fact, over a quarter of all Choice properties are owned by franchisees that have 2 or more franchises. On average, Choice Australasia will

add 30 new properties to their brands each year, the majority of which will come from existing businesses rather than new developments. Interestingly, about half are rebranding exercises for properties that have left other brands. When asked about the future of Choice Australasia, Trent and Brett share a common optimism. Although we hear regular concerns regarding the strength of the Australia dollar and its impact on shortterm accommodation, they rightly point out that this has little to do with them. The Choice model is geared towards the corporate market, so they are less reliant on the international market than the domestic market. Indeed, this increasing focus on the corporate sector has been intrinsic to Choice’s development over the last decade and will be in the years to come. They foresee a period of significant growth and have hopes to grow the number of properties in the group from 280 to 450+. This will happen through a combination of organic growth and through the acquisition of existing brands. For more information, visit the Choice Hotels website at www.choicehotels.com.au

Editorial

Terms of contract DAVID BURROUGH - HILLHOUSE BURROUGH McKEWON We explored the pitfalls of pre contractual negotiations in last months edition. We will examine the terms of a contract and issues arising from those terms over the next few editions. A starting point is Goods and Services tax. The “supply of a going concern” is deemed to be GST free under the A New Tax System (Goods and Services Tax )Act 1999 (“the Act”). A “Supply of a Going Concern” is defined as: (a) a supply made for consideration; (b) where the purchaser is registered for GST purposes; (c) where the vendor and the purchaser have agreed in writing (i.e. in the contract) that the supply is a going concern; (d) t he vendor supplies to the purchaser all

of the things that are necessary for the continued operation of an enterprise; and (e) the vendor carries on the enterprise up to and including the day of supply (i.e. settlement). In order to ensure that the sale of a motel business and its land and buildings are a GST free “supply of a going concern” there are numerous aspects that should be taken into consideration. It is common to have a business structure in which one entity owns the land and buildings and a separate legal entity operates the business from those premises under a lease. The sale of the business is an enterprise which includes the sale of the plant and equipment and goodwill together with forward bookings.

The enterprise must be capable of continued operation by the purchaser so that it is a supply of a going concern. Provided that the vendor assigns the lease of the premises to the purchaser it will be making a GST free supply of a going concern. Consider the same business structure where the land and buildings are sold. It is the activity of leasing the property that is considered the enterprise. Again this enterprise must be capable of continued operation by the purchaser so that it is a supply of a going concern. Provided that the property is supplied with the lease of the business in tact it will be making a GST free supply of a going concern. In the event that the business and the motel are owned by one entity the motel must be sold subject to a lease for the business in order to be a supply of a going concern. The lease must be in existence for at least one day. The sale of the business can only occur on the following day. Where a sale is subject to GST there are a number of adverse consequences particularly for the purchaser. The vendor is able to pass any GST on to the purchaser. The purchaser has to pay stamp duty on the GST as well as the purchase price. In any event most contracts will require that a purchaser be registered for the purposes of GST. If a purchaser is not registered for GST purposes they are not able to obtain a refund ( input tax credit) or acquire a GST free supply of a going concern. Clearly there is a minefield of issues raised by the GST and we strongly recommend that you seek professional advice. RESORTBROKERS.COM.AU 33

EXCLUSIVE

he Oasis Resort is located 400 metres from the beach and 2 minutes from the heart of Byron Bay. Unusually for NSW there is a 20 year letting agreement in place. The tropically landscaped resort is built on 6 acres of tranquil bushland bordering the Arakwal National Park. On offer are spacious 2 bed, 2 bath selfcontained apartments; unique and private 3 level treetop houses with stunning spa decks; or the stunning Ibis beach house.

Beach resort Byron Bay RARE 20 YEAR TERM + NO.3 ON TRIPADVSIOR

The resort is ranked no. 3 of 30 accommodation properties in Byron Bay on Tripadvisor.

The property has a perfect mix of 30 self-contained renovated apartments, treetop houses and a beach house, set in tropical manicured gardens with extensive resort facilities. All are air-conditioned with complimentary WiFi and high speed internet access.

Byron Bay is located 45 minutes from the Gold Coast and 30 minutes from the Ballina/ Byron Airport. It is a renowned year-round holiday destination for families, singles, backpackers and avid surfers. Cape Byron, headland and home to the famous Byron Bay Lighthouse, is also a popular sightseeing and whale watching lookout. It is the easternmost point of mainland Australia. The town is in turn the hub of Byron Shire, which has in excess of 28,000 residents.

Facilities on offer include: • 18 metre heated swimming pool and separate children’s wading pool • Spa and sauna • Poolside BBQ area • Full size floodlit tennis court • Gymnasium and games room • Underground car parking • Austar, cable TV and DVD player • Wireless broadband • On-site managers

34 RESORTBROKERS.COM.AU

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Nett profit: $214,097 PRICE: $1,295,000

REF: MR002316

EXCLUSIVE

A snug fit for a leasehold caravan park WATERFRONT CLOSE TO HOBART, TASMANIA Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

Nett profit: $196,163 Turnover: $446,472 PRICE: $660,000 REF: LH002317

n opportunity here for a family to secure a new 25 year lease of a well established caravan and cabin park in a fantastic waterfront location. It is situated in a seaside town just 25.5Km or half an hours drive from the city centre of Hobart, Tasmania. Snug is an ideal central location to explore the region. Visit the Tahune Forest Airwalk, Hastings Caves and thermal pools, national parks, Bruny Island, the Shot Tower and a myriad of craft shops and museum. Have a stroll on the beach, do a spot of fishing or enjoy a BBQ in the all-weather camp kitchen. This business is providing strong cash flow and is ready for a new owner to come along and reap the rewards of a fresh approach.

Facilities include; 21 x cabins / units (4 x 1 bedroom, 15 x 2 bedroom, 2 x 2 bedrooms studios). The managers residence is a 2 bedroom free standing unit with an undercover outdoor area. A golden opportunity with a strong profit makes this a snug fit for an enviable lifestyle. • Brand new 25 year lease direct from the freehold owner - market rent • Beach side park guarantees longer term tenants • Good mix of 1 and 2 bedroom cabins, studios and units • 45 powered and 45 un-powered sites and 12 permanent powered sites • As new bathroom amenities block and unisex block • Huge camp kitchen, guest lounge and separate BBQ areas • Large workshop and in-house laundry • Large reception building incorporating a reception, 1 bedroom, bathroom and kitchen

RESORTBROKERS.COM.AU 35

Editorial

Flat pack Modus leaves the R. I. Spa factory ready for the international shipping

Internal concept

Modular building systems with the quality of Italian styling ALEX COOK - RESORT BROKERS AUSTRALIA Resort Brokers Australia MD Ian Crooks generally does not struggle to get enthusiastic about things. This is especially the case when the topic of conversation turns to either motel development or the All Blacks. Having said that, it isn’t particularly often I see him get very excited. One obvious exception was New Zealand’s World Cup win in 2011. I saw a similar glint in his eye when we met last week Michele Leone, the director of R.I. Kenco. ‘Who are R.I. Kenco’, I hear you ask. Well, R.I Kenco is the recently established 36 RESORTBROKERS.COM.AU

Australian distributor for specialist Italian construction company, R.I. Spa Modular Building Systems. Located in the heel of the Italian boot in a small town called Trepuzzi, R.I Spa was established by founder Salvatore Tafuro in 1985. It’s core business throughout this time has focussed on the planning, construction, sale and leasing of prefabricated, modular and structural units, particularly in the building of civil and military villages. R.I Spa is particularly well known for their role in international operations, regularly providing quick construction

solution and general logistical assistance in ‘emergency territories’. For example, the company played an important support role to the Italian Armed Forces during their military and humanitarian efforts in Afghanistan. With over 25 years of experience in this niche sector and having set up further offices in Kosovo, Albania and Greece, R.I. Spa have established a leadership in the field of construction of prefabricated buildings industrially produced to specific requirements. The central foundations of R.I. Spa’s design ethos falls into three distinct

“Priced at between $50,000-$60,000 per motel unit and a build time of 8 weeks from start to finish, this system offers an affordable option with the stylish aesthetics of Italian design” Ian Crooks, Managing Director RESORT BROKERS AUSTRALIA categories. First of all, their prefabricated constructions are designed to keep the time between ordering and completion to an absolute minimum. This ‘quick deployment’ ethos means that units can be built to a precise specification in the factory within a month, transported to their destination, and then erected in one day. Applying a ‘turnkey’ approach, these pre-fabricated units are fully functional from the moment they are installed, with all fittings, fixtures, furniture and electrics ready to go. A second core attribute to R.I. Spa’s design is the importance placed on building long-lasting goods. Given the fact that their constructions are often used in war zones and areas recently ravaged by natural disaster, this is not surprising. As the trusted supplier to major international businesses and government organisations, their products are built to an array of international standards. The third focus of R.I. Spa’s design is essentially aesthetics. Although their products are built to an industrial standard, they do not necessarily look that way. When it comes to making their products pleasing to the eye, it’s not hard to tell that company has firm Italian roots! A quick review of the photos accompanying this article should demonstrate this well, as does the Puglian country mansion that the company renovated as a side project www.masseriaprovenzani.com Anyway, back to my first point; ‘Why was Ian so excited’? Well, R.I. has put all their knowledge and expertise into a product designed for the Australian market, specifically for the motel/worker Visual of the stack-able product: 2 bedroom with larger side balcony

accommodation sector. And, given their history, it’s not hard to see why. We have vast country with countless remote and harsh locations. We also have an array of industries reliant on accessing these locations. These same companies require swift and flexible construction options to service their needs in these locations. The demand for a product that reduces the expense and time involved in constructing accommodation is clear. The Modus Mobile Home is a product that aims to fill this market. Constructed in the factory in Italy to purchaser specifications, the units are flat-packed, shipped to Australia, then deployed to site for installation. The whole process takes roughly 2 months; 4 weeks in the factory, 35 days shipping, a couple of days to get to site, then 1 day installation. Of course, while a developer is laying down the foundations and creating the head works to a new motel site, the units are already being constructed in the factory. The time involved in building a new complex is therefore drastically reduced. These units are also remarkably good value. Depending on specifications, they will be generally be priced in the $50,000 - $60,000 bracket, whereas a motel room built in the traditional manner would be cost $100,000-120,000. This price includes the team of Italian supervisors who escort the unit to site and carry out the installation. If you’d like to go to Italy to check out their operation, they will happily accommodate you at the R.I Spa Resort in Lecce! The lack of expense does not impact on the quality of the units. The frames

are constructed of galvanized steel, they adhere to a number of Australian and international standards and, for those in FNQ, they are cyclone rated. The quality is not just structural; the units are finished to a very high standard internally, with plenty of Italian design touches. There are endless colour and layout options on offer. Although these pre-fabs quickly become sturdy and established fixed structures once they are installed, they can be un-installed and taken to a new location as quickly as they arrived. From a developer’s point of view, this is critical. Rather than lending the money to purchase the required amount of modules, most banks will simply arrange a lease. This is due to the fact that if the developer defaults, they can simply come and take them back. No security is required. This means that a developer does not need to factor in the cost of building the units, drastically reducing the amount of capital required to get a project off the ground (or increasing the amount of rooms possible for an existing project). So, it’s not hard to see why Ian was so enthusiastic about these new flatpack units. They have the potential to revolutionise the industry. R.I. Kenco will be conducting open show room events in the near future. This will be an opportunity for everyone to have a close look at a fully installed unit and to speak with Mik, R.I. Kenco’s director. For further information on these events, please either contact us at Resort Brokers Australia or contact Mik directly on mleone@rikenco.com.au

Visual of the stack-able product: 3 bedroom with smaller front balcony

RESORTBROKERS.COM.AU 37

The Kew Motel, conveniently located only 2 minutes from the Pacific Highway, is perfect for first time buyers. It is a freehold opportunity that would be suitable for either a family, single person or semi retired couple. The managers 3 bedroom residence is perfect for entertaining with its own private courtyard and BBQ area. The current owners have now built their dream home and are ready to sell up to move onto a new adventure. During construction of the Kew Bypass (nearby) the occupancy of the motel fell slightly. However, this has been built up again and is actually increasing due to the

Great returns & lifestyle LOCATED IN THE TIGHTLY HELD CAMDEN HAVEN increase of passing traffic provided by the bypass. Additionally, it is anticipated that the Kempsy Bypass (when complete) will also increase passing traffic which offers real upside for a prospective purchaser. • 13 meticulously maintained and upgraded ground floor motel rooms • Centrally located close to cafes, golf club and shops • Minutes from the beautiful Camden Haven waterways and beaches • Land for development

Looking for a lifestyle change FREEHOLD INVESTMENT - SOUTH COAST, NSW Nett profit: $212,693 Turnover: $334,572 PRICE: $1,950,000

Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

REF: FH002193 38 RESORTBROKERS.COM.AU

This magnificent property is located in the CBD of Ulladulla, a stones throw from the area’s many beautiful beaches and lakes. The motel is beautifully presented with a pool and BBQ area as well as mix of ground and first floor rooms. It would be extremely hard to find another comparable south coast performer like this There is also opportunity to expand with extra land for further development.

Nett profit: $116,489 Turnover: $181,047 PRICE: $795,000

Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

REF: FH002292

• Spacious 2 bedroom residence with private courtyard • 16 beautifully maintained deluxe motel units • The complex is easily managed couple • Stroll to cafes clubs and restaurants • Motivated vendors ready to retire • Extra land for further development STCA • High turnover, good profit • Located in one of NSW most popular coastal areas

EXCLUSIVE

The sky’s the limit with this ideally located property positioned across the road from Hukkinson Shark Net Beach and 500m from Huskisson’s fine restaurants and speciality shops. Additionally, it is in close proximity to the naval base as well as Jervis Bay’s world famous Dolphin and Whale Watching Cruises. The motel has a magnificent pool, BBQ area and spacious grounds. There is a vibrant new café sub-leased at the front of the motel, which has added another dimension to this magnificent leasehold opportunity. This property offer massive upside for the right operator!

Dolphin watch capital of NSW HUGE LEASEHOLD OPPORTUNITY • Spacious 3 bedroom, 2 bathroom residence off reception • 31 spacious motel rooms and suites • Huge corner block with spacious grounds • 42% occupancy and high tariff means massive upside potential • 43% ROI when new café income added (2012/13 projected) • Located on the shores of pristine Jervis Bay Marine National Park

Nett profit: $213,017 Turnover: $567,494 PRICE: $570,000

Russell Rogers EXCLUSIVE AGENT Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au REF: LH002325

Editorial

The transfer fee revisited MATTHEW MANZ - MAHONEYS LAWYERS Despite the rules regarding the “transfer fee” having changed some time ago, it is surprising how many managers (and lawyers) are not aware of those changes. For sellers, understanding these rules can be paramount in determining the correct time to sell. To re-cap, those changes are as follows: Previous - the transfer fee was linked to the commencement of the

Caretaking and Letting Agreements or when a new option was added. New - the fee is linked to the commencement of the manager at the complex (i.e. when the manager first acquired the management rights). New Agreements or adding options are irrelevant. Previous – the prescribed period, from the time of the Agreement or adding of the new option, was 3 years.

New – the prescribed period is only 2 years from the time the manager first acquired the management rights. Previous – the fee was 3% of market value (effectively the business sale price) in year 1, 2% in year 2 and 1% in year 3. New – 3% in year 1, 2% in year 2. Previous - the transfer fee was discretionary. The Body Corporate was entitled to seek it if a manager sold the business within the prescribed period. It was not compulsory. New - it is compulsory and the body corporate must impose the transfer fee if the manager sells the business within the prescribed period. The hardship provisions remain unchanged. A body corporate will not be able to impose the fee where the outgoing manager is selling due to genuine hardship not reasonably foreseen at the date when the manager first acquired the management rights. The transfer fee period commences on the date a manager settles his/ her management rights purchase. The relevant date when a manager sells is the date on which the Body Corporate consents to the assignment - so provided that date is more than 2 years after a manager settles his/her purchase, there will be no transfer fee payable. RESORTBROKERS.COM.AU 39

Editorial

The many faces of the accommodation industry Tony South in action at Adelaide’s Clipsall 500 in 2011

Tony South:

Good man to have at the wheel BY CATIE LANGDON South’s humility is genuine, but a little unexpected given his impressive career record. He retired in 2011 after 40 years in the hotel, property and tourism sector, including 11 years at senior levels with InterContinental Hotels Group, the world’s largest hotel company. On the way, he had managed Australia’s biggest hotel investment company, ran a peak tourism marketing body, negotiated hotel sales worth hundreds of millions, and jointly set-up what became the nation’s pre-eminent specialist tourism business consultancy. These days, he devotes “perhaps a little more time than expected” to advocating for hotel owners and operators as the chairman of Tourism Accommodation Australia (TAA), and “not as much time as I’d like” to his family and a lifelong passion for motorsport. South says he never followed any planned route, but rather took a series 40 RESORTBROKERS.COM.AU

of fortuitous turns on the road to professional development and career fulfilment. The journey began in 1968 as a trainee with a Sydney accountancy firm. “Even now, I don’t have any real understanding of why I went into accountancy,” he admits. “I came from a family of farmers, and not very good farmers at that. We were poor and there was certainly no one in business to set an example. It turned out to be an inspired choice, though, and one I’ve never regretted.” South left that firm in 1975 as a senior accountant and joined international accounting group Horwath & Horwath. By 1983, he had made partner. It was then an opportunity presented to expand the company’s Australian operations on the back of the group’s overseas hospitality experience. South went to the US to study Horwath’s work in hotel and resort development feasibility, and could see

the potential to apply it at home. The timing was perfect, with Australia on the verge of a Japanese-led investment surge. At this point, South hooked up with Peter Barge, an entrepreneurial figure already successful in the hospitality game. Barge would not only join him to establish Horwath and Horwath’s tourism and leisure services, but remain a life-long mentor and friend. It was Barge who later influenced South to step beyond the security of the accounting world, and into the far riskier environment of property. “I’d been 20 years in the accounting profession. It was 1988, I was heading for 40, and I guess I reached the point where you question whether you’re content to watch others succeed based on your advice, or you want to get out there and try it yourself. “Peter and Bill Cross of Colliers Hotels and Leisure wanted me to join them. They

believed I had all the ingredients needed and all they had to do was teach me to sell. “It was good in theory, but I arrived just in time to see the Japanese disappear over the hill,” South says with a wry laugh. “It was tough. I don’t think I got my first deal away until the end of my first year. “But, while Peter and Bill went off to set up TransAct (later JLW TransAct, ultimately Jones Lang LaSalle Hotels), I stayed with Colliers for five years, had some success, learned a hell of a lot, and broadened my horizons beyond Australia considerably.” By “some success”, he means hotel sales on the scale of Sydney’s Southern Cross and Airport Hilton and the Hotel Ibis Melbourne. But, though he didn’t know it then, more important to Tony South’s future would be the introduction Colliers gave him to Asia. The next turn on life’s road took a different direction entirely. He accepted an offer to become managing director of the Sydney Convention & Visitors Bureau, and spent the next three years generating major tourism business for the city, primarily through lucrative international conferences. As he so often does, South refers to this period not in terms of his own achievements, but by explaining how the job enriched him. “It upped the ante in regard to my experience. It was a good steep learning curve, with the largest staff I’d ever managed, and working with fantastic people like Sandra Chipchase – then SCVB director of sales and marketing, now CEO of Destination NSW.” Before long, another challenge presented. Senior Accor executives David Baffsky and Michael Issenberg asked South to join Australia’s largest hotel investor, ASX-listed Tourism Asset Holdings Limited (TAHL), as managing director. Accor was the company’s major shareholder and operated all its assets. South saw this as the perfect opportunity to gain public company experience,

adding yet another level of expertise to his growing skill set. He ran the operations of TAHL, with a $600 million, 4000+ room hotel portfolio, for three years. Then came the move that would launch a period South describes as the most enjoyable and satisfying of his career. He was taking a much-deserved sabbatical (his contract had concluded, TAHL was privatised and its operations taken in-house by Accor), when Australia’s Southern Pacific Hotel Corporation came up for sale. Bass Hotels and Resorts beat other contenders Accor and Hilton to the prize. “I got word they were looking for someone,” South said. “Bass, an outpost of a London-based FTSE 100 company, and Southern Pacific, a homegrown Australian product, needed to be pulled together. I got the job when the deal was finalised in early 2000.” For two years, he remained in Australia as chief operating officer of Six Continents Hotels (later Intercontinental Hotels Group) with over 50 properties, 10,000 rooms and 8000 staff across Australia, New Zealand and the South Pacific. “Then I was asked to go to Singapore to help expand their businesses development function. This is where my skills really lay and I jumped at the opportunity to go to Asia again and get back into the property side of the business,” South said. But the practicalities of supporting their now young adult children, looking after aging parents, and maintaining the family home meant his wife Lyn would stay in Australia. South commuted as often as monthly. Little did they know he would stay with IHG in Singapore for another nine years. “It was very tough. I must have the most understanding wife in the world. We just celebrated our 40th wedding anniversary,” he says with obvious pleasure. “But from a business perspective, my time with IHG was incredible. If I regret anything, it is that I didn’t find them earlier.” This was a huge conglomerate, active

in brewing, pubs, restaurants, soft drink and hotels, which by now included the Crowne Plaza, Holiday Inn and InterContinental brands. South was there when IHG moved to divest all other arms of the business to focus purely on hotel growth. And he was there when they took the decision to go asset-light, selling 200 hotels worth about $6 billion over four or five years. “In the space of three to five years, IHG totally transformed itself, and to be involved was so interesting, particularly running development around Asia Pacific, where a lot of the deals were being done. I love Asia and really enjoyed doing business there,” he said. South’s time with IHG included a six-month stint in 2007 as Acting Chief Executive, Asia Pacific (he didn’t consider the permanent gig) and concluded with his retirement in 2011. He had been Chief Development Officer, Asia Pacific since 2008. A measure of the high regard in which he was held is in the carefully chosen parting gift presented during a board dinner at the Intercontinental Park Lane, London. No gold watch for South! The proudly self-proclaimed “petrol head” found himself shaking the hand of three times World Touring Car Champion, Andy Priauix, and accepting the very helmet Priauix had worn competing that year for Team BMW in the Intercontinental Cup at Le Mans. In retirement – if you could call it that – South is happily residing at home in Australia and directing his considerable leadership skills toward two great passions – tourism accommodation and motorsport. Chairmanship of TAA sees him helping to rebuild the AHA’s stocks within the accommodation sector after major chains including Accor, Mantra, Toga, InterContinental and Mirvac defected to the Accommodation Association of Australia (AAA) in 2011. > Please go to next page RESORTBROKERS.COM.AU 41

Editorial > From previous page TAA is the accommodation hotel arm of the AHA partly formed in response, focusing exclusively on representing the needs and interests of substantial accommodation operators and owners. “The AHA Board recognised that the accommodation sector felt the AHA was primarily a pub, alcohol and gaming lobby group. It moved decisively and quickly to understand the root causes of dissatisfaction, create and commit to fund a five-year plan and relaunch its previous Accommodation Division as TAA. So we now have a body, budget and business plan dedicated solely to the accommodation sector,” South said. “A major advantage TAA provides is access to the immense resources of the AHA, with its powerful clout, to help develop the accommodation sector and promote its interests. “We started with three or four major chains as members and, after year one, we have 23. We still haven’t got Accor, Mantra, Quest and Toga, but the aim

42 RESORTBROKERS.COM.AU

in my second year is to get those guys represented on the board. Already there is talk of a merger.” South’s other board appointment must make him feel like a kid in a lolly shop. The man who has loved cars all his life is now a Director of the Confederation of Australian Motorsport Ltd (CAMS), following a chance meeting with its president on a flight home from Adelaide’s Clipsal 500. Apart from his obvious business credentials, South can hold his head up on the board as the proud driver of a 1970 Ford Escort club rally car, owner of “a couple of old Mercedes and a 1973 Ferrari Dino”, and an occasional competitor in Aussie Racing Cars, including a couple of outings on the Australian F1 Grand Prix programme. Mostly Tony South is pleased to be back with his family. He enjoys boating, aboard a 53-foot Riviera sports yacht he owns in partnership with old mate Peter Barge and his successor at IHG, Paul Logan. And he has no intention of returning to

full-time work. “I’m leading an interesting and fulfilling life. It’s probably busier than I’d like, but I’ll get the balance right one day,” he laughs. “I’m slowly learning to say no.” Footnote: This month, Tony South will be presented with the HICAP (Hotel Investment Conference Asia Pacific) Trailblazer Award. The award is presented selectively to an individual who embodies a trailblazer’s spirit, successful in leading the industry in new directions and to new levels, and contributing to the hotel industry at large. In a delightful twist, the inaugural winner of the HICAP Trailblazer Award in 2009 was Peter Barge, who had gone on to be Chairman and CEO of Jones Lang LaSalle Asia Pacific and Global Chairman of Jones Lang LaSalle Hotels. And it was Tony South who presented that award to the man who had been his mentor and mate since the 1970s. This month, the tables will turn as Barge interviews South for the Trailblazer Award presentation.

EXCLUSIVE

Springfield Lakes 1st motel BRAND NEW 28 UNIT PROPERTY

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 3999 Email: iandore@resortbrokers.com.au

Projected nett profit: $280,000 PRICE: $925,00

his opportunity is located in the heart of the major commercial area of Springfield Lakes and is next door to a large shopping centre. Springfield Lakes is just 30km south west of Brisbane’s CBD. The area has been developed over the last 15 years and now boasts a population of 27,000 people. Imagine owning the only motel in this fast growing precinct! Springfield Lakes is home to the SQ Campus, which is about to double in size, as well as a new 12,000 sqm building serving as head office to the major worldwide brand, GE. Additionally, rumour has it that there is a 296 bed Mater Hospital about to be announced. In fact, ground works have already started.

Springfield Lakes has fantastic infrastructure including 7 schools and a direct railway line to the city (open in October 2013). This will reduce travelling time to Brisbane to just 25 mins. This property is ideal for an experienced operator looking to capitalise on the commercial trade and population boom set to bring assured business. • 28 magnificently designed units • A mix of studio and 1 bedroom units • Quality brand-new fit out • Fully air-conditioned throughout • Foxtel • In-ground pool • 60 seat ground floor restaurant that opens onto the pool • Cosy cocktail bar • 4 star • To be branded by Best Western Worldwide • Full accountant projected figures • New 30 year lease Call us today for an inspection, you won’t be disappointed! RESORTBROKERS.COM.AU 43

OVERVIEW OF ARENA, SOUTH BRISBANE

DEVELOPER BACKGROUND

Australia’s top investment suburb South Brisbane will soon be home to a breathtaking development boasting innovative landmark architecture, unrivalled residential amenity, spacious designer quality interiors and stunning CBD views. Developed by Sydney based Galileo Group and designed by renowned Brisbane architect Ellivo, Arena is set to raise eyebrows for both investors and owner occupiers with no expense spared.

Galileo Group is a diversified independent real estate specialist with expertise in development, funds management, transactions and financing. Galileo’s current projects include “The Residence” in East Sydney, a premium residential development project recently completed in joint venture with AMP Capital Investors and Cbus Property, and Metro Residences Chatswood, a major residential project comprising 553 apartments over three towers currently under construction above Chatswood Transport Interchange. Metro Residences Chatswood is a joint venture project with ISPT, one of Australia’s leading property fund managers.

For convenience there’s nowhere better placed in South Brisbane. Set along the vibrant Boundary Street retail spine, everything is within a short walk, from shopping, dining, universities, schools, parklands and world class cultural facilities. At your doorstep is Brisbane’s fast growing West End dining and entertainment precinct – an energetic cultural blend of trendy new restaurants, cafes, bars, clubs and retail.

44 RESORTBROKERS.COM.AU

LOCATION Explore your new world city. Go forth and prosper. Wherever you want to be, whatever you want to do, you’re never far from the action. Walk or bike to the CBD, the thriving education and arts quarters, the riverside, the dining. Right on your doorstep you have the best of all worlds. From your lounge room, you’re up close and personal with the best of Brisbane. Going further afield? South Bank cultural centre busway and railway station are also nearby.

THE MANAGEMENT RIGHTS OPPORTUNITY These stylish inner city abodes provide a sensational lifestyle in one of Brisbaneâ&#x20AC;&#x2122;s most popular suburbs. Comprised of 191 architecturally designed apartments with a mix one, two and three bedrooms. The highly acclaimed Galileo Group presents Arena Apartments. The market reflects very strong investor interest in South Brisbane due to very low vacancy rates and fantastic rents achieved in the area. The developers and exclusive residential sales agents believe they will achieve 80% investors in the development and 20% owner occupiers. PROJECTED NETT: $610,696 | EXPRESSIONS OF INTEREST

Resort Brokers Australia and Galileo Group have engaged industry specialist accountants Holmans to prepare income projections for the sale of the management rights. The complex will be equipped with the most cutting edge technology including an online program where tenants and owners can lodge jobs or requests for the manager or body corporate committee. The combination of no set office hours and this cutting edge program enables the manager to concentrate on the job at hand. The property boasts a fantastic body corporate salary on a brand new accommodation module of 25 years. This opportunity has incredible upside for a incoming purchaser.

INTERESTED? LOOKING FOR MORE INFORMATION? WHY NOT GIVE RESORT BROKERS AUSTRALIA A CALL TODAY Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999

Steve Campbell EXCLUSIVE AGENT Mobile: 0407 220 668 Brisbane office: (07) 3878 3999

Email: timcrooks@resortbrokers.com.au

Email: stevecampbell@resortbrokers.com.au

RESORTBROKERS.COM.AU 45

Both Ormskirk and Menser Mews (below) are 1km apart and could be purchased together to increase your income?

EXCLUSIVE

If you are looking for a small add on to your existing business or just want something small to get you started in management rights then Ormskirk on the Park is the property for you.

Sought after off the plan management rights CALAMVALE BUSINESS ONLY

There is minimal gardening and small lawns. The development is located on Ormskirk Street and is nearing completion, the estimated date being the end of April 2013. This truly is a fantastic opportunity. There is no requirement to live on site or buy a managers unit. So jump in now and pick your own tenants.

• The development is of a high standard of construction • Minimal caretaking work • No pool • Great location next to renowned Calamvale district park • It is projected that all units will be in the letting pool • Calamvale is located in the booming South side of Brisbane

• Business only no requirement to buy a unit

A fantastic opportunity!

EXCLUSIVE

Nett profit: $56,350 (proposed) PRICE: $225,440 + GST

David Janett EXCLUSIVE AGENT Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

REF: MR002299

Both Ormskirk Park (above) and Menser Mews are 1km apart and could be purchased together to increase your income?

Pick of the bunch SUPERIOR CALAMVALE PROPERTY Nett profit: $105,000 PRICE: $849,750

David Janett EXCLUSIVE AGENT Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

REF: MR002244 46 RESORTBROKERS.COM.AU

If you are looking for a nice lifestyle property that could be worked by one person then this is the pick of the bunch! The gardens are mulched and self maintaining, mowing is minimal. The income is very good with room to increase. This management rights is in a great location and comes with a separate office. This means you could live offsite and rent out the managers unit.

The complex is very quiet and peaceful. Owners have already started looking for their next complex! • 3 bedroom, 2.5 bathroom managers residence with separate office on title • Work for 1 with income for 2 • Great starter sized complex • Located in the ever popular south side • No office hours - you only have to be contactable by phone • Able to live off-site • Be your own boss • Very flexible lifestyle could suit a stay at home mum or dad

EXCLUSIVE

This charming little complex consists of 54 units that are a mix of duplexes and freestanding townhouses. The community presents beautifully, with a calming serene feel. It is perfectly located with easy access to the CBD, PA Hospital, Mater Hospital and Griffith University. It has convenient public transport and bikeway access to the city or coast via the express busway. Weller Road State School is within walking distance. This managers townhouse really is a home, perfect for a couple or small family with the option of 3 bedrooms or 2 bedrooms plus office. It has an elevated position with a private courtyard plus pergola and grassed area with outlook to gardens.

Get zen in this serene community STRONG YIELD Benefiting from a renovated kitchen, airconditioning, near new carpet, there is no more to spend on this low maintenance property. Priced to sell – vendors selling to purchase a larger complex. • 3 to 4 day a week garden maintenance • $100,523 Body Corporate Salary • Renovated 3 bedroom and 1 bathroom unit

Nett profit: $100,523 PRICE: $745,000

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

REF: MR002310

EXCLUSIVE

The perfect ‘ad-on’ property MANAGEMENT RIGHTS - PORT DOUGLAS Nett profit: $70,000 PRICE: $525,000

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

REF: MR002333

Currently owned by Latitude 16, Tropic Sands consists of 15 apartments in a two level walk-up. This property offers a sole operator the advantage of being a part of a larger buying group, with benefits incorporating costs structures, laundry, and marketing. The managers residence is a large ground floor unit with 3 bedrooms, 2 bathrooms, large patio and office attached.

agreements on settlement. This is the perfect add-on property offering one bedroom apartments for a sole and hands on operator. • 15 apartments • New 25 year agreements • Large 3 bedroom managers residence • Office attached and on title • Located close to Macrossan Street and 4 Mile Beach • Two level walk-up • EZI-REZ • Unit valued at $350,000

The premise will have new 25 year RESORTBROKERS.COM.AU 47

Glenn Millar - Sunshine Coast, Hervey Bay & Discovery Coast Our agents pride themselves on their local knowledge. They each look after a geographical patch, and grow to learn it intimately. We feel this adds greatly to the confidence with which a property can be sold. In this new feature we will get some thoughts on their local area and will also learn a bit about their personalities. Tell us about your area

What drives business in your area?

How did you end up at Resort Brokers?

Unlike Coop’s area( featured in the last profile), my region is predominately the Sunshine Coast. However, I have sold a few management rights in Agnes Water and I have started travelling to Bargara and Hervey Bay recently. My area is condensed, with approximately 200 management rights businesses in this zone. The mix is predominately holiday complexes with a small smattering of permanent facilities, although these a few and far in-between.

The Sunshine Coast has always had a strong tourism focus with a range of natural attractions and stunning climate. With new developments such as the Kawana Health precincts, with two new hospitals and associated industries, I see growth in the short term corporate sector.

Somewhat as a slip of the tongue actually. I happened to mention to one of the Resort Brokers agents at the time “I should come and work with you”, the next day I was interviewed by the then Sunshine Coast manager and the rest is history. I am in my eighth year with the company and loving it.

What did you do before Resort Brokers?

What do you do in your spare time?

I have always been in tourism related industries commencing in the shaky isles in many roles from ski field operations to managing the world famous Milford Track.

Maintaining my huge acreage (5 acres), spending time with family, travelling to new destinations and trying to perfect my newfound sport of kite surfing on Noosa North shore (just learning).

Your thoughts on your area The Sunshine Coast region in unique in many ways. Buyers often strongly delineate between Noosa Maroochydore/Mooloolaba and the Caloundra areas and often have strong ideas of where the want to be. There is a growing buyer demand for this region and supply and demand always dictates prices. I feel the market is turning having had the best season for many years and having seen increased sales activity over 2013. 48 RESORTBROKERS.COM.AU

Moving to Australia in the early 80’s, I continued with management roles in a number of hotel groups, then co-formed a company that specialised in turning around distressed hotels, which included taking over management rights across Queensland and getting them up and running again.

Do you have a nickname? I seem to have been given the nickname “Big Band” - I can’t think why though.

What annoys you? People that are constantly late for appointments

Relief managers DIRECTORY We have many more relief managers in our directory. Please contact us if you require a full list. Please note that this is a directory only. Resort Brokers Australia do not interview or qualify any of the managerâ&#x20AC;&#x2122;s below. Name: Delwyn and John Gane Mobile: 0421 987 462 Email: N/A Manager type: Motel Location: SE Qld / Central Qld

Name: Ray and Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park Location: South Qld / Nth NSW

Name: Llew and Trisha Pointon Mobile: 0400 035 359 Email: llewp@tpg.com.au Manager type: Motel Location: Nationwide

Name: Steve and Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel Location: Nth / Coastal NSW

Name: Graeme Fillipe and Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Motel Location: South Qld / Nth NSW

Name: Simon and Anne Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: Motel Location: Nationwide

Name: Phillip and Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motels, MR & CP Location: Nationwide

Name: Bob and Judy Sheppard Mobile: 0419 784 215 Email: bj.sheppard8@bigpond.com Manager type: N/A Location: NSW

Name: Sue and Hubert Rietberg Mobile: 0418 883 233 Email: sueandhugh@iinet.net.au Manager type: All properties Location: Brisbane / Sunshine & Gold Coast

Name: Lyne and Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motels Location: Nth / Nth East NSW

Name: Chris and Carmel Moloney Mobile: 0400 483 291 Email: ccmoloney-315@hotmail.com Manager type: Motels Location: Nationwide & N.Z.

Name: Michael Hunter Mobile: 0439 950 900 Email: N/A Manager type: Motel Location: Qld

Name: Carol and Harry Turnbull Mobile: 0428 399 733 Email: N/A Manager type: N/A Location: Nationwide

Name: Peter and Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Motel / MR Location: Qld

Name: Robyn and William Campbell Mobile: 0409 838 856 Email: rgcampbell@hotmail.com Manager type: N/A Location: Nationwide

Name: Louise and Siggy Dannell Mobile: 0408 901 927 Email: lsdannell@bigpond.com Manager type: All Location: East SA

Name: Paige Renshaw Mobile: 0438 847 941 Email: paigeandrea@hotmail.com Manager type: Management Rights Location: Nationwide

Name: Karla Harding Mobile: 0414 767 499 Email: bnbangel@fastmail.net Manager type: B&B / Guesthouses Location: Nationwide

Name: Sylvia and Gilbert De Michiel Mobile: 0419 204 773 Email: sylvia@anzacs.net Manager type: N/A Location: East Vic / Qld / NSW

Name: Gary and Robyn Loakes Mobile: 0408 798 352 Email: grl21@bigpond.com Manager type: All Location: Nationwide

Name: Scott Walters Mobile: 0488 726 888 Email: dougie.71@hotmail.com Manager type: Management Rights Location: Nationwide

Name: Tony and Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel / Motel / CP Location: West Qld

Name: Anastasia and Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort Location: SE / NE Qld

Name: Jan and Allen Morton Mobile: 0417 529 129 Email: N/A Manager type: N/A Location: Sunshine Coast

Name: Christopher Hillman Mobile: 0488 550 005 Email: christopher.hillman@bigpond.com Manager type: Motels, MR, Resorts Location: Nationwide - Capital Cities

Name: Paul and Arlene Moore Mobile: 0404 855 711 Email: pfandammoore@live.com Manager type: Hotel / Motel / CP Location: Qld & NSW Name: Greg and Linda McWhirter Mobile: 0409 882 803 Email: thamacz@octa4.com.au Manager type: Motels Location: Nationwide

Name: David and Belinda Gustafson Mobile: 0403 219 562 Email: gustafsondavid@hotmail.com Manager type: N/A Location: NSW / Qld

Name: Elisabeth Grimm Mobile: 0414 751 142 Email: yellowroses4me2222@yahoo.com.au Manager type: Management Rights Location: Gold Coast

Name: Sabrina Simmonite Mobile: 0410 926 221 Email: qldreliefmanagers@bigpond.com Manager type: Management Rights Location: Brisbane, Sunshine & Gold Coast RESORTBROKERS.COM.AU 49

Industry Specialists a [

]

RESORT MANAGEMENT ADVISORS

SPECIALISTS IN: Review of operations | Pre-opening planning Owner representation | Operations management For professional assistance contact: tjshort@attglobal.net or phone 0413 752 717

Management rights experts

Getting the right legal advice is critical - don’t put your management rights investment at risk. Frank Higginson, Sharon Flood and the team at Hynes Lawyers can assist you with all your management rights needs. Frank Higginson frank.higginson@ hyneslawyers.com.au

Sharon Flood sharon.flood@ hyneslawyers.com.au

Subscribe to our newsletter at marketing@hyneslawyers.com.au.

Specialising in Hotels & Motels Management Rights Caravan Parks Child Care Centres

Service Stations Residential Development Industrial Commercial & Retail

BRISBANE P 07 3226 0000 F 07 3226 0099 E mailbris@lmw.com.au | www.landmarkwhite.com.au

THE MANAGEMENT RIGHTS LAWYERS Servicing resident unit managers throughout Queensland and New South Wales Brisbane 07 3007 3777 Level 15, 167 Eagle Street Brisbane Q 4000

Gold Coast 07 3007 3777 Corporate House, 155 Varsity Pde, Varsity Lake Q 4227

Buying or selling Hotels Caravan Parks, Motels, Management Rights? Call (07) 3220 1144 or email@hillhouse.com.au

www.hillhouse.com.au

 Specialist Business Advisor to the Accommodation Industry  Specialist Business Advisor to the Accommodation Industry  Verifications Reports  Verifications Reports  Trust Account Audits  Trust Account Audits  Business Services  Business Services  Taxation Specialist Business Advisor to the  Taxation  SpecialistAccommodation Business Advisor to the Accommodation Industry Industry  Accounting  Accounting Verifications Reports Verifications Reports | Trust Account Audits | Business  Benchmarking Benchmarking Trust Account Audits

Services | Taxation Accounting | Benchmarking

Sunshine Coast Brisbane/Gold Coast  Business Services Sunshine Coast JohnCoast Siemon Brisbane/Gold Sam Hodgetts John Siemon Sam(07) Hodgetts (07) 5474 8955  Taxation 3421 3421 (07) 5474 8955 (07) 3421 3421  Accounting Email: cpa@mcadamsiemon.com.au Email: www.mcadamsiemon.com.au cpa@mcadamsiemon.com.au  Benchmarking www.mcadamsiemon.com.au ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’ Sunshine Coast Brisbane/Gold Coast ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’ John Siemon Sam Hodgetts (07) 5474 8955 (07) 3421 3421 Email: cpa@mcadamsiemon.com.au www.mcadamsiemon.com.au ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’

Valuations and Property Advice Specialists in Accommodation Properties and Businesses Prepurchase advice, preparing for sale, rent assessment, and valuation panellist for a wide range of banks.

Owen Barbeler (07) 3620 7900

Owen Barbeler

Brisbane T: 07 3620 7900 E: owen.barbeler@m3property.com.au

Looking to reach the accommodation and tourism industry? Why not advertise here. You will see a range of industry specialists are advertising in our widely read Informer. Circulation - 7,500 - mailed hard copies and 15,350 - sent digitally If you would like a company advert on this page please contact: Carla Cook: 0467 600 611 or email us carlacook@resortbrokers.com.au

Associate Director

50 RESORTBROKERS.COM.AU Owen has worked in the valuation industry since 2002 and specialises in going concern valuations.

Qualifications > Bachelor of Business Management (Real Estate and Development), University of

Exclusive Listings You won’t see these fantastic properties anywhere else! PERM/ TEMP

DESCRIPTION

PROPERTY TYPE

LOCATION

UNITS

NETT

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Management Rights

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Highly Profitable fully Refurbished 3.5 Star Freehold Motel

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RESORTBROKERS.COM.AU 51

Trade Page Got a property (or something else) & willing to trade? Welcome to our trade page

KINGS BEACH MANAGEMENT RIGHTS This Kings Beach management rights boasts a 3 bedroom, 2 bathroom managers unit. Only a short walk to beach and a 87k+ nett income. Vendor will consider a house or unit in Queensland up to the value of $500,000 as part payment. Tyler Millar - 0411 271 761

OPERATIONAL MOTEL FOR THE PRICE OF A HOUSE Will trade income producing or other real estate. (conditions apply). Subdividable property in town STCA. Located in Beautiful Eden Coastal NSW. Price: $650,000

Russell Rogers - 0416 166 909

WILL TRADE HOUSE OR APARTMENT TO VALUE OF $800K Seller is offering massive sub-penthouse in Main Beach with large North and South facing views of the entire Gold Coast offered for sale $2m plus. Contessa is situated on over 2 acres of manicured grounds. Keys Realty at Main Beach in conjunction with Resort Brokers

MAIN BEACH PENTHOUSE PLUS CASH!! An opportunity presents itself to take this very modern fully renovated 2 level penthouse as part payment for your income producing commercial property. Spacious 442m2 offering a choice of indoor and outdoor entertaining lifestyles. (Penthouse value is $2.65m + cash for your property). Keys Realty at Main Beach in conjunction with Resort Brokers

Ian Crooks - 0411 171 648 | Jim Keys 0418 753 595

GOLD COAST PROPERTIES TO TRADE PLUS CASH!! Two Gold Coast properties one at Main Beach and the other at Budds Beach. $2.4m plus cash to $3m to $4m, for income producing commercial property under management, or low cost housing or unit development site ready to start!!. Keys Realty at Main Beach in conjunction with Resort Brokers Ian Crooks - 0411 171 648 | Jim Keys 0418 753 595 52 RESORTBROKERS.COM.AU

MAIN BEACH LUXURY PENTHOUSE FOR EXCHANGE Regarded as the best residential complex in Main Beach Liberty Pacific Penthouse owner will exchange for income producing commercial property under management. Keys Realty at Main Beach in conjunction with Resort Brokers Ian Crooks - 0411 171 648 | Jim Keys 0418 753 595

TRADE $350,000 BOAT FOR MOTEL LEASE Will trade for lease or part payment of lease to the value of up to $350,000. Ever dreamed of whiling away the hours on the ocean. Trade your motel lease for this fabulous boat. Contact Shane for more details about the boat. Shane Wynhoven - 0424 174 592

WILL TRADE UP TO $2M AGAINST MOTEL OR MR Will trade up to $2m against either a motel or management rights. House details are as follows: dual family home with separate entries, large 1060m2 waterfront block Gold Coast and 5 bedroom, 3.5 bathrooms and 2 car garage. House value $875,000

ABSOLUTE BEACHFRONT GOLD COAST On offer, the most fabulous apartment with steps onto the beach plus a small management rights making it the perfect retirement business for you. Price $970,000 however the current vendor will trade your house or apartment up to $650,000 as part payment. Call us today!

Ian Dore - 0412 752 238

Carolyn Griffith - 0419 675 429

Recently Sold Resort Brokers Australia has sold and settled 21 properties since the 15th January 2013. We have a further 57 properties under contract

MANAGEMENT RIGHTS CLEVELAND, QLD

FREEHOLD MOTEL BOWEN, QLD

FREEHOLD MOTEL LISMORE, NSW

LEASEHOLD MOTEL BENDIGO, VIC

FREEHOLD MOTEL MURWILLUMBAH, NSW

FREEHOLD CARAVAN PARK BLI BLI, QLD

MANAGEMENT MANAGEMENTRIGHTS RIGHTS MILTON, QLD GYMPIE

INVESTMENT MOTEL MANAGEMENT RIGHTS MOSSMAN, GYMPIEQLD

MANAGEMENT RIGHTS PARKINSON, QLD

FREEHOLD MOTEL ORANGE, NSW

LEASEHOLD CARAVAN PARK LAVINGTON, NSW

MANAGEMENT RIGHTS SMITHFIELD, QLD

LEASEHOLD MOTEL COWRA, NSW

LEASEHOLD MOTEL KATOOMBA,NSW

MANAGEMENT RIGHTS SOUTH BRISBANE, QLD

LEASEHOLD MOTEL MACKAY, QLD

MANAGEMENT RIGHTS SURFERS PARADISE, QLD

LEASEHOLD MOTEL MERIMBULA, NSW

LEASEHOLD MOTEL QUEENSCLIFFE, VIC

MANAGEMENT RIGHTS GOLD COAST, QLD

RESORTBROKERS.COM.AU 53

Our team Ian Crooks

MANAGING DIRECTOR NATIONWIDE

David Janett

BROKER SOUTH & WEST BRISBANE

Andrew McQualter

BROKER SOUTHERN GOLD COAST

James Carrick

BROKER NEW ENGLAND & CENTRAL COAST, NSW

Brooke Kelly

RECEPTION / OFFICE ADMINISTRATION

54 RESORTBROKERS.COM.AU

Glenn Millar

BROKER SUNSHINE COAST

Alex Cook BROKER GOLD COAST

Russell Rogers

BROKER SOUTH COAST, NSW

Julie Davidson

NATIONAL TEAM MANAGER

Trudy Crooks

SALES MANAGER / BROKER NATIONWIDE

Tyler Millar

BROKER SUNSHINE COAST

Lynn Booth BROKER CENTRAL QLD

Shane Wynhoven BROKER SYDNEY CBD, NSW

Sarah Wilkinson

OFFICE ADMINISTRATOR

Tim Crooks

BROKER CBD & SOUTH BRISBANE

Lindsay Cooper

BROKER WEST QLD & NTH NSW

Steve Campbell

BROKER BRISBANE CBD & SURROUNDS

Ian Dore

BROKER NTH. NSW & GOLD COAST

Len Booth

Shane Mullins

Jim Chapman

Stuart Charles

BROKER CENTRAL QLD

BROKER NORTH EAST, VIC

Emma Krause

ACCOUNTS MANAGER

BROKER FAR NORTH QLD

BROKER WEST, VIC

Dianne Atkinson

FINANCIAL CONTROLLER

Neville Littleton BROKER BRISBANE NORTH

Carolyn Griffith

BROKER CENTRAL GOLD COAST

Chris Rowe BROKER NORTH QLD

Gerard Hurry

BROKER NORTH WEST, VIC

Carla Cook

MARKETING MANAGER

Directory QUEENSLAND BRISBANE - HEAD OFFICE Telephone: Facsimile: Email: sales@resortbrokers.com.au

07 3878 3999 07 3878 1199

362 Montague Road, West End Qld 4101

CBD & SOUTH BRISBANE Management Rights Tim Crooks NORTH BRISBANE Management Rights Neville Littleton CBD & BRISBANE Motels/ Management Rights Steve Campbell SOUTH WEST BRISBANE Management Rights David Janett

NORTH QUEENSLAND Motels / Pubs / Caravan Parks / Management Rights Chris Rowe 0408 225 220

NORTHERN TERRITORY

PO Box 5004, West End Qld 4101 NATIONWIDE Ian Crooks - Managing Director Trudy Crooks - Sales Manager

FAR NORTH QUEENSLAND Motels / Pubs / Caravan Parks / Management Rights Shane Mullins 0447 185 001

0411 171 648 0477 882 210

Motels / Pubs / Caravan Parks / Management Rights Chris Rowe 0408 225 220

NEW SOUTH WALES

0422 208 450

Telephone: Facsimile: PO Box 78, Freshwater NSW 2069

02 9904 8224 02 9904 8867

0407 727 194

NORTHERN NSW Motels/ Management Rights Ian Dore - Northern NSW

0412 752 238

0407 220 668

CENTRAL/ NORTH WEST NSW Caravan Parks / Pubs/ Motels Lindsay Cooper

0418 711 047

0404 204 672

SYDNEY CBD & GREATER SYDNEY & CENTRAL NSW Motels/ Backpackers / Management Rights Shane Wynhoven 0424 174 592

CENTRAL WEST/ SOUTH WEST/ SOUTH EAST QLD Caravan Parks / Pubs/ Motels Lindsay Cooper 0418 711 047

CENTRAL COAST & NEW ENGLAND, NSW Motels/ Caravan Parks James Carrick

0424 174 592

GOLD COAST Telephone: Facsimile:

SOUTH COAST, NSW Motels/ Caravan Parks Russell Rogers

0416 166 909

MAIN BEACH Motels/ Management Rights Ian Dore

07 5510 3900 07 5510 3111

VICTORIA 0412 752 238

NORTH GOLD COAST/ SURFERS PARADISE Management Rights Alex Cook 0467 600 610 SOUTHERN GOLD COAST Management Rights Andrew McQualter

0431 513 532

CENTRAL GOLD COAST Management Rights Carolyn Griffiths 0419 675 429 SUNSHINE COAST / DISCOVERY COAST / HERVEY BAY Management Rights Glenn Millar 0412 277 804 Tyler Millar 0411 271 761 CENTRAL QUEENSLAND A/h: Facsimile:

07 4155 6330 07 4155 6440

Motels Len Booth

0438 139 422

Telephone: 03 9347 3100 Facsimile: 03 9347 3111 PO Box 1100, Carlton VIC 3053 NORTH EAST VIC Motels/ Caravan Parks/ Management Rights Jim Chapman 0413 444 782 WEST VIC Motels/ Caravan Parks Stuart Charles

0458 588 472

NORTH WEST VIC Motels/ Caravan Parks Gerard Hurry

0417 250 211

TASMANIA Motels/ Caravan Parks Jim Chapman

0413 444 782

RESORTBROKERS.COM.AU 55

QUEENSLAND OFFICE PO Box 5004 West End, QLD 4101 (07) 3878 3999 NEW SOUTH WALES OFFICE PO Box 78 Freshwater, NSW 2096 (02) 9904 8224 VICTORIA OFFICE PO Box 1100 Carlton, VIC 3053 (03) 9347 3100 facebook.com/resortbrokersaustralia resortbrokers.com.au

The original and still No. 1