resortnews Issue 260 | April 2018 | $13.75 inc. GST
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The Monthly Magazine for Accommodation Industry Professionals
Special Report: The big problems with booking direct
Profiles: Il Mondo Boutique Hotel Property Bridge
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MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING
GOLD COAST
A LITTLE GEM IN THE HEART OF LABRADOR This complex is made up of 18 townhouses/duplexes, is easy to maintain and there is the opportunity to build the letting pool to 6 units. Manager’s unit is a spacious 3 bedroom duplex with a renovated modern kitchen, new appliances and beautiful flooring. The current manager makes an extra $8,000 p.a. carrying out gardening duties for owner occupiers and landlords over and above Body Corporate salary.
Jonathan Shorter 0405 537 600 – jonathans@raas.com.au
Nett: $25,072
Total Price: Offers Over $510,000 BRISBANE
CORPORATE, CLOSE TO THE CITY Very attractive building in great location. Not many units to look after but great big income!!! This complex is easily managed with very good repeat corporate business. You won’t find much better than this, for the value, in this area so be quick with this one!!! There is $25,000 of external rentals in the total income that are less than 2 kl from the main office Call for an inspection now!!! Income has been verified by MR accountant as has value on unit.
Robert Collins 0404 678 792 – robertc@raas.com.au
Nett: $210,000
Total Price: $1,558,000
GOLD COAST
CUTE LITTLE HOLIDAY BUILDING IN THE HEART OF COOLIE Cute little Holiday building the heart of Coolie. Right on the beachfront you can’t get much better. Can be run by one person. Current owner has been there for 18 years and has a nice solid income. Lovely 2 bedroom apartment with a private ground floor balcony with lovely breezes. Office is on title.
‘Lushy’ Kerrie Lush 0416 084 693 – kerrie@raas.com.au
Nett: $82,772
Total Price: $950,000 WIDE BAY
HERVEY BAY BEAUTY The accountants numbers in this investment speak for themselves; a business managed by 1 person, a low multiplier and spacious managers unit make for an exceptional investment opportunity. Either jump in and manage it yourself for excellent returns whilst living in the tourism heart of Hervey Bay - the access point to Fraser Island and the annual Humpback Whale migration season. Or purchase and appoint a quality manager and still get around 12% ROI. The current manager has been here for 11 years and wants to retire!!
Ronnie Slebos 0414 964 333 – ronnie@raas.com.au
Nett: $307,000
GROW YOUR BUSINESS
INCREASE YOUR INCOME
Total Price: $1,600,000
PROTECT YOUR INVESTMENT
Phone 07 5593 0007 www.raasrights.com.au
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Inside Editor's Note
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Building Rectification: High standards for tall building refurbs
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ARAMA Report
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Keeping House
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Building Rectification: Reducing the hysteria around combustible cladding
Rosie Clarke - Editor r.clarke@resortpublishing.com.au Graham Vercoe - Industry Reporter Mandy Clarke - Industry Reporter Lauren Butler - Junior Industry Reporter CONTRIBUTORS Andrew Morgan, Andrew Staehr, Arvo Elias, Chris Irons, Chris Novak, Col Myers, Frank Higginson, John Punch, Jonathan Hanaghan, Mike Phipps, Simon Barnard and Trevor Rawnsley. PRODUCTION production@resortpublishing.com.au ADVERTISING Stewart Shimmin s.shimmin@resortpublishing.com.au SUBSCRIPTIONS $165 for 12 Months/$297 for 24 Months Gavin Bill - Services & Subscriptions subscriptions@resortpublishing.com.au
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Il Mondo Boutique Hotel: personality and charm
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Profiles:
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resortnews | april 2018
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Editor's Note
Sick of OTA talk yet?
| front desk
Rosie Clarke Editor r.clarke@resortpublishing.com.au
Duopoly is the word on everybody’s lips this month. It’s a big topic of conversation because it impacts everyone within the Australian accommodation industry and yet not much is changing for the better any time soon. We are starting to see more and more people vocalise their criticisms, like AAoA’s Richard Munro, who said: “Our members have been forced to swallow constant increases in commissions imposed on them by Expedia and Priceline, rising from 5-10 percent to the point where many operators are now paying 20-25 percent per room booked. “Expedia and Priceline – who command almost 85 percent of all online accommodation bookings in Australia”, “pay little or no tax in Australia and employ very few Australians.” Monopolies, or duopolies in this case, happen when there’s a lack of market competition and once they happen, it’s hard to scale back. New OTAs pop up all the time and there are quite a few seedling Australia-based OTAs. The problem is that until they can match listings with Expedia and Priceline, or offer cheaper rates in some way, there isn’t much to incentivise their use among
90 percent of respondents claimed there were no changes to commission rates between July 2015 and June 2016
consumers. It’s a vicious cycle for accommodation providers, who want the most visibility they can get but also don’t want to feed into a marketplace where they feel they are being charged increasingly high commissions due to the nature of duopoly.
resortnews | april 2018
Talk of solutions tend to cycle back around to regulation. If commissions were regulated, would this level the playing field? If multi-national companies were taxed in Australia, would that level the playing field? Looking abroad to Europe, where rate parity was introduced in 2015 to regulate OTAs; a 2017 survey of hotels in the EU revealed that 90 percent of respondents claimed there were no changes to commission rates between July 2015 and June 2016. Sixtynine percent of hotels in the survey, which was carried out by a group of EU competition authorities commissioned by the European Competition Network, said that they did not differentiate between OTAs for room availability. This isn’t to say that the European rate parity changes won’t have a visible impact in future studies, but these results do add to the question: how can we encourage competition in the digital age? What’s your view? Write in and tell us. Thank you for your continued readership and as always, I hope you enjoy this month’s Resort News.
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industry | News in Brief
Scathing talk on damaging impact of online giants Expedia, Priceline and Airbnb were called out in Canberra as huge problems for the Australian accommodation industry by AAoA CEO Richard Munro.
“There are a number of Australiaowned agencies that have local offices, pay taxes and employ Australians," he said. “Every industry has competition. The focus should not be on the problem but rather the solution. Property managers should be forming strategic partnerships with reputable and reliable, local OTAs that are established in the local market and providing a service in Australia to Australians.
As part of an inquiry into impacts on local businesses from global internet-based competition, Munro argues that while tourism is a $52.9bn industry in Australia, multi-national internet corporations are making huge profits in Australia's accom sector but paying little-to-no tax in this country. He said: "Our members have been forced to swallow constant increases in commissions imposed on them by Expedia and Priceline, rising from 5-10 percent to the point where many operators are now paying 20-25 percent per room booked. "Expedia and Priceline – who command almost 85 percent of all online accommodation bookings in Australia", "pay little or no tax in Australia and employ very few Australians.
"Airbnb is facilitating noncompliant accommodation – by and large, its properties do not meet the same standards our members have to meet for building fire safety, they do not have the same insurance coverage, they do not comply with planning laws and they are not required to provide disability access. "On top of this, Airbnb employs very few people in Australia compared to our industry and it
has constantly dodged questions about how much tax – if any – it pays in Australia." Do you agree with Munro's sentiment that "this is not a levelplaying field"? In response, Australian Resident Accommodation Managers Association CEO Trevor Rawnsley told Resort News that there needs to be differentiation between overseas and Australia-based agencies.
“As for the Airbnb issue, if the problem is a lack of regulation in short-term accommodation, then the solution is management rights. “All management rights properties need to be able to be identified - and therefore licensed, and all management rights properties need to be registered with the local authorities,” adds Rawnsley, “so if all properties offering short-term accommodation were made to follow the same rules, the issues would be resolved.” Read Richard Munro's full opening statement on accomnews.com. au. ■
ACCC says yes to $1.2bn Accorhotels/Mantra merger The competition and consumer commission said that Accorhotels has different property types to Mantra, so merging won't restrict market-choice for guests. According to the watchdog: "Accor’s business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and ibis. Mantra’s focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands." Mantra Group describes itself as the "largest Australian-based hotel and resort marketer and operator" with more
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than 20,000 rooms under management for owners in properties across Australia, New Zealand and Indonesia. "The combined Accor-Mantra will still compete with other international and national hotel chains, as well as many independent hotels and accommodation providers," ACCC Chairman Rod Sims said. "The combined Accor-Mantra will have a large number of properties in some areas, particularly in certain holiday destinations in Queensland. However, in each case and after a detailed review the ACCC has found that there are also sufficient other options nearby for visitors which will provide
competition to Accor-Mantra," he said. "Mantra’s strong expertise in apartments, in particular, and our presence in resort locations
resortnews | april 2018
are very complementary to the AccorHotels operations in Australia and New Zealand," said Mantra chairman Peter Bush.■
industry | News in Brief
EXCLUSIVE: We spoke to Expedia about rate parity and guest communication... Resort News had a recent opportunity to interview Alejandro Moxey, the director of market management at Expedia. We asked him a few questions about some of the concerns our readers have raised over the last few months. Here's the Q&A: A lot of accom managers have voiced concern about rate parity, believing that they should be able to set their own rates lower than the rates placed on an OTA. What is your view and why do you think that should/shouldn't be the case? “It is important to look at the big picture: everyday millions of travellers come to our site to shop for and book travel. We are a live marketplace that delivers global and domestic demand to Australian hoteliers - last year alone, Expedia spent US$1.3bn in technology and US$5.2bn in marketing to the benefit of our hotel partners.
only receive compensation when the booking is made on Expedia’s platform - rate and conditions parity provisions with respect to the hotels’ own public websites (online direct channels) have been retained.” How do you believe guest communication should be structured? What's safest? Many managers have been recent targets of fraudulent behaviour (data or credit card thieves posing as guests), which can be difficult to spot over email versus the phone, for example. “To create an engaging relationship with customers, hotel managers can structure their communications according to the three stages of the guest journey: pre-arrival, during the stay and post-stay.
“In its contracts with hotels in Australia, Expedia has waived certain provisions relating to rate, availability and conditions parity with respect to OTAs, offline channels and unpublished rates.
“Specifically, in the pre-arrival stage, hotel managers can open lines of communication by reaching out to guests who have booked their stay. Once guests have arrived, managers can leverage tools like real-time feedback to discover potential issues during the stay, giving them the ability to rectify the issue before it impacts the guest experience and results in negative review.
“However, as there are no upfront costs for our hotel partners - we
“Last but not least, it’s important for hoteliers to engage with guests
after check-out so they can get actionable insights to enhance guest experiences, improve online reputation and attract more travellers in the future.” What elements of ‘communicating with guests post-trip’ do you think properties should engage in? Can you share stats that indicate how guests respond to different amounts of communication? My concern would be alienating guests who might get annoyed by too much communication. “Engaging with guests post-trip is important and demonstrates that hoteliers care about customer feedback and improving the guest experience. “Responding to questions and concerns in reviews from past guests is equally important. “Statistics show that 62 percent of guests are more likely to book a hotel if they see hotel management responding to reviews, and 87 percent of users agree that an appropriate response to a bad review improved their impression of the hotel. “Naturally, travellers often want to relive their experiences by posting reviews on travel websites. When it comes to reviews, Expedia equips
hotel managers with the tools to dive deep into insights relating to two key areas – amenities and services. You mention ‘competitive pricing strategies’ but for many smaller accom providers there is only so ‘low’ they can go before it’s not worth their while. How else can managers make themselves more competitive online? “Expedia is a live marketplace which means price and availability are changing in real-time while millions of travellers are shopping and booking on our sites. The hotels that perform best on our sites are those that deliver what consumers are looking for, such as high-quality photos, positive reviews, and the most competitive rates and availability. “While competitive pricing is important, it is important to note that it is only one component of a successful distribution strategy. “Further, being competitive doesn’t always have to specifically relate to price; value-added promotions, for example complimentary breakfast or a drink on arrival, late check-out, etc., can also be effective ways to differentiate your offerings against other properties. ■
New scam alert from ACCC: Unexpected missed calls from overseas The ACCC has warned consumers about reports of a new scam enacted via overseas calls. As accom managers receive overseas calls quite often, this might be one to watch out for. Via Scamwatch, the ACCC explained that this particular scam has been dubbed ‘Wangiri’, which is a Japanese term for ‘one and cut’. "In these scams, a scammer will call you and let it ring once then hang up without leaving a message, so a missed call will appear on your phone from an international number. "If you call the number back, you
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Protect yourself...
businesses, whether it's
1.
If you receive an unexpected missed call from an international number you don’t recognise, ignore it.
over the phone, by mail,
If you are receiving repeated missed calls, block the number.
possibility that the approach
2. may be put on hold, hear music playing or the scammer could try
3.
and chat with you. The scammer’s objective is to keep you on the line for as long as possible as your call will be charged at a premium rate." The following tips were provided by the ACCC:
4.
Consider blocking international calls on mobiles used by children. This prevents a child from accidentally calling an international number themselves. When dealing with uninvited contacts from people or
resortnews | april 2018
fax, email, in person or on a social networking site, always consider the may be a scam. 5.
Spread the word to your friends and family to protect them.
Resort News encourages its readers to report scams to the ACCC via its Report a scam page, https://www.scamwatch.gov.au/ report-a-scam. ■
News in Brief
| industry
Airbnb gets surprise mention on 'most valuable hotel brands' report Airbnb’s brand value rose by more than 51 percent to over US$5.5bn this year, according to a new report by brand valuation and strategy consultancy firm Brand Finance. Among hotel chains, recording a 24 percent fall from last year, Hilton has seen their lead at the top over Marriott shrink from more than US$3.3bn to just US$865m, a staggering 74 percent reduction. As Hilton’s brand value decreased, Marriott improved its brand value eight percent to just under US$5.5 billion on the back of growing group revenues. A driving force behind the increase can be traced to Marriott’s 2016 acquisition of Starwood – their largest ever – which boosted the company’s number of properties by 40 percent. As part of the restructuring of their Starwood portfolio, the company moved rooms from Sheraton to Marriott, maximising the profitability
of their flagship brand. This has however also impacted Sheraton’s brand value, which decreased by 50 percent to US$1.9bn this year.
be interesting to see if Marriott overtakes Hilton to claim the top spot for most valuable hotel brand next year.”
Marriott’s success is prevalent throughout the 2018 table when comparing its portfolio to Hilton’s. Only five hotel brands from Hilton’s portfolio made the table, compared to 15 from Marriott’s. Additionally, the total value of Hilton’s hotel brands in the Brand Finance Hotels 50 league table fell by 23 percent, while the total value of Marriott’s portfolio in the ranking rose by three percent.
Premier Inn remains the strongest hotel brand this year with a Brand Strength Index (BSI) score of 88.7 and a brand rating of AAA, while UK competitor Holiday Inn managed to hold on to its place in second with a score of 85, also receiving an AAA brand rating. The results of the top two strongest hotel brands reflect their mass-market appeal, as well as customer appreciation of value for money, which supports higher scores for preference and satisfaction. As these brands continue to maintain brand equity and perform well with their stakeholders, their brand strength can only stand to gain.
David Haigh, CEO of Brand Finance, commented: “The trends in the Brand Finance Hotels 50 league table reflect the success of Marriott’s expansion strategy, which is likely to continue exerting a positive impact on brand value in the future. It will
Perhaps the biggest threat to the hotels industry is the growth of online community accommodation sites, like Airbnb. Though the brand
is not included in the Brand Finance Hotels 50 league table by virtue of not owning properties themselves, Airbnb’s brand value rose by more than 51 percent to over US$5.5 billion this year. This marks the first time in which Airbnb’s brand value exceeds that of all but one hotel brand valued in the Hotels 50 - Hilton. Given Hilton’s downward trend, it would not be surprising to see Airbnb surpass all hotel brands in the 2019 table. What is more, Airbnb may soon come into much more direct competition with hotels as it begins to target business travellers through their Airbnb for Business program, which launched in the second half of 2017. Time will show if hotels move to collaborate with Airbnb in the future or try to compete by providing authentic personalised services to consumers, raising the game for guest experience. ■
Who run the world? "First female-friendly hotel rooms" from Pullman Adelaide Adelaide’s newest five-star hotel, Pullman Adelaide, is bringing together the state’s leading ‘girl bosses’ to contribute to the creation of a revolutionary new initiative – South Australia’s first female friendly travel zones. Due to the growth in solo, corporate female travellers, the Pullman Adelaide is launching this innovative concept, joining only a handful of like concepts from around the world. The Adelaide hotel has identified that women are now travelling more than ever for business, and are seeing an increased demand for luxury accommodation that embraces a female touch. Pullman Adelaide’s female friendly enclave will be specially designed for sophisticated travellers where women’s
professionals from a diverse range of fields come together to contribute and ultimately shape Adelaide’s first purpose designed female hotel rooms.
comfort, privacy and needs are the utmost priority. “The female-friendly zone has developed out of an understanding that our female guests want more from their accommodation, especially when visiting for business,” says Pullman Adelaide general manager, Llewellyn Wyeth. “As a new disruptor in Adelaide’s five-star hotel market, we want to ensure we are capturing opportunities for our frequent travellers and enter our first year in Adelaide with a point of
difference. The female friendly rooms will provide targeted amenities to ensure guests have the best hotel experience possible, and that our guests return time and time again.” In order to gain an authentic understanding of the needs of travelling women, Pullman Adelaide is bringing together a glamorous think tank of Adelaide’s leading female business women at their first Girlboss event. Girlboss’ intimate sessions will see high power female
resortnews | april 2018
“We’re opening a dialogue about what female travellers and business leaders are missing in their current hotel experience. We are proud to bring these incredible women together and integrate their ideas into shaping the future of the hotel,” says Llewellyn Wyeth. Pullman Adelaide’s guests will be treated to female friendly initiatives from June 2018 but the exclusive service is only set to grow. “We see the female friendly zone as an ongoing project with new ideas and concepts always emerging,” says Llewellyn Wyeth. ■
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industry | ARAMA Report
Drug contamination: a crackdown expected for property owners The identification and dismantling of drug labs may make for gripping television, but they also represent a real-life nightmare for resident managers and unit owners. In addition to the criminal and health endangerment situations a drug-dealing or drug-manufacturing operation presents, unit owners and resident managers may face fines stemming from various federal, state, city or local laws and in extreme cases, the government may seize the owner’s rental property and other assets. Practically, the fact that there has been drug dealing in or about the rental property is also likely to decrease the value of the property and make it harder to find good tenants and happy guests. The situation becomes heightened, however, if the property has been used for the use or manufacture of crystal methamphetamine. The ingredients used to produce illegal drugs are highly toxic, flammable, and incredibly dangerous. Drug labs can explode, ignite and emit harmful gases that can cause serious health problems and even be lifethreatening. Unfortunately, the issue and incidence is escalating across Australia and New Zealand and understandably, there are mounting calls for the compulsory testing of rental properties between tenancies for methamphetamine contamination. Steve Hermiston, marketing director of Australian Drug Decontamination Specialists says: “Meth production and use has sky rocketed in the last two years and will be a growing problem in the future. Residual contaminants that arise from drug usage or manufacture can be in the form of solids, liquids or odourless vapours and can be absorbed by floorings, walls, drains, ducting and any furnishings or fixtures in the vicinity.
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If you knowingly allow the property to be used for a drug offence you are committing a crime carrying a maximum penalty of 15 years in jail.
“In most cases, all the heating, ventilation, and air conditioning (HVAC) systems need to be decontaminated – particularly in high-rises when whole floors are affected. One may also have to rectify sinks, drains and showers/bath tubs, as well as all the plumbing. Every situation is different, but if the property is declared a hazard due to meth contamination it can cost $10,000 or more per property to remedy the situation. “The current Australian federal government guideline for contamination is 0.5 micrograms,” says Steve, “but we are regularly getting results of between 20 and 60 micrograms in properties that have already had a standard carpet clean and repaint. “At best, one can expect the rental unit to be declared uninhabitable until a full decontamination is done and the test results declare it to be free of hazardous chemicals, but at worst, the owner and body corporate may end up with an extensive law suit from the new inhabitant.”
So how do resident managers avoid this? While the rental agreement should specifically prohibit illegal activities, including the distribution, sale, manufacture or use of controlled substances on the property, tenants involved in cultivating illegal drugs, such as cannabis, methamphetamine, ecstasy and ice, go to great
lengths to hide their activities. Resident managers must screen tenants and guests carefully and while asking questions about criminal histories and credit reports on rental applications can be helpful in finding good tenants, as the person most likely to have contact with the tenant, the resident manager needs to be aware of the warning signs. New potential drugmanufacturing tenants or guests may disguise themselves as model citizens and may be willing to pay rent months in advance and be happy to pay cash. This may be their way of keeping their landlord off their backs and leaving no paper trail for the authorities. Offers of rent in advance paid in a lump sum by cash with no or low verifiable identification should be seen as a red flag. If the arrangement appears too good to be true, it just might be. When conducting property inspections, resident managers should look for signs that the property is lived in. Drug manufacturers generally do not live or stay in the properties they are using to cultivate drugs. Closed curtains or lowered roller shutters during daylight hours could be signs of attempts to hide illegal activity. Infrequent visitors during strange hours or for short periods of time may also trigger suspicion. Check for potential tampering of the property. Hydroponic set-ups require pipes or hoses
resortnews | april 2018
to be filtered through the roof or the property’s manhole. Meter boards are commonly tampered with or rewired, particularly those situated near walls, walk-in wardrobes or built-in cupboards in order to connect electricity wires to the power source. Intense lighting, which is also used in hydroponics, can also cause visible fading to paintwork, so check beneath rugs and behind photo frames and open doors for unusual discrepancies in colour. Similarly, look for signs of water damage – such as warped walls and floorboards, or stained carpets – because there’s a chance it could be more than just a leaky roof. Look for the items that are commonly used to manufacture illegal drugs, including glass flasks, rubber tubing, gas cylinders, chemical containers, drums, drain cleaner, garden fertiliser and even cough, cold or allergy medicine. Other suspicious signs include applicants who try to avoid background checks and tenants who regularly postpone or cancel property inspections or scheduled cleaning services. Pay attention to neighbour complaints about strange odours or comings and goings, and if you see any of the signs that indicate possible drug activity, don’t wait. In some cases, unit owners and resident managers can be liable for injuries or other harm to tenants or community members stemming from illegal activity at a rental property. Remember that if you knowingly allow the property to be used for a drug offence you are committing a crime carrying a maximum penalty of 15 years in jail, irrespective of whether you are directly benefiting financially or not. Resident managers suspicious of illegal activity should contact the authorities immediately and not confront the tenant or guest directly. If you’re unsure of your rights or don’t know the best
ARAMA Report
| industry
Trevor Rawnsley CEO ARAMA
way to proceed, contact the narcotics division at your local law enforcement agency or hire a local lawyer who specialises in management rights. Note, however, that even if the tenant or guest is arrested, this does not result in an automatic eviction — an arrest does not change a tenant’s right to occupy a property. That course of action lies within the lease agreement. Almost all attorney-generated leases include a clause allowing the resident letting agent to evict if the tenant is engaging in criminal conduct and/or illicit drug activity. In addition, if the lease is well-written, you will likely have a clause that also allows you to evict if the tenant’s guests are engaging in those activities. Last but not least, pay attention to what the property insurance
policy covers in this regard. While insurance laws differ from state to state, carriers routinely pay claims resulting from common perils like smoke damage, fire damage, and vandalism or “criminal mischief”. If your policy covers these hazards explicitly, you are in good shape – just be sure.
A H A P PY GUEST
If these measures seem excessive, bear in mind that any dollar spent upfront may save thousands of dollars and many hours in the future. Once upon a time drug labs happened to someone else and were mainly confined to low-class motels and backyard sheds. Drug Labs are becoming more commonplace now and are found more frequently in mainstream accommodation such as holiday apartments, corporate short stays and long term letting villas, townhouses and apartments. ■
STARTS WITH
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Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights. For membership enquiries: www.arama.com.au
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For more information contact 1300 654 000 or visit ahbeardcommercial.com
resortnews | april 2018
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industry | NSW Strata Report
The problem with deeds of consent in New South Wales Financiers of management rights purchases commonly require the owners corporation to enter into a deed of consent to security (‘consent deeds’).
Where an owners corporation refuses to enter into a consent deed, the owners corporation wants to retain control
The problem is that there is nothing in the NSW strata legislation that requires an owners corporation to agree to enter into such a deed – even on the most reasonable of terms.
What are they? Consent deeds, also commonly called ‘right of entry deeds’, act as security over the management rights in the event of a default by the caretaker. The deed allows the financier to ensure its security is not jeopardised if the caretaker is in default of its loan agreement. Essentially, the owners corporation must notify the financier of any defaults by the caretaker under the caretaker agreement. If the default entitles the owners corporation to terminate the agreement, the financier is entitled to ‘step in’ and operate the business.
Benefits of consent deeds The benefits of having a consent deed for a financier are obvious. But why would an owners corporation enter into one? For an owners corporation, a consent deed provides several advantages: 1.
How do they work? Usually, the rights conferred under consent deeds include:
2.
An obligation on an owners corporation to serve a financier with any notices served on a caretaker (such as default or termination notices issued under the caretaker agreement); and within 21 days of receiving a notice of termination, the financier may give notice to the owners corporation of their intention to act in place of the caretaker or appoint a receiver. The financier may also be required to remedy any breaches by the caretaker or pay the owners corporation reasonable compensation before they can act in place of the caretaker. Importantly, the rights of termination for breaches of the caretaker agreement (after the financier steps in) are still available to the owners corporation.
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3.
It acts as a further pressure point for caretakers that are not fulfilling their duties. The financier will be given copies of breach notices at the same time that the caretaker receives them. Therefore, not only will pressure be applied from the owners corporation for the default to be rectified, but also from the financier; The owners corporation will also have the security of knowing a third party will ‘step in’, if the caretaker does not discharge its duties under the caretaker agreement. This can also be seen as a disadvantage by some owners corporations seeking to retain control especially in the event of termination of the caretaker agreement. This is discussed further below; The financier may be required to rectify any breaches by the caretaker or compensate the owners corporation for the breach before it can step in.
Problems with consent deeds Consent deeds can become the cause of dispute between the
owners corporation, the existing caretaker (who is trying to sell their management rights), a purchaser of the management rights and their financier. In practice, financiers make the execution of such deeds a condition of advancing funds to purchasers of management rights. The deed is usually entered into at the same time as the caretaker agreement or a transfer of a caretaker agreement. Without a contractual obligation to enter into a consent deed, the owners corporation may refuse to execute such deeds (even if they are on reasonable terms). This can make it diff icult for an existing caretaker to sell their management rights – as most purchasers will require finance and most financiers will require a consent deed.
Why would an owners corporation refuse consent? Commonly, where an owners corporation refuses to enter into a consent deed, it is because the owners corporation wants to retain control. They see the consent deed as fettering the owners corporations ability to terminate the caretaker agreement and their control over the appointment of a new caretaker. This includes the ability to ‘re write’ or amend the caretaker agreement. This loss of control needs to be weighed against the benefits of consent deeds for owners
resortnews | april 2018
Col Myers Small Myers Hughes
corporations. In addition, if it is impractical for a scheme to operate without an on-site caretaker, a consent deed is a commercial reality. An owners corporation may also refuse its consent because the terms of the consent deed are unreasonable. There is no doubt that a financier of a management rights purchase wants to be afforded the utmost protection of its security. Consequently, the terms required by financiers under consent deeds can be drafted heavily in favour of the financier. I have recently experienced financiers that require rights to be conferred on them under the consent deed that exceed the rights conferred on the caretaker under the caretaker agreement!
What is the answer? There needs to be a balance between the two competing interests. Owners corporations need to recognise the commercial reality that such deeds are a necessary part of a management rights sale. Accordingly, their consent should not be unreasonably withheld. This is always provided that the terms of the deed are reasonable. I have previously raised these very issues when making submissions on possible amendments to the strata legislation in NSW and have proposed amendments that would recognise and provide a reasonable level of protection to financiers, such as that seen in Queensland. Unfortunately, no changes were made when the legislation was last revised and that means caretakers still need to be aware of the potential for disputes between financiers and owners corporations, which could inhibit their ability to sell. Hopefully, with further submissions from the industry and some luck this will be addressed when the next review of the legislation comes around. ■
SCA Report
International strata communities facing similar problems Last month, we welcomed to the office a very knowledgeable South African delegation from the Community Schemes and Ombudsman Service (CSOS) and it proved highly enlightening… The delegation was in Australia seeking information and consulted with SCA in Sydney and Melbourne, as well as commissioner Irons, Professor Bill Duncan, and Dr Sacha Reid. In particular, the delegation was interested in the education structure implemented by SCA and how the lack of licensing impacts the professionalism of the strata industry in Queensland. It was a very productive meeting, with the delegates leaving impressed by our advocacy and armed with our accreditation policy. We found common ground on many of our aims, with the desire for ongoing education and a recognisable accreditation service being foremost among them. Of course, they face many of their own specific challenges. Aside from similar issues that exist in nearly all strata communities, including owner-apathy towards committee meetings, Johannesburg must solve the problem of “hijacked buildings”. This problem is a result of building maintenance costs becoming too high and owners washing their hands of the investment. In walks someone claiming to be in authority and they proceed to collect rent and fees without paying for upkeep. Despite government tax incentives to renovate and improve building facilities, there has been significant trouble resolving the issue, with many owners unable to be found. The diff iculty in regulating these hijacked buildings when there is no off icial management has resulted in many tenants appearing at rental tribunals protesting about the way they’ve been treated. New legislation is now allowing authorities to crack down on this behaviour providing CSOS with a wonderful opportunity to educate tenants and new strata owners.
| industry
Simon Barnard President, SCA (Qld)
the Canadian province, Ontario, so it might not be too long before we are flying to South Africa for tips on what works best in the strata community.
The meeting helped remind me that the Queensland strata community has come a long way over the past twenty years, but…
CSOS is a young governmentfunded organisation and has the ability to learn from our state’s mistakes and tighten regulatory processes early. If Queensland leaders don’t get a move on, it’s possible that South Africa will soon have more progressive strata legislation than we do, especially given the ambitious and dedicated employees of CSOS and their desire to create workable solutions. Despite initial government scepticism, the ombudsman service has proven highly successful, gaining the respect of parliament and allowing their opinions with regard to legislative reform and implementation to be heard.
implementation of this method and it’s wonderful to hear that this research was worthwhile. The model has been so successful that it has now been copied by
Knowledge sharing is a wonderful thing and it was a privilege to welcome the South African delegation for their third visit to SCA (Qld). It allowed us to discuss issues, as well as offer and hear potential solutions from different perspectives. The meeting helped remind me that the Queensland strata community has come a long way over the past twenty years, but many legislative reforms remain on our wish list. It’s up to us to continue to promote the benefits of those changes and help bring our twenty-year-old legislation into the 21st century. ■
Structuring Income Verification Accounting/Taxation Superannuation Audit
One of their major goals mirrors our own and revolves around accreditation and education... By having their own accreditation process and a continuing professional development model recognised by the national training authority they hope to create a community overseen by formally educated individuals. Consequently, public trust in the system will be increased and CSOS may expand its role as an impartial expert in the sector. They envisage a tiered training system much like our own with different levels of certification and mandatory continuing professional development. Many different international systems were studied before the
Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business? We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.
PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au
resortnews | april 2018
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industry | BCCM Report
Dispute resolution steps
Chris Irons Commissioner for Body Corporate and Community Management
I’ve spoken at some length in articles about the dispute resolution service my office provides.
verdict’ sooner rather than later, the reality is that conciliation in my off ice sees excellent results in reaching agreements between parties – even for those situations in which the parties are absolutely convinced there is no way they would ever reach an agreement.
More generally, dispute resolution in the body corporate context can be thought of as a series of escalating steps that can, and must, be taken to reach resolution. In this article, I will give an overview of these steps. While some of this may be quite familiar already, a refresher never hurts and indeed there may be aspects that will add further clarity to dispute resolution. Firstly, let’s think about the term ‘dispute’. Sometimes clients come to my off ice with a range of issues or concerns that are obviously causing them some distress. That said, whether or not there is a ‘dispute’ at play might be a different matter. Being generally ‘miffed’ about the way a meeting was conducted, for example, is not of itself a dispute. It is important that there be some specificity in order for there to be a dispute. This helps narrow the terms of what is being sought as an outcome and thus makes the dispute’s resolution a little easier to manage. Another way of thinking of it is via this simple equation: •
Specific request (some may view this also as a ‘demand’) made and request/demand refused = dispute.
•
•
With a specific dispute in mind, it is then on to the business of resolving it. The very first step is making all reasonable attempts to resolve the dispute yourself.
This sounds self-evident enough but it is sometimes a point that gets lost in the emotion and challenges a dispute brings about. Body corporate legislation, in fact, requires that there be reasonable attempts to resolve the dispute yourself – known as “internal dispute resolution” or “selfresolution” – before accessing the dispute resolution service of my office. This self-resolution can take a number of forms. At its simplest, it might be talking to the other party to make your concerns plain. The mere act of talking like this can actually resolve a number of disputes there and then.
SUNSHINE COAST & QUEENSLAND WIDE
By sending an email or letter to the other party, outlining your concerns and what outcome you are seeking, you put the other party ‘on notice’ about where things are at in the situation and importantly, gives that other party a chance to consider and respond. A further way of undertaking self-resolution is by putting a motion to a general meeting. This is clear evidence that you have taken the steps needed to resolve your dispute, as the matter will get voted on at the meeting and get minuted as a result. If, after undertaking these efforts, you find that your matter is still unresolved, then you have effectively exhausted your options and at that point, my off ice’s dispute resolution service becomes the next port of call. You will need to provide evidence of your self-resolution efforts as part of lodging an application for dispute resolution with my off ice.
Damian Quinn
Management Rights Transactions One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.
We have moved! Our new street address is Level 1, 13 Carnaby Street, Maroochydore There has been no change to our emails, phone and fax numbers.
Damian Quinn (07) 5443 5266 www.simpsonquinn.com.au 14
Undertaking self-resolution in writing is recommended, as it involves some formality and keeps a record of proceedings.
In lodging your application, conciliation will be the first step in the vast majority of applications. There are only a limited number of instances in which conciliation would not occur in the first instance. While I appreciate that many people would want to proceed directly to adjudication in an effort to get to the ‘umpire’s
resortnews | april 2018
The other great benefit of conciliation is that it is all about voluntary, workable agreements nutted out between the parties in dispute and that in conciliation, my off ice’s conciliator has a legislative responsibility to give information about the legislation. The combination of all these factors is that the parties to a conciliation can come away from it feeling better informed as well as feeling as though there is a better opportunity to mitigate disputes in the future. If conciliation is not successful – or if a matter is not suitable to be conciliated – then adjudication is the next step in the process. Adjudication is a formal process based on written submissions that results in a legally-enforceable and appealable order. There are no hearings in adjudication and each adjudication application is considered on its merits. Information and material from conciliation is not admissible in an adjudication application. Following an adjudicator’s order, my off ice has no further role from that point unless ordered by a court of competent jurisdiction (e.g. an appeal of an adjudicator’s order). My off ice also cannot interpret an adjudicator’s order or enforce the order – that is for the parties concerned to do. Ultimately, at each of the steps of the dispute resolution process, there is an opportunity for the matters in dispute to be resolved and, indeed, the earlier it can be resolved, the better for all concerned. ■
Special Report
| industry
The big problems with booking direct Conscious of the impact on accommodation providers, I decided to book a recent trip directly through hotel websites. To my disappointment, the process was not a simple one. Booking directly through a hotel website comes with some significant benefits, not only to the accommodation provider, but also to the guest. I figured my booking would be more secure, that follow up contact would be easier, and that the booking process would go without a hitch. While I stuck to my decision to book via hotels websites, I became acutely aware of the reasons travellers would choose to use an online travel agent. Instead of searching for a hotel, looking at its website and booking then and there, I found myself with multiple tabs open in my browser, undertaking my own research at the cost of a great deal of time. While the booking pages on most sites worked perfectly well, the information provided left much to be desired. Here are a few areas in which hotels might be able to improve when it comes to web content - which many OTAs are already getting right.
Location If a guest is travelling to an area they know well, location isn't a big problem. However, for guests travelling to a city or country for the first time, they don't necessarily know that a hotel location is central without being told. Many a hotel website I viewed a) could not tell me how far it was from the city centre, b) whether there were any nearby attractions and c) did not include a map to show me where it was in relation to other hotels and points of interest. A quick look at an OTA website unveiled exactly how many metres that hotel was from the city centre (and how long it would take to walk), listed a number of popular local restaurants, attractions and
places of historic significance, and also showed me where it was on a map.
Trusted customer reviews While many hotel websites include guest testimonials, I found it hard to believe that they had never experienced a negative review. Like many guests, I'm not turned off by a couple of bad reviews - in fact, I'm encouraged by them. Customer ratings do more for me than any description a hotel website could give. No hotel will openly claim to have poor service, a dodgy restaurant or poor air conditioning - and rightly so. However, there's something to be said for including genuine reviews on a hotel site. While it would be counter intuitive to link to reviews placed on OTA websites, reviews on Google are well trusted and can be easily embedded or linked. It shows guests that a hotel is confident in its service, wants to give guests well-rounded insight, and is willing to take on feedback. Hotels would do well to reply to Google reviews, showing prospective guests that they appreciate great feedback and take suggestions on board.
Best price guarantee I was surprised by how many sites offered prices significantly lower than those provided by hotel websites. Even with added booking and payment costs, it often appeared cheaper to book through an OTA rather than a hotel website, particularly with sign-up discounts and added services. Ensure that your website clearly states that you offer a best price guarantee, or even better - beat it by 10 percent.
Translation For guests booking an international holiday, language can be the biggest barrier to booking directly. OTAs are great at translation, making the booking process simple and trustworthy for potential guests. Take a look at your website translation. If the automatic translation is poor, it may be worth checking what countries are viewing the website most and providing a drop down language menu at the top of the site.
Photo gallery Lastly - why are good hotel photos so hard to find? I'm not talking about quality, composition
resortnews | april 2018
or editing. I'm talking about getting a real feeling for the hotel's atmosphere and offering. While all the hotel websites I visited had photos of guest rooms and basic facilities, I found myself searching for the real hotel photos. OTAs often feature photos from guests, which leave much to be desired in terms of quality, but genuinely show the state of the hotel and what it has to offer. While hotels are unlikely to feature guest photos on a website (for good reason), perhaps it's worth embedding social media accounts such as Instagram to allow guests to see more photos of what the hotel offers. Include photos of the food served at the hotel restaurant, the view from guest room windows, a family having a fun day at the pool, or cocktails coming out of the bar. Don't forget the value of people. Guests don't want to visit an empty hotel, so try and incorporate some life in your photo gallery. While there's no doubt that direct booking can be positive for both hoteliers and guests, some hotel websites have a long way to go before they become the 'booking engine' of preference. What other areas are lacking in hotel sites? â– By Lauren Butler, Industry Reporter
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management | Legal Ease
The costly ‘industry’ of management rights assignments Something has got to be done about the ‘industry’ that is developing, or has already developed, around the process of a body corporate giving its consent to an assignment of Management Rights Agreements (Caretaking and Letting Agreements for Schemes). This harmful industry has sprung up from the activities of some body corporate managers, solicitors and so-called ‘experts’ in assessing the merits of the assignee, when a party is buying the management rights and the selling manager seeks the consent of the body corporate. The job of the committee of the body corporate is simply to check the material submitted by the assignee, have an interview with the assignee and determine if that party is approved as suitable, based
Part of the problem has arisen from body corporate managers automatically advising the committee to engage preferred lawyers to ‘take over’ the process, as a necessity. on the reasonable knowledge and assessment. The tests of suitability are: •
Are they capable of performing the agreements? (Physically and knowledgably.)
•
Are they of good standing in character and the community, sufficient to perform the role?; and
•
Are they sufficiently financially sound for the conduct of the caretaking duties and letting
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activity? •
Which suitability must be decided within 30 days of receiving the proffered material received from the outgoing manager?
From this relatively simple process, our firm has found that in recent times, lawyers costs in acting for a body corporate have grown from in the vicinity of $1 200 to amounts of up-to $4000 or $6000; body corporate managers charges from $300 to between $2000 and $4000 and other so-called ‘experts’ bringing in charges of $1500 to $4000. These are amounts that we, as lawyers for managers selling, have actually experienced in recent times. One manager, selling a management rights operation for a permanent letting complex run effectively by one person, had to pay approximately $11,500 and to experience a process that took well in excess of 60 days. Part of the problem has arisen from body corporate managers automatically advising the committee to engage preferred lawyers to ‘take over’ the process, as a necessity. Often, the body corporate manager employs the solicitor for the body corporate before the committee is consulted on the matter. The solicitor appointed often demands that an agreement be made by the seller to pay all costs charged, whether or not consent is given. This leads to the lawyer assuming that they may review the terms of the agreements, particularly as to assignment consents, provide reports to the committee, compiling lists of questions to ask, provide extensive written advice on how thorough the committee might be, how other ‘experts’ may be engaged at the sellers cost and as to what material
resortnews | april 2018
John Punch Partner, Short Punch & Greatorix
may be required before even holding an interview or reviewing what has been lodged. In the above instance, the committee’s representatives had more than sufficient material from the assignees (describing themselves in detailed resumes of business and personal standing) but insisted that a quantity surveyor, knowledgeable in body corporate matters, be engaged to firstly, interview the assignees and secondly, attend the complex with them for a day to assess and train them. The cost payable in advance was $3850 and that was for a simple housing complex with common property comprising only roads, gardens a pool and minimal storage areas! To object, meant being blocked off from the committee, further delays in argument and payment of additional costs accruing for the body corporate lawyers and managers to confer. A review of the law shows that this ‘industry’ has gotten way out of hand. It involves questionable practices and extraordinary interpretations of the Act, Modules of Regulation and the Terms of Agreements. Interestingly, the costs and expenses and details of obtaining the body corporate committee approval for an assignment now appear to far exceed that for a transfer of a lease of commercial premises, where the assignee will be obligated for payments to the consulting party, rather than the opposite. To assist the management rights operators, body corporate managers and committees, we have now produced a simple guide to the basics of approving the assignees, based on a reasonable interpretation of the laws that apply. This is readily available from us, by anyone enquiring. We strongly suggest that other lawyers, body corporate managers, SCA and ARAMA take a stand against the people who work to this ‘industry’ and thrive on making assignment consents a costly nightmare. ■
By All Accounts |
Potential new ATO reporting requirements for contract cleaners With the proposed 2018/2019 budget currently being debated by federal parliament, I thought I would discuss one piece of proposed legislation that will potentially affect all management rights operators who employ contract cleaners in their business.
•
Total payments including GST
•
Total GST included in payments
The ATO can also request any additional information you have on file including:
•
Phone number
•
Email address
•
Bank account details (Where they are paid by EFT)
As some of you may be aware, businesses in the building and construction industry have been required to report to the ATO payments made to all subcontractors for several years now. The purpose of this report is to ensure that subcontractors were correctly declaring all income for both tax and GST purposes. The report is called a Taxable Payment Annual Report (TPAR) and makes it very easy for the ATO to identify tax payers who have failed to correctly declare income, through a simple data matching process.
ABN
•
Entity name
•
Address
What cleaning services are covered? The new reporting requirements will cover all cleaning services to buildings, residences, structures, places, surfaces, transportation, vehicles, machinery and equipment.
•
Interior and exterior cleaning
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Capet cleaning
•
Chimney cleaning
•
Gutter cleaning
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Road sweeping and street cleaning
•
Swimming pool cleaning
•
Park and park facilities cleaning
What changes do I need to make to my business? For many management rights operators the new reporting requirements may require upgrades to your current accounting systems and processes. Many accounting packages (including Xero and MYOB) can prepare this report, provided they are setup correctly before July 1, 2018. If your software is unable to produce a Taxable Payments Annual Report (TPAR) then this form will need to be completed and sent to the ATO manually, which could be a very time consuming and costly process!
What payments need to be declared?
•
Director, Jonathan Grant Accountants
The report only includes payments made on a cash basis and does not include invoices you have not paid as of June 30.
The first TPAR report will be for the period July 1, 2018 to June 30, 2019 and will need to be lodged with the ATO by August 28, 2019.
The report to the ATO requires that you keep separate records for each contractor including:
Jonathan Hanaghan
Cleaning services covered include:
As part of the 2018/2019 budget currently before parliament it is proposed that this reporting obligation be extended to contractors in the cleaning and courier industry from July 1, 2018. The cleaning & courier industry have been identified as industries in which the contractor is at risk of failing to report their correct income and GST obligations.
Should the legislation receive royal assent all payments for contract cleaning services will need to be reported to the ATO. Contractors include payments to companies, trusts, partnerships and sole traders (individuals). It does not include payments to employees.
management
One piece of proposed legislation that will potentially affect all management rights operators who employ contract cleaners in their business
resortnews | april 2018
We would recommend you review your current accounting systems with your software provider and accountant to ensure that you are able to prepare these reports from July 1, 2018 onwards. At the time of writing this article the 2018 federal budget had not yet received royal assent and as such this is only a proposed measure. ■
17
management | supplier profile LOCALITY PLANNING ENERGY
Why is doing the right thing, the right thing?
On entering the world of business ownership, I started asking myself some pretty big questions. The ethics of business and the wants, needs and rights of consumers filled my everyday thoughts. One of the conclusions I’ve landed on is this; there is a balance to be found in business in which everyone wins. Now, I’m not one to refute proven business theories nor am I adverse to turning over a profit, but I genuinely believe a win-win approach to business is the way forward. In a world of infinite, accessible information
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and choice, consumers hold the ultimate buying power and brands are frantically trying to keep up. When we went down the path of consumer electricity, we knew it was an important part of everyone’s day. If you break down the most fundamental functions of modern day society, none can be met without electricity — think shelter, food, safety and communication. Just because it is a necessity though, doesn’t mean the consumer needs to accept the norm. In fact, it is precisely because it is such an intrinsic commodity, that it is so highly competitive. With so much choice out there, the time is right for customers to be asking themselves — is there a better alternative? The electricity industry has been built on a lack of understanding among consumers, in some recent market research LPE found that 95% of people surveyed did not know or understand
how much they were paying for electricity. Not all energy suppliers have had the best interest of consumers at heart; capitalising on the complexity of the market and hiding behind confusing discounts and pay-on-time rates. But if they’re making a profit for themselves, they’re winning, right? Not in my opinion. If businesses prey on their customers or ignore their needs, they lose out in the long term. Think of it like the tortoise and the hare — the tortoises that do right by their customers at the starting line will most surely have those same customers with them at the finish. This concept is not always aligned to the business objectives of C-suites or shareholders. Balancing turning a profit with strong business ethics is a delicate one but it was a challenge LPE took up from the very beginning. An example of the win-win ideology that we have
resortnews | april 2018
put into practice at LPE is our customer service centre which is based on the Sunshine Coast and employs Queenslanders. Our team strip back the jargon and present consumers with their best options and our best rates upfront. We encourage Site Managers, Body Corporates and end-consumers alike to call us and if we can’t help you we will send you in the right direction. I will continue to advocate this so that I can be sure LPE is not only doing right by its employees and shareholders but by its customers.
By Ben Chester, COO, Locality Planning Energy
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management | Thinking Accommodation
The inquisition: what do we know so far? If you read the papers, you will no doubt have seen lots of press coverage of the ongoing investigations into our banks. What we have at present is a two-pronged process with a royal commission investigating potential misconduct and the Productivity Commission investigating competition, or lack thereof, within the banking sector. Both processes appear to be primarily focused on consumer lending as regulated under the National Consumer Credit Protection Act, albeit commercial and business lending will no doubt get some attention in due course. Needless to say, finance brokers have been caught up in the various enquiries and the press have been none-too-kind to the profession. Interestingly, a number of banks have also fessed up that they don’t really like brokers and surely the whole system would be better off without them. Internal memos bearing the letterhead of our biggest bank suggest that they have, for some time, played the we support brokers game while internally reflecting on a world where intermediaries would not exist in their current form. To be fair, I think there is an argument for doing away with brokers. It is predicated on two critical outcomes. The first is that we have to start educating consumers about how the financial system works. We spend a significant amount of time simply explaining how banking and finance products work, what the obligations of a borrower are and how to budget and plan for the future. No-one pays us for this and we carry significant business costs to provide this free service. The banks are simply not resourced to potentially spend many hours with a client and not make any money out of it. Secondly, the banks have to get much better at what they do, particularly in terms of transparent and competitive product offerings. The standing
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Mike Phipps Mike Phipps Finance
business risk in terms of costs versus outcomes.
Left to their own devices the banks would prefer to charge higher rates and fees and implement more onerous lending conditions. That’s not a criticism, these are businesses and they have an obligation to make money for their shareholders
joke in our business is that if the banks were exceptional at what they did and resourced their staff appropriately no one would need us. As luck would have it (if you are a broker) that day is a long way off I suspect. The media appears to have virtually no clue as to how brokers such as ourselves operate, the services we provide, and the very positive customer outcomes we are able to negotiate. The brutal truth is that the banks would prefer that brokers did not exist because we hold them to account and demand competitive product offerings. The competition created by the broker finance tender process that we manage is a proven catalyst for sharp pricing and reasonable lending terms. Left to their own devices the banks would prefer to charge higher rates and fees and implement more onerous lending conditions. That’s not a criticism, these are businesses and they have an obligation to make money for their shareholders. As disrupters in the process, our job is to ensure that the natural preposition of banks to make money is balanced with the best outcomes we can achieve for our clients. We are the only independent pro-client finance industry expert advocacy voice in a process where all the power is in the hands of the product provider.
Of course, the media will say that the banks pay brokers which, they will argue, creates an unholy trinity in which a broker could easily be compromised. Maybe best to ban commissions and have the consumer pay the broker. This argument is so flawed as to be laughable. Broker payments are a cost of doing business for the banks and brokers save them millions in staff wages. In fact, as the banks reduce staff in their endless eff iciency drives we put on more people to ensure decent levels of service. Make no mistake, if brokers disappeared tomorrow the banks would not restaff themselves to ensure the role played by intermediaries was taken up by their employees. The idea of having the consumer meet a cost that is currently paid by the banks seems to have escaped the media radar in terms of what might be a less than desirable outcome. But, I hear you say, surely the broker payment is factored in to the rates and fees paid by borrowers. The fact is that brokers are essentially outsourced resources that banks only have to pay if business is done. The countless hours spent with consumers who end up doing nothing are not covered by banks and they don’t have to pay salaried staff to work in business development roles, often out of normal business hours. Brokers cover these bases and take all the
resortnews | april 2018
Lastly, the enquiries have, at last, focused on a dirty little secret that the banks would prefer not to talk about. While finance brokers must carry insurance, be registered with ASIC, be appropriately qualified and in our case have an Australian Credit Licence some banks pay pretty much anyone for referrals. Quite rightly, the commissions of enquiry have asked the banks to explain this practice, particularly in the light of some very compromised relationships between bankers and referral sources. There seems to be little doubt that the regulators will look more closely at these arrangements and seek to question referrers about their relationships with the banks. In fact, one of the majors has been seriously chastised for failing to address the matter in recent submissions. We believe that arrangements between realtors and other unqualified and uninsured referral sources and lenders will be the focus of further investigations, particularly where payments have not been fully disclosed. The ultimate outcome may well be a situation where the regulators encourage aggrieved borrowers to pursue the parties who recommended particular banks. As brokers, we have specific insurance for just such a situation albeit we have not had to rely on it to date. Our advice to anyone who is not qualified and insured and is receiving payments from banks is to stop now. There is no doubt that this practice has a huge potential to create problems, regardless of the best intentions of the referrer. In closing, we are delighted to welcome Cameron Wicking to our team. Cam will be focused on servicing our clients and industry partners in the Brisbane and Gold Coast area. I am sure many readers will already know Cameron as a recognised industry expert banker and all round nice guy. ■
| management supplier profile EVOHEAT
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EVO270 has advanced energy efficiency technologies and built in smart features to ensure you’re provided with clean, safe, and economical hot water all year round – all whilst saving you up to 75% on traditional water heating costs! As a registered and accredited energy efficient product, Government incentives are also applicable to every EVO270 installation, making it even more affordable to upgrade your hot water plant and start saving thousands of dollars each year. EvoHeat systems are incredibly economic and have helped pave the way for sustainable heat pump technology in Australia, slashing running costs and cutting carbon emissions. EVO’s exclusive heat pump technology is durable and utilise cutting edge components sourced from leading brand manufacturers around the world. Unlike other suppliers, EvoHeat only specialise in heat pump technology and are constantly developing and improving their heating applications to ensure they offer you the best in the market. For your FREE, no obligation pool or water heating evaluation contact an EvoHeat specialists on 1300 859 933 & find out how much they can save you on your pool heating and hot water heating costs! www. evoheat.com.au
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www.evoheat.com.au | 1300 859 933 resortnews | april 2018
21
management | Your Lot
Separating your lot from your management rights business Banks like real estate. We all need somewhere to live. These largely underpinned the creation of the typical management rights business model of a home with an income. Back when real estate wasn’t as expensive, multipliers weren’t as high and banks didn’t care as much about serviceability as they do security, it all worked without much of an issue. That has changed, which has led to us receiving lots of requests from clients about separating their lot from their management rights business. Every management rights business is different. There are no hard and fast rules, but in general terms, these are the issues that come if you want to consider breaking that link of your home and your income. Let’s start with the legalities.
By-laws The by-laws usually provide a form of protection through special usage rights being given to the owner or occupier of the manager’s lot. These by-laws can all be framed differently. Some define a specific lot by reference to the lot number. Some define a lot ‘associated’ with the holder of the management rights agreements. Some allow different lots to be nominated from time to time (sometimes not by the manager). Whatever the position, it remains critical that if you are looking to be able to use the lot associated with the management rights business independently of the management rights business itself that any special usage rights associated with it are cleared up. There is no point separating the lot from the business and leaving the special rights associated the lot in place. That could lead to the position where the later owner or occupier of that lot could notionally compete with the owner of the management rights business (be that you or a later
22
purchaser). That is a very real legal due diligence issue for a buyer and their bank. Changing the by-laws will require a special resolution at general meeting.
The lot itself Some lots may be capable of being split into two separate lots – being an office lot and a residential lot. There is a bit in this legally in terms of dealing with the local authority and the body corporate about the subdivision. One of the issues is apportioning lot entitlements of your existing lot into your two ‘new’ lots. There are also practical considerations. If your office is the third bedroom or garage of your townhouse, you aren’t much chance of getting it onto a separate title. If you are in a tower (or low rise) with a distinct office component/area, it is usually more achievable. This is an idea in the sense that if you manage to split your lot into residential and business real estate, you can retain special rights with the business part and look to be able to do something else entirely with the residential part. It also will reduce the value of the real estate component in any transaction (the ‘dead money’ bit
that doesn’t produce income).
The management rights agreements This is a bit clearer. You need to look at what obligations the management rights agreements include about: 1.
Owning a lot; and
2.
Residing onsite. Remember – the Property Occupations Act does not require you to reside onsite anymore as a condition of your resident letting agents licence, but that does not mean that the obligations in the management rights agreements to reside onsite have changed. If you are contractually bound to live in a lot you must.
An alternative here might also be not to have an obligation to own a lot but to have an obligation to reside onsite in a lot. That could be owned by you or one of your investors. This can be a bit scary for financiers though because they will always ask the question of what happens if there is no lot available to rent. Not living onsite would be in breach of your management rights agreements. The end-game here should be seeking the maximum flexibility
resortnews | april 2018
you can provide without alienating the body corporate in the process. Any changes to your management rights agreements will require an ordinary resolution at general meeting. If the changes do not relate to the term of the agreements, they will not require a secret ballot. Now to the commercialities. It is all well and good to go down a legal path, but there is literally no point even spending a cent if you don’t understand the likely outcome. The old adage of not asking a question you don’t already know the answer to applies very much to this topic.
Your committee If your committee is hell bent on you living onsite, you need to make sure you promote the concept of ‘decoupling’ very delicately. There is a communications process here you need to manage. Simply getting the legal documents done and lobbing them by email to the body corporate manager on the last day of the body corporate’s financial year for AGM purposes without talking to your committee is definitely not the way to go. The immediate objections here to overcome (and our immediate answers) are usually:-
Your Lot |
management
Frank Higginson Director, Hynes Legal
‘We pay you to live here’ No. I just happen to live here. I do what I need to do during the day. I am not supervising contractors or mowing lawns at night. ‘What happens if there is an emergency?’ The people aware of the emergency ring the police, the ambulance or the fire department. There is nothing I can do about any of those anyway. ‘What happens if we need by-laws enforced?’ You do what lawfully you must – which is deal with a notice of breach of by-laws through the body corporate manager tomorrow. If it is an owner occupier there is nothing I can do anyway. I it is a tenant for a lot mi manage, let me know and I will deal with it under the terms of the
lease with the instructions of the owner. If it is an outside agent, you should let that owner know why I am best placed to deal with managing their tenants too :) And so on!
Your bank
had bad experiences in the past). Banks love residential real estate as security. If you (or a subsequent buyer) don’t have that to offer, the bank’s lending ratio might be a bit less than for the standard management rights structure (unit and business). If you are successful in decoupling, what the bank requires you to repay on settlement of one asset or the other will depend on their policy on standalone real estate or management rights businesses. It is worth at least having a basic understanding of what that might mean if you are looking to sell the unit or business separately.
bodies corporate, which is a third party contractor, (although your connection with the scheme is obviously far tighter). This is where keeping that little bit of office real estate (if you can) works for you.
Do you do it all at once?
You need to engage with your financier (or your chosen finance broker) early in the process. From a bank’s perspective, the obligation to own a lot or reside onsite probably will not matter that much. Your financier will become much more interested is if you do get it all passed and then want to sell your lot or your business as a separate asset.
Voting rights
If you have a longer term time frame, it may be better to take this on in bite size pieces over consecutive annual general meetings (i.e. changing the obligation for ownership of lot first then residing onsite second). Having said that, if you think the mood is such that it will all get through first time around, then there is no need to hold back.
Bank’s lending policies all differ. How much they lend and what they secure it over all depend on their credit policies (which are usually driven by where they have
Not owning a lot means you won’t have the rights to vote at general meetings or submit motions for the AGM. In a sense you become what we are when we act for
As always, we can help with both the legalities and the strategies and can work on fixed fees for almost all of this process as it is very structured. ■
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resortnews | april 2018
23
management | Bundling
Everything you need to know about bundling for management rights
If you have ‘bundled’ your marketing fees in with your management fees, there is no way to explicitly identify how much you’ve collected for marketing
Bundling is the term used when property managers roll all of their management services into a single, ‘overall’ commission fee, rather than charging owners a separate amount or commission rate for each sub-service. For example, as a property manager, you would traditionally charge your owners for the below services, as dictated by your body corporate agreement: •
Management fee: 12 percent of gross tariffs
•
Marketing fee: three percent of gross tariffs
•
Merchant fees: two percent of gross tariffs
•
Housekeeping fees: $40/ clean
•
Linen costs: $3/bed/ booking
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•
Guest amenities: $10/guest
•
Spring cleaning: $250/year
•
Foxtel: $35/month
•
PABX: $30/month
Normally, these charges would be listed as individual items on your owners’ statements at months’ end. In contrast, under a ‘bundled’ revenue structure, you may charge a ‘property management services fee’ of 40-50 percent of gross tariffs for the month as payment for all agreed services. This fee would be a single line item charged to your owners and would be expected to cover all of your associated costs in carrying out your required duties. The extent to which your managerial services are bundled is dependent on the contract you hold with your owners. As long as all parties agree, you can ‘bundle’ or ‘itemise’ any of your services. E.g. you may choose
to bundle your management, marketing and merchant fees, while keeping all other costs individually itemised on your owners’ statements. How would I manage my accounts and owner statements under a bundled structure? Your business should have management software with an in-built trust accounting functionality. Most trustaccounting systems will allow you to set-up custom tariffs that can cater to any bundled or nonbundled revenue structure. The most powerful systems, however, will also provide you with the tools necessary to forecast your future revenue and profit accurately. Note that these forecasts will be more reliable if you don’t have a bundled revenue structure, but we’ll talk about that more later on.
resortnews | april 2018
When and why was bundling introduced? Deregulation always opens up new opportunities within an industry, and we have certainly seen this within the accommodation industry in recent years. The Property Occupations Act (POA) was introduced at the end of 2014, effectively deregulating commission structures by removing commission caps and revoking agent disclosure requirements. While bundling has been around for a very long time, the POA has opened the flood gate for what charges can be included in the ‘bundle’.
The opportunity to sell new products and services A property manager’s decision to transition from their traditional
Bundling |
revenue structure to a ‘bundled’ structure also holds other added benefits and opportunities for industry suppliers. Firstly, a great deal of time and money goes into the transition process (as all owners’ agreements need to be re-written and re-signed). Secondly, there is scope for new specialised products and/ or services that target ‘bundled’ businesses.
was the ACCC’s broadening of the ‘merchant fee ban’ to include small to medium sized businesses. From September 1, 2017, all businesses operating within Australia have been banned from collecting payment surcharges, which are in excess of the transaction costs they incur.
Surviving the regulation of merchant fees
Simply put, the ban is intended to prevent businesses from profiting from merchant fees. Unfortunately, anyone who has ever owned an Eftpos machine knows that accurately passing the costs onto your customers can be somewhat challenging, particularly when your financial provider charges you incrementally based on the number and value of transactions you complete during the month.
Another regulatory change the industry has recently withstood,
Bundling can potentially ease the risk associated with
Understandably, these suppliers seek to make the most of these opportunities and do what they can to lead the industry in the same direction.
What are the main benefits?
arbitrarily assigning merchant commission fees to your owners. That is, if you charge a ‘property management services fee’ of 20 percent, which includes your management services, marketing activities and merchant fees, you don’t have to explicitly state what portion of that 20 percent is attributed to covering your Eftpos costs.
Owner-manager relationships could improve As Tony Rossiter from Holmans Chartered Accountants says, “Separate charges are replaced with one fee, making it far simpler for your unit owners to understand, while giving them comfort that you are only getting paid when they are making money”. By bundling your services into a
management
single commission fee, you’re essentially going into partnership with your owners. You’re sharing in their downs and their ups, and effectively transferring a portion of the seasonal effects they would normally feel, to your own business. If your owners have previously looked at month end statements during the low season and complained about you ripping them off (because a high proportion of the guest tariff s collected are required to cover your fixed costs), this will no longer be the case. Your owners will get more in low seasons and less in the high seasons. Contrastingly, you as the property manager will now feel more of the seasonal effects and will need to carefully manage your cash flow.
NEW MEMBERS
WELCOME
Contact us to find out how to become a member
Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.
For membership enquiries: www.arama.com.au
national@arama.com.au (07) 3257 3927 resortnews | april 2018
25
management | Bundling
Increased revenue during peak seasons As discussed in the ‘partnership’ notion above, your business is likely to receive more revenue in peak seasons and less in low seasons. Having a higher commission rate has great financial benefits when your property is accommodating more guests and collecting increased tariffs. This means there is greater incentive for you to optimise your average daily rate and occupancy levels. As a property manager operating under a ‘bundled’ agreement, you would be rewarded more substantially for any efforts that you make to incrementally increase the tariffs you collect on behalf of your owners.
What are the main consequences? Greater risk for your business As previously stated, by replacing your fixed cost fees (such as housekeeping/Foxtel/PABX/ linen, etc.) with a flat commission fee, you are effectively transferring some of your owners’ financial investment risk back into your own management rights business. If the market suddenly takes a downturn and occupancy rates fall, your revenue could potentially drop below what it costs you to carry out your management services. Careful cashflow management throughout all seasons will, therefore, be more important than ever to prevent your business suffering a cash shortage in low seasons and tougher market conditions.
Less tolerance for price drops, occupancy drops and stronger competitive conditions The ACCC has recently announced it will approve the merger between accommodation giants Mantra and Accor, despite it resulting in the duo possessing “a large number of properties
26
in some areas, particularly in certain holiday destinations in Queensland”. With this on the horizon, small management rights operators and accommodation suppliers need to be mindful of the potential for increased competitiveness and stronger financial pressure on the local market. If these chains decide to drop their prices, you need to be aware of how susceptible your business will be. Periods of tougher competition generally require greater marketing spend, and may require you to fight back by dropping your property’s own rates. Unfortunately, being under a bundled agreement might hinder your ability to withstand these tougher conditions due to the increased cash flow risks this scenario presents.
Less transparency around your income and less reliable forecasts A powerful PMS will give you a complete breakdown of how much revenue you receive for each of your services within every guest tariff that you collect. For example, a guest’s one-night-stay that delivered a $150 tariff would include an $18 management fee, $4.50 marketing fee, $3 merchant fee, $53 for housekeeping, linen and amenities plus a proportion of your monthly Foxtel and PABX charges ($2.17), based on the typical charges listed above. At months’ end, as long as you’re keeping account of your expenses, you are able to analyse which services were most and least profitable for your business and why. Furthermore, you have the ability to accurately forecast future profit based on expected occupancy rates and historic profit margins for each service. In contrast, when your services are bundled into a single commission rate, you lose transparency around the profitability of each of your managerial services, and your profit forecasts may not be as reliable.
Confusing accounting consequences of having a combination of bundled and non-bundled agreements Bundling is truly only operationally viable when all owners agree to the new commission structure. The tariff names created in your PMS would theoretically allow you to account for differing owner agreements between rooms; however, you may encounter confusing issues when you need to transfer guests between these rooms. E.g. what happens when a guest stays in a unit that is under a ‘bundled’ agreement, and then is moved (on their request or because of an overbooking issue) to a unit that is not bundled? With payment having already been made upon arrival, there is a good possibility that disbursements to owners and managers alike may have ‘already’ been made. This results in additional workload for the manager in calculating the revised split of income and adjusting disbursements accordingly.
Greater risk of your owners ‘shopping around’ for a better commission rate during high seasons While a ‘bundled’ agreement has many benefits for your owners in low seasons, they may be put off this agreement after receiving their first ‘high season’ monthend statement from you, which shows a much higher proportion of guest tariffs being withheld. Furthermore, some of your owners will undoubtedly only see a number when it comes to the commission rate you charge them. If they choose to ‘shop around’, most other external agencies will appear much cheaper because their advertised lower commission rate does not include all the other fixed costs that your ‘bundled’ rate does. We all know customers are quick
resortnews | april 2018
to forget what they are actually receiving for their money and often try to compare apples with oranges.
Other things you need to consider before making a decision for your business Past performance is not indicative of future results There are a number of property managers in the industry who have made the switch to ‘bundled’ agreements in the past year and are boasting about the increased revenues they have achieved. This is fantastic if it has worked for their properties, however before making such important business strategy and investment decisions you need to take into account the nuances specific to your own property. The accommodation industry in Queensland as a whole, has experienced favourable conditions over the past one-totwo years, with slightly higher than normal demand. What you should consider, is whether your property would have received more or less revenue over the past few years if you had switched to bundled agreements. Then, decide whether the added financial benefit from bundling (if any) would have compensated you for both the cost of re-writing all of your owners’ contracts and the increased financial risk your business would now face.
Analyse your new tolerance for market movements You should also analyse your vulnerability to price drops, low rates of occupancy and the possible downsizing of your letting pool. Under a bundled structure, calculate what effect a five percent drop in occupancy rates for each month might have on your net profit. Then, do the same for a five percent drop in your average daily rates.
Bundling |
Lastly, because these two events are rarely mutually exclusive, consider a situation where both your occupancy rate and ADR decrease at the same time. Unfortunately, when these metrics fall together, the impact is compounded and a smaller decrease can significantly impact your bottom-line. You may find that a concurrent drop of only two percent is enough to put your business into the ‘red’.
One size does not fit all, and one agreement does not necessarily fit all Not all ‘bundles’ are the same. If you were to switch to ‘bundled’ agreements, it is up to you to decide which arrangement of ‘bundled’ and ‘itemised’ fees works best for your business and your owners. It is worth noting that it might help to lessen your risk by only including your variable fees in the bundle (i.e. management, marketing and merchant fees). Keeping your current fixed fees (such as Foxtel, PABX, linen, etc.) ‘itemised’ and charging your owners consistent amounts for these each month, could help to minimise the additional seasonal risks that you take on when switching your agreements over.
Unspent marketing fees and the value of your management rights business
management
Management rights businesses are valued on a multiple of their annual net profit (usually between 3.5 and six times a property’s annual net profit). For some time now, unspent marketing fees have been included as owners’ money, rather than that of the business. As such, the amount that is unspent is subtracted from the annual net profit before valuation occurs. For example, if your business has recorded $80,000 annual net profit over the last three years you might assume it could be valued at $360,000 (x4.5). However, if you’ve failed to spend $20,000 of your marketing budget each year, this would be subtracted from your ‘net profit’ before multiplication, resulting in a valuation of only $270,000.
figure, because a ‘marketing surplus’ will affect the sale value of the business by a multiple of 3.5 to 6.5.
If you have ‘bundled’ your marketing fees in with your management fees, there is no way to explicitly identify how much you’ve collected for marketing. The potential purchaser will then be unable to determine how much of your marketing money is unspent and appearing as your income, and how much of your business’s net profits is actually your owners’ money.
What’s the verdict – to bundle or not to bundle?
Consequently, buyers conducting due diligence now apply a general figure for what they believe you would have collected in marketing fees throughout the year. There can obviously be quite a debate about the appropriate
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Over time, however, the general consensus seems to have settled on a figure of between $1000 and $2000 per unit per year. The buyer and their advisors will then make a judgement call in regard to this, taking into consideration specific details surrounding your property and the market conditions it is subject to (largely competition). So, if you’re currently spending over or under this arbitrary amount of $1000-$2000, it will either work in your favour or devalue the sale price of your business quite significantly.
Bundling undoubtedly works for some, but will never work for all. Under ‘bundling’ agreements, your property will face greater risk and be affected by seasonal conditions throughout the year. Your business will also lose transparency surrounding the profitability of your sub-services. The reliability of your profit forecasts may also be damaged, ensuring the need to carefully manage your cashflow to prevent cash shortages in low seasons. In saying this, on the flip side you may also achieve much higher returns during peak seasons. All in all, your investment and strategic decisions really do depend on your property and your adversity/tolerance to risk. By Siobhan Baumber, Marketing Assistant , HiRUM Software Solutions
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resortnews | april 2018
27
management | Motel Market
Never too old
Andrew Morgan Motel Broker, Qld Tourism & Hospitality Brokers
If I was ten years younger I would buy that motel… I wish I had a dollar for every time I’ve heard that over the last 23 years. I think in many ways this comment is often made, not as an excuse, but it is probably more about something many of us suffer from, procrastination. It is often the worst enemy in holding people back from achieving more than they do, in any given situation, whether it be in our business activities, personal lives, sports and recreation, and so on. The previous issue of Resort News included the article ‘12 Reasons to Buy’, where we looked at 12 very strong reasons as to why people invest in motels. This article continues from last month, where all those
Procrastinating about it now will ultimately drag on for another 10 years
reasons are accepted; however, procrastination results in them not deciding to go ahead. It ultimately takes precedence over so many good reasons. We considered these reasons based on the motel industry, current motel and accommodation market, wider economic factors, financial, family, and personal considerations, and others. The quote above can be considered, in many ways, an easy or
convenient excuse not to act or invest in this case for reasons such as having too many aches and pains, lack of motivation, advanced age, etc. It is an easy way out in one’s mind for not making a positive decision when all the facts point toward it. Opportunities lost are always recalled after the fact and filed under ‘hindsight’ in months or years down the track and are always regretted.
In my opinion, it is often people who are still young and active that make this comment. It can be relatable at any age really. I know myself having recently agreed to go back to playing a competitive sport at age 43 that I have not played since I was 19 years old. Being beaten or out-sprinted by an 18-year-old immediately has me looking to the easiest excuse, “well he does have 20 years on me” or “if I was 10 years younger I would have performed better”. Of course I would; however, am I going to keep saying this week after week, after every game. I was using this excuse a lot at first then I started to dislike what I was hearing. I then started to consider a link between what I was saying and the comment I was hearing in regarding to investing in motels. Both roll-offthe-tongue quickly and easily
Hotel Profits:
As much business as your hotel can handle – through account management Building direct relationships with companies and organisations should be an important component of your overall sales and marketing strategy. The benefits of having its own clients gives a hotel a high degree of control over the size and predictability of cashflow and helps to isolate from a downturn in the economy or increased competition. Account management is one key strategy to securing clients and direct bookings. The first step is to identify resources to achieve this goal. Most resources will fall into these categories: time, money, human resources and expertise. Hoteliers and moteliers complain
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not only about OTAs and other companies stealing their profit, but also about a chronic lack of time. Admittedly, you cannot and should not do everything yourself. If you own or run a large property or multiple hotels and motels, then you should be able to employ a fulltime sales person; BDM (business development manager). In smaller hotels, a staff member may hold a dual role of performing in a particular position and do sales related activities e.g. one or two days a week. In this instance, all interaction; face to face and over the phone, must be captured in a customer relationship management (CRM) software. I have also known hotel owners, where they employed external consultants developing business for them. This has seldom worked
Chris Novak Principal, Nova House Realty
Where possible, owners and managers should play an active part in the client acquisition process.
the revenue. Correspondingly, you should put most effort into the highest yielding companies.
Segmentation of companies into the following groups:
‘A’ companies or ‘key accounts’ should have the following strategies: visits, site inspection, entertainment, offering the best deals, which are not available to the market place.
Existing clients – ask them for more business. Existing clients can be segmented into A/B/C accounts based on total dollar volume or room nights. You may also like to view these accounts from the perspective of: Transaction type: • • •
Recency Size Frequency
80/20 rule that 20 percent of the right effort, will give us 80 percent of results, can easily be observed in a hotel client list, where a handful of companies, generate most of
resortnews | april 2018
‘B’/’C’ companies or ‘marginal accounts’ – should only be contacted by phone. Pipeline – are companies that should be your clients but are not. You should list and start targeting them. A colloquial term for pipeline is ‘hit list’.
Example of local marketing activities Selectively attend local events – exchange business cards; try to
Keeping House |
management
@WilyIrishMammy cackles at Twitter and really are throwaway lines.
These people immediately come to mind when anyone much
I have been very fortunate to have worked with some very good people over the years who have bought and sold many motels and worked as hard (or as little) as they wanted to as opportunities presented themselves. Four individuals aged into their 80s, who continue to buy and sell accommodation businesses, are great examples that you are never too old. They are always active, on the go, and looking for the next business challenge to work on. They enjoy the opportunity and challenge and don’t want to slow down. They may not work the businesses on a day-to-day basis like they once did, but there is no doubt who is making the important decisions to ensure the future success of their accommodation businesses.
meet as many people as possible Business card bowl – on your reception desk with a prize drawn monthly
younger than them says, “if I was 10 years younger…” Buying one’s first motel is the biggest step. The acquisitions after that see the steps getting smaller and smaller. In many cases, it is a major change of life decision in both career and lifestyle. Procrastinating about it, not taking the step, and acting but then regretting it later down the track is never a good feeling. Time has a way of creeping up on us very quickly. Therefore, don’t put these things off any longer! Go for it and take the adventure head on. Procrastinating about it now will ultimately drag on for another 10 years. ■
•
Tourism authorities
•
Economic development authorities
•
Chamber of Commerce
Arrival list – review the list the day before to see if there are new companies
•
Local council – often have accommodation section, group and event sections
•
Hospitals
•
Private schools
•
Wedding organisers
•
Sporting associations
•
Other associations
•
Entertainment centres
•
Theatres
•
Convention centres
•
Local bus and coach companies
Site inspections – invite companies and organisations to inspect your hotel Appointments – go and see or ask people to come and see you at the hotel Past business – review old files; these are people who used the hotel in the past Lost business – go back to eg. group and other business that did not materialise Travel agents – who booked this month; send a thank you note or give them a call.
She took an out-of-character break from cleaning to have a chat with her grandson Aiden about the Tweeting craze. This led Mammy to have a go on the “auld Twitter thing”. Aiden explained to Mammy that it’s all about Twitterers and Followers and to get the followers he advised that Mammy must Tweet funny, smart, or interesting comments in no more than 140 characters. Now, Mammy just wants to spread a bit of love for cleaning and support for all those hardworking cleaners and housekeepers out
there. What better way to do that, than join the Twittersphere? So Wily Irish Mammy decided to have a craic on the Twitter and get her own followers. Mammy does love a laugh and finds that housekeepers naturally have a great sense of humour - they certainly need one to put up with some of the ‘eejits’ (fools) who ‘act the maggot’ (badly behaved guests) they come across! Our Mammy took to Twitter like an auld duck to water, and in her own peculiar way found a rare auld collection of funny Tweets from a variety of accommodation Twitterers that made her cackle. Here are three funny accommodation-related Tweets that made her laugh this week…
Now, someone here was horsing around…
Examples of companies and organisations to target in your destination:
Database – help build database with key corporates and local organisations: bus & coach, sporting, associations and other
Local travel agents – often have group or last-minute bookings
This month, our very own Mammy took a break from cleaning to dabble in social media and reach out to all those housekeeping stalwarts in need of a laugh.
Mammy has a dabble at a bit of welcome towel art – a swan or the odd duck (well no-one is perfect). But this imaginative creation is definitely the bees knees…
Mammy’s funniest hotel Tweet came, of course, from a housekeeper. Wonder if they booked in advance? Give Mammy a warm welcome to Twitter if you’re already on there! You’ll get some (sometimes silly) housekeeping tips and support but mainly a good auld laugh.
It has been my experience of working in many destinations, that owners and managers, who take the time of working the local market, develop relationships with the right organisations, and consequently, get much higher market share. ■ resortnews | april 2018
If you’ve yet to join the Twittersphere – take a gander over there and check out how other properties are attracting new guests with fun posts and tweets. Mammy would love retweet your funny tweets, so tag her in for a craic! ■
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management | Intonet
You must comply with this legislation Arvo Elias Cybercons
One of my clients was faster than Speedy Gonzales the Mexican mouse! A real case of " Andale! Andale! Arriba! Arriba! Yii-hah!" as Speedy would say. He had taken note of our law changes but wanted some advice. As you all would be aware of and I now quote, “From February 22, 2018, new privacy laws commence to mandate the reporting of eligible privacy and data breaches to the OAIC and impacted individuals with limited exceptions. This is generally known as the notifiable data breach reporting scheme (NDB).” OAIC stands for Office of the Australian Information Commissioner.
Don't you love these acronyms we have to remember? The new S26 of the Privacy Act 1988 specifies these obligations and brings Australia into line with jurisdictions such as most of the EU, UK, Japan and most US states that already have mandatory reporting regimes. To familiarise yourself with all the details, just Google it or head to www.oaic.gov.au.
To keep it simple... If you fall into the category of organisations that needs to comply with the Privacy Act, then the Notifiable Data Breaches (NDB) applies to you. And I suggest that a great many businesses in our industry are ensnared by these changes. Certainly, those with a turnover of $3m. or more. My client had assumed that monitory qualifier was his income, which is not so. As you understand turnover, simplistically put, is the sum of what comes in as earnings and what goes out as costs. What perplexed him was to understand what data was involved because his resort really did not own a database.
30
My questions were simple; did he use a computer to maintain a booking system; did he keep a record of his suppliers and debtors; did he pay his employees; did he use EFT to pay his owners or creditors? And naturally the answer was yes to those questions and thereby he had in fact a whole string of data bases irrespective of how they were handled or kept. Similarly, your business does not have to be a resort to keep like or similar records. To make the point, specialised software was not necessary as simple lists or spreadsheets could store such data. In past articles, I have discussed the application of VPNs, wifi facilities and the risk provided by a guest simply and probably unwittingly importing malware residing on his smartphone capable of infecting your systems without warning or indeed your knowledge. Those articles were written in anticipation this legislation being enacted. The legal eagles will give the legal interpretation of all this. However, were I still in business, irrespective of its turnover, I would scramble to put my house in order. As an aside, I do not see what the turnover has to do with the contents or security of a database. This demarcation may save on the costs of public service involvement but the damage could be just as great. My advice to my client was to describe what I would do regardless of the finer points in law and adopt the following tasks. These, as you will see, covered a range of areas that had to be attended to as an absolute must.
homework or streaming Netflix or keeping up with friends via social media irrespective of the flavour. Importantly Google, social media and the like were not to be accessible except from his private use computers. Computers are cheap today and are a tax deductible item.
The business side was also not to be connected in any way to his guest wifi system. My client used three computers to operate. One was for his reservation and online booking system, another was used for back-of-house tasks in his administrative office and the third unit was part of his in-house information channel and guest accessible wifi. I suggested that the first two be hard cabled to form a network that also included his printers. These days many printers can be added to networks via wifi and/ or Bluetooth and thereby would breach the isolation and security of his primary system. One interesting aside, which befell me, was that our NBN has issues sending data upstream via; for example, fax machines that then require the router firewall settings to be degraded to a medium setting rather than the maximum setting automatically provided for in routers supplied by ISPs. Software upkeep was important as indeed regular scans of the total system with high grade malware and anti-virus tools. Equally important, was a reliable backup system with duplicates kept off-site in case of an unforeseen disaster.
Your systems may not be quite as extensive as his but the generality should help you…
Review your data security policies, procedures and systems to ensure you're protecting the data as well as you reasonably can.
His first task was to separate his business computers from those used for private purposes such as browsing the web, children doing
Credit card details or a list of employee tax file numbers in an unprotected spreadsheet is not going to cut it!
resortnews | april 2018
To monitor your secured system, you must inspect your system access logs daily. I do assume that you already use secure passwords for access. Similarly, each authorised person should have their own logon password to simplify tracking of events should a breach occur. I can hear a few of you already shaking your heads and deciding that all this is starting to sound too hard. Perhaps so, but the consequences of erring under this legislation are severe. The maximum civil fine that the OAIC can issue is $2.1m to businesses or $420,000 to individuals, but that may not be the only punishment. Just remember, a data breach occurs when personal information that an entity holds is subject to unauthorised access or disclosure, or is lost. Thankfully, the notification procedure is fairly simple. Breaches need to be reported to the OAIC. To make life a little easier, they have an online form for you to fill in. And there is also a guide so you can start to get some processes in place before an incident occurs. At least you're won't be scrambling when the you-knowwhat hits the fan. Rehearse your processes for disclosing and reporting a notifiable breach and have a communications plan in place for letting customers and the public know what happened. To wade through the whole summary of the ‘ins’ and ‘outs’, head online. This is one instance where to err on the side of caution is not only desirable but vital to avoid apparent and possibly yet unrecognised consequences. ■
Strata Trends |
Hardening of insurance market leads to significant premium rises The importance of an insurance broker has been reinforced as insurance premiums rise by more than 20 percent for some southeast Queenslanders. The insurance premium rises were sparked by a hardening of the insurance market in the southeast, following a north Queensland market that was jolted by Cyclone Debbie. The insurance market was susceptible to the pricing cycles that affected the likes of the property industry, and the southeast is now experiencing the ‘hard’ market that reflects increases. The two factors that most impact this hardening of the market are natural disasters and the state of the economy. The SEQ market has been stable with increases in-line with annual indexation – until now the large rises had been felt in areas in central and north Queensland above Rockhampton. Increases of more than 200 percent were not uncommon in the Whitsundays region following Cyclone Debbie. This hardening of the market means that direct market products are most affected because claims are invariably tougher than normal and there is less of an appetite for negotiation with clients.
That’s where the services of a broker are even more important because they can continue to source the most competitive policy coverage and will fight on your behalf to get every single dollar you deserve in a claim.
What to expect in a Soft Market
Why are we currently experiencing a hard insurance market? If we look at the current strata insurers that service the market, most (if not all) service areas all over Australia, not just SEQ. There have been a number of recent natural disasters, cyclones, floods and major storms to all regions of the country that has meant that insurers have paid their highest levels of claims seen in a number of years. Coupled with a reduced rate of economic activity in some areas of the country, this means that a larger number of insurers have made a decision to reduce their exposure to claims payments and increase their income to build capital. In recent years, we have seen insurers becoming a lot more detailed in the way they asses the risks associated with a particular building. The use of more accurate flood mapping software along with increased scrutiny of building materials means that insurers can now exclude particular suburbs or streets if properties do not meet their underwriting criteria.
•
Lower insurance premiums;
•
More appetite for insurers to provide discounts;
•
Reduced underwriting criteria;
•
Insurers willing to accept a wider range of locations and types of buildings and not be so tough on construction materials or the type of occupation;
•
Insurers willing to write more policies with higher building sums Insured;
•
Increased competition among Insurers meaning sourcing alternative quotations is simpler.
What to expect in a hard market •
Higher premiums;
•
Insurers not willing to provide additional discounts;
•
More underwriting conditions on some certain types of buildings;
•
Less of an acceptance on buildings in certain locations, with particular construction materials, type of occupation, etc.;
resortnews | april 2018
management
Andrew Staehr Archers the Strata Professionals
•
Insurers not willing to insurer a building that is a above a certain sum insured;
•
Decreased competition meaning sourcing alternative quotation is difficult.
Tips for the best insurance outcomes •
Be ready to budget for increases in your insurance budget. Do not continue to expect stable premiums or decreases in premiums.
•
Engage the services of a reliable insurance broker. Your broker should be accessible and willing to meet or speak with you to go through any concerns or questions you may have about your policy.
•
Be wary of insurance brokers who try and get your business by reducing the fees you pay. Reliable service is priceless and could mean the difference in you receiving all that you are due in a claim or being able to effectively negotiate terms with an insurer.
•
Consistently review your building sum insured and the cover of your policy. ■
31
management | Building Rectification
Reducing the hysteria around combustible cladding There certainly is plenty of hype in the media around the terrors of ‘combustible cladding’ these days. It really does continue to be a hot topic, front-and-centre of the agenda for most industry conferences and seminars since the Grenfell Tower disaster in London last June.
So what is the ‘combustible cladding drama’ all about? First of all, the industry term ‘combustible cladding’ can be a confusing and, in my view, an emotive label in–and-of itself. The term ‘combustible cladding’ is commonly used to describe what is more technically referred to as aluminium composite panelling, which is an architectural cladding material, comprising external panels of aluminium sheet metal surfaces, sandwiching an inner core material. ACP has been used as a common commercial construction material in Australia for at least two decades and comes in a variety of sizes/ finishes. It is generally powdercoated, providing a slick, modern and striking architectural finish with low ongoing maintenance requirements, often specified by architects for commercial construction applications. ACP sheeting comes in three (3) basic “rating” categories: 1.
Fire-rated (with a fire rated core filling material)
2.
Thermal-rated (with a thermal rated core filling material)
3.
Non-rated (non-rated core filling – used for signage, for example)
How does ACP get onto Australian buildings? During the design stage of commercial construction the architect may specify ACP as the desired cladding system and will nominate what rating is required, what colour, finish, etc. Once the design is approved by the client, the architect then coordinates the structural consultants to apply their
34
relevant structural systems to the design – including the fire engineer and the fire protection system. The fire engineer (among other things) considers the cladding specified by the architect and engineers a corresponding fire protection system for the building. If ACP is specified as the cladding material, the fire engineer assesses the fire dynamics of the specified ACP category, the site-specific ignition points, general infrastructure and all other elements of the design before engineering a fire protection system to relevant legislation, Australian Standards and the Building Code of Australia. The outcome of the fire engineers design for the fire protection system is fundamentally to ensure that, should a fire break out in the building, it can be contained at its source long enough for occupants to escape and the firefighting services to arrive. NOTE: An architect can specify any cladding product for the building. It is part of the fire engineer’s job to evaluate the specified materials and ensure a corresponding fire protection system is engineered to allow escape, enable access to firefighting services and prevent loss of life in a fire event. During construction, the private certifier, or registered building survey, audits the construction process to ensure all materials supplied and/or works undertaken during construction conform to the relevant construction codes and standards. Upon satisfactory completion, an occupancy permit or Certificate of Classification for the building is issued and habitation can follow.
So, with all these design, construction and certification standards in place, why is combustible cladding as a building material now being demonised? Good question…
There has been one fire in Australia (remember the Lacrosse building fire of 2015?) on a building with ACP specified/installed as cladding. Everyone escaped. No lives were lost. The fire was brought under control by the MFB of Victoria. The engineered fire protection system ‘performed’ as designed. One swallow does not make a summer. Thousands of buildings containing ACP have been audited across various states of Australia, however there is no evidence I am aware of supporting the notion that Australian buildings are Grenfell Tower disasters waiting to happen.
So, what is different about the Grenfell Tower fire? In very simple terms, the Grenfell Tower complex was originally built and certified in 1974. It was 24 stories of predominately conventional concrete/masonry construction. The original fire protection system was engineered to suit the materials originally specified by the architect. The building was certified at the time, in accordance with local legislation. Four decades later, Grenfell Tower owners decided to retro-fit ACP cladding over the top of the original masonry construction, thus introducing an additional fire load and different fire dynamics. The original fire engineer was not included in the design of the retro-fitted cladding, so the fire protection system was subsequently not modified to suit the new cladding. When the fire broke out, the fire protection system was not fit-for-purpose due to the new cladding installed, thus resulting in the inability of the fire safety installations to contain the fire at its point of origin long enough for occupants to escape, and the fire brigade to access the fire. The tragic outcome of this is well documented.
So, why is my insurer asking for evidence of compliance around
resortnews | april 2018
combustible cladding? Firstly, all construction industry cladding materials are combustible under certain circumstances – including timber, bricks, concrete, steel, fibre-cement sheeting, glass, etc. We need the industry to be clear and refer to aluminium composite panelling if they are meaning combustible cladding when they ask this question. Secondly, insurers should be encouraged to undertake their own risk assessments for buildings containing ACP cladding if the insurer has a concern. There appears to be a trend for insurers to seek from the building owner evidence of compliance re: combustible cladding. In my view the building owner already has that. It’s called a Certificate of Classification (or occupancy permit) and it was issued by the private certifier (or registered building surveyor) at practical completion of construction work. If the insurer is not satisfied with the compliance certification issued by the licensed agent of the regulator (i.e. the private certifier or registered building surveyor) at practical completion of construction, then we have an even bigger issue to deal with: inadequate certification of construction.
Who can I get a straight answer from? If a building owner or occupant has any questions about the compliance of the construction materials for a building, simply ask the private certifier (or registered building surveyor) to confirm that the cladding was accounted for during construction and the Certificate of Classification (or occupancy permit) is sound. If the certification entity is unable to provide these assurances, why did they issue the certification in the first place? ■ By Lynda Kypriadakis, Director, Australian Building Management Accreditation
Building Rectification |
management
High standards for tall building refurbs High-rise properties come with a special set of maintenance needs.
method complies with state legislation. Scaffold systems, cherry pickers, swinging stages, working platforms and abseilers tend to be the most common choices and each method will need to comply with OH & S legislation. Each method should be inspected prior to works commencing.
If neglected, they can lead to disastrous consequences for guests, owners and wider communities. So it’s vital that highrise buildings are regularly and properly maintained. Property managers should talk to high-rise specialists to find out what elements of their buildings need rectifying. Here are some of the more common types of highrise rectification…
Windows Presenting a pristine environment that includes shining windows will not only increase your property’s desirability but also increase its wow-factor by taking years off its appearance and saving money by expanding the time between repaints. It is amazing what a little TLC from some experienced professionals can do. Exterior window cleaning is a complex issue as safety is of the utmost importance for cleaners, the general public and of course guests. Abseiling and boom lifts are a go-to option when cleaning higher levels of a multistorey building. Despite these methods experiencing their fair share of accidents over the past few decades, they are widely considered sound methods of access if performed correctly by well-trained personnel. The down side to this is that because of the risks, special training and equipment required it can be very expensive.
Concrete Concrete rectification is generally carried out to fend off the likes of ‘concrete cancer’, which is the result of corroding metal in concrete structures. It’s an extremely technical matter that requires a well-versed specialist. Resort News highly recommends that its readers obtain quotes from specialists before deciding on a plan of action for structural issues such as these. Covering concrete cancer will not work
Balconies/balustrades
as it requires a thorough repair. Concrete problems, such as cracking or spalling should be identified as soon as possible to avoid worsening safety hazards. Several things can cause underling issues in concrete, including nonexistent or failed waterproofing, poor structural design, ineffective concrete curing or structural cracking.
Façade When your guests arrive at your property, it is important that they do not second guess their decision to stay and the solution to ensure that they don’t is really simple: Always maintain a clean exterior of your property. It is obvious that large mould stains, dirt build-up and rubbish in and around the front aspect of your building, path, drive and decks are very confronting for your guests but there is an even more serious issue here than a poor review - health and safety. The hidden dangers of a dirty building come mainly from mould build-up. Mould can quickly develop on pathways and tiled surfaces especially in and around damp areas such as the pool and barbeque area. This presents a very dangerous slip hazard to everyone. When mould spores start to break down and become airborne it can be very unhealthy. This is a particular risk to those with allergies, asthma or lung conditions. Pressure cleaning of these areas is
one way specialists remove mould, using very hot water – above 100 degrees – this will kill the mould spores. A regular programme of external cleaning of your building, at least 12 monthly by professionals will not only produce a nicer, safer environment.
Waterproofing High-rise waterproofing should be effective and attractive; protecting surfaces and materials from the elements while adding an aesthetically pleasing finish to the building. Before carrying out any waterproofing, a reputable specialist company or supplier should view the building area and survey its needs. In particular, things like drainage, vegetation and structural movement should all be analysed and carefully addressed as these types of issues can cause more serious complications down the track. It’s important to ask about maintenance of the waterproof coating – how long it should last and how much attention it will require. Buildings exposed to harsher weather, whether it’s sun or hurricane rain, will have much different needs and the amount of maintenance required will differ. Regardless of the type of rectification a building requires, there are a plethora of methods. Different specialists will be able to inform you of their preferred methods but what is most important is that the chosen
resortnews | april 2018
Having these replaced or rectified can vastly improve the look, feel, vibe and standard of your property. Not only is it a safety issue, but first-class balconies and balustrades boost security, add useable space for guests and help give you that wow-factor photo appeal. There are a set of Australian code standards for things like glass and aluminium balustrade installations, so make sure that any supplier you bring on board is fully compliant. Weather is a big factor to consider in these replacements as well; locations near the beach where balcony rails, etc., are open to winds and rain with high salt levels will deteriorate quicker, so it’s important to have conversations about weather with whomever you contact to carry out the upgrade. What best suits your property visually might not be the easiest to maintain.
Planning Find out how long everything will take and how the process will impact business hours. Everything from a guestroom view to noise or a reduction of available floors/floorspace could impact your accommodation business’s bottom-line so get as much information beforehand as possible to limit any negative results. It’s also important to question the manufacturer of any products, structures, treatments or refurbishments about maintenance and longevity so that you can plan these years in advance. The more that you plan, the less you have to worry. ■ By Rosie Clarke, Editor
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management | Check In
Your lobby music is terrible It might sound weird... but here's some alternatives to annoying (overplayed) lobby music that you and your guests might love (a lot)! Listen, there's a reason 'elevator music' shouldn't leave the elevator... and that's because it's only bearable in small doses. Staying at a boutique hotel in Melbourne recently... I climbed down to the main lobby - laptop, charger, bag and phone in-tow to find coffee, good lighting and somewhere to focus. I sat down by a window; comfy seat, good coffee, nice desk, even a decent view. But after five short minutes, my attention dissipated into the loud, droning whale-like house music pumping through the tiny speakers dotted around the ceiling. I lasted an hour before I had to escape and find a silent library. Sure, not every guest is going to spend much time in the lobby but there are plenty who will particularly if you have a bustling hive of activities, long check-in queues, or frequent business guests. Then there's the staff. And you. Life is too short to put up with bad music. Here's some audio alternatives for your lobby or common area spaces:
1. Soundscape Definitely not whale music. Did you know there are eight-hour YouTube videos that just play the sounds of a forest, or a calm river, or a windy sea, or a playful beach? If you're ten minutes away from the beach but don't have beachside views, or you're a rural B&B and want to mimic the nature surrounding you... These soundscapes are the perfect way to set an ideal tone for your guests. Not only are they relaxing but they create an atmosphere. Keep the volume low and guests won't even realise their ears are being duped. The trick would be to pick something in-keeping with the vibe of your location and property. Amplify nature.
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Here's some audio alternatives for your lobby or common area spaces‌
2. ASMR
3. Talking heads
Heard of ASMR? It means 'autonomous sensory meridian response' and it's extremely popular online. The idea is that certain sounds, played quietly enough, trigger positive and soothing emotions. There are whole channels on YouTube, with millions of subscribers and views, dedicated to ASMR videos. They range from generic white noise to soft tapping, wind chimes and whispering. While the latter might be a little bit weird, to say the least, in a hotel setting there are some ASMR soundtracks that could work really well. For example, if you have a business area, with desks or computers or even a reading room with newspapers - it can feel a little cold or intimidating. ASMR that mimics the sound of a tea room or library (pages turning, muted echoes, light teacup clattering, fires crackling, etc.) could just warm the place up and make it a more inviting space.
There's a few reasons why airports and many high-end hotels play the news on big TV screens in their lobby/waiting areas. Obviously there's the assumption that visitors will want to keep tabs on current events, but it also gives off an air of professionalism and keeps people occupied if there are long queues or delays. The downside to the news, for accommodation providers, is that it's quite depressing for the average holidaymaker. A great alternative would be something equally talkative and interesting but more positive, or life affirming. You can stream any number of 'roundtable' style panels or interview shows online to display for guests, create an infinite playlist, or simply play a podcast through your audio system. Nothing too loud or invasive, just some light, engaging discussions to maintain a lively and professional vibe.
resortnews | april 2018
4. Make 'em laugh ... Or at least entertain the kids. While cartoons are an assault on the ears to most, there's something fun in nostalgia and if you hit the right tone, playing black and white cartoons (even on mute) or classic films/musicals at a very low volume, could be a quirky way to brighten up your lobby. You can find a tonne of old school comedies and movies all the way back to Charlie Chaplin on most streaming services (Netflix, Stan, YouTube, SBS online, etc.,). A lot of the musicals will work on audio alone as well, so you don't need to have a big screen. I once stayed in a little Sydney hotel that had a projector screen playing back-to-front Westerns in a little room just away from the lobby. Loud enough to draw your attention to the quaint little sofas and lamps; people would drift in and watch for a few minutes, sometimes order a drink, but most would find it a charming quirk and carry on with their check-in smiling. Got any other nifty little audio ideas for your lobby? Better yet: tell us what you like to listen to. â– By Rosie Clarke, Editor
Tourism Report
| tourism
Record spend welcomed, but hotel share down TAA has welcomed record international tourism spending of more than $41bn, but warned that the share of international visitor nights spent in hotels, resorts and serviced apartments has dropped significantly. TAA CEO Carol Giuseppi said while the latest International Visitor Survey figures demonstrate a huge growth in both visitors and visitor nights right across the nation, there were also some concerning trends for the sector. “International visitor nights spent in hotels, resorts and serviced apartments (HMSA) only increased moderately, up just one percent to reach 29.2m nights,” she said. “Since 2005, the share of international visitor nights spent in HMSA has actually fallen from 18 percent to 11 percent, with most of the growth in unregulated private accommodation and visiting friends and relatives. Unregulated accommodation accounts for four times the number of international visitor nights as regulated hotel, resort, motel and serviced apartment accommodation. “Traditional markets for the HMSA sector are holiday and business markets. Visitor nights for the purpose of holidays represent 31 percent of all visitor nights and fell by two percent, thus impacting stays in hotels, motels and serviced apartments.” Giuseppi said the Australian hotel industry had been responding to international visitor growth over the past five years with a record level of hotel investment, which is continuing to transform Australia’s accommodation and tourism sectors. “It is vital for governments to continue investment in driving international visitation and to regulate commercial short term accommodation in residential
Reported hotel development projects in Australia 2018 – 2025 Under Construction
Approved
Planning/ Proposed
Total
Sydney
1,899
4,665
3,964
10,528
Canberra
201
419
550
1,170
2,484
656
4,526
7,666
Perth Adelaide
288
1,179
542
2,009
Melbourne
3,441
7,089
2,483
13,013
Brisbane
1,820
600
844
3,264
Hobart
406
338
1,207
1,951
Darwin Total
91
312
200
603
11,286
14,602
14,316
40,204
(Source: Tourism Accommodation Australia) buildings, if investor confidence is to be sustained,” she said. TAA has identified 200 hotel projects, or 40,204 rooms, either under construction, approved for development or in advanced planning stages in the six state capitals and Darwin. This is in addition to the 5500 new rooms that came onto the market in 2017. In addition, a massive rejuvenation of Australia’s existing hotel stock is underway, highlighted by the completion in April of DoubleTree by Hilton Esplanade Darwin’sm-
dollar upgrade to its 197 guest rooms and conference and events facilities, and the $40m refurbishment of the 558 room Sheraton on the Park Sydney. Giuseppi said record levels of investment – both local and overseas – are revolutionising Australia’s hotel industry. “This is the most extensive and comprehensive hotel rejuvenation phase in Australia’s tourism history,” she said. “It is a response to the massive growth in tourism demand over the past few years and
resortnews | april 2018
anticipated long-term growth in the visitor economy. “However, investor confidence needs to be sustained by improved and consistent planning and safety regulations around residential buildings being put on the shortterm visitor market together with continued government investment in infrastructure and in driving international visitation.” South East Asia continues to deliver for Aussies South East Asia was again a firm favourite for Aussie travellers, with 31 spots in the top 100 list and five in the top 10. Bali took out the number one spot for Australian travellers in 2017, but the eruption of Mount Agung in December may have contributed to its three percent price fall. Kathu in Thailand was revealed as the most affordable holiday destination among those analysed, at $55 per night. Pattaya ($66), Phnom Penh ($72), and Chiang Mai ($76) were the other top Southeast Asian favourites that offered Aussies the best bang-for-your-buck hotel breaks.
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tourism | Tourism Report
International tourism 2017 was another record year for international tourism. International visitor arrivals grew strongly, up 6.5 percent to over 8.8m visitors in 2017 – an additional 540,000 visitors on 2016. Arrivals over the last three years have consistently outpaced global economic growth. All indications are this trend is set to continue – the growth in the number of Chinese visitors to Australia eased in 2017, but was still up 12.2 percent on 2016. “These numbers are outstanding relative to any standard benchmark,” says LabineRomain. “Over the last five years, the number of annual Chinese arrivals has more than doubled and now represents 15 percent of all arrivals into Australia. In 2017, Australia welcomed 1.36m visitors from China, essentially on par with visitors from New Zealand.” India is another exciting market which has been building momentum over a number of years, and recorded the highest growth rate of any source market at 15.2 percent, on the back of a five-year average growth rate of 13.4 percent. The growth in visitor numbers from Japan and Korea moderated to four percent and 7.7 percent, respectively. International visitor trips were up across most of the states and territories. Tasmania retained its position as Australia’s fastest growing stopover destination for international travellers, up 16.6 percent, followed by the ACT, at 10.2 percent making the most of new international flights into Canberra, New South Wales (+8.9 percent) and Victoria (+7 percent).
Top 10 Australian destinations among the top 50 analysed where international travellers paid most for a hotel room in 2017 Average Price Paid in 2017 (AUD) $360 $260 $232 $230 $222 $222 $213 $207 $203 $200
Destination Yulara Cradle Mountain Sydney Palm Cove Whitsunday Islands Hunter Valley Exmouth Byron Bay Port Douglas Lorne again outperformed real GDP, underpinned by strong growth in business travel (+14 percent). Leisure trips on the other hand experienced more modest growth (+3.4 percent). “The increase in business travel was reflective of improved economic performance in recent quarters and stronger business confidence,” says LabineRomain. As domestic tourism has strengthened, the number of trips Australians have taken overseas has also increased. Outbound travel by grew at 5.2 percent in 2017, with almost 10.5m trips. This growth remains down from the double-digit growth in the earlier part of the decade, but up on the previous year. Growth in outbound travel has been particularly strong to countries with which Australia has growing family and business ties, in particular China (+15.8
2% 3% 4% -8% -14% 0% 12% 5% 0% -3%
Canberra & Tasmania are coming for Sydney & Gold Coast As the obvious holiday hotspots continue to creep up in price, some of Australia's more understated locales are rising in popularity. Travelzoo has just named Australia as one to watch in 2018. This year, it claims, deal experts from China, the USA, the UK and Germany have highlighted Australia as one of their top five destinations. This is the result of a number of factors: China is set to become Australia's largest tourist
Domestic tourism Domestic visitation grew 7.1 percent in 2017, chalking up its seventh successive year of growth. Domestic trips once
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% Change on 2016
percent) and India (+14.2 percent). The latest Census figures show strong population growth from these markets; Australian residents of Chinese and Indian descent combined now total almost onem.
1.
resortnews | april 2018
market this year, with the number of visitors from China expected to exceed those travelling from New Zealand for the first time. 2.
New flight paths are making it easier than ever to travel Down Under from further afield, too – the new nonstop route to Perth from London (starting on 24 March) will make Australia feel a lot closer for many Brits, while new non-stop flights from Houston to Sydney will add to the number of direct options for American travellers.
3.
Furthermore, with 15 new hotels opening in Australia towards the end of last year, and many more scheduled to open in 2018, ease of travel and increased availability are helping to keep travel costs down for prospective visitors.
Jacqui Timmins, Travelzoo's general manager in Australia, said: "It's great to see that Australia is being recognised as a top travel-deal destination by a number of markets around the world. "Celebrated tourist spots, including Sydney, Melbourne and the Gold Coast, continue to attract visitors to Australia year after year," she added, applauding "an increase in accommodation options, combined with the rise in popularity of Canberra and Tasmania." ■
Tourism International
| tourism
NSFW: Australia's sexiest hotels (according to real-life couples) Ten couples (selected from thousands of entries) chose seven Australian accom providers to appear in their top 30 "hottest and most unique" properties from around the world. The couples shared their most intimate moments to help launch the Places of Intimacy Guide, a new book from a condom company called SKYN.
Our bath was outdoors so having a couple pervy wallabies around while we showered was a new experience
The brand literally sent these couples from all around the world to some of the countries’ most luxe hotels and were tasked to diarise (tastefully of course) their most intimate experiences. Tim Schoepf, 28 and Tim Burnes, 29, couple number one, who have been together for two years, said winning the competition was “a dream”. “One of my favourites was glamping at Paperbark Camp in Jarvis Bay in NSW. Our bath was outdoors so having a couple pervy wallabies around while we showered was a new experience.” Justin Engelke, 26 & Jess D'Argent, 23 have been together for six years and enjoyed their all-expenses paid trip around Australia to rate hotels and document their intimate experiences. "It was a once in a lifetime experience and we loved spending every second of it with each other. We have plenty of stories from our trip, but we don’t kiss and tell..." These guys are every day couples who got whisked around Australia for a trip of their dreams. ■
Here's the Aussie hotels some of these couples lusted after (in no particular order), and a collection of personal photos they took: 1. The VDL in Stanley: "Crawling up the wooden stairs" "The VDL in Stanley was something out of a movie scene, set at the end of a bay in a secluded little fishing village about four hours out of Launceston. The picturesque town is surrounded by mountains which roll down into the sea. Its location was perfect, with sweeping views of the waves crashing on the long, rocky beach."
2. The Atlantic, Byron Bay: "Floating in the suspended chair" "Arriving to The Atlantic on a 28 degree day with tropical Byron Bay weather, we were greeted with a friendly smile and a wonderfully relaxed vibe. The Atlantic is surrounded by lush palm trees, green grass and white weatherboard coastal style buildings. We knew this was going to be good."
3. Paperbark Camp, Jarvis Bay: "Concealed behind the mosquito net” "A two hour drive from Sydney and you are embraced by the wildness of the Australian bush. As you drive down the tree-lined entrance into Paperbark Camp, the scents and sounds will take you back to childhood camping trips."
4. Thala Beach Nature Reserve, Port Douglas: "Slipping on the waxed floor" "Arriving in tropical North Queensland, as soon as we stepped off the plane, the heat hit us. Gladly, we peeled our jackets off and put shorts on, to start our drive down to Thala Beach."
5. Ovolo Laneways, Melbourne: "Curled up against the curved window" "When you think of Melbourne you think of a glorious city filled with stylish cafes and restaurants and night clubs; staying at the Ovolo you can make the very most of them."
6. Empire Spa Retreat, Yallingup: "Pressed up against the metal ornaments" "It’s impossible to imagine a more intimate and relaxed setting than The Empire Spa: the resort is surrounded by luscious bushland, just a short drive from some of Western Australia’s finest coast lines."
7. QT Melbourne, Melbourne: "Squeezed in between the two sinks" "We are so thrilled to be on vacation in Australia! #fairytale I’m writing this with a latte and cinnamon scroll in hand, from our fluffy King-size bed at the QT Melbourne."
resortnews | april 2018
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events & appointments | Events
AAoA launches QLD state advisory board With the Commonwealth Games on the horizon, Queensland’s new advisory board was formally launched by state minister for innovation and tourism industry development/minister Kate Jones. “The launch of our Queensland State Advisory Board is a significant step forward for accommodation industry representation in the state,” said the chief executive officer of the Accommodation Association of Australia, Richard Munro. “As our members are aware, tourism is one of the largest and most important industries for the Queensland economy and within tourism, the accommodation sector is a dominant player. “The move to launch a special board to specifically represent the interests of accommodation association members in Queensland formally acknowledges this.
“Without this, the superb reputation Queensland has enjoyed in the eyes of the travelling public could be at risk.” The launch took place at the Southport offices of training provider HETC (Harvest Educational Technical College). Members of the Accommodation Association Queensland State Advisory Board: •
Chair – Ian Sandilands, president/chairman, Best Western Hotels Australia
•
Michael Boroystan, regional manager, TFE Hotels
•
Matt Young, vice president operations QLD/NT, AccorHotels
•
Mark Hodge, executive director operations, Mantra Group
•
Steve Ryan, general manager, Comfort Inn & Suites Robertson Gardens, Nathan
“It also underlines the point that priority policy issues for the Accommodation Association in Queensland are issues which directly impact on accommodation beds.”
•
Nick uit den Bogaard, owner, Comfort Resort Blue Pacific, Mackay
•
Paul Hodda, owner, Best Western Ascot Lodge Goondiwindi
Members of the Queensland State Advisory Board are from a broad cross-section of accommodation businesses, including large national chains who have many hotels in major cities to smaller operators whose properties are in regional Queensland.
•
Warren Cullum, regional director of operations, Wyndham Hotel Group South East Asia and Pacific Rim, Wyndham Vacation Resorts Asia Pacific
“With the likes of global giant Airbnb and other sharing economy platforms who directly employ virtually no Queenslanders, pay next to no tax in Queensland and pay virtually no council rates in Queensland, the launch of the new Queensland State Advisory Board is very timely,” Munro said.
Sunshine Coast to host major convention
“To help preserve the safety of visitors to Queensland, there must be a level-playing field for the regulation of tourism accommodation in the state.
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•
Craig Barber, general manager, Alex Perry Hotels
The Association of Australian Convention Bureaux will hold its annual conference on the Sunshine Coast in August 2018, reinforcing the increasing importance to the region’s economy, as one of the fastest growing business event destinations in the country.
Pacific Incentives and Meetings Expo held at the Melbourne Convention and Exhibition Centre. “We are excited to be working with Business Events Sunshine Coast and keen to experience their hospitality as they host the 29th AACB Annual Conference," said Andrew Hiebl, CEO of AACB. “AACB is proud to showcase its regional members, with the annual conference being held in regional Australia six times over the past decade. The conference offers a unique opportunity for competing destinations to network, share ideas and work collaboratively to grow the overall business events market within Australia.” It is anticipated that up to 120 people will attend the Conference to be held for the first time on the Sunshine Coast from 12-14 August 2018. This includes representatives from city and regional business events destinations from around the country. The conference and associated functions will be held in Mooloolaba at host venues
The successful bid by Business Events Sunshine Coast was announced today at the Asiaresortnews | april 2018
including Mantra Mooloolaba Beach. Commenting on the successful bid, Visit Sunshine Coast CEO, Simon Latchford, said: “With business events estimated to be worth $40.8m to the Sunshine Coast region, showcasing what our region can offer and collaborating with the best in the business makes good sense. Hosting a prestigious industry event such as the AACB Conference attracts high profile industry speakers and experts, providing a unique opportunity for knowledge exchange. “Business events are the highest yielding sector of the Australian tourism industry with these visitors typically spending up to six times more than any other type of visitor. Accommodation choice tends to be four- to five-star and travel can be held year-round, mid-week or offpeak. In addition to stimulating further investment in the region, the conference or event often includes accompanying partner programs and it is estimated up to 40 percent of corporate visitors will return for a holiday.” ■
People
| events & appointments
Rydges Hotels appoints area general manager
interiors full of the latest tech, luxury hotel amenities and fresh fun-loving features.
After completing a successful $30m all-room upgrade, including projects at Rydges South Bank that have won both awards and applause nationally, hotel general manager Callum Kennedy has been appointed to the position of area general manager. Callum's new role covers a region stretching from Port Macquarie in NSW through the Gold Coast to Brisbane and is one of the most indemand in the country in terms of both leisure and tourist visitations. Properties now under Kennedy’s leadership baton include: Rydges Port Macquarie which is home to 98 rooms and apartments; Sails at Port Macquarie, an 92-room resort and 300-seat conference centre due to open in April following a $17m redevelopment; Port Macquarie’s iconic The Beach House bar and restaurant; the $50m, 240-room Gold Coast Airport Rydges Hotel due to open in 2019; the 208-bed Rydges Fortitude Valley which opened in late 2016; Rydges South Bank, the flagship South Bank hotel, home to 304 rooms including 64 suites as well as the multi-awardwinning Bacchus Restaurant, Soleil Pool Bar and acclaimed function spaces, and; South Bank Conferences, the benchmark partnership which launches this week between Rydges South Bank and the industry-leading Brisbane Convention and Exhibition Centre. Callum Kennedy has been general manager of Rydges South Bank for the past five years, and prior to that was executive assistant manager for four; before this he worked in hotels and the hospitality industry in London. He brings considerable experience and vision to the role.
Superstar HR manager wins global award Adrienne Putelli is the 2018 winner of Hilton’s CEO Light & Warmth Award. Her long-standing role at Hilton hotels has taken her around the
Amanda Cottome
Adrienne Putelli, winner of the Hilton’s CEO Light & Warmth Award.
world with positions in the UK and UAE. Recognised for over 20 years of ongoing contributions to the hotel, community, company and the environment, Adrienne’s position as HR manager has been the most impactful of her career. For a bit of background – the Hilton’s CEO Light & Warmth Award celebrates inspiring team members who embody the very best of what hospitality means. It is the highest form of recognition the company offers and is awarded on a global level. Adrienne embodies the characteristics every hospitality employer seeks – dedication, hard work, comradeship and a devotion to go above and beyond. Her passion in these areas has gained the hotel international recognition, regularly attending career fairs and networking evenings on behalf of Hilton Brisbane and Hilton worldwide, inspiring the next generation of hospitality professionals. A champion for sustainability and social justice, Adrienne encourages staff involvement in extra-curricular activities such as rehabilitation missions in local businesses after devastation of the 2011 floods. Adrienne’s vision to offer nationally
recognised qualifications to team members in collaboration with an RTO works to ensure staff are always developing their professional skillset. As Brisbane is expecting five new competitor hotels over the next five years, Adrienne is working to ensure Hilton will attract, recruit and develop top talent in the industry, that constantly focus on giving back to the community.
Ovolo bolsters team with two key new appointments Award-winning boutique designled hotel collection, Ovolo, has created two new roles within its Australian operation including general manager brand experience and director of operations Australia. These two new roles will assist in its rapid expansion of the collection with the recent acquisitions of Inchcolm Brisbane, Hotel Hotel Canberra, and Emporium Brisbane, and to ensure the philosophies of "effortless living, happy guests = loyal guests, F.U.N. (Fabulous. Unconventional. Never Boring) and effervescent experience are upheld" - Ovolo designs hotels from a traveller’s perspective with smartly spaced
resortnews | april 2018
Amanda takes on the role of GM brand experience, alongside her current responsibilities as general manager of Ovolo 1888. In this role Amanda will take on the strategic brand experience lead for Ovolo Hotels Australia ensuring the delivery on the brand philosophies through both the guest and team experiences. “Ovolo is an amazing, fun and creative brand, it is setting a new benchmark providing an overarching experience through design, art and service with personality,” said Amanda. “It is extremely important as our collection of hotels grows we stay true to our philosophies and ensure our team are culturally engaged to deliver these.”
Kieran Erasmuson
Kieran Erasmuson has been appointed director of operations, Australia. Kieran joins Ovolo following more than seven years’
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events & appointments | People
months. Stephen brings a wealth of experience from his time at Event Hospitality and Entertainment and Hyundai Motor Company Australia,” said CEO and chairman of Ovolo Hotels, Girish Jhunjhnuwala.
experience at Event Hospitality and Entertainment having worked on a number of developments for their hotel businesses, predominantly working on QT Hotels and Resorts across operations and food and beverage in Australia. “I’m thrilled to be joining a hotel brand with such commitment to a holistic customer experience,” said Kieran. “Ovolo Hotels is in a league of its own when it comes to luxury design and its ‘freebies’ offering with no stone left unturned in terms of attention to detail – it is truly effortless living!” “We’re looking forward to taking Ovolo to the next level whilst embodying what we stand for and ensuring our guests are number one!” said COO and CFO of Ovolo Hotels, Dave Baswal. “Through Kieran’s extensive industry experience and Amanda’s passion for our brand, they will both be great assets to Ovolo Hotels as we look to continue our growth in Australia and beyond.” Ovolo Hotels currently has 10 hotels operating in Sydney, Melbourne, Brisbane, Canberra and Hong Kong, with three new properties joining its portfolio in the last six months.
Ovolo Hotels appoints new director of marketing Stephen Howard joins Ovolo following nearly six years at Event Hospitality and Entertainment most recently leading their communications as group PR director. Having joined Event Hospitality and Entertainment in 2012 after nearly five years at Hyundai Motor Company Australia, Stephen brings more than 15 years of experience across marketing and
“His experience will be invaluable to our local and global efforts moving forward.”
Are you an Airbnb host? Researchers want to know why
Stephen Howard
communications to his new role as Ovolo Hotels. “Ovolo is an amazing, fun and creative brand! The collection of hotels is setting a new benchmark for guest experiences through design, fashion, art and allinclusive service with personality,” said Stephen when discussing the move. “Their recent acquisitions of amazing hotels such as The Emporium and Inchcolm hotels in Brisbane and the takeover of Canberra’s renowned Hotel Hotel is a testament to the company’s commitment to the Australian market. “Additionally, their commitment to bringing unique bar and dining concepts to Australia such as the soon to be launched Alibi Woolloomooloo, really cements the Ovolo collection of hotels as a designer lifestyle brand and the introduction of the Mojo Nomad brand to the company as a concept that combines travel, lifestyle and community - it’s an exciting time to be checking in. “We are excited to welcome Stephen as we look to build on the rapid expansion and success we have seen over the past 12
INDUSTRY EVENTS CALENDAR APRIL 4 VTIC Mixer Series, Melbourne, info@vtic.com.au 15-19 Australian Tourism Exchange, Adelaide, ask.us.@tourism.australia. com
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VTIC April Webinar Series – Risk Management 101 Online, info@vtic.com.au
MAY 1 Accessible Tourism Masterclass, Melbourne, info@destination.melbourne
UNSW Sydney researchers want to talk to Airbnb hosts in Sydney and Melbourne to shed light on the impact the short-term rental platform is having on housing affordability. The explosive growth of Airbnb has raised hackles in tourism and government circles, amid complaints about unfair competition and party houses. But not enough is known about how Airbnb affects housing affordability, says research lecturer at UNSW’s City Futures Research Centre, Dr Laura Crommelin, who is leading the research, done in collaboration with Swinburne University and funded by the Australian Housing and Urban Research Institute. Airbnb hosts offering entire homes or single spare rooms on the platform are being asked about why they are using the service and their experiences with it. “Those two uses are potentially very different in terms of their impact on housing affordability,” says Dr Crommelin. “The first group takes a house out of the market; the second is more a case of a space that may or may not have
15-17 2018 Whitsundays East Coast Roadshow, Brisbane, Melbourne, Sydney, info@ tourismwhitsundays.com.au. 17 Outlook 2018 – Tourism Industry and Policy Conference, Sydney, Katherine Anderson, 02 9240 2000.
resortnews | april 2018
been rented out if it wasn’t for Airbnb,” she says. According to independent, opensource data tool Inside Airbnb, of the 32,830 listings in Sydney, 61.5 percent are for entire homes, 37 percent for private rooms and a tiny 1.5 percent are share rooms. The breakdown is almost identical for Melbourne’s 20,406 listings. “We want to find out, for example, if spare rooms were previously rented to flatmates. Would the owners of large homes have downsized if they hadn’t listed spare rooms on Airbnb? And are people adding space to their homes or building granny flats to take advantage of Airbnb’s popularity?” says Dr Crommelin. “By surveying and interviewing hosts, we hope to better inform policymakers who might want to regulate the shortterm rental market.” In 2016, Airbnb told a NSW parliamentary inquiry that its platform lets hosts become ambassadors for the communities they love while earning extra income to help make ends meet. “We are trying to independently test those claims,” says Dr Crommelin.
Calling all Airbnb hosts in Sydney and Melbourne Are you an Airbnb host in Sydney or Melbourne, or have you considered advertising a property in these cities on Airbnb? We would love to hear about your motivations for using the service. Airbnb is neither involved in, nor connected with, this research project. More project information is also available on the AHURI website. ■
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Melbourne Live Arts Centre Melbourne info@destination.melbourne
JUNE 14 NSW New Product Workshop, TBC, info@dnsw. com.au 28 TasTalk 2018, Hobart, jo.pincus@atec.net.au
News
| developments
position of Australia’s most awarded boutique luxury hotel. INGOT Hotel Perth
CHOICE HOTELS ADDS FOUR NEW-BUILD PROPERTIES Choice Hotels Asia-Pac has started the year with an aggressive acquisition strategy as it partners with four new-build hotel properties across Australia and New Zealand. The pipeline of activity will add 431 rooms to the group, with new properties secured across Victoria, Western Australia and Christchurch, New Zealand. Commenting on the new property growth and the group’s 2018 outlook, Choice Hotels Asia-Pac CEO, Trent Fraser said: “Our goal for 2018 is to see significant growth in our portfolio size and it’s great to start the year with a series of new-build announcements. Our development team also has a significant pipeline of other opportunities across the Asia Pacific that they are pursuing, putting us on target for another successful year. “Total construction investment from our franchisee partners across these four new build projects alone is estimated to be in excess of $100m, which shows confidence in the local economy, as well as creating jobs through construction and ongoing operation of each property,” added Fraser. The four new-build hotels span the company’s brand suite and will be completed over the next six months to three years. Due to become the group’s largest property in Australia with 214 rooms when complete, INGOT Hotel Perth, an Ascend Hotel Collection Member will be a great addition to Choice’s growing boutique brand. Expanding Choice Hotels’ Victorian accommodation offering will be the Quality Hotel Flemington, located close to Flemington Racecourse and comprising 100 rooms, and the Quality Hotel Lakeside Bendigo, located on the picturesque Lake Weeroona Park, featuring 80 rooms, a restaurant and conference space.
“We are very excited to unveil this next-generation Emporium Hotel to Brisbane on July 1,” said John. “It is the culmination of many years of intricate planning, and just like the first, we have really focused on engaging local suppliers and designers to help give it a true Queensland flavour,” he said. “This new location, in the heart of our city’s premier cultural, dining and lifestyle precinct, will enhance Brisbane’s tourism offering and position as a New World City.” In addition to the 143 luxuriously appointed suites over 21 levels, Emporium Hotel South Bank features a breathtaking rooftop bar and 23m infinity edge pool with views to Brisbane’s CBD and beyond, as well as a grand pillarless ballroom, three state-of-the-art boardrooms, concierge, 24/7 room service and gym, steam room and sauna. “This is an incredibly exciting time. I am so proud of my achievements from my time with QAG/GOMA, and see this next chapter as an opportunity to take my cuisine to the next level, and create an exciting new destination to experience exceptional food and hospitality.”
FIRST NEW RESORT IN FIVE YEARS FOR NSW SOUTH COAST
Choice Hotels continues to capitalise on the hotel industry boom in the greater Asia Pacific, growing its presence in China through a partnership with Careeland Hotels and the addition of three new properties.
LUXURY HOTEL NEWS: EMPORIUM HOTEL SOUTH BANK SET FOR JULY The 143-suite hotel has been designed and developed by the same independent owneroperators who guided the Emporium Hotel in Fortitude Valley to the position of Australia’s most awarded boutique luxury hotel. Ten years ago, Tony and Francine John, under the Anthony John Group banner, opened the doors to the exquisitely designed Emporium Hotel Fortitude Valley. With this property now sold and set to be rebranded to an Ovolo Hotel in mid-April, Emporium Hotel South Bank will stand as the flagship bastion of luxury, and a new gem of Brisbane’s tourism experience. The hotel has been designed and developed by the same independent owner-operators who guided the Emporium Hotel in Fortitude Valley to the
Wyndham Hotel Group has announced its first resort on the New South Wales South Coast, Ramada Resort Batemans Bay, the town’s first new resort to open in more than five years. Slated to break ground in the third quarter of 2018 and open late next year, the 84-room resort is a $26m development from Nikias Diamond Property Developments P/L. The property is expected to employ up to 60 people during construction and approximately 35 staff once open. Located in Batehaven, the resort is across the road from Corrigans Beach Reserve, giving many rooms sweeping ocean and parkland views. “We are seeing increased interest from Australian developers for globally renowned brands like Ramada and others offered by Wyndham Hotel Group, which are both well supported and ideally positioned to meet the emerging needs of today’s traveller. Batemans Bay has long been a destination favoured by Australian holidaymakers thanks to an abundance of beautiful beaches, natural beauty and tourism attractions,” said Wyndham Hotel Group South East Asia and Pacific Rim president and managing director, Barry Robinson.
resortnews | april 2018
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developments | News
“The New South Wales South Coast region continues to grow in popularity among travellers and we look forward to seeing Ramada Batemans Bay guests enjoy the bespoke hospitality and comforts for which Ramada is world-renowned.” As the closest seaside town to the Australian Capital Territory, Batemans Bay is a popular holiday destination for Canberrians. It is also a favoured holiday destination of Sydneysiders and a key stop for people driving along the coastal route between Sydney and Melbourne. Centrally positioned, resort guests will enjoy the best experiences the region has to offer, including scuba diving, snorkelling, swimming, surfing, fishing charters, golf, indoor rock climbing and go-karting.
“2018 will be a year of similar growth, with favourable market conditions continuing to energise the hotel investment community,” wrote Richard Crawford, senior director of development Australia, New Zealand, and Pacific. "This would be welcome news to our chairman, JW Marriott, who I had the pleasure of meeting in the US recently, as I am reminded of his sage advice that 'success is never final'." The Westin Perth Location: 480 Hay Street, Perth. Owner: BGC. Guestrooms: 368. Opening: Q2 2018. The large-scale Westin Perth is centrally located in the heart of Perth’s CBD and will be the first Westin branded hotel to open in Australia since the landmark Sydney and Melbourne properties opened more than a decade ago.
“We believe tourism in Batemans Bay will benefit from this development, particularly considering it will feature the globally known Ramada name,” said Dimitri Nikias, director of Nikias Diamond Property Developments P/L. “We expect Ramada Batemans Bay will be welcomed by locals and tourists alike and we look forward to giving our guests a personalised and memorable experience of the bay,” said Peter Nair, chief executive officer of BBS Hospitality Group.
IMAGINE: A NEW HOTEL DEVELOPED IN MELBOURNE Imagine Hotels and Resorts unveils third property opening, Imagine Lighthouse, in the heart of Melbourne’s CBD, combining striking architectural design, superior finishes and all the modern comforts that you would expect. Lighthouse is designed to impress with a selection of modern one-, two- and three-bedroom apartments to choose from, the property features a fully equipped gym, heated indoor and outdoor pool, spa, sauna and steam room as well as an entertainment area. All apartments boast a fully equipped kitchen, in-room laundry, private sun room and floor to ceiling windows all with amazing views overlooking the city. Just a short walk from a wide array of superb dining and retail options and within close proximity to local attractions, Lighthouse is the perfect choice for leisure and business travellers alike. This is the third property from the brand, joining Imagine Marco, its flagship property that opened in Southbank Melbourne in December 2016 and Imagine Drift, a resort property that opened in July 2017 in Palm Cove, Queensland. ‘This building is stunning. I am so proud to have Lighthouse form part of our growing portfolio," says Imagine Hotels and Resorts CEO, Brett Pointon. "I invite everyone to experience the difference themselves."
MARRIOTT UNVEILS UPCOMING AUSTRALIAN HOTEL MEGA-DEVELOPMENTS According to Marriott International’s quarterly hotel development update for the Australia Pacific region, 2017 was a year of great advancement for establishing a new development presence in Sydney and signing a record 1780 new hotel rooms in the region.
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The Tasman A Luxury Collection Hotel Location: Parliament Square, Hobart. Owner: Trawalla Group. Guestrooms: 146. Opening: Q2 2019. Marriott International’s inaugural presence in Tasmania, the luxury full-service hotel will be prominently positioned in Parliament Square, within a collection of Georgian and other heritage buildings, dating back to 1847. W Melbourne Location: 435 Collins Street, Melbourne. Owner: Daisho. Guestrooms: 294. Opening: Q1 2020. The heartbeat of Cbus’ $1.25bn Collins Arch mixed-use development, W Melbourne will herald a new age of contemporary luxury accommodation in the heart of Melbourne. Famous for extraordinary global experiences, the W name also arrives in Brisbane in mid-2018, with further announcements imminent. The Westin Darwin Location: Darwin foreshore, Darwin. Owner: Landbridge Group. Guestrooms: 240. Opening: Q2 2020. Marriott’s inaugural foothold in the Northern Territory, The Westin Darwin will be the 240 key centrepiece of the redevelopment of Darwin’s foreshore, just 1km from the CBD. Le Meridien Melbourne Location: 20-30 Bourke Street, Melbourne. Owner: Jinshan Group. Guestrooms: 235. Opening: Q2 2020. Located close to Victoria’s Parliament House, the 235 key hotel will signal the return of the Le Meridien name to Australia, joining Le Meridien resorts in Tahiti, Bora Bora, Isle of Pines, and Noumea. Element Melbourne, Richmond Location: 588 Swan Street, Richmond. Owner: TRC Synergy Berhad. Guestrooms: 168. Opening: Q4 2019. Drawing on the DNA of Westin Hotels, hallmarks of Australia’s first Element hotel will be natural light, open spaces, wellbeing, and sustainability. Element Melbourne will anchor the Botanicca Corporate Park development in Richmond, one of Melbourne’s fastest growing metropolitan precincts.
resortnews | april 2018
The Last Resort
| developments
Mega-build: Shimao Wonderland Hotel Intercontinental A flooded quarry in Songjiang, China, soon to become an incredible 17-storey hotel called the Shimao Wonderland Intercontinental is this month’s featured Last Resort.
extensive leisure facilities and swimming pools on the quarry bottom water level. The grass roof design will minimise the impact of this building on the local environment and passive sustainable features will take advantage of the building’s orientation, like using the microclimate caused by the thermal properties of the quarry rock mass and the water body.
If you want to experience this award-winning mega-build, start saving your dollars now because after some delays it should be opening at the end of this year. By the look of things, it will be a truly unique and magnificent creation. The project first got attention in 2007: the brainchild of architect Martin Jochman Dip Arch RIBA, who is the director, concept and scheme designer of this property in Songjiang , Shanghai, China. The multi-award-winning design is an undeniable feat of engineering, with just two levels above ground and the remaining 15 running down the side of the 80m quarry; a breathtaking structure, designed to spill over the cliff like a glass waterfall, and the last two levels will be under water.
Outside, there will be a beautiful landscaped visitor gardens with a themed leisure park, a glass walkway and an extreme sports centre and bungee jumping will also feature in the grounds.
The hotel’s developer is China’s Shimao Group who partnered with operator, Intercontinental Hotel Group (IHG) in 2008, in a multi-brand, multi-location deal. For the last five years the luxury
328-room hotel’s construction, landscaping and interior design has been progressing, with features such as an underwater aquarium, a conference/ballroom centre for up to 1000 people and
resortnews | april 2018
Hopefully the construction of this hotel is now at the ‘pointy end’ with the completion (once predicted for the end of last year) now expected to be a ‘soft opening’ at the end of 2018. Resort News has requested that IHG keep us updated – so stayed tuned. ■ By Mandy Clarke, Industry Reporter
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Property Guide
management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted
motel Agent market Profile
Dallas and Myra Grindrod step up take on the challenge of four buildings
The Walter Iezzi Property Group has a longstanding association with development on the Sunshine Coast and in the past few years it’s property management arm has undertaken a holiday and permanent rental/ caretaking role with it’s newest developments known as Nova, Saffire and Elysee and all in the Mooloolaba area. In 2017 when the group decided to move on from that role, knowing their latest project Pinnacle at Picnic Point, would be completed by 2018 it became an obvious decision to sell all four management/letting businesses inline to give the incoming purchaser an established business with an appropriate economies of scale so those businesses could thrive. The next challenge was finding such a purchaser who understood this very demanding industry who could deal with the day to day rigour of the (sometimes unrealistic) demands of owners and investors and keep the buildings in good shape and ticking over! Our patience paid off when Dallas and Myra Grindrod stepped up and decided to take on the challenge of four (4) buildings and four (4) individual Body Corporates. We knew with the long term experience of Dallas and Myra in this industry, that they had the passion and drive to make the transition work successfully and provide first class attention to each building. One of the biggest attractions for Dallas and Myra was the opportunity to work as “off-site” managers on each building.
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They were both very alive to the pressures and discomfort that comes with living on site, and because each building is so well appointed and self-contained the appeal of “off-site” management was too great for them. In these times some sources say on-site managers sit it out for about two years and then on sell because of the significant expectation of owners and then the level of income derived from this demanding work, this not only disappoints the owners “Myra loves a challenge and what a challenge she now has however she and her husband Dallas are a formidable team and are meeting those challenges with energy and enthusiasm. Maintaining it is a great learning curve. Firstly taking over 3 buildings on Christmas and the festive season was fraught with difficulties with tradespeople and suppliers not being readily available but Myra having owned and operated a nearby Mooloolaba Motel had her own network of people at hand. Her next challenge will be Pinnacle at Picnic Point, presently under construction and due for completion in August. It was my pleasure to work with Myra for her professionalism and her ability to maintain balance with her own busy home schedule and responsibilities.” Congratulations to Myra and Dallas from Lyn Pearsall and all the MR Sales team. resortnews | april 2018
but the managers who have made a lifestyle investment. It is the case “off-site” management is an attractive option that keeps owners content and managers ‘sane’. Dallas and Myra have the expertise and professionalism we were looking for to pass onto our owners so no one would be disappointed, in that they would stay longterm and the owners have consistency from year to year. By Leisa Toomey, General Manager, Walter Iezzi Property Group Lyn Pearsall, Sales Executive from our MR Sales team listed and sold the Caretaking and Letting Rights to four buildings, only one being established, two nearing registration at time of settlement and one still under construction. We congratulate Lyn on her great efforts. Her experience of 20 years’ plus and her tenacity toward this challenge resulted in the combining of these complexes into one deal for the Walter Iezzi Group, whom she has worked with previously. – Lyn Clarke, Principal, MR Sales
Name: Lyn Pearsall Agency: MR Sales Service Area: Queensland Phone: 0425 168 244 Email: lynpearsall@mrsales.com.au
JUST LISTED! New Exclusive Agency Listings ID 8796
ID 8849
Large Central Gold Coast Permanent Complex
Pure Luxury on the Sunshine Coast Mooloolaba beachfront holiday management rights, 24 x five star luxury apartments with 8 in the letting pool, First class amenities on offer to guests, Long agreements with 21 years remaining, The managers residence offers two bedrooms and two bathrooms and easily managed by one person, no office hours.
Great rental location, handy to M1, rail, major shopping and amenities Fully refurbished freestanding manager’s residence, 4 bedroom managers residence with private courtyard and outdoor living, Attached office on title, No set office hours and high remuneration and 21 years remaining on agreements.
Net Profit: $203,369 Asking Price: $1,752,855 Exclusive Agent: Lyn Pearsall 0425 168 244
Net Profit: $358,690 Asking Price: $2,545,000 Exclusive Agent: David Rotheram 0414 706 600
ID 8562
ID 8484
Working Partner / Manager Wanted – 33% Share
Perfection in Port Douglas – Holiday Letting
3 storey villa style complex near the Broadwater, comfortable 3 bedroom manager’s residence with two car spaces, attached front and back office on title, REI Master software. Most tenants pay via EFT, no set hours in agreements. Body Corporate remuneration of $184,599 and Deposit required $320,000.
4 star apartments in top location. 12 apartments in the letting pool with 20 keys in total. Facilities include pool, spa, BBQ, security parking, cable TV, broadband & Wi-Fi. Accommodation module agreements expiring 2036, Exclusive use office with no set office hours and Minimum outdoor areas requiring ongoing maintenance.
Net Profit: $136,000 Asking Price: $865,000 Exclusive Agent: David Rotheram 0414 706 600
Net Profit: $183,769 Asking Price: $1,230,000 Exclusive Agent: Geoff Ellis 0432 790 959 ID 8080
ID 8689
Seaside Management Rights Caloundra
Island Living At Its Best Work and play from home on
Quiet lifestyle holiday management rights in perfect location.
Bribie Island. Holiday resort with unobstructed water frontage, 24 x 2 & 3 bedroom apartments, 15 in letting pool. 3 bedroom managers unit with courtyard with water views. Excellent repeat business. Low maintenance complex, very easy to run.
Net Profit: $160,000 Asking Price: $1,267,500 Exclusive Agent: Lyn Pearsall 0425 168 244
Very presentable 2 & 3 bedroom apartments, less than an hour from Brisbane, 3 bedroom, 2 bathroom managers residence. A 10 minute stroll from the heart of Kings Beach, Great starter building, Sellers moving on after 10 years.
Net Profit: $92,550 Asking Price: $750,000 Exclusive Agent: Lyn Pearsall 0425 168 244
MR Sales have an extensive range of listings Australia wide visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au
www.mrsales.com.au
Property Guide
management rights••resorts hotels • motels • resortsparks • holiday parks •share time share • hosted management rights • hotels • motels • holiday • time • hosted
motel Resortmarket News Sales Report
RESORT NEWS SALES REPORT PROUDLY BROUGHT TO YOU BY ACCOM PROPERTIES
www.accomproperties.com.au MANAGEMENT RIGHTS Gold Coast Limetree Waters West
Lee & Lisa Baitong
Runaway Bay
MRS
Mediterranean Resort
Peter & Karen Grace
Burleigh Heads
MRS
Panaview Court
Stephen Oshea
Burleigh Heads
RBA
Rivergreen Villas
Profreal P/L
Broadbeach
RBA
B Williams & D Vasser
Bogangar
MRS
John & Sophie Dillon
Alexandra Headland
ARMS
Dani Collis and Wim Woltering
Noosaville
ARMS
Brisbane Cabarita Lake Apartments
Sunshine Coast/Wide Bay/Fraser Coast Alexandria Apartments Offshore Noosa
North Queensland Blue Lagoon Resort
Atemis Resorts P/L
Trinity Beach
RBA
Donna McHardie
Manoora
RBA
Jerome Yin
Annerley
RBA
Adam & Alison French
Ipswich
RBA
Tony Little
Kingaroy
RBA
P&J Cooke
Guyra
TB
Evans & Pinney
Albury
TB
Hope Yu
Wollongong
RBA
Riverina Hotel
David & Kelly Sloan
Hay
CRE
Culcairn Hotel
Wayne Nimmo
Culcairn
CRE
A&B Johnson
Stawell
TB
W & L Cole
Creswick
TB
Wong & Voltan
Aireys Inlet
TB
John Alexander Watson
Eskdale
CRE
Maninder Singh
Corio
CRE
Retreat on Pease
MOTELS & OTHER Queensland Annerley Motor Inn Quest Ipswich Burke & Wills Motor Inn
New South Wales Shiralee Motel Albury City Motel Quest Wollongong
Accom Properties breaks traffic records yet again February saw a dramatic increase in leads for listing agents on Accom Properties and the average visitor session duration rose to a lengthy five minutes and 19 seconds.
more than 4349 qualified commercial accommodation buyers to its listings. Collectively, they viewed more than 28,593 listings with an average session duration of five minutes and 19 seconds.
With less than 12 months’ operation under its belt, this commercial accommodation listings portal has consistently achieved record traff ic and just reached yet another milestone. Accom Properties’ quick progress has certainly turned its competitors’ heads.
Lead events, such as phone reveals, property PDF downloads and email events, have also increased dramatically to 2697. This indicates that Accom Properties is delivering indemand buyers with a lead conversion rate of 9.4 percent. With these lead events as a percentage of listing views, Accom Properties its positioned well-above industry average.
Contributing to Accom Properties’ significant and sustained growth trajectory, is a solid foundation of paid media search engine marketing and identified trending hot spots for buyer demand. This, combined with February’s 38.1 percent increase in organic traff ic has our competitors pulling out all stops to challenge the fastest growing portal in the market. Accom Properties has achieved major growth in ‘organic search’ and is now appearing on the first page for major search keywords, complementing the constant paid media we are running through Google Search Engine Marketing. Even in the shortest month, February 2018, the site delivered
Victoria Hi Way Eight Creswick Motel Lightkeepers Inn Motel Eskdale Hotel Corio Bay Motel
Note: Agent/Broker involved in the sale is listed last. Agent - KEY: ARMS - Australian Resort Management Sales; LIZ - Liz Lavender Management Rights; LPMR - Lindsay Petty Management Rights; MRS - MR Sales; PPRE - Property Pacific Real Estate; QTH - Queensland Tourism & Hospitality Brokers; RAAS - RAAS Rights; RBA - Resort Brokers Australia; RS - Resort Sales; TB - Tourism Brokers; TMR - Think Management Rights; WCH - Ward Commercial Hotels * In conjunction
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resortnews | april 2018
Our continued focus on complimenting location-based content and guides for buyers, has refined the buying process for prospects and this is reflected in the lead conversion rate growth and month-onmonth increases in engagement with listings. We now have all major agents on board and continue to provide a consistently enviable service to industry. ■
MANAGEMENT RIGHTS RESORTS
BENOWA
KANGAROO POINT
AWESOME RETURN ON INVESTMENT
GOLD COAST PERMANENT EXCLUSIVE: A generous body corporate salary with 5% annual increases. An extremely popular permanent central Gold Coast gated townhouse complex boasting an excellent location with a short walk to school, TAFE, shopping, parks, public transport and golf courses. Manager’s residence features 3 double bedrooms, large private courtyard and office.
NETT $131,600 PRICE $1,162,000
EXCLUSIVE: No requirement to purchase a manager’s unit. Maximise
Bobo Qi
0438 027 771
your return on investment and acquire this business with onsite office. An attractive Body Corporate salary accompanies this modern, attractive and low maintenance mid-rise apartment complex. Arguably Brisbane’s best suburb with absolutely everything at your doorstep. Quality businesses offering such an attractive package are hard to find.
bobo@propertybridge.com.au
NETT $297,000 PRICE $1,645,000
BROADBEACH
ROBINA
PREMIUM LIFESTYLE
EVERYONE LOVES IT! EXCLUSIVE: Secure investor haven in the heart of downtown Broadbeach, Gold Coast. Perfect beachside CBD location just metres to fabulous beach. Stroll to the Oasis Shopping Centre, Convention Centre, Light Rail and Pacific Fair. No Body Corporate issues here, simply run your own show. Long term Managers are retiring. Implement your business savvy to realise the full potential of this popular holiday resort, improve the net income and build your capital.
NETT $239,000 PRICE $1,909,000
Rhonda Perkins 0418 767 115
rhonda@propertybridge.com.au
EXCLUSIVE: Choice permanent townhouse complex in rental hotspot with sizeable letting pool and Body Corporate remuneration ensuring substantial income. Walk to train, bus, Robina Town Centre, high school, cafes, convenience stores and hospital. Relax with no set hours and be totally spoilt with a stylish, spacious and secure, 3 bedroom, 3 bathroom residence with modern decor, expansive office and two car accommodation. Pool, spa, rec room, gym and BBQ keep the whole family happy. Even the pooch is welcome with Body Corp approval. This business is a gem. Inspection will impress.
NETT $200,500 PRICE $1,580,000
FREE MARKET APPRAISALS QUALIFIED BUYERS DISCREET “SILENT” LISTINGS UNRIVALLED BUYER SUPPORT
propertybridge.com.au
Why Choose Joy Management Rights Specialist?
1. 17 years of experience in onsite management and MR Brokerage. 2. Low commission - we charge a flat rate of 2.0% for both Unit & Business sale. 3. No charges for advertising fees - we cover all marketing expenses for you. 4. For-rent & for-sale advertising on over 20+ websites for on-site managers.
Joy Realty Your Joy in Real Estate
Management Rights Specialists
REDBANK PLAIN, QLD
$ 1,700,000 (NEW)
BEENLEIGH, QLD
OFF THE PLAN
Net income: $ 66,000 Remuneration: $ 74,000 pa (inc by CPI) Manager unit: $ 320,000
Total Units: 98 Potential Letting Pool: 97 Manager Unit Value: $ 355,000 Off-the-plan at Redbank Plain, first three stages completed, the stage will finish at the end of 2017. Close to shopping centre and schools, easy maintenance and enjoy peaceful life.
Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.
Net income: Total rooms: Land area:
Current managers have done all the hard work; No set Office Hours; Managers Townhouse Offers 3 Large Bedrooms, 3 toilets, 2 Bathrooms, Master with Large Ensuite, 1 garage and 3 parking spaces; The complex is in the high demand area. Close to the bus stop; Convenient to the transport.
WEST END, QLD
Contact: Rodney Li 0430 784 020
$ 2,625,000 (NEW) Net income: $ 341,000 pa Remuneration: $ 155,000 pa (Subject to CPI) Letting pool: 60 Manager Unit: Unit: $595,000 + Office: $160,000 = Total: $755,000
$ 850,000 43 1520 sq.m
Located within one of Brisbane’s most densely populated residential suburbs, we with the honour to present a profitable historical to the market. Within easy walking distance to Brisbane Show Grounds and Fortitude Valley Train Station and China Town, the property offers a wonderful opportunity for an owner occupier, investor and/or developer to secure a substantial position in the heart of Brisbane. The popularity and capital gain are highly expected due to the increasing residential and commercial redevelopment undergoing within the neighbourhood. Presented here is known as land in Gregory Terrace Fortitude Valley with a total site area of approximately 1,520 square meters with current business of 43 bedrooms and total annual income of approximately $900,000. The site is potentially be redeveloped as a guest house or hotel that up to 14 levels with 86 apartments (subject to council approval).
UPPER MOUNT GRAVATT, QLD
Perfect life Style Management Rights Caretaking only
Contact: Robert Lin 0433 000 888
$ 8,000,000
FORTITUDE VALLEY, QLD
$ 499,000 (NEW)
Modern apartment management rights in a great location. It is located in a popular suburb and only about 4 km from the Brisbane City. Close to restaurants, cafes, supermarket, bus stop and other facilities. Fantastic investment opportunity in inner city area. Only one swimming pool and one gym in the building, which is easy to maintain. 24 years left to run. Call us today to find out more!
Call Robert Lin on 0433 000 888 to book an inspection!
$ 1,717,016
$ 215,821 (actual) $ 67,160+GST (subject to CPI) Letting pool: 42 Manager unit: 3 bedroom plus 1 study room Manager unit value: $ 530,000
MOOROOKA, QLD
$ 965,000 Net income: Remuneration: Letting pool: Manager unit:
Net income: Remuneration:
$ 106,195 $ 72,562 + GST 14 $ 450,000
Great location, walking distance to Westfield Garden City Shopping Centre, restaurants and transport etc. Close to schools, apartment is in Macgregor state high school catchment area. Minimum caretaker duty and very easily run business, all hard work has been done. 25 years Long agreement. Modern three bedroom plus study room, two bathroom manager residences with two car park. Business run by experienced manage, zero outside agent in the letting pool to prove the quality of the business.
This gated complex is situated seven kilometres south of the Brisbane CBD and ten minutes’ drive from Sunnybank. The manager’s residence is a spacious, light-filled, comfortable three bedroom, two bathroom villas. The covered entertainment area is a focal point of the residence, where you can enjoy time with family or host a warm party. With this combination of excellent net income, attractive body corporate salary, supportive Body Corporate Committee, comfortable villa with large covered entertainment area and light work load, this management rights business presents an outstanding business and lifestyle opportunity.
Call Robert Lin on 0433 000 888 to book an inspection!
Contact Serena Ruan on 0468 677199 to book an inspection!
BORONIA HEIGHTS, QLD
$ 140,000
SURFERS PARADISE, QLD
Net Income: $ 376,000 Remuneration: $ 133,000 pa Manager Unit: $ 380,000
PRICE REDUCED! Net income: $ 32,941 Remuneration: $ 11,121 Letting pool: 11 Management Rights Business Only Located at Boronia Heights, the complex is about seven years old and in excellent condition. It is easily serviced and maintained, and thus a light workload for the manager. For the convenience of your tenants, there is a bus stop outside the complex, the Browns Plains Shopping Centre is only 3 minutes’ drive away, and it is only 10 minutes’ drive to Sunnybank Hills. There is no onsite manager’s residence and the management agreement does not require the manager to live on site.
Call Robert Lin on 0433 000 888 to book an inspection!
$ 2,264,000 (NEW)
Maximum your investment returns by investing to this high rise building with continuously increasing business potentials. Work in a great resort life style with easily going body corporate. Book to view today and start getting your ball rolling.
Please contact Rodney Li on 0430 784 020 for more information or to arrange inspection.
Contact: Robert Lin (Principal, MREIQ) Mobile: 0433 000 888 Office: (07) 3344 5858 Email: sales@joyrealty.com.au
www.joyrealty.com.au
Il Mondo Boutique Hotel
| profiles
Il Mondo Boutique Hotel: personality and charm
The privately-owned Il Mondo Boutique Hotel is conveniently located in beautiful Kangaroo Point, known for its natural beauty, unmatched views and of course Brisbane’s most recognisable icon, the Story Bridge. A strong and passionate team of individuals led by general manager, Chris Hillman bring their substantial skills, knowledge, and professionalism to the daily operation of this distinctive hotel. Chris explained: “Il Mondo is an Italian word meaning ‘the world’. The hotel was designed, constructed, and initially operated by a well-known, highly respected Brisbane-based Italian family. Built in two stages, the first stage was 10 motel-style rooms with a 60-seat restaurant, followed by a separate seven-storey building consisting of hotel-style rooms, one-bedroom apartments and two penthouse apartments.
represented a record price per key, far surpassing other recent CBD fringe and metropolitan hotel sales in Brisbane.
A strong and passionate team of individuals led by general manager, Chris Hillman bring their substantial skills, knowledge, and professionalism to the daily operation of this distinctive hotel “The complex also has a breakfast room offering a self-serve continental-style breakfast, a swimming pool and undercover secure carparking.
In 2015, a Chinese investment syndicate acquired the Il Mondo Boutique Hotel in a single buyout of the entire complex for which the purchaser holds as a freehold investment. At the time, the sale
resortnews | april 2018
The desirable site on which the complex sits, has favourable zoning provisions for future residential development and is only minutes from the CBD, Fortitude Valley, the Gabba and numerous transport options. Furthermore, the rooms and facilities throughout the hotel have always been fastidiously maintained with major bathroom refurbishments recently carried out, along with numerous soft furnishing refurbishments; this hotel has maintained a modern, comfortable and fresh appeal.” Since the hotel was acquired in 2015 it has received two Certificates of Excellence from Trip Advisor 2016 and 2017 and Il Mondo is currently ranked on TripAdvisor as number 9 of 170 hotels in Brisbane.
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profiles | Il Mondo Boutique Hotel
One of the penthouse apartments, frequently used for corporate meetings and functions
Chris said: “We see this as a substantial achievement given that we are a privately owned and operate as an independent, non-branded hotel. Our OTA partners have also scored us quite high by way of guest reviews over the last 12 months.
Trout lemon teriyaki which is a distinctive, flavoursome and somewhat unique dish.” We asked Chris, what advice can you give other resort managers or potential managers? “Focus your endeavours on the execution and delivery of the best possible service to your guests by both yourself and every member of your team. This means; anticipate and sincerely meet and go beyond the expectations and needs of every guest. At Il Mondo we believe this is one of our major points of difference.”
“These results are incredibly heartening and confirms the passion, professionalism and effort undertaken by every member of our team,” Chris stated. “While we are a small team, we as individuals are all motivated by the achievement of goals, both personal and business. All of us truly enjoy a challenge and respond methodically to developing strategies and solutions. One of the greatest motivators is the contribution by every team member to suggesting new ideas, improving work concepts and sharing feedback from our guests, suppliers and service providers. In May 2017, the popular Mitoki Japanese Tapas Restaurant which forms part of the Il Mondo complex, was acquired by a new commercial tenant and extensively renovated and refurbished.
52
Take note - when Chris gives you advice – take it! After all, he is a long-term industry professional, having been involved in hospitality since the 1970s. Back L-R: Gabrielle, Chris, Taise - front L-R Shara, Michelle, Denise, Antonella
Hotel guests, locals and tourists regularly dine in this much praised restaurant, that offers ever-changing daily specials based on seasonality and availability of fresh product. Here, diners encounter a unique experience in a pleasant environment with an innovative twist to the Japanese cuisine.
Chris advised: “You just have to try the TakUmeshu Martini created by Takumi Otsuka, the manager of Mitoki. This umeshu plum wine-based martini cocktail is very refreshing and has a tantalising and very moreish aftertaste. And further from the latest Menu I would highly recommend the Coral
resortnews | april 2018
While studying hotel/motel management, he worked and trained at several Sydney properties including: The Cambridge Inn (Surry Hills) and Barker Lodge (Kingsford) before relocating to the Gold Coast where he held management roles at Ten the Esplanade, The Islander, Aquarius Apartments, Beachcomber and Beach Point Apartments.
Il Mondo Boutique Hotel
| profiles
Balcony view to the City Skyline
Other management roles ensued, with appointments to the team of Lend Lease Leisure. (Country Comfort Motels) Chris has also owned and operated several motels, and restaurants. In recent years and, prior to his role at Il Mondo, Chris offered his expertise to the industry as an advisor to motel operators, MLR owners, receivers/liquidators, and specialist consulting and remedial management groups. “Over time, I have had many achievements that have rendered high levels of personal satisfaction and acknowledgement, however I am now in a unique position; being surrounded by a small team of highly enthusiastic professionals
who are constantly finding ways to improve the working and operational aspects of the hotel.� Chris and his team obviously delight in engaging with their guests. “We are privileged in our daily work roles to meet and interact with a huge cross section of people from all different places and positions,� he said. “I particularly find great interest in talking to so many different people. The points of view expressed, the sometimes-cultural differences, the concepts, and ideas, it all makes for a broad understanding of life at large.� ■By Mandy Clarke, Industry Reporter
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www.nationalhotelsupplies.com.au E: info@nationalhotelsupplies.com.au P: 1300 557 415 resortnews | april 2018
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preferred supplier | Profile: Property Bridge
Introducing: Property Bridge Property Bridge is an industry leader, specialising in management rights and resort sales within the Gold Coast and Brisbane. This is a business broker firm that strongly contributes to the stable growth of the industry as a team of trusted professionals that can be consulted to help buy or sell your business.
Estate Institute of Queensland) and participates in numerous industry focussed forums, insuring it is well informed of challenges and opportunities on the horizon.
The boutique firm of Property Bridge has a formidable aggregate management rights experience of over 45 years. There is simply no substitute for experience in this industry when it is paramount to successfully navigating the requirements of multiple stakeholders in the buying and selling process.
Darren stated: “We are adept at sourcing qualified buyers, and often sought out by vendors eager to have their business discreetly ‘silently’ listed with the confidence we will quickly deliver results. We also have an enviable portfolio of specialist resources at our disposal to nurture off-theplan developments.”
The importance of building a trusting relationship is one of this broker’s key attributes
This team promises passion, commitment, professionalism and most importantly, a commitment that they can be trusted. Darren added: “Engaging the management rights industry is one of our core strengths as demonstrated by partnering with some of the industry’s most respected professionals in presenting our tailored seminars.
Offering a premier business network, Property Bridge has a strong community profile, particularly within the Gold Coast and Brisbane markets.
The firm’s guiding principle is: “Always passionate, committed and professional, you can trust the team at Property Bridge”. Managing director Darren Brent told us: “Clients look to Property Bridge first because, above all, they understand the importance of honesty and integrity. With this comes sustainable business relationships where clients can put their trust in us when buying or selling management rights, resorts or motels. “We are widely recognised as one of the most enthusiastic and dedicated business broking firms
Rhonda Perkins, Darren Brent and Bobo Qi
in the industry; well respected by specialist professionals including financiers, accountants, lawyers, valuers, body corporate managers and consultants.”
Property Bridge is a strong corporate supporter of ARAMA (Australian Resident Accommodation Manager’s Association) and REIQ (Real
“Furthermore, we provide intending purchasers with bespoke services, including consultation, updates on market conditions and thereafter unparalleled post settlement guidance to ensure they receive any expert support they may require.”
brown & benson accountants pty ltd
Mahoneys are proud to work with Property Bridge
Proud to be associated with Property Bridge
Telephone 07 55202144 Paul Shannon info@mahoneys.com.au
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paul@brownandbenson.com.au www.brownandbenson.com.au resortnews | april 2018
Profile: Property Bridge
Bobo Qi
Introducing the team Bobo Qi One of Property Bridge’s most respected, high profile management rights and resort brokers, Bobo told us: “Hello, I am the sales director and co-founder of Property Bridge. I’m originally from China, subsequently took up residency in New Zealand in 2000 where I graduated at Auckland University of Technology and finally relocated to Australia in 2007. I have enjoyed living and working here ever since. “Prominent in the Gold Coast and Brisbane markets, I have access to a quality pool of business connections which form the foundation of our thriving business, offering both sellers and buyers a comprehensive and professional resource, while also offering a cultural bridge where needed. “I was employed as sales executive specialising in management rights sales for several years with a premier long-standing management rights brokerage firm based on the Gold Coast. During this time, I established myself as a high performer and gained an enviable reputation for my dedication and tenacity. “While always seeking to contribute to the growth, stability and knowledge base of the industry, as
Rhonda Perkins
a board member, of the Australian Resident Accommodation Manager’s Association (ARAMA), member of the REIQ (Real Estate Institute of Queensland) and Gold Coast Tourism, my pro bono assistance is often sought and gratefully received by industry members. “A close association with the industry’s leading specialists, coupled with my previous business experience and ownership of a prominent management rights business on the Gold Coast, gives me an intuitive edge when brokering sales within the industry.” Testimonial “We would like to let you know how happy we were with the exceptional service we received from Bobo Qi during the recent sale of our management rights at Seacrest Apartments, Surfers Paradise. She is a true professional and a great asset to the industry. We did have a few extensions and difficult times during the sale of our management rights and she dealt with every situation with confidence. She kept us informed every step of the way during our sale which was truly appreciated and lessened our stress. We do miss our daily phone calls and updates from Bobo. After we settled I actually called to just to say hello and to keep in contact! We have no hesitation in recommending Bobo Qi for her
| preferred supplier
Darren Brent
knowledge, ability and experience in the industry.” Diane and Trudy McIntosh, Seacrest Apartments, Surfers Paradise Rhonda Perkins Rhonda is an accomplished and experienced management rights consultant who brings a strategic, yet personable approach to the buying and selling process. She said: “I was introduced to the industry at an early age and I have been selling management rights since 2005. I have built a reputation for my proven ability to listen to clients’ needs, guiding buyers to their dream business and assisting sellers to a smooth, stress free settlement. “I always put integrity first, and I have enjoyed the trust and loyalty of repeat buyers and sellers and maintained long standing associations with many respected industry professionals. My knowledge of locations, value, property types, pricing, building styles and exceptional understanding of the market stems from long term involvement, sincere interest and perspective gained from the personal experience of having owned and operated five management rights businesses and assisting property developers establish new management rights since the early 1980s.
“I have a Bachelor of Arts degree, a Certificate IV in real estate, a Certificate IV in body corporate management and has been a licensed real estate agent since 1986. I also co-ordinated the first management rights training course for GCIT, Queensland and was a course presenter at the TAFE and REIQ courses and industry seminars for several years.” Testimonial “I had the pleasure of dealing with Rhonda Perkins who was the selling agent when I purchased the management rights to Spindrift on the Beach and cannot recommend her highly enough as a specialist management rights agent who really knows and understands the business. Rhonda also possesses outstanding personal and professional qualities, in particular a high level of communication skills and diligence down to the detail that ensured all of our queries and concerns during the sales process were quickly corresponded and resolved. I have bought and sold a number of management rights businesses over my 20 years, and it is hard to find someone who has the experience, knowledge, drive and work ethic for this profession as Rhonda does, who has this and more.” Graham Stott, Spindrift On The Beach, Mermaid Beach
Holman’s are extremely proud of our Association with Property Bridge and wish Darren, Bobo and Rhonda many years success and service to the industry.
resortnews | april 2018
55
preferred supplier | Profile: Property Bridge
Darren Brent Darren is the principal, co-founder and managing director of Property Bridge. He said: “Management rights and resort sales is my passion! Prior to my direct involvement with the management rights and resort industry, I worked in senior expatriate roles with multinational companies across the property and financial sectors. However, returning to Queensland was always going to happen because in my view, this state has the ultimate in work and lifestyle opportunities.” Licenced in Queensland and based on the Gold Coast, Darren’s sales executive team is held in high regard across the Gold Coast and Brisbane markets. With strong corporate business connections, Darren leads from the front and enjoys growing the business through the enabling of unrivalled trust and service that is fostered across a loyal client base.
As a member of the Australian Resident Accommodation Manager’s Association (ARAMA) and REIQ (Real Estate Institute of Queensland), Darren is a regular contributor in support of the industry. Working closely with the best of the industries professionals, Darren has access to a wealth of expertise at the highest levels within the finance, valuation, accounting, law, body corporate and consultancy sectors Always intent on ensuring local business thrives and receives the support it deserves, Darren is a Board member of the Southport Chamber of Commerce & Industry in addition to being a committee member of the Gold Coast Central Chamber of Commerce. Prior to establishing the Property Bridge agency, Darren owned and managed a prominent management rights business on the Gold Coast. He has a wealth of experience at
senior management and director levels within the corporate, property, financial and hospitality sectors, including responsibility for the risk profile of a multi-billiondollar residential portfolio. Having been in leadership positions across these business sectors within China, New Zealand, the Pacific and Australia, including committee responsibilities with the Australian Chamber of Commerce in Shanghai, Darren has a solid understanding of what it takes to acquire and operate a successful management rights and resort business.
Over 40 years of service to the Management Rights industry, providing assistance in:
Specialist management rights legal services include: •
Acting in the sale and purchase of management rights.
•
Developing strategies to approach bodies corporate regarding new agreements or extensions.
•
Attending body corporate meetings.
•
Dispute resolution. Either informally through negotiation or through the body corporate commissioner’s office
•
Preparing letting appointments or special conditions.
Darren’s industry tips… Management rights contracts are subject to legal due diligence provisions and specialist management rights lawyers are vital parties for both the sale and purchase of any management rights business. You will no doubt continually find articles written by management rights industry professionals whereby it is stressed that you only avail yourself of the services of lawyers who are experts in this field. There are very good reasons for this recommendation. A specialist management rights lawyer knows what to look for and how to rectify issues rather than have the contract fall over and the sales process start all over again.
Darren, Bobo and Rhonda have a great knowledge and ability to make management rights transactions successful
competence of its partners and staff.
Ask experienced professionals in the management rights industry and they will be able to provide you with a portfolio of industry lawyers, with excellent reputations for service to clients and for the
Darren stressed: “In summary, protect your investment and engage a trusted industry professional.”
The industry outlook according to Darren We see the management rights industry, particularly in South East Queensland, as being extremely well placed to capitalise on the Commonwealth Games legacy given the extraordinary world-wide focus on our beautiful cities and lifestyle opportunities. A television audience of 1.5 billion people, 3500 accredited media on the ground and over one million ticketed spectators certainly provides a wonderful global profile. ■ By Mandy Clarke, Industry Reporter
EBM are proud supporters of Property Bridge and their clients
Call 1800 688 820
www.managementrightscover.com.au
56
resortnews | april 2018
RUGECU010-180320
Management Rights Insurance Specialists
Directory
AIR CONDITIONING
ACCOUNTANTS & AUDITORS
Specialist Advisers to the Accommodation & Hospitality Industry
McAdam Siemon Pty Ltd Specialist Accountants & Business Advisors to the Accommodation Industry • Verification reports • P&L for Sale • Motel Due Diligence • Motel Business Plans • Trust Account Audits • Training & Setup on Cloud Accounting Software for MR and Motels
| preferred supplier
Audits ~ Taxation Feasibilities ~ Due Diligence Reports
Structuring Income Verification Audit Accounting/Taxation SMSF Estate Planning Email: jhanaghan@jonathangrant.com.au
Phone 07 5534 4333
When your Business Needs a Tune or a Service
07 5631 6900
• Bookkeeping • Marketing • Business Management
info@hostrata.com.au www.hostrata.com.au
• Human Resources
Where Value & Service are No.1!
www.businessmechanic.com.au (02) 6583 8386
All Engagements Are Fixed Price. South East Queensland P 07 5607 0695 ron@gibsonandassociates.com.au www.gibsonandassociates.com.au
Brisbane: 07 3421 3421 shodgetts@mcadamsiemon.com.au Noosa Heads: 07 5474 8955 Buderim: 07 5408 4622 porielley@mcadamsiemon.com.au
Gibson & Associates is a CPA practice
pbbconsult - Chartered Accountants Specialist Accommodation Industry Advisers QLD/NSW/VIC Ph: (07) 5449 9992 W: www.pbbconsult.com.au
- GOLD COAST -
MANAGEMENT ACCOUNTANTS management rights income verification management rights trust account auditing preparation of bank review / re-finance figures
www.mcadamsiemon.com.au
phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com www.managementrightsauditor.com.au
- SUNSHINE COAST -
Due diligence reports Structure and taxation advice
“YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS”
Trust account auditing Risk and superannuation
Hi-Rise Air Conditioning New name... Bigger range... with the same great
service
Personal Service. Trusted Advice.
Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u
Your Sunshine Coast
Management Rights Specialists
Telephone 07 55202144 Paul Shannon paul@brownandbenson.com.au www.brownandbenson.com.au
FOR OVER 15 YEARS
Verification Reports - Due Diligences Tax Planning & Structures For Sale Figures - Auditing Tax & Accounting FIRST INTERVIEW FREE! Greg Kamp CPA
07 5443 7789
“Holbrook House” 48-50 Sugar Road Maroochydore
info@kampba.com.au
www.kampba.com.au
Energy Saving Air Conditioning Smart Remotes Simply Clever. Swap & Save Y You set & lock the temp ranges T Tamperp roof, ff, uni versal Tamperproof, universal TM
No complaints - Lower Bills
1300 552 897
Specialist Management Rights Accountants
Contact : PETER MEYERS 155 Varsity Pde, Varsity Lakes, Qld 4227 t : (07) 5630 6559 m : 0402 943 549 e : peter@pmag.com.au
accountants
Experienced Management Rights Accountants • P&L for Sale • Bank Financials • All Tax Compliance • Purchaser Due Diligence
Accounting & Taxation Trust Account Audits P&L for Sale
Call 07 5522 1044 P: 5456 4018 Eagle_Dad_Print.pdf 1 31/03/15 10:47 AM enquiries@climatecontrol.net.au E: renee@rcbaccounting.com.au W: rcbaccounting.com.au www.climatecontrol.net.au
www.pmag.com.au
Due Diligence Auditing Taxation Business Advice
- NORTH QUEENSLAND -
C
ASBESTOS REMOVAL ALL ASBESTOS REMOVED - QUEENSLAND WIDE
M
Y
CM
Fixed Price Available
07 5557 8700
(07) 5343 1000
mail@mbapartnership.com.au mail@mbapartn
Paul Gaffney
MY
CY
Ask for David at the Mooloolaba Office or Ask for Angela at the Noosa Office
CMY
managementrights@ascendia.com.au
K
www.ascendia.com.au
Supplying the Gold Coast, Southern Brisbane and Northern New South Wales regions with quality air conditioning services since 1977.
www.mbapartnership.com.au www.mbapartn www.managementrightsaustralia.net
resortnews | april 2018
The sign of an Industry Specialist.
57
preferred supplier | Directory BATHROOM RENOVATIONS
The sign of an Industry Specialist. 1800 425 903
www.sleepmaker.com.au
CARPET & CARPET TILES
NEW CarpEt - rEpaIrS David McGuinness Mobile Showroom 0412 661 053 p 55 782 774 info@wizardcarpets.com F 55 782 590 www. wizardcarpets.com
The sign of an Industry Specialist.
BEDS & BEDDING
CARPET & FURNITURE CLEANING/PROTECTION
Personal, Professional, Reliable Service Brisbane to Far North Queensland
P:07 5443 3138
F:07 5443 3334 sunshine@selectstrata.com.au www.selectstrata.com.au
strata title consultants & body corporate managers
BEDSPREADS & BEDCOVERING PRODUCTS
A H A P PY GUEST
• We clean carpets, tiles, mattresses, upholstery and leather • Professional maintenance and emergency cleans • Water extraction and flood restoration
BROCHURE DISPLAY Sunshine Coast Brochure Display
STARTS WITH
The regions’ original and leading brochure service and provider of information displays
A GOOD N I G H T 'S R E S T
Across the Sunshine Coast Call 0438 302 591 www.firstresort.com.au CLEANING CONTRACTORS
07 5499 6222 info@SunshineCoastBrochureDisplay.com.au
1300 654 000 ahbeardcommercial.com
www.SunshineCoastBrochureDisplay.com.au
BUILDING MAINTENANCE SERVICES
manufacturers of quality bedding QUALITY WITHOUT COMPROMISE
FACTORY PRICES DIRECT Sunshine Coast (07) 5446 7541 Cairns (07) 4032 5133 www.themattresscompany.com.au
LIFESTYLE BODY CORPORATE MANAGERS
CLEANING
RESORT & COMMERCIAL CLEANING SERVICING THE SUNSHINE COAST FOR OVER 15 YEARS
It’s not just a mattress... it’s our passion! Sleep Better with Luxury for Less!
07 3220 9400 abcm.com.au
AUSTRALIAN DESIGNED
(07) 3284 3133 commercial@avanteaustralia.com.au www.avanteaustralia.com.au
AUSTRALIAN OWNED
David: 0421 618 566
Industry leaders with an active approach to body corporate management
jporter01@bigpond.com
HIRISE MAINTENANCE PTY LTD
PAINTING, ABSEIL ANCHOR INSTALL & CERTIFICATION, BUILDING WASHDOWNS, SIGN INSTALLATION, CONCRETE CANCER REPAIRS, SEALING REPAIRS/WATERPROOFING, WINDOW CLEANING & GENERAL MAINTENANCE
0435 818 380
Reward your best suppliers by nominating them for the Preferred Supplier Programme. 58
FROM NOOSA TO KAWANA
resortnews | april 2018
www.hirisemaintenance.com hirisemaintenance@gmail.com
A professional service for resort cleaning
✆5474 3299 FAX 6474 3099
Simply send their details with a short testimonial to: psp@resortpublishing.com.au or Call (07) 5440 5322
They’ll thank you for it!
Directory
CLEANING CONTRACTORS - REFUSE CHUTES
The sign of an Industry Specialist.
Shute Cleaning Services Pty Ltd
a w tri do a vi
EEnd d FdRemolaperionload
Refuse Chute Cleaning / Upgrading and All Repairs and Associated Work TWEED HEADS / GOLD COAST TO SUNSHINE COAST / NOOSA Mb:0437 542 968 E: shuteman@ymail.com
COMPUTER SOFTWARE
Reservations and Trust Accounting Daily Reconciliation – Systematic Distribution Holiday Resident Puma Light No trust accounting
Year 2+ $599 Year 2+ $440
Year 1 $1,100 Year 1 $990
ACL (364 314)
Whatever, Wherever, Whenever!
fresh finance...
www.accomnews.com.au/ business-directory
The sign of an Industry Specialist
are attended to within 20 mins
Mention this ad to receive 3 months FREE subscription
0448 813 090
Paul Grant 0448 417 754 paul@mikephippsfinance.com.au
FINANCE
Motels, caravan parks etc. from $220 to $330 p.a.
www.pumasoftware.com.au
Mike Phipps
mike@mikephippsfinance.com.au
Lisa Quick
Phone (07) 5446 2135
 Trust Accounting Module  Built-in CRM  Channel Manager  Automatic Communications  Cloud & Desktop Solutions  99% of our support requests
| preferred supplier
Management Rights Specialists
0408 720 653
lisa@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld - 07 5470 2194
www.mikephippsfinance.com.au
ELECTRICAL APPLIANCES
Quality Electrical Appliances
New name... Bigger range... with the same great
1800 671 179
service
Gold Coast Paul Geary
0401 992 632
Brisbane Lina Jin Blake McLucas
0422 646 388 0434 367 812
Sunshine Coast / Noosa Mark Hancock
0411 023 531
Personal Service. Trusted Advice.
www.reimaster.com.au
Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u
* Contact us for the T&C’s
ELECTRICAL CONTRACTORS
F I N A N C E
Sunshine Coast / Lake Kawana Bruce Baird 0411 772 182 Suzanne Copelin 0428 385 923 Townsville Brett Sievers
0422 009 731
Cairns / Northern Beaches Patrick Brown 0401 141 276 Port Douglas Patrick Brown
Red
Professional & friendly service Over 30 years finance experience Accommodation funding specialists
Nick Smith - 0450 179 677 www.redtenfinance.com.au nick@redtenfinance.com.au
0401 141 276 Management Rights Finance Specialists
Brisbane: 07 3252 2219 • Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au
SEE THE SPECIALISTS IN L.E.D. REPLACEMENT LIGHTING
www.pcsfinance.com.au Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ. Item No. 75143 06.2013 W349544
Repairs - Maintenance - Installations Testing & Repairs of Emergency Lighting Appliance Repairs
(07) 5591 9191 QLD LIC. 9107 NSW LIC. EC29426
office@emerlite.com.au www.emerlite.com.au
ENERGY MANAGEMENT CONSULTANTS & SERVICES
Bill Presentment Payments & Receipting Debt Collection Energy Tendering
• • • •
Tariff Review Meter Reading Meter Provider Bulk Conversion
Ph: 07 3256 7366 enquiries@m2cs.com.au www.meter2cashsolutions.com.au
FIND A SUPPLIER ONLINE TODAY! www.accomnews.com.au/business-directory
# &, ! , & , "%& $,
QUALITY, COST EFFECTIVE UTILITY INFRASTRUCTURE & BILLING ADMINISTRATION • • • •
- NORTH QUEENSLAND -
, , , ,
* , ' !+, , , , , , , ,
*, ( $ , , , , 3 ! ,. 'W #& ,, , , ,
FLOOR COVERINGS
Buy direct from our friendly family business and save... Est. 1987
Residential & Commercial Floor Coverings * Carpets, Carpet Tiles and Vinyl ecialists 7 * In stock lines, short ends, room sizes Sp since 198 * Rental Properties (Budget Lines) * Engineered Timber, Bamboo and Laminate
Unit 1/41 Olympic Circuit, Southport, QLD, 4215
$ % " % #!" % % " % % % % % %
% % #!" % "% % % %
resortnews | april 2018
P: 07 5571 1177 F: 07 5503 0057 Leon Bell: 0466 912 786
www.southportcarpetsqld.com
59
preferred supplier | Directory FURNITURE
LINEN &/OR LINEN GOODS
GYMNASIUM EQUIPMENT
The sign of an Industry Specialist
Australia’s Leading Hotel Bedding Suppliers
07 5437 8544 info@mainlinen.com
FURNITURE - OUTDOOR
MAIL BOXES
Suppliers of Quality Commercial Outdoor Furniture & Accessories
DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD
• New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE
Quality Aust Products to meet All Building & Government Standards
P: (07) 5596 1440 E: info@sunni.com.au
MANAGEMENT RIGHTS AGENTS
INSURANCE
“QUEEN OF MANAGEMENT RIGHTS”
Liz Lavender
0418 765 257
MANAGEMENT RIGHTS
www.casualfurniture.com.au
…When you need us most!
coastalcasualoutdoors@gmail.com
W I D E A U S T R A L I A
THE $650M
MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:
VISIT OUR SHOWROOM AT: Unit 4, No. 2 Cnr Captain Cook Drive and Kendor St, Arundel, QLD
SALES LADY
Business Strata Landlord Protection With quick quote turnaround and hassle-free claims service
LOW COMMISSION 24 YEARS PROFESSIONAL SERVICE
Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com
Commercial Specialist Direct Importers
Management Rights Insurance Specialists
Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277
stry e indu Leading insurance broker to th
Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336
Professional Indemnity Public Liability Loss of fee income Home & Office contents Landlords ...and more
www.daydreamleisure.com.au sales@daydreamleisure.com.au
GLASS INSTALLATION/REPAIRS
www.managementrightscover.com.au
0418 759 939
E l i z @ l i z l a v e n d e r. c o m w w w w. l i z l a v e n d e r m r. c o m . a u
In All Areas . . .
Whether buying or selling we have you covered U Gold Coast U Brisbane U Sunshine Coast U Townsville U Cairns . . . & Beyond
Your local insurance specialists
A click away!
t: 07 5345 5414 | e:insure@iO2.com.au www.iO2.com.au
LIFTS - MAINTENANCE & REPAIRS
accomnews.com.au/business-directory
A click away! accomnews.com.au/ business-directory
60
The sign of an Industry Specialist
MANAGEMENT RIGHTS RN006
Call 1800 688 820
AFSLN 246986 ABN 31 009 179 640
RUGECU009-170704
Discount for ARAMA members
Phone 07 55 930 007 www.raas.com.au
AUSTRALIA’S LEADING MANAGEMENT RIGHTS BROKER Specialising in management rights sales Australia wide
Thinking of Buying or Selling? For the right advice contact the experienced management rights brokers today
2017 Winner of the Gold Coast’s Best Emerging Business
Servicing: Australia Wide & Offshore
1300 851 554 info@orbitzelevators.com.au www.orbitzelevators.com.au
resortnews | april 2018
Phone: 1300 928 556 Email: sales@mrsales.com.au Head Office: Suite 1 Ground Floor Equinox Sun Resort, 3458 Main Beach Parade, Surfers Paradise Qld 4217
www.mrsales.com.au
Directory
| preferred supplier
The sign of an Industry Specialist
Nationwide
Working Predominantly for Body Corporates
accomnews.com.au/business-directory
1300 665 966
Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au Calvin Bailey LREA Management nt Rig Rights Consultan t t tan 0414 889 593 07 4059 1254 07 4055 3898 calvin@cbmr.com.au info@cairnsbeaches.com
Post:
PO Box 266, Palm Cove, Qld, 4879
▪ MANAGEMENT RIGHTS ▪ RESORTS Discreet Silent Listings Free Market Appraisals
Painting Waterproofing Concrete Rectification Rendering www.opat.com.au Sunshine Coast Brisbane Gold Coast
Think – Buying or Selling Management Rights Narelle Filmer 0459 229 744
Wayne & Linda Stoll 0452 181 505
www.thinkmanagementrights.com.au
• Painting • Grounds Maintenance
calvinbaileymanagementrights.com.au
Property Bridge
Established 1949
Specialising in Motel & Resort Sales Qld wide
resortbrokers.com.au
Mobile: Phone: Fax: Email:
Leaders in Painting & Building Maintenance
A click away!
QBCC No: 1031545
AUSTRALIA’S LEADER IN MANAGEMENT RIGHTS, MOTEL, HOTEL & CARAVAN PARK SALES
& Landscaping Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland PO Box 1037 Gordonvale 4865 • P 07 4056 6366
info@resortsales.com • www.resortsales.com
• Signage & Branding • Electrical Services • Audio Visual • Data Communications • Sustainability COMMERCIAL, INDUSTRIAL & BODY CORPORATE PAINTING SPECIALISTS
Your Joy in Real Estate
Bobo Qi 0438 027 771
Rhonda Perkins 0418 767 115
info@propertybridge.com.au www.propertybridge.com.au
Specialists in management rights Off the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Philip Robison 0410 663 111 (VIC) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au
www.rcabusinessbrokers.com.au
www.amalgamatedgroup.com.au info@amalgamatedgroup.com.au
Robert Lin (Principal, MREIQ) P | (07) 3344 5858 M | 0433 000 888 robert@joyrealty.com.au | www.joyrealty.com.au
MATTRESS CLEANING
Call 1800 620 911 or 07 3718 1600 programmed.com.au
GUARANTEED WORKMANSHIP & QUALITY FINISHES Sunshine Coast, Brisbane & Gold Coast
Ph: 07 3356 7482 www.bakersco.com.au
Pure Hygiene Cleaning Mattress Sanitising professionals on the Sunshine Coast. Hygienically clean mattress with superior stain removal. Upholstery & Leather Lounge Cleaning Phone: 0448 500 488
PAINTERS & DECORATORS
ASBESTOS REMOVAL QUEENSLAND WIDE
FREE CALL
Specialising in: Hi-Rise Repaints Large Complexes Interior and Exterior Hi-Pressure Cleaning Concrete Spalling Repair (Concrete Cancer) Waterproofing & Roof Membranes
1800 766 366
FREE QUOTES &ADVICE
PEST CONTROL Servicing Brisbane & Gold Coast
PEST
PEST-NETT SERVICES
CALL TODAY TO GET YOUR PEST PROBLEMS SOLVED
Residential &Commercial
Call Now 07 3206 6721 www.terminett.com
LOCALLY-OWNED FOR OVER 25 YEARS
Ph 5520 1256
MOTELS, CARAVAN PARKS, HOTELS & MHE’S NATIONAL COVERAGE
www.anppainting.com.au QBCC Lic No 1050861 NSW Lic No 179886C
sales@tourismbrokers.com.au 1300 512 566 www.tourismbrokers.com.au
RELIEF MANAGEMENT
The M anagem ent Right s S pecialist s SUNSHINE COAST Matt Campbell 0410 343 219 Barry Davies 0438 554 995 contact@managementrights.com
Aust ralian Resort M anagem ent S ales
www.managementrights.com
The sign of an Industry Specialist resortnews | april 2018
SPECIALISING IN RELIEF MANAGEMENT AND TRAINING FOR RESIDENT & MOTEL MANAGERS With over 30 relief managers servicing all areas of Australia. Real Strategix can give you that hard earned break that you deserve.
Contact us for a quote on 0755 783 306 info@realstrategix.com.au www.realstrategix.com.au
61
preferred supplier | Directory SECURITY SYSTEMS &/OR CONSULTANTS
The Management Rights Lawyers
SOLICITORS
Servicing Resident Managers throughout Australia BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959 info@mahoneys.com.au
www.mahoneys.com.au
SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5570 9324 Email: mnp@spglawers.com.au
Call Martin Punch on 5570 9304
CERVETTO COURTICE L AW Y E R S
SHEET METAL
Q U E E N S L A N D
We deliver
strategic solutions in management rights
Management Rights Sales & Purchases Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au
Buying or selling Renewing or reviewing
Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183 Fx 07 5593 4194 | M 0413 432 294 adrian@sheetmetalimprovements.com.au
COOLANGATTA TO BEENLEIGH
SIGNS All Body Corporate Signs Safety Signs . Resort Signs Banners . A-Frames & More
Negotiation and dispute resolution
Michael Kleinschmidt Legal Practitioner Director
Experienced Management Rights Lawyers
www.stratumlegal.com.au info@stratumlegal.com.au
PH: 07 5406 1280
Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm
• Purchase or Sale
Call Sharon Flood, Director - 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au - www.floodlegal.com.au
Fixed Price Available
SWIMMING POOL SUPPLIES/REPAIRS
(07) 5343 1000 Ask for Natalie
managementrights@ascendia.com.au
www.ascendialawyers.com.au
Level 2, 12 Innovation Parkway, Birtinya, QLD E | info@gplaw.com.au P | 07 5390 1400
www.gplaw.com.au
RELAX… AND LET US TAKE CARE OF ALL YOUR POOL NEEDS.
◆ DEDICATED ACCOUNT MANAGER for Orders, Installs, Service and Sales ◆ COMPLIMENTARY equipment assessment – why not get a 2nd opinion ◆ YOU WON’T BE DISAPPOINTED ◆ PRICE IS IMPORTANT, but so is SERVICE AND SUPPORT 9/99 LOWER WEST BURLEIGH ROAD, BURLEIGH HEADS, QUEENSLAND 4220
PHONE: 07 5535 6161
EMAIL: POOLGEAR@BIGPOND.COM
WWW.POOLGEARAUSTRALIA.COM.AU
Whatever, Wherever, Whenever! accomnews.com.au/business-directory
Whatever, Wherever, Whenever! 62
The sign of an Industry Specialist. resortnews | april 2018
Directory
TELEPHONE EQUIPMENT
POOL IS OUR MIDDLE NAME Resort and strata specialists. Huge range of the biggest brands. Best price guarantee. Free shipping on orders over $200. Accept repairs from all over QLD. Commercial and strata servicing.
Cloud Services IT & Mobiles WiFi Experts Security Systems Repairs & Maintenance
TV & VIDEO HIRE/REPAIRS
Appliance Rentals
Resort Specialists Phone Systems
Telephone 07 5451 8888 Toll Free 1300 884 001 www.icsolutions.com.au
| preferred supplier
New name... Bigger range... with the same great
service
TRAFFIC CONTROL EQUIPMENT
2018
NOMINATIONS ARE NOW
Bulk/specialty pool & spa chemicals. Chemical/product delivery available.
Personal Service. Trusted Advice.
Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u
VALUERS - REAL ESTATE
07 55 591180 www.pool-spa.com.au
MANAGEMENT RIGHTS VALUATION SPECIALISTS
Heat Pumps
TRAINING & DEVELOPMENT
Proudly installed and serviced
Classes from Coolangatta to Cairns Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588
Australian Valuers have proven to be the No.1 choice for this highly specialised work. Our valuation team operate on a national level providing advice to the majority of Australia’s Banks
australianvaluers.com.au mlr@australianvaluers.com.au 1800 664 094
TRAINED BY THE EXPERTS
A Preferred Supplier is the sign of an Industry specialist.
20 • equipment • repairs • regular servicing • maintenance • chemical supplies • swimming aids & toys
153 Cooyar Street, Noosa Junction (07) 5447 3896 shop@noosapoolandspa.com
1800 080 349 www.propertytraining.edu.au
Whatever, Wherever, Whenever! accomnews.com.au/business-directory
Reward your best suppliers by nominating them for the Preferred Supplier Programme. Simply send their details with a short testimonial to: psp@ resortpublishing.com.au
They’ll thank you for it! CALL US TODAY (07) 5440 5322
PREFERRED SUPPLIER SHOWCASES SUNSHINE COAST & QUEENSLAND WIDE
Damian Quinn
Management Rights Transactions One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.
We have moved! Our new street address is Level 1, 13 Carnaby Street, Maroochydore There has been no change to our emails, phone and fax numbers.
Damian Quinn (07) 5443 5266 www.simpsonquinn.com.au resortnews | april 2018
63
Port Douglas
Cairns MacKay Sunshine Coast
Brisbane Gold Coast
Armidale
Coffs Harbour
Port Macquarie
Perth
Newcastle
Adelaide
Albury
Colac Warnambool
South Pacific Laundry (SPL) has been a provider of commercial laundry and linen services to the hospitality industry in Melbourne for the last 20 years.
Sydney
Geelong
Canberra Sale
Melbourne
Currently, the South Pacific Group is establishing a strong network of modern laundries across Victoria, New South Wales, Queensland, Western Australia and South Australia with plans for several more facilities up the East Coast of Australia. The relocation of our Sydney operations to a new larger facility in Bankstown together with the relocation of our Brunswick plant to Broadmeadows will establish South Pacific Laundry as the single largest privately owned laundry in Australia and in the Southern Hemisphere.
Contact Robert Teoh National PR & Marketing P: (03) 9388 5300 M: 0421 716 888 Coverage Australia wide
Pricing Information Contact supplier direct Delivery Free daily delivery within 25km city metropolitan areas Minimum Order Contact supplier direct
South Pacific Laundry specialises in the provision of quality linen and supplies for hospitality facilities. SPL provides: • A 365 day service to all clientele with a 24 hour turnaround (depending on location) • A leading edge technology in RFID to assist housekeeping and managerial staff in time reduction and efficiency • Dedicated account managers and experienced support staff who are available 7 days a week • A dedicated software design package and centralised billing system enables seamless transactions, paperless and customised reports • Delivery rationalization systems, providing and streamlining efficient delivery routes which will reduce the company’s carbon footprint. • Building of partnerships and sharing benefits with the customers from savings made through its constant laundry process innovations and group purchasing power of linen products. • Dry Cleaning & Uniform Cleaning Services • Provision and supplying of corporate uniforms/work wears and customised hotel room amenities.
Full Contact Information South Pacific Laundry 9-23 King William St Broadmeadows VIC 3047 P: (03) 9388 5300 *Melbourne & Albury Only F: (03) 9387 2399 E: customerservice@southpacificlaundry.com.au robert.teoh@southpacificlaundry.com.au