Resort News - July 2018

resortnews Issue 263 | July 2018 | $13.75 inc. GST

www.accomnews.com.au

Registered by Australia Post Print Post No. 100023799

The Monthly Magazine for Accommodation Industry Professionals

Special Report: Airbnb’s impact: Regulation needs to distinguish between sharing and plain old commercial letting

Profiles: Blue C Coolangatta Wharf Boutique Apartments management rights • hotels • motels • resorts • holiday parks • time share • hosted

MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING

GOLD COAST

AN IDEAL OPPORTUNITY ON CHEVRON ISLAND! Here is your chance to live on Chevron Island in a beautiful 3-bedroom apartment while operating a solid business with 9 permanent lettings in an easy to maintain building. Situated within walking distance to Surfers Paradise Beach. There are no set office hours in the agreement, care-taking only takes a couple of hours a day and the tenants tend to be longterm. There are 17 years remaining on the agreement and the multiplier is below 4!

Jonathan Shorter 0405 537 600 – jonathans@raas.com.au

Nett: $41,451

Total Price: $600,000 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 BRISBANE

REDCLIFFE HOLIDAY / CORPORATE Incumbent manager needs to redeploy his time. Multiplier is 5.1 which is very reasonable which makes it extremely saleable. Beautiful 3 bed 2 bath managers unit. Income including occupation rated and tariffs are available as well as agreements. All have been verified by management rights accountant and are available for inspection.

Robert Collins 0404 678 792 – robertc@raas.com.au

Nett: $300,000

Total Price: $2,098,000

SUNSHINE COAST

MAGNIFICENT OPPORTUNITY!!

STAY A STEP FROM FRASER ISLAND Getaway from the hustle and bustle of CBD living and build on an income equal to the city slickers, without the stress! Plenty of income to put away if you wish to have a live in onsite employee. A/C 3 bedroom 2 bathroom Managers townhouse, Long established Accommodation Module Agreement, Walk to beach, restaurants, cafes, surf club, Clean, neat & tidy operation, Great repeat business clientele.

Sasha Jancevski 0406 075 270 – sashaj@raas.com.au

Nett: $281,000

GROW YOUR BUSINESS

INCREASE YOUR INCOME

Total Price: $1,299,000

PROTECT YOUR INVESTMENT

Phone 07 5593 0007 www.raasrights.com.au

front desk |

Inside

Issue 263 | July 2018

Front Desk

tourism

05 Editor's Note

34 Tourism Report

industry

36 Tourism International

06 News In Brief

events & appointments

12

37 People

Special Report – Airbnb’s impact: Airbnb regulation needs to distinguish between sharing and plain old commercial letting

developments

15

NSW Strata Report

41

16

SCA Report

property

17

BCM Report

22 Motel Market 23 Strata Trends

26 Airbnb Vs Bylaws: Outdated bylaws in an age of technology 30 Hot Water Systems: Fend off those cold showers

resortnews EDITORIAL

Rosie Clarke - Editor r.clarke@resortpublishing.com.au Mandy Clarke - Industry Reporter Kate Jackson - Industry Reporter

Profiles:

News

profiles 50 Blue C Coolangatta: Blue C Coolangatta has proactive industry managers 54 Wharf Boutique Apartments: Warm and welcoming

preferred suppliers 57

The Preferred Supplier Directory

Resort News welcomes editorial contributions and images on relevant topics for features, new product profiles and news items. Please email copy to editorial@resortnews.com. au. Images should be in high resolution (300dpi) JPEG or TIFF format.

INDEMNITY

production@resortpublishing.com.au ADVERTISING

DISCLAIMER

Stewart Shimmin s.shimmin@resortpublishing.com.au

Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher.

Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to factcheck for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein.

Andrew Morgan, Arvo Elias, Chris Irons, Chris Martin, Col Myers, Grant Misfud, John Mahoney, Laura Crommelin, Laurence Troy, Lyn Pearsall, Mike Phipps, Simon Barnard, Tony Rossiter, Trent Pevy and Trevor Rawnsley PRODUCTION

SUBSCRIPTIONS $165 for 12 Months/$297 for 24 Months Gavin Bill - Services & Subscriptions subscriptions@resortpublishing.com.au

04

management rights • hotels • motels • resorts • holiday parks • time share • hosted

Property Bridge

Advertisers, Editorial Contributors and their Agents (Contributors) warrant to the publisher that any advertising or editorial material placed in Resort News is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Trades Practices Act or other laws, regulations or statutes. Moreover, Contributors agree to indemnify the publisher and its' agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

CONTRIBUTORS

Blue C Coolangatta Wharf Boutique Apartments

46 Agent Profile: Rhonda Perkins –

24 Intonet 25 By All Accounts

Special Report: Airbnb’s impact: Regulation needs to distinguish between sharing and plain old commercial letting

46 Resort News Sales Report

Thinking Accommodation

20 Legal Ease

www.accomnews.com.au

Registered by Australia Post Print Post No. 100023799

40 Industry Events Calendar

ARAMA Report

18

The Monthly Magazine for Accommodation Industry Professionals

39 Events

14

management

resortnews Issue 263 | July 2018 | $13.75 inc. GST

resortnews | july 2018

Key - For easy perusal Commercial or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercial advertorial but may be included as relevant opinion. Happy reading!

Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law.

VIEWS & OPINIONS The views expressed in Resort News do not necessarily reflect the views of the publisher, editor, staff or associated companies. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. © 2018. No part of this publication may be reproduced without written permission from the publisher.

Resort News is proudly published by Resort Publishing a division of Multimedia Pty Ltd ABN 77-126-017-454

Ph: (07) 5440 5322 Fax: (07) 5604 1680 PO Box 1080, Noosaville BC Qld 4566 Email: mail@resortpublishing.com.au

Editor's Note

What is your name? (Seriously.)

| front desk

Rosie Clarke Editor r.clarke@resortpublishing.com.au

Seems pretty simple, right?

Remembering your name.

Spelling it correctly. Not so, apparently.

you have a problem. Because guests who have found you on TripAdvisor or any of the OTA sites, and decided to google you to book direct have just been thwarted. If a potential guest is scrolling down the first page of Google and can’t tell which website belongs to your property, they are going to be put-off and head right back over to an OTA. I’ve done this myself!

One of the key takeaways from Google’s speech at this month’s 'Explore new avenues to increase your booking revenue' event (hosted by Resort News and sponsored by HiRUM) was that too many small businesses neglect to make sure their business name is consistent.

What does consistent mean? First of all, it means that it’s the same on all social media pages, websites and forums. If your property is listed as Mega Awesome Gold Coast Resort on TripAdvisor, then it should be Mega Awesome Gold Coast Resort on Facebook, Twitter, Instagram, and most importantly – it’s own website. Not MAGC Resort, or Mega Resort, or some other abbreviation or past name.

If you can’t get the exact URL domain for your

property, try to get something similar, and make sure that your actual property name is written on your website as much as possible and that it shows up in Google’s search engine.

If you search your property name into Google, what comes up? How about if you narrow that search with your property name and property location? If your property still doesn’t show up,

resortnews | july 2018

As someone in the industry, I always book direct but it’s not always easy!

In our profile section this issue, we have two special properties helmed by interesting managers who talk about how they came to find their current work-homes, and share their views on a few hot topics.

Thank you for your continued readership and as always, I hope you enjoy this month’s Resort News.

05

industry | News In Brief

Airbnb cuts 80 percent of listings as government axe falls Airbnb Japan axed 80 percent of its listings in one fell swoop following a government crackdown on short-let properties.

making authoritarian demands on operators.

“For years, the accommodation industry has laid down and rolled over,” he said.

The travel rental site has been forced by Japanese authorities to cancel thousands of reservations through a new law regulating short-term rentals, apologising for the "extraordinary disruption".

"This stinks - and that’s an understatement," Airbnb said in a statement, adding it would fully refund cancelled reservations and was also creating a $10 million fund to compensate affected travellers.

As pressure increases on accommodation availability, the Japanese government has moved to regulate private room-rental services made popular by short-let sites like Airbnb, with a new law coming into effect next week.

It means that anyone offering private accommodation for short-term rental has to register their services with their local government or face possible legal action.

With no choice but to comply, Airbnb this week delisted all of its Japan-based properties that have so far failed to secure the necessary permit from the authorities.

It’s led to nearly 80 percent of Airbnb’s accommodation listings in Japan disappearing from its website overnight, meaning 62,000 listings on the site last week have shrunk to fewer than 14,000.

“It’s not good enough. We’re going ‘no more’.

“As a membership-based organisation, when large multinationals start to encroach on areas that appear to be out of their jurisdiction, it is our responsibility to question said multinational on behalf of our members.” who have a trip to Japan planned for the weeks and months ahead."

The situation in Japan mirrors similar action taken by Airbnb in San Francisco in January when it delisted half of its listings in response to a new law.

Other cities around the world, including Auckland and Sydney, have been implementing various measures in response to complaints from within the industry about a lack of fairness over regulation of short-let properties, and their effect on reducing affordable housing stock in major cities.

It’s expected that in the coming months, Airbnb will gradually restore a number of the lost listings - as well as add new ones - as hosts receive their permits and submit them to the site.

Japan last year attracted a record 28.7 million overseas visitors, and a tourism drive is aiming to push that to 40 million by 2020 when Tokyo hosts the Summer Olympics.

Motel chain takes on might of Expedia An Australian accommodation group is taking a stand against a global bookings giant over what it sees as a Big Brother-style diktat.

The David-and-Goliath battle follows a demand from Expedia for all listed properties to undergo a gas water heater assessment, despite Australia having some of the most stringent safety regulations on the planet.

Chris Fozard, operations manager of the Budget Motels group, says it is the latest in a series of examples of online travel agencies

The association’s CEO Richard Munro told Resort News he had not been approached by Expedia about the survey and recommended members simply continue to verify that their gas fixtures are certified by a licensed plumber to comply with state standards.

“No other information regarding gas fittings or installation are required to be handed over to Expedia,” he said.

“The compliance of our members’ properties with respect to gas are a matter of approval by local council and certification of a licensed plumber, not an offshore travel agent."

In the last year, more than 20 Budget Motels have de-listed from Expedia according to Mr Fozard.

Registrations opened in midMarch, but the vast majority of hosts have either failed to apply for the permit or had their application rejected.

“It’s because of things like this.

20 of 140 members in total is significant,” he said.

The offending Expedia communication seeks to find out which of its listed properties have individual gas water heaters.

The popular holiday rental site had already suspended the listings of owners who had not obtained a registration number required under the law that came into force on June 15.

“Properties that confirm the presence of individual gas water heaters/boilers are required to complete the online selfassessment which included a fully-weighted gas questionnaire and risk assessment,” it says.

"This is understandably frustrating, especially since many hosts are close to acquiring their licence," the Airbnb statement said. "It’s particularly disruptive for guests

06

Mr Fozard has written to the Accommodation Association of Australia about the latest demand, asking the peak representative body to seek answers from Expedia.

resortnews | july 2018

JEAN CHARLES COSMETICS

industry | News In Brief

“Any hotel that indicates a potential gas safely risk in the self-assessment are automatically followed up with a physical inspection. With this process Expedia confirms that the property is compliant with health and safety obligations.”

Those properties that fail to provide the information are threatened with termination of their Expedia contract - at a time when OTAs with their enormous buying power dominate the online accommodation search space.

own occupational health and safety laws, each property must comply with them. So how does Expedia plan to deal with all these different laws around Australia, and the world for that matter?”

3.

“The presence of individual gas water heaters presents a higher potential risk to customers due to the higher risk of carbon monoxide poisoning,” said spokesperson Summer Jia.

Asked if the company was overstepping its authority, Ms Jia replied: “When a partner signs their contract with Expedia Group Lodging Partner Services, they agree to enter our health & safety programme and provide requested information, documentation and adhere to a request for an inspection”.

Operators are united in their condemnation of OTA commission rates, for example, but far from united over how to tackle the issue.

Some 64 percent of workers admit to browsing holiday options on their boss’s time, in a habit costing Aussie businesses an estimated $280.8 million in wages each week.

And while they are proactive about updating their websites and online specials regularly, they are collectively resistant to outsourcing their digital marketing.

Men are worse than women, according to the survey, with 67 percent admitting to organising their holidays while on the job as opposed to 61 percent of women.

“There have been multiple incidents worldwide of holidaymakers who have died as a result of carbon monoxide poisoning.”

50 percent of managers would buy a lower OTA commission

Congratulations to the following people who were drawn as our prize winners from all those who submitted survey responses:

And women spend less time during the work week planning holidays, averaging 50 minutes, while men average 64 minutes.

She stressed the importance of customers’ well-being to Expedia, saying its health and safety program was “designed in the best interests of our mutual customers”

Many thanks to all those who took part in our exclusive 2018 Accommodation Industry Survey.

1st Prize – three nights’ accommodation at Il Mondo Boutique Hotel

With question ranging from what percentage operators would be happy to pay for OTA commissions, to whether they rely on outsourced or in-house marketing, we delved into the thorny issues affecting our readers right now.

Winner - Zane Barry from Boulevard North Holiday Apartments

Tasmanian workers are the most productive, with 41 percent of employees saying they never plan holidays during work time, compared to just 28 percent of those in Western Australia.

We’re looking forward to bringing you all the analysis from the responses of the many backpacker, motel, hotel, resort and caravan park managers who took part.

3rd Prize – Google Home Mini

The bookings giant has justified its request by citing an example of two children killed by carbon monoxide poisoning on the Greek Island of Corfu in 2005.

Mr Fozard questions who is expected to pay for a safety inspection and is doubtful many Expedia members will even bother to open the latest communique.

And he is concerned the bookings agency is just getting started.

“For an accommodation provider in Australia, every gas appliance must be fitted and signed off by a licensed plumber with gas certification. Why has Expedia decided to only focus on gas safety?

“This could also be said for electrical items that, in accordance with Victorian law at least, must be ‘tagged and tested’ by a licensed professional. Will Expedia be expanding their questioning to other safety items?

“As each state in Australia has their

08

While we're still crunching the numbers, we can reveal a few early surprises.

1.

2.

53 percent of managers surveyed believe OTAs should charge 8-9 percent commission while 39 percent believe they should charge 10-11 percent.

Exactly half of managers are prepared to purchase a lower annual commission rate.

While 25 percent would spend a maximum of $500 to buy a lower annual OTA commission rate, 20 percent said they would pay between $500 and $3000+.

2nd Prize – Acer Chromebook 11 N7 Winner - Jackie Rea from Shellharbour Village Motel

Winner - Janet McDonald from Junction Motel Maryborough

Which holiday habit is losing Australia $280 million?

Most Aussies formulate escape plans at their work desks, a new survey has found.

Finder.com.au surveyed more than 2000 Australians and discovered that the typical employee spends an average of 57 minutes a week planning and booking holidays instead of working.

resortnews | july 2018

Which adds up to 7.6 million hours in lost productivity as Australian employees hunt for hotels, browse for beaches and fossick for flights online every week.

“Perhaps it’s because it’s all too easy to be distracted by twofor-one airfare deals and other sales that are coming straight to your inbox - and these are often announced during work hours,” said Angus Kidman of Finder.com.

“But five or ten minutes here and there adds up, and employees need to be researching or booking travel during breaks if they want to avoid an awkward meeting with HR down the line.”

Kidman says workers should put their phones on flight mode to reduce notifications and distracting pop-ups.

“From travel news to bucket-list destinations plastered on social media, the tourism industry has certainly benefited from consumers being online more,” he said.

| industry supplier profile AUSTRALIAN BUILDING MANAGEMENT ACCREDITATION

Assigning management rights – the perfect sales solution So simple and sensible, that it’s almost “too good to be true”: - Back-to-basics principles deliver a fresh approach to streamlining the Management Rights Assignment process at the Body Corporate interface.

Congratulations!

•

Lack of Competency – the caretaker does not have the skill to deliver the duties to the objective standard

•

Wrong tools/chemicals – the caretaker is using the wrong tools/chemicals for the job and not achieving the desired result

Want an A-Grade Result at the Assignment Interview?

First of all, good on you for investing in not only one of the best performing growth industries in Australia, but (if your property engages in holiday letting,) also for contributing to one of the significant pillars of the Australian economy: – Tourism.

Here’s the perfect scenario: 1.

Become a member of ARAMA – the peak body association for resident managers in Australia. Membership is synonymous with excellence in caretaking services provision.

2.

Complete the REIQ/ARAMA Management Rights Induction Training Program – get all the information you need to excel in the Letting Agent side of your Management Rights.

3.

Subscribe to the ABMA Building Management Code© The state-specific guidebook to existing legislation and “best practice” standards for the maintenance of common property in Australia.

Getting your Letting License is a relatively painless process. It’s a mandatory requirement and therefore not negotiable. You can’t hold the letting rights without it.

4.

Complete the ABMA New Entrants Program – get all the information you need to excel in the Caretaking side of your Management Rights.

But what about the maintenance of common property? What qualifications do you have for managing the compliant maintenance of the scheme in accordance with 100+ relevant Acts, Regulations, Australian Standards, Codes of Practice and “best practice” standards? Caretaking, facilities and building management is a professional service, to be delivered by skilled professional people, as industry peak body associations such as ARAMA and the FMA will attest to.

5.

Become an ABMA Accredited Industry Practitioner – earn recognition from Australian Building Management Accreditation for excellence in building and facilities management services provision.

Australia’s love affair with Queensland and its idyllic holiday destinations sparked the growth of strata titled accommodation schemes providing a home, as well as a business enterprise for a resident manager who owns the Management Rights, however, even highly successful business owners have “pain points” within their enterprise to deal with. For those who have been around for more than a few years in this space, you will know exactly how quickly that early dream can deteriorate into a nightmare.

Start out on the right foot – Potential Purchaser Tips

Your Body Corporate client is now expecting you to be qualified – and more relevantly, quality operators want to be qualified.

Simple Solution – Qualifications Checklist

Reassure the Body Corporate that you are the best for the job When it comes to assessing your capability to deliver the caretaking duties, your new client (i.e. the Body Corporate) will want to understand that you are: -

Getting your Letting License is a relatively painless process. It’s a mandatory requirement and therefore not negotiable. You can’t hold the letting rights without it.

•

Fully qualified (i.e. having completed relevant training and acquired industry association membership status)

•

Fully insured

Diff iculties between the parties to the Management Rights rarely involve Letting Agreement issues. It’s the Caretaking Agreement that typically provides the flash point for dispute. Diff iculties tend to emerge for one reason and persist for another. Key dispute origins include:

•

Fully licensed

•

Accredited

•

Open to teamwork

•

Open to scrutiny

•

Unclear schedule of duties – the parties are unsure of what duties are included and what is excluded

•

Lack of understanding around the objective standard – the parties hold different views on the standards required

They want to understand all this because it shows you are committed to engaging, in a sustainable professional way, with your Committee in the spirit of collaboration, resolution and with a “best-for-building” focus.

•

Duties out of date – Legislation has evolved, imposing new/ extra duties (or intensifying existing duties) that aren’t covered in the prescribed scope or remuneration

Five years ago, there was nowhere to go to obtain facilitiesmanagement specific training, fully focussed on the maintenance of common property in a residential strata scheme, so you could be excused for coming onto the scene “green” and learning as you go via the School of Hard Knocks. Now there are a multitude of relevant, cost-effective programs available for all levels of competency – all priced at less than 1% of the value of the Management Rights you are about to invest in.

Vendor Tips Encouraging your Potential Purchaser to become fully qualified is a great first step toward a smooth sale and Settlement process, but don’t forget to ensure there are no outstanding issues in terms of services delivery prior to Settlement. Your transfer will be effortless when the Committee believes the duties are being delivered to the required standard. The ABMA Building Management Code© is your business tool for defining the objective standard and can help clarify standards if any are in question.

By Ms. Lynda Kypriadakis, Director Australian Building Management Accreditation (“ABMA”) (e) lynda@abma.com.au (p) 0400 900 469 (w) www.abma.com.au

resortnews | july 2018

09

industry | News In Brief

“But researching travel plans for up to four hours a month during work hours is taking it a bit far.”

The cultural revolution driving accommodation spend Accommodation is profiting from a shift in spending away from material goods towards life experiences, says one of Australia's leading banks.

A new report by National Australia Bank has revealed the accommodation sector to be growing much faster than areas of traditional consumption, including retail trade.

The survey of more than 2000 adults found social media is becoming more influential in shaping consumer habits, with Aussies concentrating "less on buying things and more on

doing things." Onshore holidays ranked alongside movie trips and restaurant outings as the experiences favoured most

by Aussies over the year, with overseas trips the next highest ranked experience.

NAB economist Dean Pearson, said: “Businesses that are focussing on delivering a truly great customer experience are really reaping the rewards from this gradual change in what people spend their money on.

A spokeswoman for QT’s parent company told news.com.au they were “always sorry to hear that some guests have been disappointed” and that the resort was now on the market and would be sold.

A massive 84 percent of over fifties reported enjoying a holiday in Australia over the last 12 months, with 75 percent of those in their thirties and 68 percent of 18 to 29-year-olds also loving a domestic break.

“Social media is supporting this shift towards experiences as more consumers share their lives on Facebook, Instagram, Twitter and Snapchat.

When the first QT opened in Sydney, it wowed guests with its luxe but left-field interiors, funkily dressed bell hops and classy service and food. It now has branches in Melbourne, Perth and the Gold Coast.

All three demographics rated domestic holidays more positively than international travel breaks, but both fared well in the rankings of positive life experiences.

Losers in the consumer spending war were warehouse stores, traditional travel agents and sports chain stores, which all ranked lowest for retail experiences.

RELIEF MANAGEMENT DIRECTORY

TAKE THAT GET AWAY NOW!

“Posting pictures of something we’ve bought is often deemed to be more distasteful and less exciting than posting pictures of something we’re doing.”

Back in 2011, Reserve Bank Governor Philip Lowe noted a “gradual shift” in household preferences away from goods and towards experiences.

The latest survey shows women aged between 18 and 29 are the most likely group to share their experiences on social media, followed by women aged between 30 and 49. Men aged over 50 years are the least likely to share their experiences online.

Other big beneficiaries from the shift in consumer preferences are recreational service providers such as entertainment, food and leisure services.

Young and mid-aged Australians rated sporting events, theme and amusement parks and live concerts more highly than baby boomers as favoured experiences.

The luxury resort panned by guests

RELIEF MANAGEMENT KIM GOURLAY Mb: 0437 257 771 Email: kimdessieg@gmail.com • PUMA, Resonline, Siteminder • Ex defence force (26 years) reaching management levels • Previous owner of management rights • Prepared to travel Area of Service

GC

BR

SC

To advertise here in the directory please call Gavin Bill on 07 5440 5322 or email service@resortpublishing.com.au

NQ

GC Key: (GC) Gold Coast (BR) Brisbane (SC) Sunshine Coast (NQ) North Qld (WQ) West Qld (CQ) Central Qld (VIC) Victoria (NSW) New South Wales © 2018, Resort Publishing. The Relief Management Directory is provided by Resort News to provide CONTACT details only of individuals and organisations promoting services in temporary and permanent management positions. Parties should satisfy themselves as to the competency and suitability of advertisers prior to ordering any services. We accept no responsibility for the standards of service.

10

A luxury hotel owned by one of Australia’s largest accommodation chains has been condemned by guests as filthy and worse than a motel.

At the QT Port Douglas, in the popular Queensland resort that is a jumping off point for the Great Barrier Reef, rooms can cost more than $400 per night in the high season.

But angry customers have fumed, with one saying they “wouldn’t stay here again if you paid me”.

resortnews | july 2018

The flagship hotel is one of the Harbour City’s funkiest spots and has played host to the likes of Sunrise’s Sam Armytage, MasterChef’s George Calombaris, Labor heavyweight Anthony Albanese and TV and radio star Kate Ritchie.

However, in Port Douglas, the topend hotel has been dubbed a “fail”.

Scores of customers have raged that bed linen was stained, furniture broken, rodent droppings filled in the laundry, service was almost non-existent, showers were cold, cutlery was grubby and rotting food was left in rooms.

It’s not all bad news for the QT. The pool was praised by some customers on Booking.com, with one saying staff were “friendly and efficient” and another calling it a “beautiful resort”.

But on the TripAdvisor review website, pictures have been uploaded of mould-splattered sun loungers, pillows streaked with dirt and squashed bugs in uncleaned rooms. When it came to the food, well, “a Bunnings sausage would be better,” a customer said.

Another claimed room service took so long they managed to have a takeaway delivered from an outside restaurant to their room before the phone was even picked up at reception to take their order.

“We felt like we were in a cheap run-down motel,” was one comment. “If I could rate this zero stars I would,” was another.

QT is part of the same group as Rydges hotels and the Thredbo ski resort as well as Event and

News In Brief

BCC cinemas. In the half year to December 31, Event made a profit of $66 million. The hotels division contributed $36.4m, an increase of 48 percent over the same period the year before.

But little of that profit seems to be reaching the QT in Port Douglas.

Norman Arundel, Event’s hotels operations manager told news. com.au the hotel was now up for sale. It’s been reported that is with “vacant possession” — essentially that the hotel will be empty.

“While QT Port Douglas has been a much loved part of the QT family, the property is on the market following an asset review in 2017.

QT Port Douglas is still open for business and we will continue to deliver great guest experiences synonymous with the brand,” he said.

QT did not reply to questions about whether the resort was being slowly run down prior to the sale.

The QT Port Douglas, formerly a Rydges, opened in 2012. It bills itself as “boutique luxury hotel … a tropical paradise for the way you are”.

It boasts of “spacious resort rooms” with pool or garden views, a swimup pool bar and moonlight cinema.

However, the reviews in the last few weeks have been damning.

“The decor is cheap; lampshades broken and lopsided; there are stains and scuffs all over the floor, walls and decor; grease on the handles of the cupboards; stains on the pillows; batteries were corroded in the TV remote which made it unusable and there was an out of date Snickers in the minibar,” said one angry customer.

“We felt like we were in a cheap, run-down motel room.”

“The room smells like mould, everything is chipped or broken,” said one review.

“The complimentary tea bags and sugar were all wet and unusable.”

Management at the hotel said the tropical heat could “take its toll” on fixture and fittings.

| industry

“It feels like the management have given up and it’s sliding into disrepair,” said a guest this week.

A general theme was the hotel had fallen from grace after opening to acclaim. “We had stayed about three years ago and it was fantastic.

Woefully underwhelming this time.

It seems no one cares.”

On QT’s website, restaurant Bazaar promises much: “Inspired by international street stalls, souks and bodegas … at Bazaar, your plate is your passport and there are no rules on which destinations to explore.”

But so bad was the food service, some guests said they were forced to explore food destinations far beyond the QT’s walls.

“We tried to call room service for dinner … and was left on hold for 15 mins. So we ordered take out from the restaurant down the road, which was delivered faster than the phone was answered at QT.” Other guests were livid that they had to pay extra for coffee despite being charged $28 for a breakfast they thought was all inclusive.

“Breakfast was crap and not worth $28. A Bunnings sausage would be better.”

There are claims rooms went uncleaned, fruit rotted in bowls, Doritos were found crunched up on couches, and tables in the restaurant were piled with rubbish from previous guests.

“Service was terrible, carpets were putrid with holes in the curtains and the rooms smelt of mould and dampness.”

Not all reviews were bad. Some guests loved the large rooms, the pool and the staff. “The bed was big and comfy," said one reviewer on Booking.com. Someone said the pillows were almost “too fluff y”. But time and again, the lack of cleanliness is raised, even in otherwise good reviews.

QT’s Mr Arundel said the company encouraged guests to share their feedback directly with the hotel if they had any concerns so they could be resolved immediately: resortnews | july 2018

11

industry | Special Report: Airbnb’s impact

Airbnb regulation needs to distinguish between sharing and plain old commercial letting Airbnb and other short-term letting websites have been a hot topic of debate for some time. In New South Wales, it seems the state government is on the verge of announcing a new short-term letting policy.

Our research suggests about a quarter of Airbnb properties in the city are essentially commercial short-term letting operations.

But as cities like Berlin and Barcelona have learned, regulating these platforms is not always easy. Enforcing restrictions against individual hosts can be costly. Airbnb has also challenged regulations limiting short-term letting.

At the same time, there has been a lot of hype about platforms like Airbnb as leaders of a new “sharing economy”. This has made some governments wary of interfering with a potentially lucrative economic driver.

How do you tell if it’s sharing or business?

To ensure these new platforms are regulated effectively, it’s important that we understand exactly what they do, and the impacts they’ve having. Despite Airbnb’s efforts to promote itself as being all about sharing, there’s actually a mix of activities happening on its platform. In a new research paper, we examined these different activities, to better

While commercial properties are not the majority of listings, other research suggests that this activity nonetheless generates a larger proportion of Airbnb’s income than home-share activity.

identify how Airbnb is being used and whether the platform should be viewed as a “sharing economy” superstar.

Overall, we found that in late 2016, about a quarter of Sydney’s Airbnb listings were best viewed as short-term letting businesses, rather than examples of the sharing economy in action. The figure was greater for other global cities we looked at – 26% in New York, 28% in London and Hong Kong, and a hefty 49% in Paris.

So how did we reach this conclusion? To start, we needed a definition of the “sharing economy”. We took this to mean economic activity involving the sharing of excess capacity in an asset or service, which is driven by a sharing attitude.

We then took a close look at listing data from the five cities and identified two categories of use: 1.

House sharing, which

includes advertising part of a house (a private or shared room) or a whole house for a small portion of the year (up to 90 days). These uses suggest that the property is otherwise meeting someone’s permanent housing needs.

2.

Traditional short-term lets, meaning properties permanently offered for short-term rental, thus preventing their use as long-term housing. This includes properties available or booked for more than 90 days per year, and those where the host has multiple listings.

By categorising listings this way, we get a clearer sense of whether Airbnb is really being used to share spare housing capacity, or to run commercial rental accommodation.

Unfortunately, Airbnb keeps tight control over data about the

Location of traditional short-term letting

12

use of its platform. This makes it challenging to quantify these uses.

To get around this, a few organisations have scraped and collated data from Airbnb’s website. While much existing research uses a dataset from Inside Airbnb, our research complements this work by using a dataset produced by the company AirDNA. While neither dataset is perfect, together they provide an increasingly clear picture of Airbnb’s impact.

What did our research find?

Our findings show a significant share of Airbnb hosts are using the platform to engage in economic activity that existed long before Airbnb did – that is, dwellings are used as serviced apartments, B&Bs or holiday rentals. This is commercial activity, not sharing. These properties aren’t just “excess” unused housing space and there’s no “sharing attitude” involved.

While commercial properties are not the majority of listings, other research suggests that this activity nonetheless generates a larger proportion of Airbnb’s income than home-share activity.

In many cities this activity is also already subject to planning laws and land-use regulations about “tourist accommodation”.

Location of house sharing

resortnews | july 2018

Special Report: Airbnb’s impact

This means these Airbnb listings are potentially in breach of existing laws.

Furthermore, by mapping the Sydney listings we can see that while these traditional shortterm lets were only about a quarter of listings, they were overwhelmingly concentrated in suburbs with very tight rental markets.

Location of traditional short-term letting Another factor is the rapid growth of Airbnb since late 2016.

Australia now has 87% more listings than in late 2016. That’s a lot of properties in popular neighbourhoods that might otherwise be long-term rentals.

So not only is this commercial activity not “sharing” at all, it’s

It’s not easy to tell, but about a quarter of Airbnb properties in Sydney are essentially commercial letting operations. Photo courtesy of paul/Flickr

also potentially pushing renters into shared living elsewhere, by reducing the amount of available rentals.

some of the shared financial, social and environmental benefits sharing economy supporters claim.

What does this mean for regulation?

At the same time, regulators need to act on the lack of transparency in debates about platforms like Airbnb. Without good data, it will be tough for regulators to target their efforts at the most problematic aspects of new technologies. As we conclude in our research paper:

So where does this leave our regulators? In our view, any policy decision needs to account for the different uses of these platforms, and be particularly focused on the impact of commercial shortterm letting. While house sharing also raises concerns – particularly in apartment complexes – it at least fits the “sharing economy” model and arguably provides

“If Airbnb is genuinely committed to the ideal of ‘sharing’, as it regularly claims, it should share its data with regulators, even if it is not made publicly available.

| industry

Airbnb’s unwillingness to do so (to date) indicates its sharing rhetoric is more of a sales pitch than a guiding philosophy.”

This article was jointly written by research lecturer Laura Crommelin, City Futures Research Centre, UNSW, research fellow Chris Martin, City Housing, UNSW, and research fellow Laurence Troy, City Futures Research Centre, UNSW. Disclosure statement: Laura Crommelin receives funding from the Australian Housing and Urban Research Institute (AHURI). Chris Martin receives funding from the Australian Housing and Urban Research Institute (AHURI).

Laurence Troy receives funding from the Australian Housing and Urban Research Institute (AHURI) and the Southern Sydney Regional Organisation of Councils (SSROC).

This article originally appeared on The Conversation and has not been edited. ■

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industry | ARAMA Report

Myopic licensing reforms look set to disrupt industry Following years of operation, the NSW Residential Tenancies Act 2010 was recently subject to a statutory review and while the proposed reforms appear to be based on formalising and protecting the industry, they look set to significantly impact the management rights and property investment sectors.

According to NSW Fair Trading, the six existing licence types will be reduced to three, with the business agent, buyer's agent and on-site residential property agent licences (ORPAL) falling under the one real estate licence.

Each licence type will have the levels of Certificate of Registration for new entrants, with heightened entry requirements; ‘agent’ gained once the practitioner has more education and industry experience, and ‘licensee in charge’ for operators of a real estate

CEO ARAMA

ARAMA recognises the need for ongoing reform and the implementation of workable regulations for the long-term development of the industry, but we are concerned that some of the proposed reforms are knee-jerk reactions agency or resident manager or strata managing agency.

The new super license - 'licensee in charge' category will be applicable to individuals responsible for key agency matters such as operating trust accounts and the overall supervision of employees, and all applicants will need to complete a diploma and have at least two years' practical experience as an agent under the supervision of a 'licensee in charge' or hold a Certificate IV and an equal qualification in business management.

The reforms will restrict certain

activities and increase the responsibility of the licensee in charge in that only a licensee in charge will be able to authorise transactions for trust accounts and any agreement entered by a certificate holder must be authorised by a licensee or licensee in charge before it takes effect, effectively ensuring that all property sales and rental transactions will have to be conducted via large real estate agencies.

It has been said that the imposition of the new Super License – ‘licensee in charge’ is akin to requiring those who wish to drive a passenger vehicle being required to obtain a ‘super driver’s license’ which includes trucks, buses, boats and motorbikes.

Currently, resident managers have a few options available to them as far as licensing goes.

The ORPAL or Restricted Letting Agent's Licence (RLA) is the most common licence as it allows the manager to rent out managed units located within the complex as well as operate a trust account.

Should they wish to broaden their role and responsibilities to include property sales they have the option of obtaining a sales license or a full real estate licence.

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 14

Trevor Rawnsley

these small to medium-sized family businesses unsaleable to new independent operators also who wish to live and work on-site.

“Those considering the purchase of a management rights business currently or soon are likely to face delays in obtaining their licences as well as additional costs of approximately $11,000 for a diploma in property services.

“There is no beneficial outcome for consumers in replacing the ORPAL with a Super License – ‘licensee in charge’. Small to mediumsize independently owned and operated family business are the casualties with these reforms.

The only winners out of this are the big overseas owned hotels and the big box real estate agents who have no skills and often no desire to operate these tourist accommodation buildings on behalf of thousands of private investor owners.

“The NSW reforms may mean minimal change for existing licensees initially as they include transitional arrangements.

“As the peak body for resident managers nationwide, ARAMA recognises the need for ongoing reform and the implementation of workable regulations for the longterm development of the industry, but we are concerned that some of the proposed reforms are knee-jerk reactions to potential disruption and not the well-considered initiatives required to responsibly upskill and professionalise the industry.

The threshold for new MLR entrants has been increased significantly making it almost impossible for an independent operator, intending to live on site and manage small to mediumsized tourist accommodation buildings, to reach the necessary qualifications to enable them to operate a trust account and a letting business. The unintended consequence of the imposition of this new Super License is to render

“For over 25 years, ARAMA has worked closely and successfully with relevant parties in Queensland and more recently on a national basis in the development of sound policies that support all aspects of the short and long-term accommodation sectors, and we encourage the NSW Office of Fair Trading to consider broader collaboration with all stakeholders to ensure the proposed reforms are progressive and judicious.” ■

resortnews | july 2018

NSW Strata Report

New short-term holiday letting regulations for NSW The NSW government has announced a new a regulatory framework to govern the short-term holiday letting industry.

Short-term holiday letting has rapidly expanded in recent years due to the growth of online booking services such as Airbnb and Stayz.

The new framework will include new planning laws, an industry Code of Conduct and new provisions for strata scheme by-laws.

Management rights industry concerns While the new laws are directly aimed at owners letting their properties through companies like Airbnb and Stayz, there is a real concern that the management rights industry is going to get caught up in the cross-fire under these new regulations.

Planning laws New planning laws will allow short-term holiday letting under certain conditions. If the host is present, they can use their home for short-term holiday letting all year round as exempt development. That is, they do not need to submit a development application to local council.

If the host is not present, that residence can be used for shortterm holiday letting up to 180

days per year in Greater Sydney, with 365 days allowed in all other areas of New South Wales.

Councils outside Greater Sydney will have the power to decrease the 365 day limit to no less than 180 days per year.

Code of conduct A mandatory Code of Conduct will be introduced that will apply to anyone involved in providing or using short-term holiday letting, including hosts, guests, online platforms, and letting agents. This code will apply to management rights operators.

The code will establish the ‘two strikes and you’re out’ policy.

Hosts or guests who commit two serious breaches of the code within two years will be banned for five years. Platforms and letting agents (including management rights operators) will not be permitted to offer services to anyone, or any dwelling, that is listed on the exclusion register.

A strike will include any behaviour that unreasonably interferes with a neighbour’s quiet and peaceful enjoyment of their home.

The code will establish a complaints system, which will be available to neighbours of shortterm holiday letting premises, strata committees and owners corporations.

Complaints will be assessed

by independent and impartial adjudicators, approved by the commissioner for Fair Trading.

Adjudicators will be required to make decisions on evidence and after giving both complainants and respondents a chance to put forward their case.

Strikes will be recorded on an online register to ensure that guests and/or hosts cannot ‘platform shop’. Platforms and property agents will have to check the register before taking on new customers. Failure to do so may result in significant penalties of up to $1.1 million for corporations and $220,000 for individuals.

NSW Fair Trading will have powers to police online platforms and letting agents.

Strata schemes Strata scheme management laws will be amended to clarify that by-laws can prohibit short-term holiday letting, but only for lots that are not a host’s principal place of residence.

That is, if a host is genuinely sharing their home unit, they will still be able to use a spare room for short-term holiday letting, and will be allowed to let out their principal place of residence while they are away on holidays.

These change of by-laws will require a 75 percent majority to be passed.

resortnews | july 2018

| industry

Col Myers Small Myers Hughes

When will the new framework start?

The introduction of the new framework will require changes to existing laws, which must be approved by parliament.

The code will be developed in consultation with government agencies, and industry and community groups during 2018.

The reforms will be reviewed a year after they commence.

What should management rights operators in NSW do?

This proposed legislation could be quite detrimental to operators of short-term management rights in NSW. Also, this legislation could easily be adopted by other states.

The ability for an owners corporation to pass a 75 percent majority vote that has the effect of overriding a town planning approval (that allows short-term letting) is simply bad law and should be opposed by everyone in the industry.

It is time to make your voice heard!

Every management rights operator in NSW should immediately contact their local member of parliament and voice their concern about this proposed legislation. ■

15

industry | SCA Report

The budget according to strata

Simon Barnard President, SCA (Qld)

You’ve probably heard colleagues muttering their disbelief that we’ve already hit the month of July; whispering surprise that the year has gone by so fast.

We’re half way through the year already, which means your New Years’ resolutions have either become entrenched habits or vague memories of self-belief and enthusiasm. Thankfully, it’s never too late to initiate change, and for the state and federal governments, a new financial year with a new budget affords the opportunity to do precisely that.

Budget announcements saw some fairly significant ideas floated, with a few of particular relevance to the strata community.

Investment in infrastructure has been a central tenet of the federal

government and spending in the area has continued as part of their $75 billion ten-year commitment, which, for Queensland, means a $5.2 billion investment. This year, the state government has also earmarked $45 billion across the next four years, with 65 percent of that to be spent outside Brisbane. Much of the spend will be designed to greatly increase the ease of movement in the south-east Queensland region, potentially improving the desirability of strata schemes further from the CBD. Of course, this increased investment does mean that there may be more roadworks on the M1 and Bruce Highway for some time yet.

Another main feature of the budget due to impact the strata community is the proposed extension to tax concessions

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for small businesses. Many of our services and management members run, or are part of, a small business, and these proposed changes could have a large impact on their future success. The deadline for claiming assets up to $20,000 is to be extended until June next year, the turnover amount for the tax concession eligibility will be increased, GST reporting is to be streamlined, and the low and middle income tax offset will work as a reduction in tax payable.

Unfortunately, the state budget did not feature details of a fund to assist those owners living with the prospect of cladding rectification costs. The recently released government report into non-conforming building products estimated that 1200 privately owned buildings in Queensland would need some sort of rectification. These costs would be approximately $30,000 to $60,000 for each affected strata owner, so it was disappointing to see that the state government have not allocated financial assistance.

The property industry was also saddened to see that the federal budget did not feature proposals targeted at housing affordability on the demand or supply side.

Tax cuts may aid people on the

margins to access the market, but it may not meaningfully increase home ownership prospects for those with lower than average incomes. Build-to-rent schemes were not mentioned, but the government did announce the allocation of nearly $5 million over four years to the ABS for more detailed analysis of the stock of affordable housing.

Trends suggest half of our state’s population will be living in strata-titled properties by the year 2030, and these budgetary decisions will greatly impact our ever-expanding community.

Infrastructure projects will create development opportunities, business regulatory and tax changes could determine the viability of management and services firms, while housing affordability schemes may determine the future of strata as owner-occupier or investor-tenant communities.

Overall, the lack of allocated funding for strata residents affected by flammable cladding issues means that this is not the Christmas in July state budget for which we were hoping, but we will continue to push for greater assistance. Lot owners are in no way responsible for the choice of cladding, so should not be left to foot the bill. ■

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resortnews | july 2018

Lot owners are in no way responsible for the choice of cladding, so should not be left to foot the bill

BCM Report

Entry to a lot: what you should know

| industry

Chris Irons Commissioner for Body Corporate and Community Management

While it is generally understood that the body corporate is responsible for common property and a lot owner is responsible for what occurs within the boundaries of their lot, it is perhaps not as widely known that the body corporate does have both the ability and indeed, responsibility, to enter an owner’s lot in some circumstances.

Let’s firstly dispel a few misconceptions about this issue: •

•

•

The body corporate committee chairperson (or any other committee member for that matter) does not have unfettered, unrestricted power to enter a lot for any reason; Similarly, the onsite manager (known as a caretaking service contractor) does not have any automatic right of entry to a lot; and Entry to a lot by the body corporate is not subject solely to the owner or occupier’s approval to do so.

It is probably also important to clarify that I am talking here about a body corporate entering a lot, as opposed to, for example, the power of entry of a landlord or property agent.

Under section 163 of the Body Corporate and Community Management Act 1997 (the Act), a body corporate may only authorise a person to enter and remain on a lot or an exclusive use area to: •

inspect the area to find out if work it is authorised or required to carry out is necessary; or

•

carry out work it is required or authorised to do.

The authorisation can occur as a result of a committee resolution or an ordinary resolution of a general meeting.

Only persons authorised by the body corporate can enter the lot or the exclusive use area, unless

I am talking here about a body corporate entering a lot, as opposed to, for example, the power of entry of a landlord or property agent the occupier gives permission for someone else to enter. The authorised person can be a committee member, a caretaking service contractor, an external person to the body corporate, such as a plumber, or any other person necessary.

A body corporate may be entitled to enter a lot or an exclusive use area because: •

it has legislative maintenance obligations; or

•

the owner or occupier has not complied with their maintenance obligations under the legislation or a by-law.

If an owner or occupier has agreed to the body corporate supplying services to them, such as maintenance, that agreement may also authorise the body corporate to enter the lot or exclusive use area.

Before entering the lot or exclusive use area, the body corporate must give written notice to the owner of the lot or the occupier of the lot, if the owner is not occupying the lot.

The written notice must be given to the owner or occupier at least seven days before entry. The entry must be at a reasonable time.

The Act does not specify what a reasonable time would be or what information must be included on the written notice. That said, it might be advisable to include information such as: •

• •

•

the reason they are entering; and

•

contact details of a person who can respond to any queries.

There are some separate considerations for emergency circumstances. In an emergency, an authorised person may enter a lot or exclusive-use area at any time, with or without written notice. Importantly, the Act does not specify what situations are considered an emergency.

Consideration should be given to matters such as genuine urgency, impact on health and safety and whether giving the seven days’ notice is or is not practicable.

You may also wish to consider adjudicators’ orders on the topic, orders are searchable at www. austlii.edu.au.

Even in an emergency, the body corporate will still need to authorise the person to enter the lot or exclusive use area. This may be done as a vote outside a committee meeting.

In an emergency, the body corporate should try to contact the occupier as early as possible to explain the urgent need to enter the lot. This is particularly

how long they will be remaining in the lot or exclusive use area;

Considering the power of entry generally, once the authorised person has the power to enter the lot or exclusive-use area, they or the body corporate do not require the presence or consent of the owner or occupier of the lot to enter the lot or exclusive use area.

It is an offence under the Act to obstruct an authorised person attempting to exercise their power of entry.

If an owner or occupier obstructs an authorised person from entering or remaining on the lot or exclusive use area, or from carrying out the necessary work or inspection, the body corporate may apply for dispute resolution in my Office or lodge a complaint about the alleged offence in the magistrates court.

On the other hand, if an occupier believes the body corporate is seeking to enter the lot unlawfully or when not reasonably necessary, the occupier may consider applying for dispute resolution against the body corporate.

If necessary and depending on the circumstances, it may be advisable to seek legal advice or assistance from the Queensland Police Service, regarding power of entry. ■

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17

management | Thinking Accommodation

The rules have changed... game on! Maybe?

I was once told that the definition of a consultant is someone who steals your watch and then asks you the time.

I have also heard that a good accountant, when asked the total of 2 + 2 will reply, “What would you like it to be?”

Perhaps, fortunately, in our world, things are a bit more cut and dry. We are certainly seeing a quantum shift in the banks’ approach to loan assessment and obviously the various investigations and commissions currently under way are driving a far more conservative credit environment. Interestingly, this is leading to a refocus on lending fundamentals and, in my view, that’s not necessarily a bad thing.

However, here’s a caveat… If the trend swings too far toward absolute compliance with credit policies, we run the very real danger of a serious credit crunch, particularly impacting small business. There is no such thing as a perfect business credit application, so there always needs to be some room for lenders to make reasoned decisions within a flexible policy framework..

When I was a young bloke, many moons ago, I had various old and wise credit managers attempt to beat credit theory into me and, in particular, the so called five Cs of credit. My view is that the fundamental rules still apply and are worth revisiting given the current banking environment.

Character Some say that this is the test of a borrower’s ability to pay back debt. I disagree. In my mind what we are talking about here is a desire to take responsibility for the debt and repay it. It’s one thing to be able to meet your obligations, a whole different thing to wanting to meet them.

That can sometimes mean that a borrower who has faced financial adversity and prevailed will be well regarded by lenders. This is as it should be. Obviously, credit history and full disclosure of all

18

matters that form part of the assessment is essential. A strong CV and credible references carry a lot of weight as well Ultimately, if a bank is going to approve a deal outside policy, character is the most important attribute that a borrower needs to demonstrate.

Capacity The empirical measurement of a borrower’s financial ability to meet commitments coupled with a degree of income and interest rate risk assessment. Recent events have seen lenders tighten up on capacity assessments and it’s important to understand the state of play. In order for a borrower to have finance approved, we must be able to demonstrate that loan commitments can be met on a principal and interest basis with a three percent lift in current rates. Furthermore, we must be able to prove this capacity over the balance term of the loan after any interest only period and after reasonable allowances for living expenses and tax. As you can see, this means that the longer the

interest only period, the higher the post IO payments assuming a specific loan term. Some lenders do three-year total loan terms but we still need to be able to show notional debt servicing over the long term.

The days of making a standard living expense allowance are gone and borrowers must provide a personal budget when applying for credit. We must be able to confirm all income sources and we must be able to demonstrate that there is a reasonable expectation that this income will continue. In the case of investment property rental income, we must discount the gross rent to allow for costs and a vacancy factor.

Income associated with employment that is subject to a short-term contract or probation is extremely hard to rely on, as is income from some pension and retirement schemes such as public service pensions.

We talk to many borrowers who, in their minds, have self-servicing property debt. That is, the rental

resortnews | july 2018

income pays the interest. As we can see borrowers need to modify their thinking and take into account the sensitivity tests I have outlined.

In terms of taxation strategies, lenders have a variety of views.

It’s important to understand that banks are fearful of any changes in tax law that may adversely impact borrower’s capacity to service debt. Recent discussions regarding negative gearing being a case in point with some lenders not recognising the tax savings inherent in a negative gearing arrangement.

Capital Also known as equity and fall-back capital, this section refers to the amount of cash or value of supporting assets the borrower can, or is willing, to contribute to a transaction.

Lenders quite rightly see a large equity contribution as both a positive impact on the transaction risk and also an indication of the borrower’s commitment to the arrangements. In essence, the more the borrower has to lose,

Thinking Accommodation |

management

Mike Phipps Mike Phipps Finance

the harder they try and make sure they meet their commitments.

Often referred to as the hurt in the deal or skin in the game. I like neither expression, but you get the picture.

It’s important to note that having suff icient equity to carry a minimum deposit and costs is not enough, particularly for business finance. Lenders want to see that the borrower has enough money left over to cover any contingencies and general cash flow fluctuations. Often referred to as a working capital reserve.

Another important point here is that banks will also look at the borrower’s capital reserve in terms of the applicant’s age and their historical spending habits.

Trends that reflect a preference for lifestyle over prudent investment don’t always go down well with credit departments.

Lenders are not favourably disposed to equity coming from inter family loans or indeed vendor finance. Family gifts are acceptable but need to be confirmed via statutory declaration.

Collateral More commonly referred to in Australia as security. Obviously, the more security the better from a lenders point of view. The usual security mix for a business loan will be a charge over the asset being purchased combined with the personal guarantees of the people controlling and benefiting from the acquisition. If a company or trust is involved lenders will seek guarantees from directors, shareholders and beneficiaries.

Mortgages over any supporting security will be taken. Most lenders will not (and should not) contemplate taking security from a third party who is not receiving a commercial benefit from the transaction. Forget about having your 90- year-old mum putting her house up, it simply won’t be acceptable. Back in the day, you might have got around this by making mum a beneficiary of your trust. Those days are over. The

Based on our current dealings with some banks, I am working on a theory that there may be sixth C but let’s not go there banks are not interested in being featured on A Current Affair as they throw mum out on the street.

Limited recourse lending refers to a loan with only the asset being purchased being offered as security. There may be perfectly valid reasons why a director does not want to offer a personal guarantee albeit the explanation of the strategy needs to be pretty compelling. We have had some success with this style of lending but always at reduced gearing and higher rates. It’s a higher risk for the lender so no surprises there.

Limited guarantees, particularly for partnerships, are available and generally reflect personal guarantees limited to the partners percentage shareholding in the purchase entity.

Conditions Generally referred to as ‘conditions precedent’ and ‘conditions subsequent’. As the names suggest, there will be loan approval conditions that need to be met prior to settlement.

Confirmation of assignment approval for management rights is a prime example.

regular, such as annual financial statements while others are event driven. Reporting loss of units in a letting pool falls into this category.

There will also be default conditions and here’s where things get a bit more complicated.

There are monetary defaults and there are non-monetary defaults.

Triggering either would once have led to anything from a warning letter to penalty interest being applied or, in extreme cases, formal debt recovery action commencing. I have never been a supporter of penalty interest in cases of monetary default.

It’s a bit like kicking someone when they are down and, in my mind, not a good look. However, a financial penalty for a borrower who simply refuses to supply reasonable information for an annual review seems like a good way to focus that borrower on meeting their reporting obligations.

Recent investigations into the banking sector have led to a discussion around loan conditions for business finance with the result that banks will not be allowed to include a raft of conditions subsequent in their finance offers. The Carnell Report

into banking practices makes numerous recommendations and for business borrowers the report summary is well worth a read.

Recommendations in regard to banks being unable to pursue borrowers on non-monetary default, reporting and adequate time for borrowers to roll expiring business facilities are of particular interest, as is a recommendation to cease the revaluation of security assets where there has been no monetary default.

You can read more about the Carnell Report online at kmo. ministers.treasury.gov.au.

While all this sounds like a win for the borrower, the downside of less stringent loan conditions and monitoring may well be a move to higher rates and shorter loan terms. Think about it: if a lender is limited in what they can monitor, revalue and enforce after settlement then that’s a higher risk loan. That risk can be compensated for through a higher risk rated interest rate and a shorter loan term. I suspect this consequence may not have been completely considered or appreciated by the authors of the report.

Based on our current dealings with some banks, I am working on a theory that there may be sixth C but let’s not go there.

Get your mind out of the gutter… it’s confusion of course. ■

Conditions subsequent to settlement can be a bit more interesting. A business loan will have a term, anything from three years to 15 years is the norm.

In many cases, there will be an interest only period during which the loan and therefore the lenders risk does not amortise. Banks will seek to keep an eye on the financial health of their client by regularly seeking information over the course of the loan.

The obligations of the borrower to provide this information are outlined in the conditions subsequent section of the Letter of Offer. Some obligations are resortnews | july 2018

19

management | Legal Ease

The goose, the golden egg and the assignment In an article I wrote some five years ago, I expressed concern at a trend in management rights of inexperienced managers being sold management rights on promises of minimal work, high return on investment and low (or no) risk and the damage that would cause the industry if it continued.

I warned that the goose, which had laid many golden eggs for the industry and its many participants, was in grave danger.

Unfortunately, my prediction has proven to be close to the mark.

Regrettably, the trend identified back then has not abated, or at least not to any great extent. A number of bodies corporate have found themselves with managers with little if any understanding of their duties or the reasonable expectation of owners. Disputes have become commonplace and body corporate managers are understandably encouraging their bodies corporate to be extremely cautious when considering requests for consent to assignment.

An unfortunate knock-on effect of this has been the approach taken by some body corporate managers and lawyers to ‘outsource’ the assessment of proposed new managers when asked to consent to an assignment. The reason they do this is that the committee

cannot be accused of consenting to an assignment of a poorly qualified new manager but can point to the assessment by an independent and (supposedly) qualified and competent third party.

It has also become common for bodies corporate to require potential new managers to have undergone, or to undergo, training of some description.

Like other lawyers, I have seen examples of where a body corporate has gone overboard in the extent and level of training required and the excessive cost of that.

It is, therefore, too simplistic in my view to blame all of this on body corporate managers, body corporate lawyers, those

Mahoneys

engaged to do the assessment or those offering training. That is not to say that some of them are not taking advantage of the situation and gouging managers (as some clearly are) but you have to look at what has led to this and what can be done to reverse the trend.

The industry has got itself into this situation and needs to find a way out.

In my view, the answer lies in better and broader education of proposed new managers and existing managers. They all need to understand some basic principles including: •

Imposing such requirements has also made the whole assignment process more complicated meaning not only long delays but that the fees being demanded by some body corporate lawyers and body corporate managers are way above what might be reasonably expected.

The reality is that bodies corporate have considerable rights when it comes to consenting to an assignment and are, due to many problems body corporate managers have experienced with poorly performing resident managers, exercising those rights in order to protect unit owners and themselves.

John Mahoney

•

•

Management rights are not a risk-free, passive investment. It can involve hard work to meet the owners’ reasonable expectations for the remuneration they are paying. For every $50,000 of annual remuneration the owners might reasonably expect 25 hours of work per week.

Proposed managers need to be totally familiar with the duties set out in the agreement, must understand the statutory requirements around infrastructure and services and must have a good understanding of the relevant legislation.

Bodies corporate are entitled to be satisfied that the proposed new manager

has the qualifications and experience (and if necessary the training) to perform the duties. If training is needed, get it done before you seek the consent of the body corporate.

•

Rather than ask how can I do less work for more money ask how I can give my owners better service and improve my complex.

Proposed new managers, with no or minimal experience, should seek out education and training organisations.

The first place to start is the ARAMA management rights induction course, which is run over a full day and covers all of the essential basics. Depending on the person’s level of expertise, further training of a practical nature through Danny Little of MRAS can be invaluable.

If additional training in the theoretical aspects is required seek out one of ABMA approved trainers.

If we better educate and improve the quality of existing and proposed new managers, many of the assignment problems the industry is now experiencing will dissipate. However if we stick our head in the sand and blame others for the problems they will only get worse. ■

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20

resortnews | july 2018

resortbrokers.com.au | 1300 665 966

Seminar 2018

Gold Coast

Management Rights Made Easy

This informative, informal and interactive event is aimed at newcomers to the management rights industry. Our team of industry experts will be on hand to share their extensive experience, answer your queries and put you on the path to success!

5.30pm on Tuesday 7th August 2018 at HiRUM Software Solutions 2/8 Technology Drive, Arundel, Gold Coast An introduction from Larry Seburn, Sales Representative from HiRUM Software Solutions, the leading management rights software specialists in Australia. then... Meet Your Expert Panel

Mike Phipps Finance

Pevy Lawyers

Holmans Accountants

Resort Brokers Australia

Mike Phipps is one of Australia’s foremost accommodation industry finance professionals, with over 30 years’ experience. Mike provides commentary on the state of the management rights industry and available finance options. You really will learn secrets the banks won’t tell you.

Trent Pevy acts for more new entrants to the management rights industry than any other lawyer. Trent will highlight the importance of specialist due diligence in purchasing, as well as sharing his top five pitfalls to avoid throughout the contract process and settling your business.

Tony Rossiter has conducted income verification reports for buyers on hundreds of management right businesses across Australia. Tony will provide the inside track on dissecting a profit and loss statement, as well as how to best structure your business.

Todd Warner is our Gold Coast management rights sales specialist. With Resort Brokers the market leader, he has handled many sales of both holiday and permanent complexes.

Todd will provide current market insights and discuss where the best investment opportunities can be found.

Register today! Limited seats available. Visit resortbrokers.com.au/events

management | Motel Market

Tenanted motel investments

Andrew Morgan Motel Broker, Qld Tourism & Hospitality Brokers

The high return and low risk offered by motels as a tenanted investment was pinpointed by many savvy investors over twenty-five years ago.

the mortgagee would almost always appoint an operator to reopen until the business was on sold. The alternative is that the property owner operates the business themselves or under management until the business is on sold.

In its infancy, in the early 1990s, some leases were put in place that were not suitable for either party involved. These teething issues were largely ironed out by the mid-90s. Since then, demand for motel investments has been strong. Today, we find they are rarely available on the market and are a tightly held commodity.

Freehold tenure/increasing land values – Freehold tenure and the ownership of a tangible product, being a commercial property. Motels are generally located on busy main roads or other desirable locations which are larger blocks of freehold land that increase in value over the longer term.

With the high volume of motels that operate under a lease, it is surprising just how few tenanted investment motels are ever on the open market for sale at any one time. When they do come onto the market, they do not remain available for long, generally selling quite quickly.

In the early stages of leases being put in place over motels, it was largely only former or existing motel owners/operators who were interested in investing in motels as passive investments.

They knew the industry well, they understood how a motel was operated and they knew travellers always require accommodation, no matter what the reason for their travel was: business, work, pleasure, etc. The wider investor market had not considered investing in motels, and not having any history or dealings within the motel industry, were not that interested.

However, over time, as the high return and low risk benefits of motels were more recognised, interest started building in the motel industry as a tenanted investment opportunity from other investor markets. Investors who had previously focused on residential, commercial or industrial properties, were now looking at the benefits a motel investment offered.

Corporate investors as opposed to the traditional ‘mum and dad’ investor entered the industry in a big way. Many of these

22

With the high volume of motels that operate under a lease, it is surprising just how few tenanted investment motels are ever on the open market for sale at any one time larger entities own numerous motel properties and even the smaller individual investors have continued to add more motels to their investment portfolios.

Self-managed superfunds have become a popular investment vehicle for investors to purchase their own motel, with a secure long term lease in place.

Bank interest rates over recent years have assisted to increase the demand for passive investment motels where cash in the bank at its current interest rate levels is not an attractive investment option.

Benefits that have attracted the interest of the investor market to motels as tenanted investment options are: High investment returns – Investors have achieved excellent returns on passive investment motels over the years. Market net

returns on passive investment motels are currently at approximately nine percent plus on capital invested. The return to an investor compared with other investment options such as cash or residential property make them very attractive to a number of investor types.

Low risk – Motels have proven themselves over the years to be very low risk investments.

Solid and consistent businesses in general operating from an investors building is what anyone is looking for. Good locations in busy positions often means the investment is underpinned by a strong land component.

Fully tenanted – One way or another, a motel property that is leased almost always has a lessee, as opposed to other investment options. If a lessee/operator was to close the doors of the business

resortnews | july 2018

Solid building structure – Motels are typically of brick/ block construction and this type of structure requires minimal ongoing works. Any move away from this type of structure to more cost saving types of building materials/construction means an adjustment in the maintenance requirement to be budgeted for over time.

Outgoings – Generally within motel leases the lessee pays all outgoings. Outgoings paid by the lessee include, but are not limited to property rates, insurances, repairs and maintenance, and electricity.

Leases were originally set up this way so that the Lessee had control of his/her own business and did not have to go to the property owner every time they needed a light bulb changed.

The lessor may be responsible for a few items such as land tax (unless included as an outgoing) and structural repairs/ replacements.

Building allowance/tax benefits – Relatively young buildings or those that have undergone major refurbishments (capital works) will have some level of building depreciation or write off allowable. This will vary for each property; however, the tax benefits in many cases can provide good taxation relief to the property owner. ■

Strata Trends |

Do your body corporate homework

management

Grant Mifsud Partner, Archers the Strata Professionals

People buying strata-titled apartments or townhouses should do their homework before purchase to ensure they fully understand the financial position and personalities within the property.

You’re not just buying the residence, you’re also buying into a body corporate with shared common property and other owners.

People are buying strata-titled properties every day in Australia but often they don’t fully understand what a body corporate is all about and whether the scheme has any problems that may be of concern.

While most strata schemes are well managed and maintained communities, there can also be financial, legal, administrative and emotional challenges for buyers

whether they be owner-occupiers or investors.

Buyers should investigate the body corporate records to determine whether they are financially and emotionally stable and well managed, while buyers may engage a professional body corporate record search agent trained to prepare a report on any potential problems.

scheme can have repercussions for several years, particularly if there are issues for the building such as water ingress or structural damage.

A solid program of maintenance, good record keeping, reporting and a healthy sinking fund are all important tools for maintaining common property.

The five key areas where bodies corporate experience problems include their finances, common property defects, legislative compliance, body corporate management and disputes. A problem in one of these areas can easily lead to problems in other areas.

A body corporate also needs good leadership to avoid stagnation and disputes. It is possible for a building to become derelict or invaded by toxic personalities and shockingly quickly. Since apathy usually goes hand in hand with stagnation of action, the longer it continues the larger the cost both financially and emotionally to eventually get the building back on track.

The budget is the lifeblood for bodies corporate and underbudgeting the administrative or sinking fund levies for the strata

External and internal disputes affecting bodies corporate cause major problems all too often usually due to the lack of knowledge

get on top

Buyers should investigate the body corporate records to determine whether they are financially and emotionally stable and well managed or personal agendas making life particularly stressful for the committees charged with decision making responsibilities.

But knowledge is power. Knowing what issue might arise and how to spot them, can help committees, owners and buyers alike navigate the often complex world of shared investing and community living. ■

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sales@reimaster.com.au 23

management | Intonet

Pick your partner prudently Arvo Elias Cybercons

My favourite Australian author of rhyme is CJ Dennis, who bemoaned: “Everything's so bloody dear, a bloody bob for a bloody beer, and is it any bloody good?, No bloody fear! Oh bloody, bloody, bloody!”

browsers and those in Australia was also simple. Google's mantra is to provide the best possible result for the searcher. In the case to hand they have achieved that on the premise that if you are in New Zealand results from that country are probably of greatest interest to you.

A client came to me with a similar tale relating to AdWords and the runaway costs this scheme could generate. In his case, it seemed to be a double-up because he had engaged a consultant to manage his campaign.

I cannot quarrel with that at all but it does highlight the importance of also identifying your geographic location on your website. These days, I much prefer to incorporate Google Maps and full addresses as that leaves the punter in no doubt when he comes searching for you.

Everything was going swimmingly, he was on top of the page and money had been paid to the consultant who had worked this magic. So things were good until my client went travelling to another country. A mere skip across the pond from Kiwi land to good old Oz. Trying to show his friends how well his site rated a computer was stoked up and the search term typed in and then… nothing! His site could not be found until one scrolled to half way down the second page of results.

You can probably guess the next sequence in this part of the story.

He returned home, turned on his computer and lo and behold, on top of the page again. To prove to his friends that what he had told them was true he picked up the phone and called them.

But, alas, they only saw what they had seen before. Both parties were aware of browser caching behaviour and both sides of the ditch had the reload buttons pushed but to no avail. It was at this point I received an email generously embellished with C.J.D's favourite word.

Upon quizzing him, I received copies of all his to-and-fro correspondence with his new consultant, who had presented himself as a Google partner, of which there are many if you care to search. My client assumed that this badge of recognition vouched for the competence and sincerity of the consultant.

Before we go to the crux of the

24

matter, let us just remember what AdWords are, and here I will quote directly from Google's own site:

position at a lower price by using highly relevant keywords, ads, and extensions.

If you want to reach new customers online, then advertising with Google AdWords might be right for you.

When you advertise with AdWords, you’re investing in your business.

Make sure you understand how AdWords works and how this investment can help you grow your business -- all within your budget.

Together, these three factors determine when and if your ad will appear to potential customers.

AdWords determines which ads should show with a lightning-fast ad auction, which takes place every time someone searches on Google or visits a site that shows AdWords ads. There are three main factors in the ad auction that determine which ads appear, and in what order: Your bid - When you set your bid, you're telling AdWords the maximum amount you're willing to pay for a click on your ad. How much you actually end up paying is often less, and you can change your bid at any time. The quality of your ads - AdWords also looks at how relevant and useful your ad and the website it links to are to the person who'll see it. Our assessment of the quality of your ad is summarized in your Quality Score, which you can monitor—and work to improve— in your AdWords account. The expected impact from your ad extensions and other ad formats - When you create your ad, you have the option to add additional information to your ad, such as a phone number, or more links to specific pages on your site. These are called ad extensions. AdWords estimates how extensions and other ad formats you use will impact your ad's performance. So even if your competition has higher bids than yours, you can still win a higher

Google also explains that after certain training and cash flow achievements, you may qualify as a partner and display the special Google badge indicating that status. Again, in Google's' own words: “The badge also shows that your company has met AdWords spend requirements, delivered company and client revenue growth, and sustained and grown its client base.”

Simply put, you can obtain the partnership status when you generate an income for Google and demonstrate a continuous growth of that income. To me, that creates a significant conflict of interest.

Despite the fact that you may gain an AdWord listing, the consultant is not working for you but to firstly benefit Google, followed by himself; you are a clear third on that podium.

So, whose business is he really working at if it is not to enhance his own?

In my client’s case, keywords were purchased based on the SEO text which I had generated. No attempt had been made to alter the site.

The consultant had requested passwords to access the server but had not been granted that privilege.

The inconsistency of ranking displays between New Zealand

resortnews | july 2018

You can actually ‘change’ your location if you have a Google account. There you will find options of relocating yourself to a different country although I cannot imagine why you would do that.

One possible exception may be if you are promoting yourself in Woopwoop and expect to make a fortune from there. A better and simpler option perhaps is to use the Yandex browser, which permits location changes from its options menu during your ranking checks.

The moral of this tale is straight forward.

Always check your ranking and AdWord placement before implementing changes. Make sure you clearly understand what you are being offered and ask for web URLs where this is also explained by a third party or do your own research via Google. Finally compare the ‘before’ and ‘after’ indicators so that you can fully evaluate the effectiveness of your commissioned work.

If you have a good rapport with your webmaster, make him your first go-to source of information. I would certainly look hard at how I should spend my hard-earned money. Particularly so when everybody has the greatest, best and brightest business using exactly the same keywords as you.

Bear in mind that Google's advertising revenue was $95.38 billion for 2017. ■

By All Accounts |

Federal budget: what does it mean for the accommodation sector?

As happens every year, the eyes of the business world tuned in for one night in May to listen to the treasurer, Scott Morrison, as he delivered his third budget in what is an election year.

Confirming many of the prebudget leaks, the main budget announcements came as no surprise with modest tax cuts and a range of measures to promote jobs and growth. The message promoted by the government is that it is focused on bringing the budget back into surplus.

Bolstered by increased revenue of $21.4 billion since Christmas from improved tax receipts from both companies and individuals, the budget outcome looks more certain than ever before.

So what’s in it for the accommodation industry?

Income tax cuts Never before seen, the government has laid down a seven-year plan addressing personal tax rates. The first step in the plan is immediate tax cuts for middle and low income earners in the form of a non-refundable tax offset of up to $530 per year.

The offset will be available for four years between 2018-19 and 2021-22, and will be given back to taxpayers after they lodge their tax returns.

The second step in the plan is to guard against income tax bracket creep by increasing the threshold of the 32.5 percent tax bracket from $87,000 to $90,000 from July 1 2018. From July 2022, the 32.5 percent income tax bracket will increase again from $90,000 to $120,000.

In the third step of the plan, the government will remove the 37 percent income tax bracket in a bid to simplify the tax system. At the end of the seven year plan the vast majority of Australians will be paying tax at a rate of 32.5 percent on any income they earn between $41,000 and $200,000.

Although modest, the initial tax cuts provide a real tax saving for many Management Rights owners,

management

Tony Rossiter Holmans

$45 million to improve tourismrelated infrastructure, supporting demand driven projects that ensure the benefits are multiplied across the tourism sector in the regions. The BBRF has two streams – the infrastructure projects stream (construction of new infrastructure, or the upgrade or extension of existing infrastructure) and the community investments stream (new or expanded local events, strategic regional plans, and leadership and capability strengthening activities). and possibly more importantly improves the likelihood of the average taxpayer deciding they can afford their next holiday at your resort.

Crackdown on overseas online hotel bookings In a change that will likely bring a smile to local accommodation booking service providers, the government has announced a plan to recoup $15 million by making offshore online booking providers calculate their GST turnover in the same way as local businesses.

This measure will come into effect from July 1, 2019 and apply to sales made on or after that date, as long as all the states and territories agree to the proposal.

Currently, unlike GST-registered business in Australia, offshore sellers of Australian hotel accommodation are exempt from including sales of hotel accommodation in their GST turnover. This means they are often not required to register for and charge GST on their mark-up over the wholesale price of the accommodation. This exemption was introduced in 2005, when most offshore sales of Australian hotel rooms were to foreigners booking through offshore operators and the online booking market was small. Who could have imagined how this market has grown over the last thirteen years!

Removing the exemption will level the playing field by ensuring the same tax treatment of Australian hotel accommodation whether

booked through a domestic or offshore company.

Sales that occur before July 1, 2019 will not be subject to the measure even if the stay at the hotel occurs after that date.

Accommodation property operators should keep a close eye on the detail as legislation is formulated around this proposal.

No Australian accommodation provider could argue with a policy that seeks to clip the wings of the current offshore booking agent duopoly.

The $20,000 write-off will be extended again!

The federal government has extended the $20,000 instant asset write-off for small business entities for those with an aggregated turnover of less than $10 million.

The extension applies from July 1, 2018 and runs for the 12 months ended June 30, 2019.

While the extension of the depreciation concession is welcomed, it is disappointing that after now extending this concession several times the government has not taken the opportunity to lock the concession in for future years.

Infrastructure spending The government has committed $206.5 million over four years from 2018-19 for round three of the Building Better Regions Fund (BBRF), to support investment in community infrastructure and capacity building projects in regional areas. This includes

resortnews | july 2018

In addition, the budget’s focus on new investment in roads and bridges is a welcome measure to address urban congestion. It was important for the budget to support infrastructure projects that are ready to commence, so the productive benefits can take hold in the short to medium-term.

The government has offered up a $24.5 billion package, with several specific projects rated as a high priority by Infrastructure Australia.

Each project will have a positive impact on productivity, and will help residents, motorists and businesses save time.

In addition the government will allocate $535.8 million over five years from 2017-18 to protect the Great Barrier Reef from climate change and pollution.

Industry impacts In all, the budget produced mixed results for the accommodation sector but the net outcome should be considered to be positive for the Accommodation industry.

Certainly the current government appears intent on growing the economy by promoting employment and providing support to small business owners.

We should see a boost in consumer and business confidence as a result of personal tax cuts and business incentives, which is likely to lead to increased demand for both corporate and leisure room nights around the country. ■

25

management | Airbnb Vs Bylaws

Outdated bylaws in an age of technology Airbnb has captured our imagination and, more importantly, the consumers by being an easy, friendly, accessible platform inviting anyone to use it.

The Airbnb for Business program was launched in the second half of 2017 and is already making strong inroads to the industry: it is already trusted by over 250,000 companies and the Fortune 500 in the US. For property owners, Airbnb can showcase to an audience of millions and make it easy for people to monetise their extra space. $30 billion private market valuation, 140 million guest arrivals and for a better term, an inventory that has four million strong listings, 2500 employees in 65,000 cities and 191 countries and that is more than the top five hotel chains combined. On any given night,

two million people stay in homes on Airbnb and as they expand into new businesses, they will consider and take the company to an eventual IPO. Australian figures prepared by an economic report in 2016 by Deloitte states a gross $441 million in the year between 2015 and 2016 from a total of 2.1 million bookings at an average cost per night of $119, number of guests 651,000 translated to 1.1 million nights booked.

There are 115,000 listed properties in Australia in 800 different locations in towns and cities and increasing each day.

The company’s over-the-top idealism is easy to dismiss but the experience it offers does address something that has been lost as we have grown more distant from one another. it offers human

Airbnb allows guests to live the way real Australians live, opposed to the generalised theme that hotels provide.

This is a form of cultural tourism, allowing guests to experience at a deeper level. Domestic tourism also benefits: more than half of the guests who are accommodated in shared homes are Australians going to visit other parts of the country.

Airbnb are beginning to target hotels and more traditional accommodation providers in its host network after the Masterclass on the Gold Coast, where Airbnb unveiled its hope for managers to become hosts.

However, Airbnb is an emotional topic at the moment for a number of accommodation providers and not one understood by a number of politicians. We have a conflict between the planning laws and what consumers are wanting.

Sound similar to the Amazon/ Uber discussions of recent times?

The Management Rights Lawyers

RENEWAL STRATEGY

Airbnb is a platform promoting itself as all about service and is on the move as it enhances its service and benefits. This is a real opportunity for managers to be proactively involved and add value to their business. Unless the planning and government laws are followed and enforced, which poses a significant threat to the accommodation sector.

DISPUTE RESOLUTION

So, what can we do as a body corporate?

BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

www.mahoneys.com.au 26

connection. Staying in a unique, authentic space that’s been prepared for you by a real person even if it’s a property management company, which Airbnb has more of these days especially in traditional vacation destinations, touches upon something we may not have been aware of was missing.

Our bylaws, nationally, in stratatitled property are outdated and need to include laws that apply to guests as well as regular tenants.

In QLD, the BCCM Act, section 180 states that the bylaws cannot restrict the type of residential

resortnews | july 2018

Lyn Pearsall Management Rights Specialist, MR Sales

use of a property, which includes overnight guests and owners renting out units.

This includes rules that discriminate between long-term and short-term residents that would limit access to common areas. Conduct needs to interfere unreasonably with others to become an actionable offence.

In community living, some noise and interference are to be expected. A body corporate cannot enforce the council’s requirements, planning rules and, in many cases, councils do not enforce the requirements and permissions that are subject to local authorities based on the approval they have for specific lot use but can complain to council about the lack of compliance with the planning approval.

Body corporate laws are in the order of 20 years old and while some amendments have been done, a full review is needed nationally as technology creates a number of unforeseen market changes, especially with the likes of Uber and Airbnb.

New technology has made us aware of new aspects of tourism and, as fast as technology is changing, policy is often unable to catch up.

It is a constant criticism and lawsuits from largely disjointed hotel groups, regulatory bodies, residential property owners and affordable housing groups RE Airbnb and the non-level playing field in regard to regulations, taxation, trust accounting and screening of individual letting agents.

The company, however, has a simple core mission to connect travellers looking for affordable accommodation with homeowners that are trying to increase their household income and ROI factor helps pay off the mortgage. ■

The fastest growing accommodation listings website

The numbers don’t lie.

Management Rights, Motels, Hotels and Caravan Park Listings For Sale Buyer enquiries

for the month of May!

If your property is on the market and isn’t listed on AccomProperties ask your agent why!

Listings from all the leading brokers on the one website

Motel

Sales Specialist

www.accomproperties.com.au mail@accomproperties.com.au | P: +61 7 54405322

management | Keeping House

The highly competitive hotel landscape at present has forced us to re-examine our operations to not only look for added efficiencies but also see what we can do better.

The overwhelming consensus is one of getting back to basics - that hospitality is and will always be a people business.

Hence, improving our human capital will in turn have manifold benefits, both direct via improved productivity, for example, as well as indirect through, say, heightened guest satisfaction.

Nowhere is this reinvestment in our own associates and managers more necessary than for our housekeepers and other related departments because they account for the most payroll by man-hours.

Further, these room attendants, maids, public area custodians and other back-of-house staffers endure workplace hazards that are far removed from other roles.

As such, professional development for these team members will generate significant cost savings from a variety of underlying rationales.

Key to this pursuit is the deployment of new technologies that can streamline processes and provide the necessary continuing education to keep your team motivated and fully able to handle all responsibilities.

Of course, because housekeeping is such a labour-intensive job, the department has been somewhat resistant to change.

However, that's no longer the case.

But before we dive into solutions, let's analyse the causes so that you have a broad understanding of what afflicts housekeepers.

Challenges The housekeeping department is confronted by a series of issues stemming from both the need for management to heighten efficiencies and individual employee's desire for better

28

working conditions as well as from the guests themselves.

As the customer is always right, understanding how the modern traveller judges the efforts of your housekeepers gives us a good perspective by which to decide what course of action you might take to improve internal processes.

First is the risk of unclean rooms tarnishing a hotel's reputation on social media or review websites.

All it takes here is one miniscule error to cause sizeable damage.

Guest reviews are likely to be based on emotional whims.

For example, a stained towel or frayed rug can yield the lowest score on TripAdvisor – one-star out of five - with no mention of any other perceived flaws.

With third-party travel websites playing such a prominent role during the research phase of the purchasing funnel, it's this customer volatility and peril of negative reviews from housekeeping slips that should make any manager or owner only ever accept flawlessly clean rooms.

Second is the desire for 24hour room readiness.

The expectation for hotels has shifted where the standard 3pm check-in time is often deemed unacceptable for those reaching the property slightly earlier. To manage such demands means constantly updated room priority lists and being able to work under tighter deadlines.

The burden of demotivation Moving on to the back-of-house, the housekeeping department is riddled with archaic processes that strain the workload of supervisors as well as demotivate the actual cleaners.

While the morning line-up will forever be a great tool for team building, the daily agenda established there is obsolete the moment the meeting wraps up.

Moreover, a high rate of absenteeism makes shift scheduling more cumbersome than it should be and increasing employee turnover translates to more lost productivity due to the

resortnews | july 2018

requirements of job shadowing.

Lastly, legacy issues with older team members passing on bad habits to new recruits can cast a long shadow when trying to institute process improvements or mitigate cleaning errors.

From the housekeeper's point of view, troubles are also brewing.

The core problem is that nowadays the job isn't seen as part of a career with a clear path of upward mobility.

Even though there are exceptions and properties with excellent teams in place, for the most part the passion and motivation for going that extra step just isn't there anymore.

There's the hourly wage and not much else to prevent this line of work from taking on a sharply transient quality, thus contributing to the high turnover and absenteeism rates currently tormenting this department.

Further aggravating this demotivation is the risk of repetitive strain injuries, abbreviated as RSIs. Cleaning 12 to 15 guestrooms per day takes

Keeping House |

management

With the high volume of motels that operate under a lease, it is surprising just how few tenanted investment motels are ever on the open market for sale at any one time

its toll after many years on the job, especially when improper techniques or movement patterns are used.

While the most visible and costly effect of an injury is a leave of absence due to a short-term disability claim along with any subsequent insurance premium adjustments, many staffers might opt to push through the pain as they know their truancy would only distress their co-workers who would have to pick up their shifts.

Not only is seeing a colleague in agony discouraging, but the housekeeper who decides to stay on even with an RSI is likely only to exacerbate the injury to the point where it becomes debilitating.

Lastly, a problem specific to certain geographic areas and with a greater tendency to occur in housekeeping over any other department is the potential for a language barrier to affect communications.

Tech solutions for specific problems For each of the challenges addressed above, thankfully there is now a software or hardware platform that can be utilised.

All of these can then be tackled in terms of whether the results are immediate or evident over a longer period of time.

The most abrupt gamechanger you can implement would be a holistic upgrade to your housekeeping management system, giving supervisors a greater degree of real-time control over their subordinates as well as broader analysis tools.

In effect, 'real-time' means instantaneous updates to housekeeper schedules and room cleaning orders for the most efficient handling of priorities and a drastic reduction in paperwork.

Of course, these contemporary systems are all built upon integrations for more seamless cross-departmental communications as well as mobile apps to notify housekeepers already on the clock.

By connecting with the property management system (PMS), check-ins at front desk can instantly be relayed to the executive housekeeper who can then automatically ping his or her team about the updated priority list.

This alone helps dramatically to meet the demand for 24-hour room readiness.

Additionally, mobile apps can allow housekeepers to directly send automated alerts and photos of odd situations to engineering, thereby letting them deal with any maintenance issues before guests notice.

Similarly, lost and found can be immediately updated while security issues can be rapidly circulated for more effective coordination during onsite incidents.

Another key benefit of building a dynamic management network between supervisors' computers and every team member's mobile device is heightened accountability.

You know up-to-the-minute who has cleaned what room and when, as well as whether any supplementary service requests

were inputted.

Not only does this streamline room inspections, but errors brought up in online reviews can be traced back to specific team members for precise corrective retraining.

Moreover, you will be able to identify which rooms take 20 minutes versus those that require extra attention in order to properly balance workloads and objectively assess output per room attendants, all of which in turn will decrease the average room turnaround time.

As for operational analytics, the same modern software that will help you automate shifts and staff communications will also allow you to better track cleaning times and more easily identify gaps in performance, floor routes or inventory.

When combined with your customer relationship management (CRM) database - most likely via PMS integration these tools will allow you to make staffing and service adjustments based upon specific guest preferences.

Combined together with real-time management, this translates to significantly improved productivity levels as you are able to hone your processes within months of accumulating metrics.

Educational apps to build a better team Even with enhanced backend systems to hone your management of your team, housekeepers all still need to be trained, retrained and motivated to perform at their best.

resortnews | july 2018

It's a backbreaking job with wages that are never exceptionally lucrative, so continuing education can go a long way to lifting team spirits.

Luckily, there are an array of tech start-ups with products capable of offloading many of these professional development responsibilities from managers' and supervisors' plates.

Much like the advantages of deploying new software interfaces, the key benefits here are heightened accountability and huge savings in labour costs.

At the most basic level, there are mobile apps that can be used as instructional compendiums for new recruits.

Such platforms act as online access points for standard operating procedure manuals, training videos, assignments, quizzes, company bulletin boards, forums and private messaging.

With easy swapping of electronic files, all information can be kept fully up to date so you teach only the most current brand standards as well as block potential legacy issues.

Not only do these reduce managers' time devoted to shadowing, but they also facilitate a micro-learning environment where associates can study in bite-sized portions like when in transit going to and from work or just before bed.

Millennials are especially fond of this style of self-guided education.

Next, such add-ons like a forum and internal surveys help to form a community around the app, thereby making every employee feel more a part of the team.

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management | Hot Water Systems

Fend off those cold showers You might be thinking, my hot water system’s not broken so why am I reading about it? Well, the thing about a hot water system is that once it breaks, there’s not much time to think about your options – unless your guests love a cold shower.

Therefore, doing some research before it breaks, so you know what your next move will be, is absolutely key!

Whether you realise it or not, water heating accounts for approximately a quarter of energy usage for an average household.

Scaled for an accom property this is a very substantial wedge, so it is vastly important to make sure that you have the right hot water system installed for your accommodation property.

There are several options to drive the water heating mechanism: solar, electric, a heat pump, or gas.

Solar requires solar panels and a storage tanks – depending on the size and usage of your property, this could be a big investment.

The panels obviously need to have direct access to sunlight, and this may be tricky if your ratio of roof-space to usage is out of balance. On the positive side, if done properly a solar system can be cost-eff icient long-term and is environmentally friendly. There may also be financial incentives or government rebates available depending on what state you operate in.

situated outdoors. They can also create noise, so should be kept away from guest accessible spaces.

Gas hot water systems are usually cheaper than electric systems, but require a reliable connection and gas prices have been on the rise. LPG is another option over natural gas, but this will increase running costs.

Gas options also have energy eff iciency star ratings so be sure to check those out if you are interested in gas systems.

Storage tank options As the majority of heating options require a storage tank solution, this needs to be factored into the equation. Generally, stainless steel tanks will last longer and demand less upkeep but mildsteel tanks are the cheaper alternative. If you go the latter route, be sure to keep on top of corrosion checks and general maintenance.

Industry insight Here, EvoHeat general manager Tim Martin shares his thoughts on how accom providers should approach their hot water systems.

Always size and design your new system for the worst case scenario. No-one wants to be in a situation with a completely booked facility - 100 percent occupancy - in the middle of winter, with no hot water.

Electric systems can be cheap to install but the running costs add up over time. Off-peak electricity rates may help with running costs but only if the property has big enough storage tanks to last all day.

In addition to having redundancy in the form of stored hot water, your system should have the ability to provide at least some emergency heating in the event of failure. One way to achieve this is to have three to four smaller systems that provide your total requirement, rather than one singular large system.

Heat pumps are known as a more eff icient electric tank option.

Popular in warm climates, they operate by pulling heat from the atmosphere and using it to heat water tanks. Comprised of a tank and compressor, they do require ventilation and are usually

I encourage managers to research advanced technologies - even when their system is operating as intended - to ensure they are well informed and have a pre-considered approach to equipment replacement when the time comes.

30

Replacing capital equipment of any kind tends to be more of a reactionary decision (such as in the event of failure) rather than a considered purchase.

Many factors should come into consideration for equipment purchase, such as reliability, performance, product features and capabilities. Of course, cost should also be a factor but none more so than energy efficiency.

Energy eff icient products are capable of providing genuine savings and a tangible return on investment, rather than just an expense that is borne out of necessity and never recovered.

Energy saving should always form part of the discussion in any equipment purchase.

In terms of what’s trending, we are seeing a real trend away from gas-fired products, and the installation of solar power photovoltaic systems (PV) combined with high eff iciency electrical products (such as LED lighting and heat pumps).

While gas and electricity charges are both continuously increasing, many property owners and managers are concluding that you simply cannot produce your own gas, and are taking holistic approach to energy production and usage to become less reliant on gas supply.

Tim’s view on storing hot water methods…

Having stored water available on hand is critical for commercial operations.

In an ideal world, we wouldn’t have to plan for worst case scenarios, but this simply isn’t practical.

Having redundancy in the form of stored hot water can buy you time for maintenance and/or service at

resortnews | july 2018

times when you need it most.

Tim’s pros and cons to solar, electric and gas…

Heat pumps are energy eff icient products. Therefore, the system’s capital cost will be recovered over time when compared to conventional heating methods, such as gas and electric.

Due to their direct heating methods, gas and electric heaters are not capable of producing any more heat than the relevant incoming energy (i.e. 1kW of energy in = less than 1kW of heat output) typically resulting in an energy factor of less than 95 percent. This means they are not providing any financial return on the capital investment.

Heat pumps, however, utilise advanced refrigeration technologies to extract energy from the surrounding environment to multiply the incoming energy and convert this to hot water. The resulting heat output can be up to four times that of the energy input (i.e. 1kW of energy in = 4kW heat out), so the capital cost is typically returned in energy savings within two to three years.

Convention solar products, are reliant on direct and optimal sunlight to produce eff icient hot water. In the real world, it simply isn’t feasible to expect this can be achieved 24 hours a day, 365 days per year. And for each occasion that these systems are required to produce heating outside of these optimum periods, they simply revert to traditional gas or electric heating methods. They can also be costly to install and maintain due to their many operational components, and panel systems that require roof space that could be used for solar power photovoltaic systems (PV). ■

By Rosie Clarke, Editor

Hot Water Systems |

management

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tourism | Tourism Report

Industry slams "weak" laws struck in "cosy deal" A leading industry body has slated the NSW government's new cap on Sydney shortterm letting, saying it will cost regional jobs and compromise guest safety.

apartment blocks quietly becoming quasi-hotels – and the reality is any consumer who stays in such properties faces a much higher safety risk because of the lower standards which are in place.

The Accommodation Association of Australia has labelled the plan a "cosy deal between Airbnb and the NSW Government for weak regulation of short-term letting".

“Of major concern to our industry is the jobs this dodgy deal will cost in regional areas as a result of there being virtually no cap on the amount of time short-term letting can take place outside greater Sydney."

The state government announced the crackdown following intense lobbying by the accommodation industry urging members to consider the safety dangers, housing shortage issues and lack of fairness created through an unregulated short-let system.

The reforms introduce a 180-day cap on the number of days empty properties can be rented in Sydney, and give strata corporations the power to ban Airbnb in their buildings.

They include a two-strike policy through which hosts or guests who commit two serious breaches of the code within two years will be banned from using short-let platforms for five years and placed on an exclusion register.

Investment properties will only be able to host Airbnb-type lettings for 180 nights a year, and will give strata companies the power to ban the practice in their buildings.

But AAoA chair Richard Munro said the laws will allow 'quasihotels' to flourish in Sydney and place even greater pressure on housing affordability.

“This is a very disappointing outcome for the accommodation industry, particularly the way it seemingly thumbs its nose at operators of accommodation businesses in regional NSW,” he said.

“On the surface, it appears a cosy deal has been struck between the minister for innovation/better regulation and Airbnb, with little or no input from our members.

“The 180-day cap for shortterm letting in greater Sydney is nowhere near enough to minimise the incidence of residential

34

Better regulation minister Matt Kean described the reforms as the "toughest laws in world to crack down on bad behaviour" in the short-term letting industry.

"We've got the balance right between protecting people's property rights, between recognising owner's corporations have a role to play in the governance of strata schemes, and ensuring people who want to use these platforms like Airbnb are able to do so," he said.

The new laws, which will be introduced in coming months, impose the cap on properties used for Airbnb-style letting in greater Sydney when hosts are not present, but there are no caps across the rest of the state.

Councils outside of greater Sydney will have the power to impose their own caps, no lower than 180 days per year.

Tourism Accommodation Australia CEO Carol Giuseppi welcomed the crackdown, but said it did not go far enough.

“While the accommodation industry recognises the settings are a step in the right direction, and do provide strata controls, we believe the key to getting the settings more balanced is ensuring the mandatory Code of Conduct is properly enforced,” she said.

“We believe the key to actual implementation will be ensuring the Code is developed with stronger controls - beyond that of regulating bad behaviour.

“To protect both visitors and communities the proper insurances, fire and safety

protections and security need to be put in place.”

The policy will be reviewed in 12 months.

The reforms also include changes to strata legislation to empower owner's corporations to pass bylaws banning short-term letting in their buildings, but not on properties which are owneroccupied. Strata committees will not have the power to prevent owner-occupiers from renting rooms within their units.

As a compliance mechanism, Airbnb and other operators will be required to sign up to the code of conduct, and share their data with the NSW government.

The Department of Fair Trading will also be given new powers to police the online platforms and letting agents, and will use the data supplied by the platforms to assess complaints to determine whether a strike should be issued.

Companies which breach the code of conduct or the strikes policy will face significant financial penalties, including fines of up to $1.1 million for corporations and $220,000 for individuals.

Airbnb’s Chris Lehane hailed the reforms as a potential "world model" for the industry, describing them as "fair and balanced".

However, rival holiday-rental platform HomeAway argued it could lead to a patchwork of regulation across the state.

Director of corporate affairs, Eacham Curry, told Fairfax Media the government was seeking "to arbitrarily impose restrictions on the use of private property" and labelled the new strata powers a "retrograde step".

The town where OTAs are considered as deadly as the crown-of-thorns starfish Irate Port Douglas accom owners frustrated by OTA commissions have set up their own tourism collective to create a more powerful voice to challenge the booking giants.

resortnews | july 2018

The group argues the commissions reaped by online travel agencies "rival the crown-of-thorns starfish” as the area’s greatest threat.

Gerry Ireland, director of Port Douglas Direct, says operators in the region are shocked by the levels of revenue being lost to offshore bookings giants.

“This year, community Port Douglas will miss out on over $20 million,” said Mr Ireland.

“These are the fees paid to online travel agencies (OTAs) by the Port Douglas accommodation businesses.

“Sadly, it doesn’t stop there as this figure is increasing at around eight percent each year.

“Over the past ten years, more than $180 million has headed offshore. $180 million!”

Port Douglas Direct will operate as an overarching tourism and marketing company designed to provide benefits to the area’s property owners by leveraging the latest online technology.

It will employ “the very best technology and collective marketing ideals to place the power back in the hands of the business owners”, says Mr Ireland, and will be known as Discover Port Douglas when it launches later in 2018.

The group sees technology as the key to assisting businesses retain funds from accommodation bookings for the “benefit of locals, visitors and Australia”.

Mr Ireland says business owners are frustrated by a lack of action taken by representative bodies from the local Douglas Shire Council and Tourism Tropical North Queensland to the Queensland and Australian governments over online travel agency commissions.

Fellow director Glenn Smith says the Australian Tourism Data Warehouse (ATDW) established in 2001 has failed in its duty to flag the millions lost to Australian tourism through the commissions.

“Port Douglas cannot wait for

Tourism Report

ATDW to do something innovative and useful.

beginning on May 25 for three weeks.

"The technology of the ATDW is years behind the times, so that’s why we bit the bullet, took action and brought these local businesses together to propose a solution.

The opening week of Vivid Sydney 2018 coincided with occupancy growth and an average daily room rate increase of around five percent when compared with Vivid Sydney 2017.

“This has implications for the whole of Australia. We are doing our bit by taking a lead here in Port Douglas,” he said.

According to the group, 90 percent of Port Douglas businesses rely on tourism for their income.

Which tourism mecca is setting accommodation records?

Sydney just recorded the highest hotel occupancy for any May on record as developers scramble to take advantage of the city’s tourism boom.

Hotels in Sydney enjoyed a ten percent rise in revenue per available room last month, with a 2.3 percent rise in occupancy to 84.3 percent and a 7.7 percent rise in the average daily rate to put it at $162.

After nearly two decades of weak hotel development, the city’s accommodation stock is forecast to grow nearly four percent in 2018 as several major residential projects convert to include hotels or short-term accommodation.

Last month, Resort News reported that Meriton Group will turn a near-complete $152 million CBD apartment complex in Sussex Street into a 32-storey hotel in response to demand for more tourism accommodation.

Billbergia has now submitted an application for a $122 million hotel and office building to incorporate the heritage Firehouse Hotel in North Sydney. The 35-storey tower would sit above the 1895-built hotel on Walker Street and include 224 hotel rooms.

Sydney’s stellar market performance for May was helped by a combination of events, including Australian Fashion Week from May 13 to 18 and Vivid Sydney

STR said the preliminary May 2018 data indicated “strong demand and significant performance levels”, with full figures due for release later this month.

Nationwide, Tourism Accommodation Australia data shows 40,204 rooms across 200 hotel projects are in the pipeline until 2025, making it “the most extensive and comprehensive hotel rejuvenation phase in Australia’s tourism history”, according to the body’s chief executive officer Carol Giuseppi.

Which beach town is using bitcoin to lure wealthy visitors?

A small Queensland beach community has become Australia's first 'digital currency-friendly' hub as it seeks to attract international visitors.

Agnes Water and the town of 1770 are renowned for their pristine ocean environments off the Southern Great Barrier Reef.

But now they are looking to lure bigger fish to their turquoise waters.

The tourist haven is looking to tap a niche market of high-spending visitors who prefer to pay for goods with digital currency like bitcoin that can be instantly converted to local currency.

Town real estate agent Gordon Christian has persuaded 31 businesses to sign up for cryptocurrency facilities, from resorts and backpacker hostels to tour companies, restaurants, the local pub and a day spa.

While individual businesses across Australia are gradually beginning to accept digital currency, Agnes Water and 1770 is the first community to coordinate its

approach.

This week, cryptocurrency groups and tourists from Japan will hit town to help launch the campaign.

Bitcoin is bought online and encrypted using data technology known as blockchain, which protects merchants from the costs of credit card fraud.

However, cryptocurrencies are not yet regarded as legal tender in Australia, meaning businesses are not obliged to accept them. The Australian Tax Office views them as "neither money nor Australian or foreign currency (but) property".

The Australian dollar is currently 18th on the global Bitcoin Volume

by Currency index in a notoriously volatile market.

Last month, Queensland start-up TravelbyBit rolled out its pointof-sale app to facilitate crypto payments at Brisbane Airport.

CEO Caleb Yeoh told the ABC: "If you travel around the world you have to deal with multiple currencies, the exchange rate can be confusing, sometimes you struggle to find ATMs, and sometimes you get swindled by money changers. Travelling with one global currency like Bitcoin … makes sense."

Mr Christian said building the support of businesses in Agnes Water-1770, a settlement of just 2,000 permanent residents, wasn't hard.

"We started from the ground up, shared it with a couple of businesses and they were straight on board. I guess they were international travellers themselves and had heard of these types of payments," he told the ABC. "Initially we had a good ten businesses that just said, 'fine let's go for it'."

"So it started out as, 'Well, how would they get here? Could we provide a shuttle service to bring them from the airport or the railway station? Where would they stay and what are they going to do when they get here?'."

Mr Yeoh said Agnes Water-1770's

resortnews | july 2018

| tourism

title of Australia's first digital currency town had the potential to lure tourists from destinations like Cairns, Sydney and Melbourne.

"The town has made a very strategic move in trying to appeal to a niche market to take perhaps some of those tourists … to come out to their little part of the woods.

"People who use cryptocurrency … it's a social movement and they believe in it. So they would come to a place like this just because it takes digital currency."

The ban leaving tourists piste off A popular ski resort has banned tobogganing on its property this winter season, telling guests the classic family activity is dangerous.

Complaints have snowballed since Thredbo Ski Resort in NSW made the announcement on its website, with the resort receiving a sledging on social media.

The website said a tobogganing ban was imposed to "maximise safety for guests, employees, and resort property".

“We acknowledge that tobogganing is a favourite winter pastime, however it also has inherent risk as there is limited ability to control the equipment being used. The safety of our guests is our number one concern.

"An observed trend of guests is taking toboggans and miscellaneous snow sliding equipment onto ski runs has increased the risk of . . . collision with another sled, vehicle, skier or snowboarder, loss of control of the equipment, falling off of the equipment; and collision with natural and man-made objects."

The ban includes other "miscellaneous snow sliding equipment" associated with snow play.

Families with pre-booked snow holidays at Thredbo were surprised by the announcement, made just two weeks from the opening of the ski season.

Comments from Author Nikki

35

tourism | Tourism Report

Gemmell were among an avalanche of complaints on social media, with many questioning the resort's motives.

"Is there a money motive to the #Thredbo ban on tobogganing?

As a mum of four, it was the only snow activity that didn't break the bank. It was joy, pure (free) joy, for the entire family. Now there's no choice to pay a fortune for the very expensive skiing and snowboarding." Gemmell said.

Some queried the difference between tobogganing and skiing.

Disgruntled visitor Lisa Benham wrote on Facebook: “Thredbo and Perisher have banned tobogganing for the ski season. Guess we won’t be taking our little ones to the snow this year. Apparently it’s dangerous … Really?? More than skiing? Oh wait, you don’t need a lift pass to do it.”

She ended her post with the hashtags #moneyhungry and #dollarsnotsense.

The resort, a three-hour drive from Canberra and five-and-ahalf hours from Sydney, said the ban applied to all members of the public, staff, sub-lessees and volunteers.

While cost is still widely considered the biggest challenge parents face today, an overwhelming 94.7 percent reported that family travel options are better now than when they were children.

"No enquiries will be entertained from toboggan or miscellaneous snow sliding equipment users," it said. "All staff play a role in the implementation of this policy and subsequent elimination of these risks to our guests."

Parents said travelling with children was more viable and accepted today, with respondents citing reasons like better resources, improved family-friendly options and more financial stability than in their parents’ day.

Which accom trend do families say is a game changer?

Most notably, home-sharing was credited as a ‘game changer’ and a major reason family travel has transformed in recent years to become more accessible and affordable.

Australians say travelling with children is easier than it’s ever been - thanks to Airbnb.

Lonely Planet surveyed Australian and New Zealand parents with children under 18 about their travel habits, preferences and how family travel has changed compared to when they were young.

Among all respondents, 67.7 percent reported having used short-term rentals like Airbnb and said it surpassed hotels as the preferred accommodation for families on holiday.

A similar percentage also said they had taken, or would like to

take, their own kids somewhere they went on vacation as a child.

Specifically, they valued the slower pace, the time spent with relaxed parents and simply being together as a family.

“Parents are prioritising travel more than ever before,” said Lonely Planet spokesperson Chris Zeiher.

“Whether or not they travelled as a family in their childhood, they emphasised the importance of travelling with their own children, particularly so they can experience different cultures at a young age.”

The majority of parents did, though, say that if they could change one thing about family travel, it would be to create either cheaper airfares or cheaper accommodation.

Lonely Planet Kids conducted the survey via multiple online channels from March 7 to 30. ■

Tourism International

Minister flies to Vegas to seal deal on Queensland super casinos A team of Queensland government officials flew to Las Vegas and Macau in a bid to lure the world's biggest casino developers to the state.

Led by tourism minister Kate Jones, the contingent will meet with representatives from major casino chains like MGM Grand and Caesar's Entertainment to discuss two casino licences - one for Cairns and one for the Gold Coast.

If successful, the mission would see two 'super casino resorts' built in Queensland, complete with accommodation, restaurants, gaming and entertainment venues and shops.

"Our strategy is all based around

36

with Jeff Horn’s world title bout in Las Vegas on June 9.

Queensland opposition leader Deb Frecklington has labelled the trip a junket.

"Is this an affront to spend taxpayers' money to go on a jaunt to watch Jeff Horn fight?" she asked.

attracting more visitors who

invest in Queensland. But we're

stay longer and spend more in

working to make sure we get the

Queensland to create jobs for

balance right for Queenslanders.”

locals," Ms Jones told 9News.

Opposition ministers have

"I have been approached by some

questioned the timing and nature

of the world's most successful

of the taxpayer-funded trip, as the

entertainment companies keen to

tourism group’s mission coincides

resortnews | july 2018

Kate Jones’ office issued a statement saying the innovation minister was already planning to be in America for the world's largest innovation convention, the Bio International Convention, from June 4 to 7.

"The date of the fight changed.

The Minister is paying for her own accommodation in Las Vegas," it said. ■

People

| events & appointments

Exclusive: Google shares hotel ad tips at QLD marketing masterclass Resort News was happy to host the Explore new avenues to increase your booking revenue event at Q1 and would like to thank the event’s key sponsor HiRUM Software Solutions as well as all the guest speakers, including Google’s Elliott Knight, Airbnb’s Matthew Olson, Snapshot’s Calisha Allsworth, TrustYou’s Brigitte Creencia, CartStack’s Brett Thoreson, and HiRUM’s very own Sylvia Johnston.

At a Gold Coast event this month, Google's marketing guru explained where Aussie accom managers are going wrong with their 'book direct' ad campaigns.

Marketing tips and notes from the Google talk: 1.

Google promotes its hotel ads as a way for accom providers to generate direct bookings because the transaction takes place on the hotel's own website.

The Google hotel ad rates are either pay per click (which varies depending on the campaign type) or commission, which varies depending on bid placed.

Google Hotels: go niche or go home?

The tech juggernaut’s digital marketing guru Elliott Knight spoke at length during the 'Explore new avenues to increase your booking revenue' event, about how managers can make the most of their marketing campaigns.

2.

One takeaway that had a lot of resonance came up towards the end of the evening: when asked about the cost of ads on Google, he explained that while it depends on the type of ad, campaigns are usually pay per click so the key is to make sure that every click is worthwhile.

For a Gold Coast hotel, there would be no point in targeting guests that search for keywords like ‘Sydney hotel’ or ‘Queensland’ or else you’d be paying for lots of clicks that aren’t relevant. Think about local attractions or reasons to visit your neighbourhood; unique aspects of your offering that would attract certain guests when you contemplate keywords.

3.

Look at the data – Mr Knight explained that if you want to attract a particular type of guest, whether it’s families, business travellers or baby boomers, you should research how to find them online. “Take the guest booking timeline into account,” he advised.

Google data revealed that millennials are the most impulsive hotel bookers, with 37 percent beginning their research just days before.

Meanwhile, 51 percent of people aged 55+ begin their research either “months before” or “many months before” their stay.

Mobile responsiveness – Mr Knight revealed that most guests search for hotels on their phones, then move to the desktop to pay. Why is that? One suggestion was that many hotel websites are not mobile responsive, so visitors have a hard time navigating on their phone and fear payments won’t go through.

It could also be a reason that guests book through an OTA – they may have found it too hard on the hotel’s website.

Clarify your name – Searching for a hotel website can be a nightmare: often, the website URL, home page or Google listing will use a different property name to the social media or OTA profile.

This makes it confusing for guests and more difficult to book direct.

Airbnb boss slams "false choice" between homeshares and hotels Airbnb's regional chief says the home-share giant wants to work with accommodation houses, not replace them.

In a keynote address at the Tourism and Transport Forum's Outlook 2018, country manager Sam McDonagh described as “fundamentally flawed” the idea that Airbnb’s rise would cause other industry players to sink.

He called on the hospitality industry to end the war between Airbnb and traditional operators and collaborate to provide more options for visitors.

“This false choice hasn’t served anyone in the tourism industry or community particularly well and has certainly distracted us from focusing on areas of mutual interest,” he told delegates.

“What’s more, the move by some traditional hospitality providers into short-term accommodation casts further doubts on this false choice.

“A key challenge for the tourism industry is to once-and-for-all end this wrong and unhelpful idea that tourism is a zero-sum game.”

Mr McDonagh urged delegates to question the strategy of industry lobby groups seeking more regulation for Airbnb, saying they served their own members poorly by “stubbornly refusing to recognise the changing nature of travel”.

body the Accommodation Association of Australia, is calling for Airbnb to be included in government plans to tax offshore bookings agencies at the same rate as Australian companies from 2019.

And individual states are preparing to cap the number of nights private homes can be rented out through Airbnb to prevent the loss of housing stock to holiday lets.

Mr McDonagh urged greater collaboration between the tourism industry and sharing economy when it comes to advocacy.

“It remains as true as ever that a rising tide lifts all boats,” he said.

“We all share a common interest in ensuring Australia remains a destination of choice for years, for decades to come.”

And he outlined the opportunities for traditional hospitality providers to partner with Airbnb in listing their “local, unique and authentic travel” options with the offshore homeshare company.

There are more than 300,000 rooms in boutique hotels, B&Bs and traditional hospitality providers listed on Airbnb.

Amazon scarier than Airbnb say hotel chiefs Google, Facebook and Amazon are far bigger threats to the accommodation industry than Airbnb, a group of industry leaders has claimed.

A panel of hotel CEOs at NYU International Hospitality Industry Investment Conference in New York argued technology giants were accommodation’s worst enemy because of their ability to gather personal information.

Instead, he said, they should be arguing for better regulation for all industry players.

The consensus among some of the biggest names in the industry was that the entrance of tech giants into hospitality, and their ability as intermediaries to gather capture and own guests' user profiles, meant hoteliers were losing the battle for ‘ownership’ of their customers.

A growing chorus of voices, including the peak representative

"I think we are in an absolute war for who owns the customer, and

resortnews | july 2018

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events & appointments | People

it's a long-term war," Marriott International CEO Arne Sorenson said.

"In a sense, it's shame on us if we don't own the customer," he said.

"They sleep with us, they eat with us. They shower with us."

"They are without a doubt trying to take our customers. They want to own our customers."

Sorenson said he was less concerned about Airbnb than the digital “empires” owning “all of us”.

“This is a battle we are going to be fighting for some time. Each of us is making our bets in this space,” he argued.

Mr Sorenson said the industry was moving towards developing profiles for every customers and needed to monetise that relationship as much as it could.

He said Marriott would fight back via loyalty, concentrate on how the company could effectively deliver value to customers.

Accor Hotels global CEO Sebastien

Accor Hotels global CEO Sebastien Bazin

Bazin said he spends five percent of his time worrying about hotel competitors and 50 percent of time worrying about disruptors.

He argued hoteliers needed to take advantage of every opportunity to interface directly with their customers and pointed out that Google and Amazon never actually meet the guest.

"We just have to take advantage of that moment... That moment of interface is very valuable."

Hilton CEO Christopher Nassetta agreed.

Mr Sorenson said he did not underestimate Airbnb’s ability to further disrupt the industry, saying accommodation houses would be competing with the home share specialist for years to come.

But as Nasetta commented, the "world is taking care of that" as governments have begun to adopt rules to level the competitive playing field between sharing companies and traditional hoteliers.

NSW gets digital-savvy marketing chief NSW is to get a new tourism marketing chief with an expertise in digital innovation.

Jan Hutton, former marketing

boss of Gold Coast Tourism, will join Destination NSW as general manager for marketing from July.

Hutton is the second high-profile appointment to the organisation in two weeks, with Pascal Reiling recently announced as business development and partnership marketing manager for Germany and France.

The Frankfurt-based Reiling is responsible for trade marketing and business development in France and Germany, driving visitation and expenditure to NSW from the European powerhouses.

Hutton joins the team following stints as managing director of Ogilvy Interactive and Immedia and marketing chief for Tourism South Africa, where she directed consumer marketing and partnership development. ■

Popular management rights industry expo returns The Australian Resident Accommodation Managers Association (ARAMA) will once again be conducting its highly regarded management rights industry expo events in South East Queensland during July.

The annual event brings together ARAMA’s Industry Partners, prominent professionals service providers and suppliers plus key Government and Tourist Bodies to provide expert advice for members of the management rights industry.

This year the focus for the series will be “The Good, the Bad and the Ugly” of living, working and investing in Community Titles Schemes in Queensland. Focusing on what we can all do to eliminate the bad, increase the good and put lipstick on the ugly.

As the peak body for resident managers

SE QUEENSLAND EXPO DATES

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the opportunity to catch up with old friends, meet new ones and win some great prizes.”

The series of three evening events in South East Queensland are being held in: •

nationwide, CEO Trevor Rawnsley says: ”The Annual management rights industry expo gives attendees an ideal opportunity to get up close and personal with industry experts including relevant Government departments.

“ARAMA creates a relaxed and social space for purposeful networking over drinks and snacks and attendees have

BRISBANE 17/07/2018 Kedron Wavell Services Club

Brisbane – Tuesday 17/07/2018 Kedron Wavell Services Club • Gold Coast – Tuesday 24/07/2018 - Southport Sharks Event Centre • Sunshine Coast – Wednesday 25/07/2018 - Ramada Marcoola The industry expo events are an ‘open’ event and anyone interested or involved in the management rights sector is welcome to attend at no cost.

Please register your interest on www.arama.com.au or direct any questions to Trish Riley - Marketing Services Officer on 0478 762 492 or email trish@arama.com.au

GOLD COAST 24/07/2018 Southport Sharks Event Centre

resortnews | july 2018

SUNSHINE COAST 25/07/2018 Ramada Marcoola

Events

| events & appointments

What happened when Airbnb met Gold Coast resort managers Resort News heard from more than 100 accom managers at a marketing masterclass in the Gold Coast, where Airbnb unveiled its hope for managers to become hosts.

At the 'Explore new avenues to increase your booking revenue' event, Airbnb and Google explained how accom managers could leverage their platforms in future to gain online bookings.

They spoke about guest data, future trends and the future of their companies.

General audience consensus seemed very positive in response to both talks from Google and Airbnb and there were lots of questions from managers directed at both companies, although Airbnb's representative did not stay behind for the Q&A. A show of hands revealed that some of the accom managers present (approximately 15-20 percent) are already Airbnb hosts and some have been for a few years.

Prior to the speeches, several accom managers at the event told Resort News they felt pressure from both OTAs and Airbnb to lower their rates due to competition.

A common sentiment many of the managers shared with us was that Airbnb hosts outside of the management rights industry were quick to drop their prices without understanding the

knock-on effect that may have on the wider industry.

One female manager said she felt that if everybody stood their ground and held their prices, the market would strengthen but when 'mum and dad' drop the rate on their granny flat, it means the market has to follow suit to compete.

One manager said: "If you can't get a hotel in the Gold Coast for under $100 a night, guests will pay. But if they can find something similar for $45 on Airbnb, we can't match that with our expenses."

Another added that he found he couldn't match the price of the Airbnb market after receiving a prompt that said his rate was 35 percent too high and he should reduce it to secure a booking.

One manager, who revealed he was also an Airbnb host, asked whether the other manager/ hosts had been adding a cleaning fee to their Airbnb listings. (Many said they had not.)

Apparently, guests booking through Airbnb are quite willing to pay a cleaning fee to ensure their room is cleaned.

So managers listing their rooms on the site could, hypothetically, drop their room rate and add a cleaning fee so the overall amount charged is the same. The room would have been cleaned

either way, but the Airbnb guest doesn't know that.

how you can start streamlining your online presence.

Airbnb Australia’s host and community operations manager Matthew Olson addressing QLD accom managers.

Some notes from the Airbnb talk: 1.

Pick the correct category for your room. Particularly in management rights, not all units, rooms or suites were made equal. Airbnb has a plethora of categories designed to help guests sift through what they want.

Importantly, international guests might be using different search terms. For instance, guesthouse, bed and breakfast, guest suite and boutique hotel are all different categories on the site and more will be rolling out. Make sure your listing is in the right place.

2.

One tip from HiRUM co-owner (and event MC) Sylvia Johnston was that 'serviced apartments' are known as 'vacation rentals' in the US. She also noted during the Q&A that managers should remember "you are not selling your property or resort on Airbnb, you're selling an apartment or room".

The revelation here is that different platforms require different packaging.

Everyday hosts, who are not in management rights, aren't necessarily including cleaning fees and airport pickups in their nightly rate. Spend some time looking up what's available in your area and see what's on offer. You'll be surprised. After a quick search among 'Gold Coast private rooms' on Airbnb we found some hosts offering free bicycle use but charging for laundry and coffee, others requesting deposits for keycards, charging extra for meals and airport pickups.

Traditional accom managers are used to having certain quality inclusions, whether it's housekeeping, transfers, breakfasts or even things like room amenities but it might be a good idea to include them as add ons if you decide to list on Airbnb. It's probably best to talk to your channel manager about

resortnews | july 2018

39

events & appointments | Events

3.

Airbnb Australia’s host and community operations manager Matthew Olson, who delivered the talk on Thursday, acknowledged that the company's 24/7 service has historically needed improvement but that they are working on it at the moment with recruitment and training.

4.

Mr Olson mentioned the ability for hosts to become verified by Airbnb Plus, making it easier for guests to find 'established' quality accommodation on the site. Ms Johnston noted that managers may be able to leverage this with their unit owners as newly refurbished apartments may qualify for Airbnb Plus while older units may not.

5.

Mr Olson also described the ability for hosts to review guests, which is something managers cannot do on OTAs and this elicited some chatter amongst the audience.

Regarding commission fees from Airbnb, as it begins to target hotels and more traditional accom providers in its host network, Airbnb itself did not comment. According to announcements made by the company back in February,

Airbnb charges hosts (including hotels, etc.) between three and five percent commission and charges guests 15 percent. Ms Johnston noted during the Q&A that she does not think Airbnb will hike its commission fee any time soon. Google representative Elliott Knight had no comment on the matter.

'Commission fees' certainly call the role of OTAs into question: if Airbnb is able to win over sharing economy-adverse managers and maintain a three to five percent commission fee, will it rock the OTA commission duopoly? ■

Management Rights Made Easy seminar for industry newcomers presented by Resort Brokers Australia Another popular and informative ‘Management Rights Made Easy’ seminar will be presented

by Resort Brokers Australia on the Gold Coast in early August, to assist newcomers to the industry.

The event will be latest in a longrunning program of presentation conducted by Resort Brokers in the coastal tourism and lifestyle hotspot, highlighting the ongoing appetite for information on management rights.

Hosted by accommodation

software specialist Hirum at their Arundel training facility, the seminar gathers a panel of industry experts to share their extensive experience and answer questions from guests including new and intending building managers.

Industry insights will be presented by management rights finance expert, Mike Phipps of Mike Phipps Finance, and specialist industry legal professional, Trent Pevy of Pevy Lawyers.

Taxation and business structure will be covered by accommodation industry specialist accountant, Tony Rossiter of Holmans, while Todd Warner of Resort Brokers Australia will discuss current management rights market activity and performance.

“These informative sessions are primarily held for the benefit of

newcomers to the management rights industry,” said Resort Brokers’ Todd Warner.

“But we also frequently find experienced operators attending because there is always something new to learn, and it’s a great opportunity to meet informally with industry experts and colleagues.

“These seminars are growing in popularity and we always receive very positive feedback from those who attend,” Todd said.

The Gold Coast ‘Management Rights Made Easy’ seminar will be held on Tuesday, August 7 at 5.30pm. The venue is HiRUM Software Solutions HQ, 2/8 Technology Drive, Arundel.

For further information visit: https://www.resortbrokers. com.au/learn/events/freemanagement-rights-made-easyseminar-gold-coast.html

INDUSTRY EVENTS CALENDAR JULY

5-10 NT Round-up 2018, Darwin, generalservices.tourismnt@nt.gov.au

30-31 2018 Victorian Tourism Conference, Mornington Peninsula, info@vtic.com.au

14-16 VICBOUND 2018, Sydney, atec@atec.net.au

AUGUST

16-19 Luxperience 2018, Sydney, beinspired@luxperience.com.au

1-3

27

Business Events Cairns & Great Barrier Reef Regional Showcase 2018, Sydney, Melbourne, rosie.douglas@ttnq.org.au

Destination NSW Product Update Evening, Sydney, info@dnsw.com.au

6-8 South Australian Roadshow, Adelaide, South Australian Tourism Commission: +618 8463 4500

OCTOBER

26-31 Corroboree Asia, Gold Coast, Roslyn Penning: +61 2 9361 1386

24-26 Inbound Up North, Cairns, atec@atec.net.au

SEPTEMBER 3-5 2018 WA Tourism Conference, Perth, tcwa@tourismcouncilwa.com.au

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NOVEMBER 19-21 ATEC Meeting Pace 2018, Darwin, atec@atec.net.au resortnews | july 2018

News

| developments

WESTIN COOLUM RESORT RECEIVES DEVELOPMENT APPROVAL SURFERS PARADISE WILL OFFER FIRST AUSTRALIAN PROPERTY IN NEW IHG BRAND PORTFOLIO IHG’s new upscale hotel brand, voco, has announced its first signing in Australia.

The brand will focus primarily on conversion opportunities and aims to strengthen IHG’s offer in the $40 billion upscale segment, which is expected to grow by a further $20 billion by 2025.

IHG announced plans last month to expand its luxury and upscale estate in the UK through a conditional agreement with Covivio (formerly Foncière des Régions) to rebrand and operate 12 high quality open hotels and one pipeline hotel into its portfolio across the UK. This deal will establish an important presence for voco in the UK with a number of these properties converting to the new brand in the coming months.

Visit Sunshine Coast has declared the decision by Sunshine Coast Council to approve the Westin integrated resort development a win for the region’s tourism sector and the overall community.

Sunshine Coast Council approved the development of the Yaroomba Beach project, which will create a new coastal village just ten minutes from Sunshine Coast Airport comprising a 220 room five-star Westin Coolum Resort & Spa, serviced apartments and extensive conference and recreation facilities. The hotel is expected to be completed by 2021.

“The go-ahead for the Westin resort is an endorsement of the region’s commitment to sensitive and appropriate tourism development,” said VSC CEO, Simon Latchford.

“Councillors deserve high praise for their careful consideration of both the Westin and Badderam resort developments, because while the region is in desperate need for new high-quality tourism accommodation, we also believe that it is essential for projects to be appropriate to the Sunshine Coast’s character. “Both projects have gone out of their way to incorporate industry-leading environmental initiatives, and both significantly changed their original plans as a result of community and Council feedback.

This month, IHG confirmed the first signing for the voco brand outside of Europe will be the Watermark Hotel & Spa Gold Coast, Surfers Paradise, Australia. The 388-room hotel is located at the heart of Surfers Paradise, a few steps away from the beach, and offers guests two swimming pools and 800sqm of meeting space. The property is shortly to be acquired by IHG’s long-standing partner, SB&G, which currently owns five other IHG hotels in Australia.

The hotel is due to open under the voco flag in late 2018.

Keith Barr, chief executive officer, IHG, commented: “We’ve talked about the significant growth opportunity we see for IHG in upscale and voco will help us deliver against this. We’ll work with owners of attractive properties, who appreciate the power and expertise that a global business can bring to the table. Guests will be able to enjoy the appeal of a more individual hotel, alongside the reassurance of a name above the door that they trust.

“The versatility of the brand, means a voco hotel can retain and celebrate all of the elements that make that existing hotel successful.

“With voco, the recent addition of Regent Hotels & Resorts in the luxury space, the launch of avid hotels in the Americas, and the work we’re doing to enhance our existing brand portfolio, we’re making great progress with our ambitious plans to accelerate growth.”

According to IHG’s announcement, the new brand will focus on three moments of the ‘guest journey’ identified through “deep customer insight”.

These include a “swift and simple check-in” accompanied by a “locally influenced treat”, in-room comforts such as smart TVs and aerated showers, and sociable bar and lounge spaces.

“The new Westin resort will play a fundamental role in attracting domestic and international business to the Sunshine Coast – particularly high-yielding conference and incentive business, which was deeply impacted by the departure of the Hyatt brand from Coolum. “The Sunshine Coast has not had a new-build internationally branded hotel for over three decades, which has put our tourism sector at a major disadvantage compared to other Australian destinations.

“With the upgraded Sunshine Coast Airport project underway, it was imperative that we backed up this era-changing decision with suitable new upmarket accommodation, and Council has now delivered two quality projects. “We are hopeful that other proposed tourism accommodation projects will also come to fruition as the new airport and upgraded road and rail access give the Sunshine Coast an unmatched opportunity to revolutionise our tourism sector and deliver long-term, sustainable economic and jobs growth for the whole community.

“The massive upgrade to our tourism infrastructure will allow us to win larger conferences and events and will also benefit many complementary businesses across the Coast. It is a very exciting time to be part of the Sunshine Coast tourism sector.”

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developments | News

beyond, Canberra presents the best opportunity for investors in the country.”

PROPERTY GIANT GEOCON FAST-TRACKS $1BN CANBERRA PRECINCT The Canberra developer’s $1 billion mixed-use Republic precinct in Belconnen in the city’s north, originally slated to be built over 10 years, will now be completed in just over three years.

Construction of the precinct’s Republic, Dusk and High Society buildings will be run concurrently to deliver in record time the first 1000 apartments, public carpark, Melbourne-style laneways, a hotel, boutique office spaces, expansive landscaped public gardens and amphitheatre, plus a vibrant restaurant and café precinct.

The precinct was designed by Fender Katsalidis Architects, the creative force behind Hobart’s MONA, Melbourne’s Eureka Towers and Canberra’s cutting-edge NewActon precinct, and features Canberra’s two tallest towers at 113m and 110m.

“Rather than a staged build as originally anticipated, we are taking the unprecedented step of delivering the first four buildings at once – almost 1000 apartments of the 1250 total,” Geocon managing director Nick Georgalis said.

“We will deliver more than half a billion dollars’ worth of stock to help a rental market which has reached crisis point.”

Mr Georgalis said with Canberra’s rental costs among the highest in the nation and vacancy rates at almost zero, there was no choice but to accelerate the project and release more stock quickly to a starved market.

Geocon has a 50 percent share of Canberra’s booming apartment market, and demand for Republic has been unprecedented.

Geocon’s success follows a strategic focus on acquiring sites in city and town centres, close to public transport, workplaces and food and entertainment precincts – a fundamental shift for a city once known for its urban sprawl.

“Going up, not out, is the only sensible way to meet the future demands of Australia’s fastest-developing capital,” Mr Georgalis said.

Geocon’s other high-profile developments, WOVA and Grand Central Towers (two high-rise precincts in Canberra’s inner south), Metropol (a residential development on one of the most sought-after sites in the city centre), and three new five-star hotels – one of which is located in the prestigious Parliamentary Triangle – are attracting huge interest.

“Geocon’s vertically integrated IP and delivery model allows us to achieve five times the sales rates of our competitors, and to deliver much-needed apartments 30 percent faster than other developers.

“We are one of the largest private employers in the ACT and one of the few organisations in Australia that can undertake these types of projects.

“We’re setting a new benchmark in Canberra. Our economies of scale and state-of-the-art technologies allow us to deliver features and amenities that would be expected in five-star resorts, but to keep prices well within reach of families and first home buyers, who have been priced out of the market in other Australian capital cities.

“We’ve revolutionised apartment buying in the ACT and that has proven extremely appealing both for buyers, and for national and international financial partners.”

CONSTRUCTION BEGINS ON $330M CASINO EXPANSION, SKYCITY ADELAIDE

“Republic Stage 1 was 70 percent sold out before a shovel was in the ground. Stage 2, High Society, hasn’t even been launched yet but we’ve been inundated with inquiries, with more than 1000 registrations of interest,” Mr Georgalis said.

Echoing this market confidence, leading economist Dr Andrew Wilson recently told a McGrath investor event in Sydney that Canberra had emerged as a ‘national leader’ and a ‘top-performing capital’, which provided significant affordability advantages for buyers.

Canberra was particularly “irresistible for investors due to its affordability, high rental yields and low vacancy rates”, Dr Wilson said.

Leading international investors, too, have recognised Canberra as a rapidly growing market, with Goldman Sachs last week entering into an agreement with Geocon to finance the first four buildings at once in the Republic development.

“We are extremely excited to work with Goldman Sachs to deliver Republic as we continue to play our role in putting Canberra on the global map,” Mr Georgalis said.

“The national capital is undergoing a remarkable transformation, with $234 million in urban renewal spending, a new light rail system that will connect the city from north to south under construction, and a population expected to increase 6 percent by 2020.

“Coupled with the highest wages in Australia, its lowest unemployment rates, and a new international airport opening up gateways to Asia and

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The highly-anticipated project will transform Adelaide Casino into a world-class integrated entertainment precinct, adding a 123-room luxury hotel and spa, new VIP gaming facilities, three new bars and three additional signature restaurants.

Adelaide Casino general manager Luke Walker says he is looking forward to working with Hansen Yuncken to create a world-class destination for domestic, interstate and international visitors to South Australia.

“The expansion of Adelaide Casino will create a significant drawcard for South Australia, helping to boost tourism and economic development across the state, and we are thrilled to be working with Hansen Yuncken, a company that shares our commitment to South Australian jobs and development.”

resortnews | july 2018

News

“The South Australian tourism industry has so much to offer interstate and international visitors, and the introduction of this new facility, complete with luxury hotel accommodation, outstanding food and beverage offerings and world class entertainment spaces will help to attract high-end visitors to the exciting Riverbank Precinct and to the state.”

Hansen Yuncken will be responsible for the construction of Adelaide’s most prestigious development along Adelaide’s Riverbank Precinct. State manager, Mark Rosenboom says that Hansen Yuncken has assembled an experienced and highly-qualified local project team to work alongside the SKYCITY team.

“Hansen Yuncken is very pleased to be given the opportunity to partner with SKYCITY on this iconic Adelaide development. This significant project will continue our long-term relationship with Adelaide Casino having undertaken the first Casino Development in 1985 including a number of subsequent upgrades over the past 30 years,” says Mr Rosenboom.

The Adelaide casino expansion will also coincide with the significant redevelopment for the Adelaide Festival Plaza which will see 16,500m2 of public space established in the areas surrounding the Adelaide Festival Centre, Adelaide Railway Station, Adelaide Casino, Parliament House and Old Parliament House and Station Road.

W HOTELS ENTERS AUSTRALIA WITH QUIRKY NEW BRISBANE OFFERING As a chain that’s appeared in films, TV shows and books, W Hotels has a reputation for being different.

It's new Brisbane offering, the company's first foray back into Australia as part of Marriott International, is a modernist boutique offering which doesn't feel like a 312 room tower in the heart of Australia’s third biggest city. W Brisbane on George Street is the first stage of Shayer Group’s $1 billion mixed-used precinct Brisbane Quarter.

Designed by Nic Graham & Associates, the firm behind some of the world’s coolest hotels including the QT in Sydney, it includes custom furnishings working to a theme of “a river dreaming” because of its location on the river.

The 34-storey tower has two bars, including a resort-style pool bar and a state-of-the-art gym and day spa.

Each room is completed with unique finishings - a rarity for hotels with over 30 suites - and all rooms feature a 55-inch LED TV, Bluetooth speakers and a fully-equipped bar. The hotel's retail element includes Sydney's ultra-trendy Three Blue Ducks shop, the group's first outside of New South Wales.

| developments

The in-house spa, Away, boasts vitality pools, relaxation pods, salt inhalation chambers and aromatherapy steam rooms, while an Edwards and Co. hair salon finishes off the beauty offerings.

NEW OWNERS FOR WORLD HERITAGELISTED AUSTRALIAN WONDER Ferry operator SeaLink has taken the helm of two major resorts on Queensland's world-famous Fraser Island.

The South Australian company has acquired the Kingfisher Bay Resort Group from a Japanese real estate group for $43 million. World Heritagelisted Fraser Island, which stretches for 123 kilometres, is the planet’s largest sand island and is famous for its resident dingo population.

The new deal nets SeaLink the freehold assets of Kingfisher Bay Resort and Village, Eurong Beach Resort, Fraser Explorer Tours and Fraser Island Ferries. Kingfisher Bay Resort and Village was established 25 years ago and was put up for sale a year ago with expectations around $50 million.

Together with its assets, it turned over $55 million in 2016 and made a net profit of about $7 million.

"Fraser Island is one of the most iconic destinations in Australia and is famous throughout the world for its World Heritage-listed wonders,” said SeaLink managing director, Jeff Ellison.

"Kingfisher Bay Resort Group is by far the major hospitality, touring and transport operation on Fraser Island, and we are delighted to be taking ownership of this leading tourism business to drive future protection, promotion and growth of the Island.”

The Kingfisher Bay Resort Group accounts for 90 per cent of accommodation and the majority of touring experiences on Fraser Island.

SeaLink chair Andrew McEvoy said the acquisition enhanced its position "as a major provider of connections to iconic Australian destinations".

The company also owns the Vivonne Bay Lodge on Kangaroo Island off the South Australian coast.

"We are excited about working with the fantastic management and operational team at Kingfisher Bay Resort Group to build on their strong and growing position in the Australian tourism market," he said.

Clifftop resort to be a "major force" in Victorian tourism. A spectacular addition to the Victorian landscape is taking shape on the Mornington Peninsula.

The $135 million, five-storey RACV Cape Schanck Resort, which drew the ire of local residents over the size and possible environmental impact of its initial design, is set to open in August.

The resort is the largest premium accommodation venue ever built on the peninsula, sitting on an escarpment overlooking the surrounding 18-hole golf course and rugged cape landscape. Designed to reflect its natural surrounds, the RACV’s latest project is described as “embodying rugged coastlines, rolling dunes and dramatic topography”.

Guests will experience 180-degree panoramic ocean views when the venue opens its doors this August. The Cape Schanck Resort is the latest addition to RACV’s company’s leisure portfolio, which includes resorts in Victoria, Noosa, the Gold Coast and Hobart.

The resort sits on an 18-hole championship golf course designed by Trent Jones Jnr, which is also accessible to both guests and visitors. Architects Wood Marsh designed the building, with project engineers Arup and Umow Lai working together to maximise the location’s stunning ocean views. ■

resortnews | july 2018

43

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$ 1,570,000 Net Profit: $ 240,000 Manager Unit: $ 350,000 Remuneration: $ 110,000 Letting Pool: 74 + Plus 8 x outside Managements

LAWNTON, QLD

$ 802,300 (NEW) Net Income: $ 93,021 Manager Unit: $ 300,000 Remuneration: $ 77,324 Letting pool: 14

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And transport Bus and train are close by. Complex is 10 Years Old. Very Low Maintenance & Easy to look after; No Set Office Hours; Good Growth Prospects.Great location in an upcoming growth area, the bus stop is at the door, and all required amenities and services are within walking distance, finding tenants is not a problem,, there is no vacancy and rents are going up.

The complex consists of 54 town homes and villas, one of which is the designated manager’s residence with office; opportunity to earn considerable profit and enjoy a relaxed lifestyle; Low maintenance caretaking duties; spacious mangers residence; Strong immediate rental pool; excellent location, only 3 mins drive to Lawnton Station;

Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

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CABOOLTURE, QLD

CAIRNS, QLD

$ 1,113,381 (NEW) Net Income: $ 177,000 Remuneration: $ 150,000 Manager Unit: $ 315,000

Freehold Motel (Backpacker) Rental income: $ 250,000 + GST and outgoings.

Floor area: 600 sqm+ Land area: 1008 sqm

Permanent Complex with 12 Rentals in the pool at the moment, opportunity to acquire more rentals in the letting pool and the possibility

This Freehold Motel is located in Caboolture;

to increase the net income; Easy to manage

include 15 guest rooms with 96 beds. The Motel was built two years ago, occupancy rate beyond 90% during

complex will suit first time buyer. The complex consists out of Six 4 story buildings with 2 and 3

peak season; the guests are mainly farm worker, very stable; Suitable for investor or owner operator;

bedroom apartments. This one will not last long.

Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

UPPER MOUNT GRAVATT, QLD

Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

$ 1,717,016

REDBANK PLAINS, QLD

Net Income:

Net income: Remuneration:

$ 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 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.

$ 3,300,000 (NEW)

Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

80

Remuneration:

$ 134,565.71 + GST

Manager Unit:

$ 395,000

located at west side of Brisbane with 80 rentals in the letting pool; Good net income with low maintenance; no swimming pool to maintain in the complex;

Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

PALM BEACH, QLD

UNDER CONTRACT Net income: $ 572,305 Remuneration: $ 130,000 Letting pool: 42 Manager unit: $ 720,000

Net Income: $ 420,000 Remuneration: $ 163,500 Manager Unit: $ 900,000 Perfectly location, 1 minute to Tram, 2 minutes to bus stop, 3 minutes’ walk to beach, 10 minutes’ walk to Casino, Restaurant, cafe, Coles and Woollies are all in walking distance; Impressive modern high rise with exceptional resort facilities including a fully equipped conference facility and other commercial areas on title; Tremendous growth potential. All two bedroom units are dual key and furnished with modern & spacious quality package;

$ 340,526.76

Letting Pool:

Great Opportunity! Permanent Complex is

Call Robert Lin on 0433 000 888 to book an inspection!

SURFERS PARADISE, QLD

$ 2,054,063.88 (New)

Located in such a superb location with direct access to the beach, along with bush walks on Burleigh Headlands and so close to Tallebudgera Surf Club; This complex has a swimming pool and BBQ area, 24 years agreement to run, Low maintenance and low workload; it is a very good money maker. The manager unit has 4 bedrooms, 2 bathrooms, 1 office and 2 carparks. Please contact Robert Lin on 0433 000 888 for more information or to arrange inspection.

Please contact Robert Lin on 0433 000 888 for more information .

Contact: Robert Lin (Principal, MREIQ) Mobile: 0433 000 888 Office: (07) 3344 5858 Email: sales@joyrealty.com.au

www.joyrealty.com.au

Think Management Rights SUNSHINE COAST

GOLD COAST

SANDCASTLES HOLIDAY RESORT

HIGH NETT HOLIDAY RESORT

•

Mooloolaba Beach Location

•

Boutique Holiday complex

•

Total Units 34

•

25 year Accommodation Module

•

3 Bedroom Managers Unit

•

Body Corporate salary $117,605

Net Income $360,000 Asking Price $2,680,000

•

Iconic Surfers Paradise Beachside

•

Total Units 66 with 49 in the letting pool

•

1 & 2 bedroom apartments

•

Accommodation Module 23 years remaining

•

2 Bedroom 2 Bathroom Managers Unit

•

Body Corporate salary $109,420

Net Income $530,000 Asking Price $3,865,000

THINKING OF BUYING OR SELLING DEAL WITH THE EXPERTS

South East Queensland Narelle Filmer 0459 229 744 narelle@thinkmanagementrights.com.au

South East Queensland Wayne and Linda Stoll 0452 181 505 0419 506 760 wayne@thinkmanagementrights.com.au

Sunshine Coast Barry and Sharyn Alleway 0411 411 987 barry@thinkmanagementrights.com.au

Sunshine Coast Karen & Mark Ison 0434 314 038 karen@thinkmanagementrights.com.au

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 / Resort News Sales Report Rhonda Perkins – Property Bridge

Introducing...

Rhonda Perkins – Property Bridge 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 I have been a licensed real estate agent since 1986.

Name: Rhonda Perkins Mobile: 0418 767 115 Agency: Property Bridge Area of Service: Gold Coast Web: www.propertybridge.com.au Email: rhonda@propertybridge.com.au

“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.”

RESORT NEWS SALES REPORT PROUDLY BROUGHT TO YOU BY ACCOM PROPERTIES

www.accomproperties.com.au MANAGEMENT RIGHTS

The Management Rights Lawyers

Gold Coast Genesis Apartments

Brisbane

Henley Apartments Luxe Town Houses

New South Wales The Beach Resort

Victoria

Barwon Heads Resort

Michael & Rita Goh

Surfers Paradise

TMR

Stuart James McCaul Cathy Ma

St Lucia McDowall

RBA RBA

Graeme & Carol Price

Cabarita Beach

RBA

Sue & Mike Cool

Connewarre

RBA

BUYING/SELLING ASSISTANCE

Keith & Beverly Miller

Pialba

RBA

OFF THE PLAN IMPLEMENTATION

Coneliza P/L Pasal P/L M & A Fitzpatrick Butler T Horan Y&Y Group P/L

Armidale Murwillumbah Jerilderie Tweed Heads Coonamble Yass

RBA RBA TB TB TB TB

Victor Kon Equinox Property Group

Carlton Beaconsfield

RBA RBA

MOTELS & OTHER Queensland

Best Western Ambassador Motor Lodge

New South Wales

City Centre Motor Inn Econo Lodge Murwillumbah Jerilderie Motel & Caravan Park City Lights Motel Castlereagh Lodge Motel Swaggers Motor Inn

Victoria

Alston & Drummond Apartments Blue Gum Residential Caravan Park

Note: Agent/Broker involved in the sale is listed last.

Agent - KEY: ARMS - Australian Resort Management Sales; LIZ - Liz Lavender Management Rights; CRMR - Calvin Bailey Management Rights; CRE - CRE Brokers; 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

46

RENEWAL STRATEGY

DISPUTE RESOLUTION

www.mahoneys.com.au

resortnews | july 2018 30409 MR advertisement2015.indd 1

19/02/2015 10:48 am

MANAGEMENT RIGHTS RESORTS

REDCLIFFE

GOLD COAST

STUNNING BEACHFRONT

BIG SALARY

EXCLUSIVE: This modern high-rise apartment holiday complex offers resort style facilities designed to maximise the magnificent waterfront views.

With a beachside lifestyle, close to cafes and shops that is second to none, this is your opportunity to secure your own piece of paradise coupled with a quality business. Together with significant net profits and long management agreements, the icing on the cake will see you residing in the comfortable manager’s residence boasting 3 bedrooms, whilst the office and reception area are exclusive use and situated separately.

NETT $453,000 PRICE $3,097,000

Bobo Qi

0438 027 771

EXCLUSIVE: An excellent permanent residential complex well positioned midway between the Gold Coast and Brisbane just off the M1.

A healthy Body Corporate salary and rental pool, within this gated community offers a great income. Long management agreements are in place. The manager’s residence features a five bedroom stand alone house on a large block. Plenty of room for the whole family to enjoy, with the added bonus of the onsite facilities such as pool and tennis court. This business is strategically and geographically well placed in this high rental demand area.

bobo@propertybridge.com.au

NETT $355,000 PRICE $2,389,000

BROADBEACH

ROBINA

BEACHSIDE HOLIDAY

GREAT LIFESTYLE

EXCLUSIVE: The future is bright for this well-established resort with long agreement, few owner occupiers and loads of scope to increase net profit. Fabulous patrolled beach, acclaimed restaurants, GLink, Pacific Fair, Oasis Shopping Centre, Kurrawa Surf Club, The Star casino and Convention Centre all in the neighbourhood.

A great place to start in Management Rights. Put yourself in the picture!

NETT $239,000 PRICE $1,849,000

Rhonda Perkins 0418 767 115

rhonda@propertybridge.com.au

EXCLUSIVE: Outstanding permanent in desirable Robina.

Tenant magnet with upmarket facilities. Stroll to train, High School, hospital, Town Centre and more. Long agreement, no set hours and substantial income. Superb 3 bedroom, 3 bathroom Manager’s townhouse.

Private, secured garden and rare 3 car accommodation. What a location!

NETT $173,000 PRICE $1,446,000

FREE MARKET APPRAISALS QUALIFIED BUYERS DISCREET “SILENT” LISTINGS UNRIVALLED BUYER SUPPORT

propertybridge.com.au

61 SPACIOUS ARCHITECTURALLY DESIGNED APARTMENTS -

VE USI L C EX RCA

$67,100 + GST CARETAKING COMPLETION LATE 2019 PROJECTED 46 RENTAL UNITS CHOICE OF MANAGER’S UNIT TO BUY LIGHT CARETAKING DUTIES LOCATION CLOSE TO SHOPS, TRAIN, BUS & SCHOOLS MIXED LETTING OPPORTUNITY

OFF THE PLAN BRISBANE NORTHSIDE

MLR FOR SALE $590,000 + GST PLUS UNIT FOR SALE FROM $450,000 162 LUXURY LEISURE APARTMENTS -

SHORT AND LONG STAY BUSINESS LONG AGREEMENTS $266,377 + GST CARETAKING FEE BRISBANE RIVER, CBD & HOSPITAL CLOSE BY FULLY STAFFED READY FOR NEW OWNER SPACIOUS QUALITY APARTMENTS MIX OF CORPORATE, LEISURE & HOSPITAL GREAT LOCATION. GREAT BUSINESS.

SPACIOUS 3 BEDROOM RESIDENCE INCLUDED IN $4,250,000

E SIV U L EXC RCA

INCREDIBLE $605,000 NETT PER ANNUM INCOME

GREAT ADD-ON IN SOUGHT AFTER NEW FARM -

NO UNIT TO BUY $65,512 + GST CARETAKING FEE LONG 25 YEAR AGREEMENTS VERY LIGHT DUTIES WELL ESTABLISHED BUSINESS STRONG RENTAL AREA WALK TO NEW FARM SHOPS ALL THE HARD WORK HAS BEEN DONE WALK IN AND EARN MONEY

EXCLUSIVE FOR SALE ONLY $700,000 PERMANENT RESIDENTIAL LIFESTYLE -

NO SET OFFICE HOURS NO REQUIREMENT TO LIVE ON-SITE $106,791 + GST CARETAKING FEE VERY MODERN & SPACIOUS APARTMENT BRISBANE RIVER VIEWS FROM APARTMENT CAFES, RESTAURANTS, GASWORKS ON DOORSTEP ESTABLISHED STRONG RENTS LOOKING TO RETIRE? CONSIDER THIS AN OPTION.

A SKI N G $1, 550,00 0 INC L UDES A PA R TM EN T

RCA

E SIV U L EXC

18.5% RETURN IN NEW FARM ESTABLISHED PERMANENT

VE USI L C EX RCA

SUPERB LIFESTYLE RIVERFRONT IN TENERIFFE

Contact Rod Askew 0411 758 236 or Eric Brizuela 0413 060 683 for more information. sales@rcabb.com.au | www.rcabusinessbrokers.com.au | 07 3554 0040

JUST LISTED! New Exclusive Agency Listings

ID 8435

ID 8872

EXCLUSIVE LISTING!

Permanent Complex Minutes from the Beach • • • • •

A Golfers Paradise • • •

Good three bedroom, single level residence with private courtyard and single garage Long agreements and pet friendly complex Easy to maintain grounds, gardens and pool Healthy salary and no set hours in agreements Suit first timer, tradie or downsizer

•

Serious sellers offer this business at a realistic price EXCLUSIVE AGENT:

Tony Johnson 0433 335 679

Nett Profit: $100,435 ID 8873

EXCLUSIVE LISTING!

Asking Price: $855,000

• • •

Brisbane management rights for sale An ideal business for the keen golfer Exclusive gated community with direct access to golf course 25 Luxury homes - 7 villas in the letting pool with more to come Stage 1 & 2 completed with the 3rd stage now under construction, so income will grow Additional caretaking of adjoining property and extra income Managed by one person with office attached to residence and no set office hours

EXCLUSIVE AGENT:

Mark English 0437 949 113

Nett Profit: $77,000 ID 8876

EXCLUSIVE LISTING!

Asking Price: $910,000

EXCLUSIVE LISTING!

Large Permanent Large Salary

High Income, Great Opportunity

•

This near new townhouse complex offers a wonderful opportunity for both first time buyers and experienced managers. Located in a rapidly growing suburb, you will find that this well run management rights business is a very attractive offering.

• • • •

Great opportunity to purchase a tightly held business as sellers are moving on after 13 years Large security gated townhouse complex comprising of 93 units of which 52 are in the letting pool Accommodation module agreements expiring 2038 High Body Corporate salary of over $158,000 + GST Comfortable and well designed 3 bedroom manager’s residence

EXCLUSIVE AGENTS:

Deborah Tilley 0424 428 489 Ian Forbes 0432 988 625

Nett Profit: $269,970 ID 8588

Asking Price: $1,979,835

Asking Price: $1,582,800

EXCLUSIVE LISTING!

Surfers Paradise Mixed Letting Management Rights

Minimal garden and lawns, easy to run Currently managed by a single person Quiet location close to shopping centre Long agreements, office on title

Nett Profit: $126,421

Mark Neale 0409 816 635

Nett Profit: $228,000 ID 7947

Very well presented complex in popular area.

Would suit single operator or semi retired couple. Lovely one bedroom residence. The building has recently been painted. Be quick as this one will sell.

EXCLUSIVE AGENT:

Large and luxurious manager’s unit Large accountant verified rental base and income ($228,000 net) No outside agents or owner occupiers Low maintenance gardens and common areas

EXCLUSIVE AGENT:

EXCLUSIVE LISTING!

Permanent Waterfront Management Rights

• • • •

• • • •

Warren Oliver 0416 216 625 Asking Price: $940,000

•

22 unit 3 storey walk up complex

•

2 bedroom manager’s unit

•

3 car spaces and plenty of storage

•

Manager’s salary of $60,430 + GST

•

Small footprint, easy to maintain

•

Ideal first time complex or would suit the experienced manager looking to downsize

EXCLUSIVE AGENT:

Phil Trimble 0418 478 966

Nett Profit: $97,100

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

Asking Price: $660,000

profiles | Blue C Coolangatta

Blue C Coolangatta has proactive industry managers

Extraordinary accommodation, Blue C Coolangatta provides an enviable seaside lifestyle overlooking sun-drenched Southern Gold Coast beaches.

(07) 5589 0000 | res@blueccoolangatta.com.au 3 McLean Street Coolangatta, Queensland 4225

www.blueccoolangatta .com. au RESORT NEWS

READER SPECIAL

STAY 4 NIGHTS & ONLY PAY FOR 3* * subject to availability

William and Michelle Wetere, originally from New Zealand have been the resort managers at this fantastic resort for over two years, attracted by this exciting business opportunity, unique location, and desirable lifestyle.

Previously, Michelle ran her own beauty therapy business in New Zealand for over 20 years and William was in the FMCG industry selling well-known brands to the supermarket trade in both Perth and New Zealand. He was involved in building and marketing online ecommerce stores.

William told us: “Our daughter was the catalyst for our interest in the management rights industry because she was working in the front office of a holiday complex in Main Beach. After a visit we were intrigued and began to look at management rights businesses in the area.”

With four of their five children living in Australia (one remains in NZ) this location works well for their whole family. They are also very

50

resortnews | july 2018

It is true that your own website is key to driving commission free bookings and it may be commission free but there is a cost! proud (and busy) grandparents to 10 children. “We purchased from another Kiwi couple back in May 2016 via a partnership structure.

When we took over the property it was an Accor franchise known as the ‘Sebel Coolangatta’ and before that it was known as the Grand Mercure” William disclosed.

“Being a franchise was a great learning experience and provided us with an understanding of how a large corporate operates. However, there were extra layers of reporting structures and accounting procedures that added complexity to what we felt should be a simpler system.

Blue C Coolangatta

| profiles

Michelle Wetere, William Wetere, Nina Krohmer (accounts) and Danae Hanger (reservations)

“Therefore, after 18 months of working under a franchise model we decided to return to be an independent accommodation and in December 2017 we renamed the business Blue C Coolangatta” he added.

The resort’s management rights takeover turned out to be a sharp learning curve for William and Michelle due to having to learn two booking systems – that didn’t talk to each other! “Then again, most properties would never encounter

these diff iculties,” William stated.

Blue C Coolangatta “a 4-star property with 5-star views” offers large fully furnished one, two and three-bedroom apartments and a four-bedroom penthouse, over 15 floors. All the clean and modern apartments are open plan and face the pristine waters of Coolangatta beach with large balconies that have shutters for privacy. The upper levels of the building boast incredibly diverse views: looking toward Surfers Paradise, over

Kirra Hill, towards the hinterland, Mt. Warning and north to Coolangatta`s beaches.

that the most important people in our business are the body corporate and apartment owners.”

William said: “Our resort is an outstanding choice for the perfect Gold Coast get-away and we really enjoy doing a great job for our guests! We are assisted by: one full-time front off ice person, a part-time accounts person, two body corporate cleaners and we outsource our housekeeping. We are also very lucky to have great owner residents, we remember

“Where possible, get a business that can afford to pay staff, understand how the business generates its business, also ask who supports their business with services like linen, handyman, appliances, electrical. your business will run very smoothly if you have reliable support from your trades people.”

resortnews | july 2018

51

profiles | Blue C Coolangatta

Resort News readers would love your wisdom and advice for potential/new MR owners...

William warned: “The process of getting in and getting out of the industry can be daunting for new people. Get advice from management rights specialists, you may think you own a property but in fact it is the other way around. The property owns you!”

What other industry advice do you have?

He offered: “While trust account management and managing expenses have high priorities marketing would be the number one skill to acquire or outsource.

“I look at Booking.com and Expedia as the major accommodation supermarkets.

You will need to know how to list your products (room inventory) how to position them (3,4,5 star or special niche style) and most importantly how to promote your rooms/apartments on these channels. I strongly suggest that you develop a great relationship with your Booking.com and

Expedia account managers.

percent of your inventory to sell!

“Other channels provide options to base fill your property however their price points may be sharp and returns low, so you will need a plan to off set this.

“It is true that your own website is key to driving commission free bookings and it may be commission free but there is a cost! You will need to use Google, search engine optimisation or Facebook advertising and most managers would not know how to set up advertising on these platforms, so will need to outsource. Companies charge around $500 per month to manage this advertising.” ■

“You will hear many managers or investment partners talk about the importance of direct bookings.

These bookings will come via word of mouth and return guests, but return guests make up only 10 – 20 percent of your total bookings because they tend to book based on events (school holidays) this means that you will still have 80

By Mandy Clarke, Industry Reporter

holiday Management RIGHTS

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52

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www.reimaster.com.au resortnews | july 2018

profiles | Wharf Boutique Apartments

Warm and welcoming: Wharf Boutique Apartments dream holiday come true.

Brett and Rem Rasmussen are the resort managers at the Wharf Boutique Apartments and they insist: “This is the perfect place to relax, indulge and enjoy all that a Gold Coast holiday should be.”

On December 14, 2015, the new business owners Brett and Rem took over the management rights. During the busiest period - Christmas school holidays - talk about liking a challenge!

After 10 years in the child care industry as a lead educator, manager and director of a child care centre Rem wanted to transform their lifestyle. Brett agreed, after 38 years working as a diesel fitter in the mining industry he also fancied a change, and so they made the move from Brisbane to the Gold Coast.

Assisted by Narelle Filmer from Think Management Rights, they found and purchased the Wharf Boutique Apartments.

They were immediately attracted to this clean, well maintained, small boutique complex in an idyllic location and so close to a patrolled beach.

A favourite Gold Coast accommodation choice is the Wharf Boutique Apartments nestled between thrilling Surfers Paradise and trendy, stress-free Broadbeach.

The resort presents beautifully appointed spacious one and two bedroom, fully self-contained apartments that overlook the glorious Gold Coast beaches, offering facilities that make a

According to Brett and Rem the purchasing process was “smooth and seamless”, they used industry professionals: Steve Burton from PCS finance, Pevy Lawyers, JGA Accountants and NAB Business.

“We knew that we had found the jewel of the Gold Coast,”

said Brett. “However, we also recognised the property’s untapped potential and since taking over we have made many minor but important improvements. We have worked hard to rejuvenate the gardens and we changed the basement lighting to motion sensing LED, also replacing all the balcony and foyer lighting to LED. “For the first time in 18 years, we had all the external windows cleaned, the exhaust vent system cleaned, and internal vents replaced. We improved the building’s fire warning system and refreshed the décor in the units so that they better reflect the beach location and modern era. Additionally, we enhanced the wifi offering and our guests greatly appreciate that it is now unlimited and much improved.”

This massive change in career and lifestyle must have presented some challenges for the couple but Rem told us: “We have been supported by an aunt and uncle who have been in the industry nearly 35 years, they’ve given us help, advice and encouragement from the start. Their assistance has been incredibly valuable to us because we have no prior hospitality business experience.

“However, I do feel that our past occupations and experiences have helped us accomplish all that we have, so far. Brett’s handy maintenance skills are proving to be a huge asset for all concerned and my business management

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit

Think Management Rights are proud to have sold the Management Rights business for Wharf Boutique Apartments.

Narelle Filmer 0459 229 744 Wayne and Linda Stoll 0452 181 505

www.thinkmanagementrights.com.au 54

We are proud to be associated with Wharf Boutique Apartments and we look forward to working with Brett & Rem in the future.

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

resortnews | july 2018

Wharf Boutique Apartments

and people skills have been essential to providing successful front of house service and improved marketing. We are also grateful to have been assisted by Dean our marvellous cleaner, who has worked at the resort for over 10 years.”

Resort News readers want to know what has been your biggest achievement and learning curve so far?

“Dealing with the OTAs and managing fraudulent transactions. Also achieving

| profiles

what need to be done in terms of maintenance to common property and the improvements made to the unit’s internal presentation.”

As such new resort industry managers, what advice can you give other potential managers?

“Use industry experts and do your homework on what you are purchasing. Do not back down from the big OTAs, if you are correct then let them know it, and don’t be intimidated by threats.

Wharf Boutique Apar��ents

BOOK DIRECT | 07 5504 2444

Brett and Rem Rasmussen

WE ALWAYS DO THINGS BY THE NUMBERS 300+ BUILDINGS THROUGHOUT QLD ZERO COST FOR INFRASTRUCTURE

11 Wharf Road Surfers Paradise QLD 4217

holiday@wharfapartments.com.au

www.wharfapartments.com.au

24/7 SUPPORT SERVICE

WWW.FREEDOMINTERNET.ORG

* Resort News readers when booked direct (subject to availability).

resortnews | july 2018

55

profiles | Wharf Boutique Apartments

Finally, but most importantly treat everyone in your building as a potential client because circumstances change all the time.”

Do you have anything to say about this everchanging industry?

“We would like to see a more even playing field with OTAs and Airbnb, regarding commissions.

What’s more, current legislation dictates that managers are nonvoting members of the committee,

we feel that as owners we should definitely have a vote.”

Tell Resort News readers what motivates you: “When we hear how much our guests have loved their stay, want to return and that we have made a positive difference to their stay. Likewise, when our owners’ and residents tell us that they feel looked after and when an atmosphere of harmony and community spirit exists in the complex.”

Finally, what do you enjoy most?

over the management rights at

“We enjoy working together as team and getting through our daily obstacles. Of course, we love our new lifestyle and location! Living in Wharf Boutique Apartments in Surfers Paradise has given us the opportunity to enjoy Gold Coast events such as: Bluesfest, Country Music, Seafire, V8 Supercars, just to name a few.”

across the board. With booking.

Since enthusiastic, helpful, and welcoming Brett and Rem took

By Mandy Clarke,

Trent Pevy and the team at Pevy Lawyers are proud to be the chosen legal advisors for Wharf Boutique Apartments.

We wish Brett & Rem every success.

56

resortnews | july 2018

Wharf Boutique Apartments guest reviews have improved com, Expedia, TripAdvisor and Google all showing significantly improved reviews and ratings.

Furthermore, at Gohotels.com they have achieved a customer review rating of 90 percent and Outstanding Service Award for the year 2017.” ■ Industry Reporter

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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 | july 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 Garry McLean Mobile Showroom 0412 661 053 P 5532 7799 info@wizardcarpets.com 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 | july 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

COMPUTER SOFTWARE

ACL (364 314)

Whatever, Wherever, Whenever!

Shute Cleaning Services Pty Ltd

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

| preferred supplier

The sign of an Industry Specialist.

www.accomnews.com.au/ business-directory

a w tri do a vi

EEnd d FdRemolaperionload

The sign of an Industry Specialist

Reservations and Trust Accounting Daily Reconciliation – Systematic Distribution Holiday Resident Puma Light No trust accounting

 Trust Accounting Module  Built-in CRM  Channel Manager  Automatic Communications  Cloud & Desktop Solutions  99% of our support requests

are attended to within 20 mins

Mention this ad to receive 3 months FREE subscription

1800 671 179

Year 2+ $599 Year 2+ $440

Year 1 $1,100 Year 1 $990

Motels, caravan parks etc. from $220 to $330 p.a.

FINANCE Management Rights Specialists

Phone (07) 5446 2135

www.pumasoftware.com.au ELECTRICAL APPLIANCES

Quality Electrical Appliances

New name...

Bigger range... service

Gold Coast Paul Geary

0401 992 632

Brisbane Lina Jin Blake McLucas

0422 646 388 0434 367 812

Sunshine Coast / Noosa Mark Hancock

Townsville Brett Sievers

0411 023 531

0422 009 731

Cairns / Northern Beaches Patrick Brown 0401 141 276

www.reimaster.com.au Personal Service. Trusted Advice.

* Contact us for the T&C’s

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

Port Douglas Patrick Brown

0401 141 276

(07) 5591 9191 QLD LIC. 9107 NSW LIC. EC29426

office@emerlite.com.au www.emerlite.com.au

ENERGY MANAGEMENT CONSULTANTS & SERVICES QUALITY, COST EFFECTIVE UTILITY INFRASTRUCTURE & BILLING ADMINISTRATION • • • •

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

Paul Grant 0448 417 754 paul@mikephippsfinance.com.au Cameron Wicking

0477 776 859

cameron@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld - 07 5470 2194

www.mikephippsfinance.com.au

Red

F I N A N C E

Professional & friendly service Over 30 years finance experience Accommodation funding specialists

Nick Smith - 0450 179 677 nick@redtenfinance.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

0448 813 090

www.redtenfinance.com.au

ELECTRICAL CONTRACTORS SEE THE SPECIALISTS IN L.E.D. REPLACEMENT LIGHTING

Mike Phipps

mike@mikephippsfinance.com.au

Sunshine Coast / Lake Kawana Bruce Baird 0411 772 182 Suzanne Copelin 0428 385 923

with the same great

fresh finance...

Management Rights Finance Specialists

Brisbane: 07 3252 2219 • Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au

www.pcsfinance.com.au

# &, ! , & , "%& $,

- NORTH QUEENSLAND -

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resortnews | july 2018

The sign of an Industry Specialist 59

preferred supplier | Directory FLOOR COVERINGS

LINEN &/OR LINEN GOODS

GLASS INSTALLATION/REPAIRS

The sign of an Industry Specialist

Buy direct from our friendly family business and save...

Est. 1987

Residential & Commercial Floor Coverings

Australia’s Leading Hotel Bedding Suppliers

* 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

07 5437 8544

P: 07 5571 1177 F: 07 5503 0057 Leon Bell: 0466 912 786

FURNITURE

info@mainlinen.com

Looking for cover?

www.southportcarpetsqld.com

GYMNASIUM EQUIPMENT

• Residential & Commerical Strata • Resort and Accommodation • Professional Indemnity • Resident Unit Managers • Property Insurance

MAIL BOXES

For an informal chat on your insurances, contact the team: 07 3387 1900 beenleigh@ajg.com.au

Quality Aust Products to meet All Building & Government Standards

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

P: (07) 5596 1440 E: info@sunni.com.au

ref2076-0518-1.1

MANAGEMENT RIGHTS AGENTS

In All Areas . . .

Whether buying or selling we have you covered

…When you need us most!

FURNITURE - OUTDOOR

MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:

U Gold Coast U Brisbane U Sunshine Coast U Townsville U Cairns . . . & Beyond

 Business  Strata  Landlord Protection With quick quote turnaround and hassle-free claims service

Suppliers of Quality Commercial Outdoor Furniture & Accessories

0418 765 257

www.casualfurniture.com.au

coastalcasualoutdoors@gmail.com VISIT OUR SHOWROOM AT: Unit 4, No. 2 Cnr Captain Cook Drive and Kendor St, Arundel, QLD

MANAGEMENT RIGHTS

Management Rights Insurance Specialists

INSURANCE

stry e indu Leading insurance broker to th Professional Indemnity Public Liability Loss of fee income Home & Office contents Landlords ...and more

Your local insurance specialists

Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336

www.daydreamleisure.com.au

RUGECU009-170704

W I D E A U S T R A L I A

Commercial Specialist Direct Importers

t: 07 5345 5414 | e:insure@iO2.com.au www.iO2.com.au

LIFTS - MAINTENANCE & REPAIRS

sales@daydreamleisure.com.au

A click away! accomnews.com.au/ business-directory

60

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 | july 2018

AUSTRALIA’S LEADING MANAGEMENT RIGHTS BROKER Thinking of Buying or Selling?

Discount for ARAMA members AFSLN 246986 ABN 31 009 179 640

Phone 07 55 930 007 www.raas.com.au

Specialising in management rights sales Australia wide

www.managementrightscover.com.au

Call 1800 688 820

RN006

• 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

Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com

For the right advice contact the experienced management rights brokers today

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

AUSTRALIA’S LEADER IN MANAGEMENT RIGHTS, MOTEL, HOTEL & CARAVAN PARK SALES Nationwide

1300 665 966

resortbrokers.com.au

Directory

Whatever, Wherever, Whenever!

Whatever, Wherever, Whenever!

Calvin Bailey LREA Management nt Rig Rights Consultan t t tan Mobile: Phone: Fax: Email:

0414 889 593 07 4059 1254 07 4055 3898 calvin@cbmr.com.au info@cairnsbeaches.com

Post:

PO Box 266, Palm Cove, Qld, 4879

calvinbaileymanagementrights.com.au

Property Bridge

Working Predominantly for Body Corporates

Leaders in Painting & Building Maintenance Established 1949

Painting Waterproofing Concrete Rectification Rendering www.opat.com.au

Think – Buying or Selling Management Rights Narelle Filmer 0459 229 744

Wayne & Linda Stoll 0452 181 505

www.thinkmanagementrights.com.au

www.accomnews.com.au/ business-directory

The sign of an Industry Specialist

Sunshine Coast QBCC No: 1031545

▪ MANAGEMENT RIGHTS ▪ RESORTS

 Discreet Silent Listings  Free Market Appraisals

| preferred supplier

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland

Brisbane Gold Coast

PO Box 1037 Gordonvale 4865 • P 07 4056 6366

Bobo Qi 0438 027 771

info@resortsales.com • www.resortsales.com

• Painting • Grounds Maintenance

Your Joy in Real Estate

Robert Lin (Principal, MREIQ) P | (07) 3344 5858 M | 0433 000 888 robert@joyrealty.com.au | www.joyrealty.com.au

Rhonda Perkins 0418 767 115

& Landscaping • Signage & Branding • Electrical Services

MATTRESS CLEANING 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

MOTELS, CARAVAN PARKS, HOTELS & MHE’S NATIONAL COVERAGE sales@tourismbrokers.com.au 1300 512 566 www.tourismbrokers.com.au

• Audio Visual

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

• Data Communications • Sustainability

Call 1800 620 911 or 07 3718 1600

www.amalgamatedgroup.com.au info@amalgamatedgroup.com.au

programmed.com.au

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 The M anagem ent Right s S pecialist s SUNSHINE COAST Matt Campbell 0410 343 219 Barry Davies 0438 554 995

Ph 5520 1256

www.anppainting.com.au QBCC Lic No 1050861 NSW Lic No 179886C

contact@managementrights.com

Aust ralian Resort M anagem ent S ales

www.managementrights.com

A click away!

Specialising in Motel & Resort Sales Qld wide

accomnews.com.au/business-directory

Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

The sign of an Industry Specialist resortnews | july 2018

RELIEF MANAGEMENT

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 sign of an Industry Specialist.

SOLICITORS

MANAGEMENT

RIGHTS AND MOTEL SHEET METAL

EXPERTS

The Management Rights Lawyers

Servicing Resident Managers throughout Australia

EXPERIENCE COUNTS

BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959

We have the largest team of specialists across Queensland and New South Wales, covering management rights and motels businesses.

info@mahoneys.com.au

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

GET THE RIGHT ADVICE

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183

Short Punch & Greatorix

Don’t put your accommodation industry investment at risk. Our industry knowledge is second to none.

Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5539 8745 Email: mnp@spglawers.com.au

CONTACT US Receive the best information. Subscribe today to receive continual practical, useful and relevant content.

Call Martin Punch on 5570 9304

CERVETTO COURTICE

Fx 07 5593 4194 | M 0413 432 294 adrian@sheetmetalimprovements.com.au

L AW Y E R S

Q U E E N S L A N D

COOLANGATTA TO BEENLEIGH

SIGNS # $ # $

Visit hyneslegal.com.au/subscribe or call +61 7 3193 0500 info@hyneslegal.com.au www.hyneslegal.com.au

Management Rights Sales & Purchases We deliver

strategic solutions Buying or selling Renewing or reviewing

# &

# &

Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au

in management rights

% %

www.mahoneys.com.au

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

Whatever, Wherever, Whenever!

◆ 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

62

resortnews | july 2018

Directory

| preferred supplier

TRAFFIC CONTROL 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.

Bulk/specialty pool & spa chemicals.

Chemical/product delivery available.

! "

07 55 591180 www.pool-spa.com.au

TRAINING & DEVELOPMENT

Classes from Coolangatta to Cairns TRAINED BY THE EXPERTS

Heat Pumps

Proudly installed and serviced

The Preferred Supplier Programme assisting the industry For over nineteen years in Australia the Preferred Supplier Programme and directory has been an extremely valuable and effective tool for accommodation managers.

It allows managers to access industry specialists who are committed to the highest levels of service and dedicated to the accommodation and hospitality industries.

This is extremely helpful for all accommodation providers but especially new managers as it allows them to benefit from the positive experiences other managers have had with their suppliers.

Listed below are the stages of the process that ensure only the best industry suppliers can participate in the Preferred Supplier Programme: 1.

All suppliers must receive a nomination from a property currently using their services that is completely satisfied with their levels of service and are prepared to recommend them to another complex in the industry (ie. if asked by another manager they could comfortably recommend the required supplier).

2.

All nominations received are then qualified through a secondary questionnaire process to ensure nominated suppliers are able to provide the highest levels of service required and expected by managers.

3.

Suppliers that still qualify are then asked to commit to the required levels of service for the next 12 months guaranteeing their commitment to the industry.

4.

Subject to the satisfaction of these processes and commitments suppliers then go on to the Preferred Supplier Database. Only Preferred Suppliers in this database have the opportunity to utilise the Preferred Supplier logo and make their contact details available to managers via the Preferred Supplier Directory, located in every issue of Resort News (and online at accomnews. com.au/business-directory).

5.

Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met.

Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

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 TV & VIDEO HIRE/REPAIRS

Appliance Rentals New name...

Bigger range... with the same great

service

TELEPHONE EQUIPMENT Resort Specialists Phone Systems Cloud Services IT & Mobiles WiFi Experts Security Systems Repairs & Maintenance

Personal Service. Trusted Advice.

Telephone 07 5451 8888 Toll Free 1300 884 001 www.icsolutions.com.au

A Preferred Supplier is the sign of an Industry specialist.

Whatever, Wherever, Whenever! accomnews.com.au/business-directory

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 MANAGEMENT RIGHTS VALUATION SPECIALISTS 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

With these criteria in place it means that you as a manager have access to a complete range of specialist suppliers who are actively seeking to improve their services to the accommodation industry.

For your own peace of mind when dealing with any supplier ask if they are a Preferred Supplier. This can be verified by viewing a Preferred Supplier logo – made available for use in any of their stationery or marketing material or more simply by locating them in the Preferred Supplier Directory.

So when looking for products or services give yourself the peace of mind that you are dealing with a recognised industry specialist and support these suppliers who are committed to servicing your needs. â–

resortnews | july 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