Resort News - September 2018 by Multimedia AU/NZ

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resortnews Issue 265 | September 2018 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

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Celebrating 21 Years management rights • hotels • motels • resorts • holiday parks • time share • hosted

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front desk |

Inside Front Desk

tourism

05 Editor's Note

35 Tourism Report

industry

06 News In Brief 08 ARAMA Report 09 NSW Strata Report 10

SCA Report

BCCM Report

Preferred Supplier Programme: Celebrating 21 years

management

developments 42 News 44 Hotel Design 46 New Manager Profiles

28 To Market 29 Motel Market 31 Intonet

profiles 52 La Mer Boutique Apartments: In a building by the sea, Noosa’s latest MR duo live their dream 56 Burleigh Mediterranean Resort: Peter and Karin Grace work smarter at Burleigh Mediterranean Resort

34 Keeping House

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

The Preferred Suppliers Directory

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DISCLAIMER

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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.

CONTRIBUTORS Simon Barnard, Col Myers, Trevor Rawnsley, Chris Irons, Arvo Elias, Mike Phipps, Dave Wright, Grant Misfud, Sylvia Johnston, Lyn Pearsall, Andrew Morgan, Brett Spicer, John Mahoney and Karen Taylor PRODUCTION

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

47 Agent Profiles

preferred suppliers

EDITORIAL

Celebrating 21 Years

46 Resort News Sales Report

32 Digital Signage: The benefits of digital signage for hotels on the Gold Coast

resortnews

www.accomnews.com.au

38 Events 39 ARAMA Industry Events Calendar 39 Industry Events Calendar 41 People: Exclusive – Meet the major new player in Australian accommodation

25 Legal Ease

28 Opinion

The Monthly Magazine for Accommodation Industry Professionals

events & appointments

property

26 Future Managers

resortnews Issue 265 | September 2018 | $13.75 inc. GST

Tourism International

24 Thinking Accommodation

26 Strata Trends

Registered by Australia Post Print Post No. 100023799

Issue 265 | September 2018

resortnews | september 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.

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Editor's Note

Farewell, Resort News readers!

| front desk

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

It's been a wonderful few years carrying the mantle I inherited from our illustrious editor, Graham Vercoe. I feel extremely lucky to have been catapulted into the management rights industry at a time of so much change, progress and even drama. The Resort News readers are extremely passionate about what they do for a living and rightly so - managing properties is taxing (and too often underrated) work. I am in awe of the effort and enthusiasm. In the last few years, I've seen Airbnb transition from 'villain' in the comment section of our website accomnews.com.au to possible ally; and I've seen the demographic of managers shift in age, gender and relationship status. As the wifi improves and the temperatures rise, I hope everyone continues to take an hour each month to read this mag. We sure do work very hard on it, and as I move over to our sister publication, School News, I'm very excited to introduce you to your new editor. Trish Riley has been a fixture at many of your industry events in recent years; she's extremely knowledgeable, curious and enthusiastic about everything you do. The industry is so lucky to

have her! You won't want to miss her first issue, which will be knocking on your door late-October. So, without further ado, say hello to Trish: trained in marketing management, journalism, public relations, brand and reputation management, she started a freelance writing business in 2017. Over the past few years, Trish has become entrenched in the management rights, strata and property industries, taking a particular interest in the rapid developments being made across all states. Like many of you, she is passionate about the opportunities and quality of life available in this â&#x20AC;&#x2DC;lucky countryâ&#x20AC;&#x2122;. Born in Zimbabwe and then a resident of South Africa for some 20-odd years, Trish enjoys the outdoors, and during her downtime can usually be found hiking in the forests or on some waterborne vessel. I've seen some of the exciting things she has planned for the next few issues and I can't wait to hear the response. As always, happy reading and I hope you enjoy this issue of Resort News.

resortnews | september 2018

Trish Riley

industry | News In Brief

Is Australia about to ban rate parity clauses? "Essential protections" slammed as a feather-light waste of time

Australia may be close to a legal ban on the rate parity clauses imposed by online travel agencies, following a landmark Swedish decision to end the practice.

The Andrews government passed regulations to curb the shocking behaviour seen in numerous short-let party pads throughout Melbourne.

According to the Accommodation Association of Australia, our national consumer watchdog is currently investigating the "conduct and practices" of offshore online travel agencies, including rate parity. “We do not know when this investigation will be complete but can confirm that many of our members have cooperated with the Australian Competition and Consumer Commission with the investigation,” said CEO Richard Munro. A commission spokesperson confirmed: "The ACCC is continuing to investigate the conduct of online travel agents in enforcing price and availability parity requirements with Australian hotels and accommodation providers. "The ACCC is considering their effect on the relevant market/s." At the end of last month, Booking. com was ruled by the Swedish Commercial Court to have no lawful right to stop businesses offering better conditions on their own websites than those it provided to the online travel agency. The Scandinavian country follows its progressive neighbours Belgium, France, Italy, Austria and Germany in moving to legislate against parity clauses. The Swedish legislation, which applies from October, stops Booking.com (and by implication every other online travel agency) from imposing parity clauses in contracts, but also prevents ranking algorithms taking into account the refusal of hoteliers to agree to rate parity.

Europe,” said Markus Luthe, chair of European industry representative HOTREC. “The control over the own product and the conditions must remain with the businesses.” HOTREC CEO Christian de Barrin added: “As the majority of the European tourism market, in terms of room nights, is already free from parity clauses, the rest of the European hospitality industry hopes to soon benefit from these same favourable market conditions as well.” In Australia, Richard Munro said the AAoA had been lobbying government “to ensure that the operators of compliant accommodation in Australia are able to operate in a fair and financially stable environment that provides consumers with the best rates available”. Earlier this year, he said the organisation would "continue to push for major reforms to online travel agencies in 2018 which rein in their free-riding on Australia’s accommodation and tourism industries".

Incentives by Booking.com to apply such clauses are now forbidden under law.

Rate parity clauses contractually guarantee that accommodation providers will not undercut prices advertised on online travel agency (OTA) sites, despite operators paying fees of between 15 and 30 percent for every booking made through the platform.

“The uncompetitive nature of parity clauses is more and more recognised by antitrust authorities, courts and policy makers all across

They are imposed by OTAs on providers, most of whom who rely on the international platforms for their online visibility.

Under intense pressure following the death of a teenage student at an out-of-control gathering in the city earlier this year, the Victorian parliament found the consensus needed to pass a Bill that had languished before the house for more than 12 months as stakeholders failed to agree on the detail. The resulting restrictions, lauded by consumer affairs minister Marlene Kairouz as “tough new laws” delivering “essential protections that apartment residents deserve", have been roundly panned. Even Airbnb acknowledges they are inadequate - while welcoming them as a deterrent to bad behaviour. “Passing these laws is a good step, but not the last step,” said the short-let giant’s Australian boss, Brent Thomas. “We look forward to working with the government on implementing these laws and taking further action against anti-social behaviour.” Others were not so kind. "The legislation is not worth the paper it is written on," Tom Bacon, CEO of Strata Title Lawyers, told the Australian Financial Review. “These regulations are the lightest feather of a touch, and do not provide owners corporations with any meaningful way of regulating the issues associated with shortterm stays. I would not advise owners corporations to use these regulations; it would be a costly exercise and a waste of time." Barbara Francis of lobby group We Live Here, which represents apartment owners in 300 Melbourne buildings, accused the government of pandering to the short-let industry saying: "This week's outcome must rank as one of the worst cases of politicking and backroom deals seen in Parliament."

resortnews | september 2018

So what do these tough but feather-light new laws entail? The Victorian Civil and Administrative Tribunal will have the power to stop the renting out of short-stay apartments that have been used for unruly parties and be able to fine guests up to $1100 for making unreasonable noise, causing a health or security hazard, damaging common property or obstructing a resident from using their property. Hosts whose properties are used for unruly parties could also be forced to pay their neighbours up to $2,000 in compensation. However, the 'crackdown' fails to address several key issues identified by industry bodies, including the loss of residential housing to holidays rentals and a lack of licencing for agents letting homes on behalf of owners. Carol Giuseppi of Tourism Accommodation Australia says it lacks scope and authority. "Essentially the government has simply sought to address one of the symptoms ‘party houses’ with a series of relatively small fines for both owners and guests," she said. "They have not addressed many of the core issues that were raised in the Victorian Parliamentary Inquiry. "In particular there is a need for legislation that prevents residential accommodation being converted to short term rental accommodation (‘quasi hotel’) when the owner is not present. "To address this there is a need for registration, a limit on the number of days and a strong code of conduct." The regulations also fail to cover rental of standalone houses, which parliament is believed to be reluctant to tackle because it would mean having to amend a series of other laws. Despite the opposition supporting the Bill, shadow consumer affairs spokesperson Heidi Victoria described the absence of regulation on freestanding homes as “very short-sighted”. “It does not help people who have these party houses next door as opposed to people in apartments – this only

News In Brief

looks after those people,” she said. Melbourne ranks among the world’s top 20 cities for short-term rentals, with some 10,000 listings on Airbnb alone. Robert Williams, head of hotels and hospitality Asia Pacific for lawyers Withersworldwide, put a view perpetrated by many in the industry when he said: “More evidence this morning that our legislators are not (yet?) prepared to properly address the issues Airbnb all-of-property letting is throwing up. “Victorian consumer affairs minister Marlene Kairouz called their new legislation "tough new laws", which is an interesting perspective on what others are calling the weakest in the country. “Victoria is not alone - to pick one shortcoming, New South Wales struggled with basic maths: the 180day limit imposed in Sydney allows

with plans for major apartment developments in Parramatta and Macquarie Park.

rentals for all weekends, school and public holidays each year. “So not much of a haircut there. “Enforcement is a core component of any meaningful policy in this area, and understandably no government agency wants this job. “The new legislation is a start, but I would suggest it is unrealistic to expect policy resources and parliament time will be devoted to actively monitoring these platforms and updating regulations.”

Meriton's fine dwarfed by its development spending A hotel group fined $3 million for masking TripAdvisor reviews has lodged development applications for Western Sydney totalling several hundred million dollars. Meriton Group, owned by billionaire Harry Triguboff, is moving ahead

It was handed a $3 million penalty by the Australian Competition and Consumer Commission for preventing TripAdvisor reviews, which might have portrayed its holiday apartments in a bad light - a figure which pales in comparison to the latest development spending. Meriton has been a major investor in Parramatta since 1973 and continues to push large-scale developments across the area. It is proposing a Woods Bagotdesigned dual-tower project on a corner site on George and Charles Streets in the western Sydney capital which will add to its existing inventory on the 180 George Street site it has been developing since 2005. The $229 million proposal will include the

construction of two skyscrapers comprising 767 residential units, 216 serviced apartments, shops, a childcare centre and a commercial gym. The group has also submitted a development application for a 27-storey tower at Talavera Road, Macquarie Park. The application marks the first stage of a controversial four-tower plan for the site, which includes a lifting of the former 45-storey height limit to 60 storeys - a proposal approved by the City of Ryde last year. The estimated cost of work for the first tower is more than $67.5 million, with Meriton looking to develop the remaining three towers on the $200 million site as part of the project’s second stage. The developer recently completed the dual-tower ‘Altitude’ building on Church Street Parramatta, which includes 254 serviced apartments. ■

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industry | ARAMA Report

Fire safety: cladding legislation concerns “Knowing is not enough; we must apply. Willing is not enough; we must do.”

– Johann Wolfgang von Goethe

Shortly after the Grenfell Tower fire tragedy in June 2017, a number of jurisdictions in Australia began the process of formulating regulatory responses to the fire safety risks posed by external wall cladding that includes making checks for combustible cladding on buildings compulsory. Since then, a number of bodies have been formed and regulations to tackle non-conforming building products introduced. The Victorian Cladding Taskforce interim report, which outlines the extent of combustible cladding on buildings and makes significant recommendations to address the issue, considers all buildings identified by the Taskforce safe to occupy provided certain safety measures are met while rectification works are carried out, such as sprinklers or alarms. More recently in NSW, the Department of Planning and Environment released a draft regulation that proposes that owners of buildings with combustible external wall cladding be required to register the building with state government. Under the regulation, these building owners will be required to undertake a fire safety assessment within set deadlines. Once finalised, the regulation will require owners of certain buildings with combustible cladding to provide information in a twostage process; a registration stage whereby owners will need to register the building details

Trevor Rawnsley CEO ARAMA

safety features are compliant and well maintained.

If this applies to your building then you will need to register and complete an online checklist via the QBCC with the government within three months of the regulation commencing, and a statement stage where the owner will need to submit a statement about the cladding material used, the level of fire risk the cladding presents, and what actions (if any) might be necessary to address those risks.

As with NSW, if this applies to your building then you will need to register and complete an online checklist via the QBCC that will run you through whether the building is likely to be one of those with non-conforming cladding. Every building will have until March 29, 2019 to complete this.

A properly qualified person will need to conduct the inspection and a deadline will apply for the submission of the statement.

If there is no issue, then all is well and the certification should be kept on file. If not, then stage two dictates the appointment of a building industry professional to determine whether the cladding on the building is non-conforming or not.

The Queensland approach was to create the Non-Conforming Building Products Audit Taskforce, which largely led to the government addressing concerns with all of their own buildings. Now it is the turn of the general public. The new regulation: the Building and Other Legislation (Cladding) Amendment Regulation 2018 when it commences on October 1, 2018, states that if a building is any of class 2 to 9 (which covers basically everything residential and commercial other than houses); and had a building development approval issued after January 1, 1994 but before October 1, 2018 to build the building or alter the cladding; and is of Type A or Type B construction (essentially buildings of three storeys or higher) then the building will be affected by the new regulation.

The Australian Standard AS18512005 – Maintenance of fire protection systems and equipment – recommends that fire protection systems are regularly inspected to help keep them in working order so that they can perform when required. Recent updates to AS1851 introduced the requirement for ‘baseline data’ to be provided for any fire protection systems and equipment installed. This provides a benchmark performance level for such equipment and systems that subsequent periodic servicing activities results can be compared. Requirements relating to passive fire protection have also been substantially revised. In addition to the equipment, all employees must be trained in fire safety and understand the appointed evacuation strategy.

If the cladding on the building is non-conforming then you can skip the completion of the report, notify the QBCC and engage a qualified fire engineer to complete a fire risk assessment about the safety of the building. That assessment will determine whether the scheme as it is will essentially remain safe or whether rectification works are necessary.

Are evacuation routes clearly marked?

The key message here is not to panic. Just because cladding is non-conforming it does not necessarily mean that it needs to be removed. There are a number of other fire safety mechanisms that may cover any risk appropriately.

As resident managers, you should be concerned about fire safety in your building and you should act without delay. You should not wait for the new laws to be finalised if you have concerns. If a fire occurs, working fire protection systems can mean the difference between a minor fire and a devastating blaze. ■

If it hasn’t been done already, now is the time to ensure that all fire

resortnews | september 2018

Are evacuation diagrams correctly placed and orientated? Are the exits signs and emergency lighting undamaged and maintained? Have general evacuation and first response instructions been given? Has an evacuation practice been conducted?

NSW Strata Report

Duties and obligations of committee members Committee members are all volunteers and the vast majority are unpaid. The strata legislation (and bylaws) in each state provides the framework for governance of strata title buildings. Bodies corporate (or, as they are called in New South Wales, ‘owners corporations’) delegate much of their day-to-day decision-making authority to committees.

Who is eligible to be appointed? NSW – Any lot owner is eligible, as well as a nominee or an individual who is not a lot owner but who is nominated for election by an owner of a lot who is not a committee member or is not seeking appointment to the committee. Note that a building manager, letting agent or associate of the developer is not eligible for election unless they own a lot in the scheme and they disclose their position prior to voting. Unfinancial members are also not eligible for election. Queensland – Any lot owner is eligible, or a person who is a family member, power of attorney or company nominee of an owner, as well as a representative of a subsidiary scheme. However, a body corporate manager, service contractor or letting agent (or an associate of any of those persons) is not eligible to be voting members of the committee.

Functions and powers of committees NSW – An owners corporation may have a committee and strata manager assist it in carrying out its management functions. However, committees cannot make any decision, which is required by way of a unanimous or special resolution at a general meeting. Queensland – A decision of the committee is taken to be a decision of the body corporate unless it is a “restricted” issue

| industry

Col Myers Small Myers Hughes

Statutory protections

Bodies corporate delegate much of their day-to-day decisionmaking authority to committees

a vote.

Queensland – A committee member is not civilly liable for any act or omission made in good faith and without negligence in performing their committee role. However, this protection does not include defamation.

Queensland – A committee

Insurance

under the relevant regulation module. Restricted issues include fixing or changing monetary contributions, changing the rights, privileges or obligations of owners, or issues reserved specifically for the body corporate at a general meeting.

the discretion of the committee

Statutory duties

entitled to vote if there is a

NSW – The legislation specifically provides that committee members must act in the benefit of the owners corporation and exercise due care and diligence and disclose all pecuniary interests.

NSW – A matter, or thing, done or omitted to be done in good faith by a committee member does not, for the purpose of executing a function of the owners corporation, subject that person to any action, liability, claim or demand.

whether a member is present during discussions and exercises

member must disclose any conflict of interest and is not conflict.

Most bodies corporate ensure that committee members are at all times covered by off ice bearers’ liability insurance. ■

Queensland – The legislation provides that committee members must act honestly and fairly and in the best interests of the body corporate and must disclose any conflict of interest in any matter before the committee.

Positive obligations on committees NSW – The committee must act with care and diligence and in the best interest and benefit of the owners corporation. Queensland – The committee must act reasonably in making decisions and in the best interests and the benefit of the body corporate.

Conflicts of interest NSW – A committee member must disclose any pecuniary interest he or she has in a matter before the committee. Particulars of the disclosure must be recorded by the committee and kept in a book and then it is up to

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights. For membership enquiries: www.arama.com.au

national@arama.com.au (07) 3257 3927

resortnews | september 2018

industry | SCA Report

New cladding regulation commencing October 1st SCA (Qld) has provided advice to body corporate managers about the new cladding regulation that require compliance within strict timeframes, as the failure to do so will result in hefty fines for the bodies corporate. After several months of consultation with the commissioner's office and SCA (Qld) as the major stakeholders, the government has finally moved forward on the issue of flammable cladding, with the Building and Other Legislation (Cladding) Amendment Regulation 2018, which amends the Building Regulation 2006 and State Penalties Enforcement Regulation 2014, set to commence on October 1, 2018. The implications of these new regulations are wide-ranging and it is clear that there will be

I am urging all self-managing bodies corporate committees to familiarise themselves with the compliance requirements of the new legislation a significant impact on body corporate managers and bodies corporate. SCA (Qld) is proactively engaging with members to sort out the foreseeable issues. The regulation implements three major deadlines, with the first an uncomfortably short six months away. In that time, the body corporate of all buildings built or refurbished after January 1, 1994 will have to complete an online assessment of their scheme. As of writing, the website tool is yet to be released, but we have been in close collaboration with the

QBCC during its creation and I’ve been lucky enough to trial a beta version.

There are options to apply for extension with the QBCC, but the applications must be lodged by the end of February. Consequently, I am urging all self-managing bodies corporate committees to familiarise themselves with the compliance requirements of the new legislation.

The complexity of the cladding issue meant that simplifying an identification process was always going to be difficult, and I worry that some committees may be tardy, further compressing the short time-frame. We have made some comments on the difficulty of the strata sector’s ability to cope with the highly complex process, but as it stands, body corporate managers should be well placed to assist bodies corporate.

For step two of the process, an owner who suspects or has identified that the building may be affected by aluminium composite panelling must engage a building industry professional to prepare a statement on the existence of ACP on the building by May 29, 2019, just two months after the first deadline. Step three instructs the owner to engage a fire engineer to assess the cladding by August 27, 2019, with completion (including a report/statement to be no later than May 3, 2021.

proceeds into the boundaries of an owner’s lot, then it might be expected to be the body corporate that is responsible for the damage to the owner’s lot.

termites has led to the termites encroaching onto the lot owner’s boundaries, the owner might want to rely upon an expert report to support their contention.

Of course, in thinking about termites progressing from common property into a lot, the question that arises is how it could be known just where an infestation started?

In the first instance, it would be up to the lot owner to arrange and pay for this expert advice to support their case, although there is nothing preventing the owner and the body corporate from discussing other arrangements in this regard.

BCCM Report

On the turmoil of termites Few pests provoke as much concern as the termite. Though small in size, termites have the ability to wreak havoc throughout a property, leading to extensive and expensive damage. While this is a challenge in any situation, it becomes particularly challenging in the body corporate context, where there may be damage to an individual owner’s lot, common property, or both, as a result of termite infestation. In this article, I will give a basic overview of how termites and the damage they cause might be regarded in a community titles scheme. Please note that this is general information only. It is not possible to provide definitive answers about where the responsibility for

rectifying termite damage might lie, as each situation is different depending upon its particular circumstances. We can begin by thinking of maintenance responsibilities in a broad sense, namely, an owner is responsible for maintenance within the boundaries of their lot while the body corporate is responsible for maintaining common property. Termite-related damage can be thought of in similar terms. As a general rule of thumb, if the termite damage has occurred through infestation within lot boundaries, the lot owner could expect to be responsible for rectification. If the infestation has occurred on common property, the body corporate could be expected to be responsible. If the termite infestation begins on common property and then

This is not something that body corporate legislation contemplates and is not something my office could advise upon. It may be that the origin of termite infestation is something that an appropriately qualified contractor could be called upon to provide advice. For example, if a lot owner considers that the body corporate’s failure to adequately provide a barrier against

resortnews | september 2018

Expert advice helps establish an objective basis on which an owner and the body corporate can discuss termite damage and how to deal with it. As is the case with any dispute or potential dispute, the first step is to communicate the issues and seek common ground. There is also a legislative requirement for a party to have undertaken all reasonable steps at resolving

SCA Report

| industry

Simon Barnard President, SCA (Qld)

Approximately 12,000 buildings have been identified by the NonConforming Building Products Audit Taskforce as being built after or refurbished since 1994 and they will receive a letter urging them to log onto the safer buildings website (not live at the time of writing) to complete the combustible cladding declarations. However, these records are by no means exhaustive and schemes who do not receive a letter may still have a legal obligation to complete the compliance process. From an industry perspective, the manageability of the process is highly dependent on preparation. I stress that it is up to the body corporate to complete the process, not the manager (unless they are specifically appointed as agents). The process involves making an official declaration, so ensure that you have insurance coverage that

protects you in the event of an incorrect declaration. You will need information on the building such as your scheme registration details (lot and plan numbers), size, and of course you’ll need to check the nature of any cladding present on the building. Lastly, you will need to provide proof of identify. I applaud Minister de Brenni for tackling the issue and attempting to ensure the safety of strata residents, and in a next step we are seeking funding support for those schemes that identify ACP cladding. The Victorian government has recently announced an initiative to offer low-interest government-backed loans to lessen the financial burden of affected owners. Wouldn’t that be a huge help for many owners in Queensland? ■

Industry leaders with an active approach to Body Corporate Management

abcm.com.au Body Corporate Management Development Consulting Compliance Services

Gold Coast 07 5552 0700

Brisbane 07 3220 9400

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Whitsundays 07 4946 3000

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Welcome to this month’s PREFERRED SUPPLIERS!

ACCOUNTANTS & AUDITORS

Chris Irons

pbb consult

Commissioner for Body Corporate and Community Management

the dispute themselves prior to accessing dispute resolution through my office. Prevention is, as they say, better than cure and in the case of termites, regular checks of termite barriers may aid the body corporate and all owners to better safeguard against termite problems. As part of its general responsibility to maintain common property, a body corporate could consider whether these regular checks fall under its responsibility and then, if so, potentially enter into arrangements with individual owners for the termite expert to also undertake similar work for lot owners, at the same time. This type of preventive measure may be a convenient outcome for all concerned and in the

Erika Thomas & Associates

BLINDS &/OR AWNINGS

long-run, save a considerable amount of expense. It might also be possible for a body corporate in this situation to argue they have exercised their statutory obligation to act reasonably by both undertaking the regular inspection and offering owners the chance to utilise the service at the same time. As I said earlier, it is not possible to be definitive about what the body corporate or owner should be responsible for in relation to termites. That said, adjudicators in my office have over the years made a number of determinations about responsibility for termiterelated damage. You might like to search some of these and determine their applicability to your circumstances at www.austlii. edu.au. ■

Darren's Blinds Curtains & Shutters

BUILDING MAINTENANCE SERVICES CIW Pty Ltd FURNITURE

Hotel Interiors

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LINEN &/or LINEN GOODS

Mainlinen

MANAGEMENT RIGHTS AGENTS

Property Bridge

SIGNS

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TELEPHONE SYSTEMS & EQUIPMENT IC Solutions All Preferred Suppliers have been recommended by other accommodation properties for their service and have qualified for inclusion in the programme. The next time you need to use a new supplier, why not make life easier and use a Preferred Supplier. The Sign of an Industry Professional you can trust!

Find a Preferred Supplier on page 61 >

(07) 5440 5322 Preferred Suppliers Make your Life Easier! Preferred Suppliers Make your Life Easier!

resortnews | september 2018

industry | Preferred Supplier Programme

You canâ&#x20AC;&#x2122;t buy your way in The programme that started it all: our accommodation industryâ&#x20AC;&#x2122;s eminent directory of resort manager referrals. For 21 years and counting, the Preferred Supplier Programme has been the place to find industry suppliers recommended by managers, for managers and assessed to qualify for listing. In the digital age, unqualified reviews and rankings constantly bubble up, varying in popularity and staying power but Resort News has been sharing the word of managers for more than two decades and will continue to do so.

The Preferred Supplier Programme is coordinated on behalf of the accommodation industry to offer a reliable source of tried-and-tested suppliers. Just about every department need relating to property management is covered by the programme so that our readers can benefit from one anotherâ&#x20AC;&#x2122;s experience and recommendations.

Not everyone is welcome What makes this unique programme truly essential for industry professionals is that suppliers cannot simply pay to be included. Preferred Supplier Programme inclusion

is conditional on the receipt of an industry recommendation and qualification. Not everyone is welcome; only those suppliers who have been recommended by owners and managers in the industry as having provided top performance, fair pricing, sound work or products and overall total satisfaction. Once a recommendation is received, the supplier is put through a secondary qualification process to ensure they can deliver the highest levels of service, guaranteeing that they are committed to developing improved products and services for the industry. Only after satisfying these criteria will they

resortnews | september 2018

be given the option to be listed as part of the Preferred Supplier Programme. As the unoff icial industry bible, Resort News is proud to congratulate and support those within the accommodation sector who do a good job. The Preferred Supplier Programme is one way this is done; weeding out any unprofessional or unscrupulous suppliers to help the cream rise to the top.

New areas of recommendation We encourage you to nominate your favourite suppliers so we can continue to maintain the

Preferred Supplier Programme

Suppliers cannot simply pay to be included: inclusion is conditional on industry recommendation and qualification industry’s most comprehensive and reliable source of recommended products and services. “There are naturally some areas of supply that are used infrequently, so managers might not think to provide a recommendation,” said Preferred Supplier Programme coordinator Gavin Bill. “We are now targeting to fill any gaps in the programme, so that we can guarantee an even more well-rounded service to all our readers.” If you would like to recommend the key suppliers that are important to the success of your business, please email Gavin at Resort News: service@ resortpublishing.com.au Best way to make friends? Be a good friend The same principle applies to guests as well as suppliers. When checking in a family at

| industry

Mahoneys independent law firm has a particular expertise in management rights and a long association with Resort News and the Preferred Supplier Programme.

your property, if you discover that they booked with you based on recommendations from one of your regular guests, you will likely treat that regular guest with gratitude. You might give them an upgrade at their next visit, or simply make a phone call to thank them for their referral.

“My firm and I have participated in the Preferred Supplier Programme for most if not all of the 21 years it has been operating. It has proven to be an excellent source of new work for us and we look forward to continuing our participation in the programme.” – John Mahoney, Mahoneys

The same niceties extend to supplier services. It’s always a great compliment to nominate someone for doing their job well and offering an exemplary service. Doesn’t it feel great when a guest recommends you to a friend? If you would like to refer others to a supplier you particularly enjoyed working with, please get in touch with the Resort News team. Reward for effort is a true joy, so we hope to offer this programme as a reward for the efforts of all our industry readers. Keep up the great work!

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industry | Preferred Supplier Programme

Here’s what some of our long-standing preferred suppliers had to say:

Holmans Accounting and Taxation has the industry know-how that is fundamental to a management rights purchaser’s future success and Tony Rossiter believes that the Resort News Preferred Supplier Programme has in-turn contributed to the success of Holmans. “Holmans endorses Resort News and the Preferred Supplier Programme and I acknowledge the important contribution that this initiative has made to the management rights industry for 21 years. “I absolutely recommend that all resort managers and service providers should use and benefit from this important resource, and fully participate in the programme.” - Tony Rossiter, Holmans

Directors, Jenny and Jeff Riseley and the friendly staff at Select Strata Management proudly acknowledge their company’s (long standing) Resort News industry Preferred Supplier status and celebrate with us, our 21 year milestone. In 2005, Jenny and Jeff purchased the Sunshine Coast off ice of Strata Solutions and renamed it Select Strata Management. They have been dedicated to our magnificent industry ever since. They offer an outstanding knowledge of body corporate matters and friendly and professional body corporate managers, who have a lifetime of experience in this industry. Jenny said: “I have been in this

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Resort News is a great publication that has always been a useful source of information for us. Being part of its Preferred Supplier Programme has been an important tool and we see it as a reward and recognition of our skills.” The Preferred Supplier Programme has proven valuable to accommodation managers when accessing industry specialists (such as Select Strata) safe in the knowledge they have been recommended by other accommodation professionals and are committed to the resort industry.

- Jenny and Jeff Riseley, Select Strata Management

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resortnews | september 2018

Preferred Supplier Programme

| industry

I have always been a huge supporter of the Preferred Supplier initiative, and proud to be one of the first businesses to be enrolled 21 years ago. - Dennis Mackenzie, Property Training Australia

his long history with both Resort News and its Preferred Supplier Programme.

Property Training Australia (PTA) is an independently owned, registered training organisation offering online and classroombased courses to meet the needs of the real estate and management rights industry in Queensland. CEO of PTA with over 30 years in the industry, Dennis Mackenzie is the pure definition of an industry leader and he can fondly recall

“I have always been a huge supporter of the Preferred Supplier initiative, and proud to be one of the first businesses to be enrolled 21 years ago. Like Resort News we are a family-owned business, with professional trainers who have owned their own resort management rights and are completely invested in the industry. We are very proud of our training

standards and our long-term contribution to management rights, we know what this industry needs and provide no less than the best when it comes to our students. One of PTA’s first tips to our trainees is to read the Resort News publications!”

“We are pleased to be associated with and to support Resort News in promoting the accommodation industry. The benefits of having a publication that articulates and discusses contemporary issues has been acknowledged by many of our clients and we share the same view. “We look forward to making further contributions over the coming years.”

- Dennis Mackenzie, Property Training Australia

– Peter Spranklin, Spranklin Legal

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resortnews | september 2018

industry | Preferred Supplier Programme

Resort News readers respond to the Preferred Supplier Programme:

“When we first took over management of the Noosa Keys Resort in 2010, we were new to the accommodation industry and, being from interstate, had no contacts with local businesses. “As managers of a busy accommodation complex, we know that it can be difficult to find quality suppliers (sometimes at short notice), so having access to a directory of qualified tradespeople and professionals has been a huge help for us! “The Resort News Preferred Supplier directory has been a really helpful resource for our property, and we would recommend all other managers use it whenever possible.”

“We found the Resort News Preferred Supplier Programme an invaluable resource as we got established, particularly in forming relationships with industry professionals, such as Holmans Accountants and Pevy Lawyers.

day-to-day running of our resort over the last eight years, as we knew that the businesses had been recommended by other accommodation industry managers. “We have very much appreciated that Resort News provides this referral service.”

“We have also found the directory very useful in the

- Chris & Christine Pullin, Noosa Keys Resort, Noosa Heads

– Brett & Rem Rasmussen, The Wharf Boutique Apartments, Surfers Paradise

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resortnews | september 2018

Preferred Supplier Programme

| industry

Here is just a slice of our preferred suppliers and why you should use them... Why use Archers the Strata Professionals?

Why use NQ Lending?

Archers the Strata Professionals was founded in Queensland in 1982 and is a business built by reputable and experienced strata industry leaders. In our time, we’ve built a reputation based on nurturing active relationships with our clients.

NQ Lending is a small family business that specialises in accommodation finance.

We know that our clients appreciate a truly responsive strata manager that; always provides up-to-date information, encourages personal contact with managers and takes a proactive approach in all matters. Archers takes pride in embracing the newest technologies which, coupled with our well-trained and highly-skilled team, means we are always able to respond quickly and efficiently to client requests. We work hard to retain great staff, so your Strata Manager will be well matched to your specific needs. We place a great importance on training and education, so all staff from accounts through to senior managers are experts in their fields. Because of this, you can expect absolute accuracy in all Body Corporate communications and documentation.

Every client deals directly with the owner and director, Danny Adams, a veteran of 35 years’ experience in the finance industry. “At NQ Lending, we draw on years owning and operating our own business, along with many years of knowing and understanding our client’s business, to provide a first-class experience to both new clients and our loyal long-term customers,” Danny shared. NQ Lending treasures the trusted relationships that have been built with accommodation managers and associated industry professionals, that endeavour to create success and add value to each and every clients charter. “Having a loan approved for your business purchase is a step in the right direction; however, knowing that the loan is at the most competitive interest rate and structured to best suit your cashflow and ongoing business needs is paramount.”

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management rights income verification management rights trust account auditing preparation of bank review / re-finance figures

The Management Rights Lawyers

erika has been proudly associated with the management rights industry for over 20 years phone 61 7 5575 9649 fax 61 7 5578 7219

mobile 04 1184 1868 email erikathomas@bigpond.com

www.managementrightsauditor.com.au

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strata title consultants & body corporate managers

resortnews | september 2018

industry | Preferred Supplier Programme Why use Holmans? Holmans is a full-service accounting firm, well known and well respected within the accommodation industry here in Australia, around New Zealand and even beyond. The firm has Tony Rossiter at the helm of its specialist management rights and accommodation industry team. Regular readers will recognise Tony as a long-time Resort News

column contributor; you’ll find many of his ‘By All Accounts’ articles in past issues. The highly dedicated Holmans team offers a wealth of experience and value-added services to the many hundreds that it represents across Australia and New Zealand; from operators of management rights, hotels, motels and serviced apartments, to those running retirement villages and tourist or holiday parks.

Recognised for superb international taxation expertise, Holmans provides specialist advice not only to New Zealandbased individuals looking to make the move across the ditch but also, in more recent times, to an ever-increasing number of individuals emigrating from Asia, South Africa and the United Kingdom.

tax legislation makes this firm the ideal choice when selecting a professional accounting advisor. With a dedicated team of specialised advisors, Holmans has been on the front-line of countless developing trends around the industry.

The depth of Holmans’ knowledge and understanding when it comes to international

Why use REI Master?

Why use Small Myers Hughes?

REI Master prides itself on being at the forefront of cutting edge technology and continual development of our products.

Gold Coast-based Small Myers Hughes Lawyers provide legal expertise and services to clients throughout Australia and specialises in management rights.

Incorporating best industry practices, REI Master enjoys an unparalleled, enviable reputation throughout Australia and New Zealand for our commitment to over 1350 customers, with 99 percent of support calls returned within 20 minutes. We are the number one choice for management rights complexes with a specific product offering for both the permanent and holiday-style of complexes handling everything to do with running your business successfully. Developed using the latest Microsoft technology, REI Master is a powerful, feature rich and highly functional software package whilst remaining extremely flexible and user-friendly. Whether it’s reservations, managing your trust account, completing your end of month, connectivity to third parties and access to the latest online tools to help with your business’ success, REI Master remains the market leader in the management rights industry.

Property lawyer Col Myers focuses solely on management rights with particular interests Col Myers in strata and community titles. He is a highly regarded legal practitioner, who has significantly contributed to the management rights industry over the last 30 years, particularly in Queensland, New South Wales and Victoria. "Management rights is an industry I am passionate about. I highly value my relationship with clients and other key industry professionals. I have acted for numerous people buying and selling management rights and I regularly assist developers in establishing management rights in complexes." He handles all aspects of a management rights transactions and acts for a variety of clients establishing, purchasing and selling management rights and also advises bodies corporate on strata related issues and disputes. Col's extensive expertise means he can proactively advise when and how to best handle management rights to work effectively for individual scenarios.

NQ Lending

SUNSHINE COAST & QUEENSLAND WIDE

Management Rights & Motel Finance A Preferred Supplier to the accommodation industry for the past 7 years

Danny Adams

One of the Sunshine Coast’s most experienced firms in on-site

0408 772 295

Management Rights Transactions

Damian Quinn (07) 5443 5266 Level 1, 13 Carnaby Street, Maroochydore

www.simpsonquinn.com.au

www.nqlending.com.au danny@nqlending.com.au

Your North Qld Finance Specialist Astute Financial Management Pty Ltd | ABN 59 093 587 010 Australian Credit Licence Number 364253 resortnews | september 2018

Preferred Supplier Programme

Why use Mahoneys?

Why use Red10 Finance?

Legal advice based on years of experience and the kind of knowledge needed to write legislation (not just act on it) gives Mahoneys an edge in the highly specialised field of management rights.

Red10 Finance, created by Nick Smith, is a finance company that offers a wide range of services, from business facilities to home loans and even car loans.

Admitted as a solicitor in 1978, John handled his first management rights transaction some 38 years ago and it has been a major part of his practice for the past 26 years. Building on its reputation for offering a very high level of service to clients within its chosen field, Mahoneys is now a highly respected and successful business that currently employs some 30 people and has premises to cater for steady growth over the next three to five years. “Our vision was to have a firm where client service was our focus. We have expanded on the basis of providing a very high level of service and retaining good strong personal relationships with our clients,” John said. Mahoneys is widely recognized as Queensland’s in not Australia’s leading specialist management rights law firm, one that sets the trends that others follow.

Why use Pest-Nett? Pest-Nett currently services approximately 50-unit complexes and hotels from high-rise to townhouses. We are fully accredited company with the ABMA Australian Building Management Accreditation and Strata Mastery and also members of the Australian Environmental Pest Management Association AEPMA and a Preferred Supplier to the accommodation industry, so you can be assured our treatments are conducted to the highest standards. We have pest solutions for cockroaches, ants, spiders, rodents, termites, birds, bed bugs as well as other numerous pest species.

| industry

Red

F I N A N C E

Using their extensive knowledge of the current banking industry they are able to tailor structures that benefit the client. Accommodation industry specialists with the ability to diversify to other industries, Red10 Finance have highly qualified personnel. A career banker for the past 30 years over three different countries, Nick has seen a Nick Smith variety of economies, market trends and bank policies change over the years. Since 2006, as the national expert for accommodation for one of the big four in Australia, his knowledge of the industry and its key stakeholders is suitably strong. Nick is a well-known and respected member of the accommodation industry with a down to earth easy-going personality, but as a highly professional advisor. Acknowledged as a preferred supplier Red10 have recently assisted numerous clients achieve their goals within the accommodation industry.

Please don’t hesitate to contact us if you would like a free consultation, require any quotes or to arrange an appointment to see how we may be of service to you.

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industry | Preferred Supplier Programme

Family-owned and operated: just like you One of our first Resort News industry Preferred Suppliers and a huge supporter of the programme since its inception 21 years ago, L&M Gold Star is also celebrating 2018 with us, with a remarkable 55 years in the industry! Simon Bright, general manager of L&M Gold Star, revealed: “For us it is all about customer service, the accommodation industry has unique requirements, with 55 years of history/experience we understand how we can help unit managers and solve any issues that may arise, but we also continue to learn as the industry evolves and where required, expand our service offering. Being part of the Preferred Supplier Programme, is about supporting the industry that has supported our business.” This family-owned and operated business was originally founded by Neil Petch in 1963 in Lismore and Murwillumbah, moving to Mermaid Beach, Gold Coast where it has successfully operated for over five decades. It is an electrical appliance retailer, wholesaler and rental organisation has a number of divisions including retail, commercial, hospitality, builders, rentals, air-conditioning, commercial bedding and the recently added bathroom ware department. Now operated by the fourth generation of the same family: David, Jack and Sam Hockley (sons of Trina Hockley - owner since 1990) it has grown to be a thriving, multilocation, ever-expanding business, indeed a resort’s go-to supplier.

L&M Gold Star, general manager, Simon Bright

Trina Hockley, owner of L&M Gold Star since 1990 General manager, Simon Bright was brought on board in 2014 and he leads with extensive knowledge of the industry gained from his various corporate experiences. Recently, it was Jack Hockley who Resort News caught up with and he told us: “L&M has changed significantly in the past 50 years and continues to evolve to meet the changing needs of their customer. You have to be able to rapidly adapt to market conditions and opportunities as they arise.” L&M is a very respected industry specialists and continues to have a solid long-standing relationship with key suppliers over the last 50 years. The business is now an industry icon and Jack proudly shared a little bit of its history with me...

“L&M used to import National air-conditioners and TVs before they entered the Australian market and had proprietary-branded TVs when colour television was first introduced in Australia! Hospitality icons such as the Sheraton and Hilton even had their own model televisions manufactured in Japan on behalf of L&M. “L&M was also the original importer of Daewoo whitegoods into Australia. Branded L&M Jetset – there are still many of these bar fridges in operation across the country. You might even remember the L & M Jetset bedside clock radios and built in control panels. “L&M even introduced the hang-up hairdryer into Australia and was instrumental in ensuring that irons and ironing boards were installed in the hotel rooms across the nation.” The company was a member of Retravision QLD, where both Trina Hockley and her father Peter Hughes were directors at different times. There were two retail stores both on the Gold Coast. They then joined the Betta group

resortnews | september 2018

with stores at Pacific Fair and Robina but now are L&M Gold Star after purchasing the well-respected Gold Coast business of Gold Star Electrics. L&M’s history with the accommodation industry includes a chapter as the location of the ARAMA office in the very early years! Jack told us that being a preferred supplier has been important to L&M Gold Star because: “Being a preferred supplier means that it is our customers who have recommended our service, this means the world to us. We try to give back to the industry whenever we can by being involved in golf days, and supporting ARAMA. We believe we are partners in the industry and we are always looking at ways to reduce managers’ workloads. We are currently looking at some new energy saving devices.”

Preferred Supplier Programme

GYMWORKS specialises in commercial fitness equipment and has been a Preferred Supplier for the Brisbane, Gold Coast and Sunshine Coast regions for more than 10 years. “Originally, we were referred by a single client, then another, and another. At which point, we realised that the Resort News Preferred Supplier initiative was a well-respected programme so, we jumped on board. It’s been over 10 years with Resort News and it has certainly been a success with an increased awareness of our company in the accommodation industry." "We look forward to many years as a Preferred Supplier in this industry.” - Ben Bass, GYMWORKS

| industry

“The facts speak for themselves,” says David White, founder of Lifestyle Cleaning when asked about the Preferred Supplier Programme. “We have been a part of the Preferred Supplier Programme in Resort News for more than 10 years now, it is the only form of advertising that we have ever done and our client base and enquiries for new work increases every year. “Lifestyle Cleaning was borne out of a pre-emptive retirement plan fifteen years ago that left me wanting to be busier so after renovating a house, I came up with the concept of providing professional cleaning services to resorts on the Sunshine Coast. “Although the workload can vary, Lifestyle Cleaning now has more than 30 staff - most of them long-term – and where possible we like to keep the same staff looking after a resort. That way they get to know the managers and even the regular guests so there’s continuity each year, and more importantly a personal touch. “Being a part of the Preferred Supplier Programme is important for us. I know the publication goes to all resorts within my area and that the managers read it extensively because I’m always hearing that they got my name from the publication. “I look forward to further growth.” – David White, Lifestyle Cleaning

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Over 40 years of service to the Management Rights industry, providing assistance in: Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business? We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au resortnews | september 2018

industry | Preferred Supplier Programme

The Preferred Supplier Programme assisting the industry

For over twenty one years in Australia the Preferred Supplier Programme and directory has been an extremely valuable and effective tool for accommodation managers.

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).

It allows managers to access industry specialists who are committed to the highest levels of service and dedicated to the accommodation and hospitality industries.

Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met. 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.

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: 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).

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. 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. 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

resortnews | september 2018

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 â&#x20AC;&#x201C; 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.

management | Thinking Accommodation

Is it getting harder to sell smaller management rights? Rules are interesting. Some think the more rules, the better while others subscribe to the school of discretionary decision-making. I am a fan of some common sense latitude in most decision making processes, particularly those involving the individual merits of a finance application. It is true that many cry out for absolute certainty in all things finance. Problem is, hard and fast rules will inevitably gravitate to a lowest common denominator environment where we will all be compelled to walk as slow as our slowest borrower. Have a look at some of the people giving evidence at the banking commission and I would propose that we will be walking very slowly indeed. Post-GFC, we slowly moved to a fluid credit environment where broad-based principals of prudent credit policy were overlaid by the discretionary powers of credit managers to make decisions reflecting the specific circumstances of the borrower and the transaction. Thanks to our friends in government, and to the banking enquiry, those days are over (for the time being). The enquiry is shining a very bright light on so-called ‘dodgy lending practices’ and placing significant weight on evidence being given by borrowers who feel they have been badly done by. That would be borrowers who happily took the loan but failed to take the responsibility that comes with it. The banks are taking a lead from the commission and even before the findings are finalised have acted knee-jerk-like to ensure they please the regulators. As a result, borrowers need to fit a very specific box with little wriggle room to accommodate individual circumstances. The so-called common-sense credit decision is out-the-window, replaced by a rule-book-driven, tick-all-the-boxes approach. This is bad news for small business, given that access to credit on reasonable terms is a primary

The inescapable outcome of the current situation is that 70 percent gearing for smaller management rights, particularly those with 10year terms, is becoming extremely hard to obtain driver of value for these operators. The simple economics is that the less people who can access credit = less potential buyers = lower demand = lower prices. While the current situation is certainly impacting small businesses of every sort, our obvious focus is on accommodation assets and (in this case) smaller management rights, specifically. For the purposes of this discussion, I will focus on rights with lower net profits (say <$150,000) and a balance term on agreements of less than 15 years.

Let’s say you are a vendor and, having listed your property, an interested party comes along… They have been doing some research and have it in mind that 70 percent gearing is available. Here are a few of the more important hoops they need to jump through for finance. Demonstrated debt servicing assuming interest rates go up two percent (as high as three percent for some lenders) on a principal and interest basis for all debt. That’s any current debt plus what is being borrowed to buy the rights. If an interest only period is being required, then it’s P and I at the higher (so called sensitised rate) over the balance term of the loan. Put simply, if the loan term is 10 years and a two-year interest only period is being requested then the borrower has to be able to pay off the loan over eight years at the higher rate. For many deals, the maths doesn’t work so no interest only is available. Strike one. Maximum loan terms are generally 15 years or the balance term of

the agreements, whichever is the lesser. This is not always the case, depending on the bank, but more often than not these days. Balance term of agreements = total loan term so anything less than 15 years puts additional pressure on debt servicing. This can sometimes be mitigated to some degree by longer finance terms against notional real estate secured portion of total lending, but this is getting harder. It amuses me that banks may limit debt to 10 years because that’s what agreements say but will do a 30-year home loan for a borrower with not much job security past the next company restructure. A strong history of agreement top ups used to carry the day, not any more. Strike two. And now, the next hurdle. Living expenses are no longer allowed on a benchmark basis. The commission have made a big deal out of banks making standard allowances for living expenses. Until recently, an allowance of say $40,000 for a couple and $5,000 for each dependent child was pretty normal. Now every borrower has to do up a personal budget which must be used in debt service calculations. This makes perfect sense to me for PAYG employees, but it becomes challenging for self-employed borrowers. There has always been a blurred line between personal and tax-deductible business expenses, so some common sense and discretion is required when assessing business debt service ratios. Sadly, the new rule book fails to cope so arguing the blurred line is becoming very challenging. Strike three. Tax strategies and deductibility are becoming equally difficult to argue. While we see any number of legitimate tax strategies in play the banks are choosing to apply the

resortnews | september 2018

Mike Phipps Mike Phipps Finance

new rules in a truly bizarre fashion by deciding to ignore the benefits of effective tax planning. The outcome is that lender allowances for tax obligations regularly exceed the actual tax that most of our clients will pay. Given that debt servicing must be proven after living expenses and tax we have, unfortunately, arrived at… Strike four. I could talk about numerous other side issues such as the banks starting to cap loan terms to notional retirement ages, but I think you get the picture. The inescapable outcome of the current situation is that 70 percent gearing for smaller management rights, particularly those with 10year terms, is becoming extremely hard to obtain. Unless the buyer has substantial external income (one partner works outside the business for example), I think the more likely gearing ratio will be 60 percent to 65 percent maximum. The obvious temptation for some buyers will be taking their available equity and buying a bigger business, where 70 percent gearing might be available rather than putting more into a deposit for a lower net profit and lower return.

Ultimately, I suspect this is all about price. All things being equal every building has a debt level it can sustain. That might be 70 percent gearing, it might be 50 percent. The important thing for vendors to understand is where their building sits and what that might mean for value and demand. My personal view is that lending to standard module management rights with strong top-up histories provides one of the lowest risk small business opportunities for banks. Let’s hope our friends in government understand the dynamics at play here and don’t allow the extremely small number of bad apple cases the commission has uncovered to negatively impact us all. Something about babies and bath-water springs to mind. ■

Legal Ease |

Topping up made easy

management

John Mahoney Mahoneys

Even some of the best managers are facing scrutiny and opposition

It is fairly widely accepted that in the past couple of years there has been a noticeable increase in bodies corporate opposing resident manager attempts to top up their management rights agreements.

It is a trend I have noticed with some concern. Even some of the best managers are facing scrutiny and opposition.

to performance issues and conflict, the vast majority of resident managers go about the performance of their duties competently and diligently. As I have written many times, a manager should not start thinking about a top up only when the time comes to propose a motion for that on the AGM agenda. The time to start thinking about it is when you purchase your management rights. At that time, you need to recognise that at some stage during your time at the complex you will need to top up your agreement/s and when you do, you will need to have your owners support you.

Such opposition stems from problems that a minority of bodies corporate have faced with poorly performing managers encouraging opponents of management rights to tar all managers with the same brush in arguing why agreements should not be extended or topped up.

It helps to recognise that a top up is not a “right”.

While unfortunate that, in recent years, there have been a number of people buying management rights without really understanding what they have purchased, leading

It is more in the nature of a reward for good performance. A body corporate is under no compulsion or duty to support a top up. Owners are quite entitled to vote no. You need to give them every

reason to vote yes and no reason to vote no. From the very beginning, you need to build a strong relationship with your owners (whose votes will one day determine whether you top up your agreements). You need to demonstrate to your owners that you care about them, about their complex and about their investment. As I have written before, rather than ask, “How can I do less work and be paid more for it?” ask, “How can I improve this complex for my owners and build a good relationship with them?” Do that from day one: Understand your duties, perform your duties to or in excess of the owners’ expectations and don’t be afraid to go the extra mile even if something may not strictly speaking be part of your specified duties. Just as importantly, you need to make sure owners (especially your investment owners) are aware

resortnews | september 2018

of the good work you are doing. Keep them regularly informed with newsletters or social media posts. Send photos of how good the complex looks and point out your high occupancy rates and rents. Talk to those on the committee with whom you enjoy a good relationship about your proposed top-up, before you submit your top-up motion. Your lawyer should be able to arm you with the wording for communications to your committee about the benefits to the owners of supporting your top up. If you have built the right relationship with your owners, you should not face too many difficulties or opposition. There’s lots of material to give clients facing opposition to a top up from a committee or owners, but if you start thinking about a top-up from the beginning of your tenure as manager, and follow the advice in this article, you will hopefully not have too much need for that. ■

management | Strata Trends

Preventing common disputes

Grant Mifsud Partner, Archers the Strata Professionals

In every strata scheme there are a set of governing bylaws. These bylaws serve a variety of purposes, including: protecting residents from harm and potential hazards, ensuring building processes run smoothly, and maintaining a harmonious, dispute-free community. If you are involved in strata, it is important to familiarise yourself with your scheme’s bylaws in order to better understand the building’s processes and avoid the possibility of a dispute or breach. The bylaws regulate the conditions applying to the use of the common property and the lots within scheme and the committee is required to enforce bylaws to the mutual benefit of all members of the scheme, the normal process being:

•

If a bylaw is breached, the body corporate may issue a notice of a continuing or likely future contravention of a bylaw to the offender

behaviours and practices are restricted within their scheme. Below we have provided important tips on what there is to know about the four Ps:

parking boundaries.

Failure to comply with a notice issued could result in a dispute application lodged with the Off ice of the Commissioner for Body Corporate and Community Management

Pets

Your scheme may have a bylaw stating that towing of vehicles may occur if parked in contravention and towing may be practiced by your scheme under direction of the committee.

An order made by the commissioner’s off ice may be enforced by a Magistrates Court

The most common disputes have come to be known as the four Ps: pets, parking, parties and, more recently, passive smoking. Most disputes occur due to a simple misunderstanding of the bylaw or because residents remain ill-informed about what

Most schemes have bylaws stating that pets are permitted, subject to body corporate approval. The body corporate cannot unreasonably refuse a request to keep a pet.

There are no effective remedies in the BCCM Act other than breaching offenders.

Parking

The body corporate should ensure that due notice of pending towing is issued to the offending vehicle owner so that the opportunity to remedy the bylaw contravention and comply with any orders sought is given.

Most parking issues are due to visitors using the visitor parking in excess of the allowed time, permanent residents using the visitor parking, parking in a neighbouring resident’s space or parking where there is no defined

If you are in a large scheme, where the parking is governed by a building management statement (BMS), as your governing legislation is the Land Titles Act, you can enact effective site rules to enable towing.

Guide, hearing or assistance dogs are also permitted under the Act.

Future Managers:

Next generation in good hands

Lyn Pearsall Management Rights Specialist , MR Sales

The old adage, ‘the apple doesn’t fall far from the tree’ rings true for entrepreneurial couple, Guy and Kathryn on the Gold Coast. Guy’s parents’ owned and operated management rights and are still actively involved in the industry. Guy is a qualified real estate agent and has an engineering/ mechanical background, plus many years’ experience working in the building and trade industries. These skills give him the ability to save owners in the rental pool the extra costs of having tradies attend to minor repairs, i.e. circuit breakers that trip, batteries going flat in remotes, smoke alarm inspections, etc. Guy and Kathryn Elliott

He does the administration, sales and maintenance, rental reviews,

inspections and body corporate management. Kathryn, on the other hand, loves the outdoors and does the lawns and gardens. Her other love is interior design and decorating. She intends to take this to another level and acquire her diploma in interior design. Her background and experience involves owning and operating a successful gift and homewares store for 10 years. Her skills are evident in the beautiful home they occupy, which Kathryn remodeled from a dank and disjointed villa into a Hamptons-style, free flowing home and welcoming office. Their philosophy is to run a ‘best practice office’ in every regard – from training to use of technology and commitment to high

resortnews | september 2018

standards. They have an ongoing development program to ensure their knowledge and skills are always at the peak of the industry. Guy is constantly monitoring the staff and uploading new systems, enabling the business to run smoothly. They are committed to the industry, they are hard working. They upskill and promote their apartments to owners, prospective purchasers and prospective tenants. They are from a country town, Blackall, and treat everyone with respect as all country folk do! Their professionalism and commitment is obvious from the first meeting. Guy has invested in the real estate side of the business and is making a difference because of his IT ability, photography (he uses a drone to take advantage

Strata Trends |

Parties A party may breach the bylaws if the excessive noise caused by occupants and their guests disrupt the peaceful enjoyment of other occupiers.

Outside of this timeframe, police can be called and a report made seeking their enforcement.

Passive smoking The legislation does not prohibit

If your neighbours are having a party and the noise is causing disruption, the first step is to politely and directly address them about it. Often neighbours are unaware that their activities may be causing problems for other occupants.

smoking within the boundaries

Should a noise complaint persist beyond your initial approach, then your strata committee may consider issue of a Breach Notice that places the resident ‘on notice’ that further breaches may result in action.

smoking is affecting others.

Local government will have a timeframe in which excessive noise is considered acceptable.

and will resonate better than a

of all amenities of his complex) and social media skills. Along with Kathryn who does the styling of the properties – it is a win / win for owners and their business. Kathryn has her eyes set on her interior design course and in my opinion she would already qualify.

financial planning and goalsetting; they have exit strategies; they know diversification and they network.

They are immaculate and confident yet seek advice when needed, they communicate with their owners – both investment owners and owner occupiers regularly.

The management rights industry is an exciting one – that is why we became managers in the first place and many of us have been very successful in owning and operating these businesses.

Guy and Kathryn are an example of a younger generation of resident unit managers that I am seeing come through the industry and it gives me confidence that the management rights industry is in good hands moving forward.

Coming from personal experience, I know we all work hard and I applaud you all for your dedication and efforts in helping the industry become what it is today.

This new generation of managers are computer-savvy; they practice

management

of an occupant’s lot. Bodies corporate can restrict smoking on the common property with an appropriate by-law. Bodies corporate should make all efforts to inform a resident when their If you are affected by smoke drift from a neighbouring resident, the first step is to politely and directly address them about it. A direct approach is often appreciated written notice or a call from the body corporate. ■

Together with youthful energy and positivity, they explore new opportunities and they don’t become complacent.

I look forward to seeing what the industry has to offer and will become as we progress into the future. ■ resortnews | september 2018

management | Opinion

The management rights industry is a victim of it's own success I became involved in management rights when I moved to Brisbane in 2003, after living and working as an expatriate for eighteen years.

•

sales are now transacting every five years on average

•

there is a significant increase in the number of Body corporate breaches

It was a quite shock to come back to my home country after so long and, like a few of us at the time, I was approaching fifty. With my extensive international experience, I expected to be employed in an executive role with little difficulty. I had been managing international breweries all over the world and had a wealth of diverse cultural, religious and educational experience. Unfortunately, I was unable to secure any suitable employment, and this was devastating.

•

top-ups are more difficult to get, and assignments have become time consuming and problematical

•

vendor costs for selling have in many cases substantially increased, even though selling commissions have fallen

•

bodies corporate are sometimes engaging inexperienced legal counsel to advise on an assignment of agreements

I was considered a dinosaur and too old to be employed in any executive capacity. After speaking to others in similar situations I came to realise that it was a relatively common experience for folk of “a certain age”. With this in mind, I had to consider alternatives and at this juncture I started to consider MR as a career. At that time, there was little literature available, far less regulation, and to place this into perspective, Gallery Vie had not even been built. Despite the fact that there was less regulation in place, the system seemed to work quite successfully: ten-year agreements were worth as much as twenty five-year agreements; banks were generous and were lending seventy percent of the total purchase price; bodies corporate never refused assignments and top-ups were easy to obtain. There were no third parties or ‘industry outsiders’ involved adding additional unnecessary layers of complexity to milk an extra buck from the industry. The industry norm at the time was that someone would stay in a complex for two-to-three years, build the business up, sell and move to a larger one. These were the ‘glory days’ of our industry. So, what has changed? In my opinion, several factors resulted in the situation we have today:

•

the vendors have little or no control over the lawyer chosen by the body corporate

•

first time buyers also incurring additional costs because bodies corporate are asking for additional elements which are not legally required.

Why did all this happen? My view is that the MR industry is a victim of its own success! Commencing in the 1970s, it had been almost a ‘cottage industry’ that flew under the general public radar. It was a safe-haven business enterprise and had few if any risks involved. It was also considered a lifestyle business and the ultimate home business at the time: “Mum and Dad” owned and ran the business and their financial future depended of how well they carried out that task. In more recent years, we have had an influx of people interested in MR, and multipliers started to surge. Partly due to the entry of big corporate chains in the industry in the early 2000s, MR suddenly became flavour of the month. Sadly, in even more recent times, we have seen new and inexperienced MR brokers without the industry knowledge or understanding required, hang out their shingles. I used to be able to say that my opposition brokers were fierce but ethical competitors and that we worked within traditional values,

such as ‘may the best man win fairly’. It is unfortunate that in some cases, I can no longer say this! The industry has changed significantly, with managers placed in complexes they should not have been. They have not been advised as to what the job entails or what is expected of them. They have not read their agreements, nor understand the contents. Many seem to have been told that the body corporate salary is theirs, regardless of whether or not they do the work required. Basic roles and responsibilities of the job have not been explained and established. The result is that committees and body corporate managers are increasingly breaching managers. A leading body corporate manager recently told us that they used to get about fifteen breach notices per year and about half were genuine. Now, they get fifteen a month and nearly all are genuine. This is the reason that some committees have become resistant to top-ups and now ask a huge amount of questions. This is the reason that assignments have become more and more problematic. Committees are also insisting on more training than is legally required and in many cases, incoming managers are forced to spend considerable amounts of money to fulfil conditions that are meant to weed out the unsuitable but are the equivalent of using a sledgehammer to crack a nut. An old boss of mine once said never bring me a problem without your solution; even if it is wrong, we can work on it. I therefore propose the following for discussion. Firstly, in my opinion much of this is a broker problem. As such, we must take a step back and objectively review any practices that have crept into the industry and that are intentionally inflating the prices and making for an unproductive and hostile working environment. There are some people who simply do not have the necessary attributes to successfully run an MR business. Reputable and experienced brokers are not afraid to give such advice to those who should receive it.

resortnews | september 2018

Robert Collins RAAS Group

I am amazed when I hear of brokers who charge a commission rate to sell a large MR business that is less than the large residential agents charge to sell a suburban house. On top of the commission, the suburban agent charges the house seller $5000 to $30,000 to advertise the property. Anyone experienced in our industry knows an MR business is much harder to sell than a home and we sell less of them. The complexities involved; the hand-holding involved; and the massaging of other professionals from valuers to accountants to bankers involved only comes with years of experience. We need to implement a greater amount of governance to the industry and be paid for what we do. An experienced broker, who vets the buyers to ensure suitability, will ultimately save the vendors’ money in the long run. There is an old saying (I am not sure who originally said it) that goes, the bitterness of poor quality lasts longer than the sweetness of cut price. Buyers must also be educated so they understand what is expected of them and to set them up for success with their new business. We should assist ARAMA to proactively accomplish acceptable standards for newcomers, and we must convince the Office of Fair Trading that just because you are breathing and have a pulse, you are entitled to a Resident Letting Agents Licence! I believe the problematic down cycle of the last couple of years is coming to an end, and with your help we can push forward to brighter days. So, to all our great industry professionals (you all know who you are) and of course my fellow “knights of the road”, hang in there as it is only a matter of time before the oil will rise to the top. Please let me know your comments and opinions. I value any feedback from my fellow professionals as well as the people that none of us can do without - the vendors and buyers. ■

To Market |

Controlling your guest relationships in the digital world

Everybody is talking about direct bookings – this year, more than ever! Local and international trends indicate that industry marketers are taking on the OTAs. Apart from the obvious benefit of lower commissions generated by direct bookings, the majority of small-to-medium operators fail to understand the biggest benefit – owning the customer relationship. We all know that OTAs are a necessary evil as they have huge budgets and an incredible amount of brand awareness via saturated TV campaigns and high-reach digital marketing endeavors. We also know the information requirements for making a booking, but why do OTAs only provide you with basic details? Sometimes not even a guest email address… Have you ever considered why

this level of information about your customer, who has booked through them into your hotel, is so limited? The answer is that they want to own the relationship. They want to own the data. But what does this mean and what can they do with the information? Through strategic digital marketing, information such as email addresses, mobile phone numbers and IP locations can be used to create profiles and identify trends to further refine an OTA’s digital marketing effort, and identify new potential customers. When you generate a direct booking, not only are you not paying commissions to a thirdparty but you are gaining access to vital details that can be used to cross-sell, up-sell and ultimately nurture a relationship with the customer that will gain repeat

business and vital word-ofmouth referrals. Let’s take their email address as an example: This allows you to send them a pre-stay email with special offers on dining, in-house services or partnered packages. An email address also allows you to request a review post-stay that you can use on your social media platforms and website. Above all, you can include them on future marketing efforts to generate repeat business. One of the strongest pieces of information an operator can have about their guest is the reason for their travel. This is often overlooked by the OTA as they are playing the numbers game and focusing on sales volume. To a small-to-medium-sized independent operator, this information is like gold dust as it opens the door to customising the experience for that guest through value-adds that will ensure a good review and

resortnews | september 2018

management

Dave Wright Managing Director, Principle Media Australia

ultimately a positive experience. If you know the person is travelling for a relaxing weekend away, you could offer a discount spa package, late checkout and a glass of wine on arrival. If the person is a business traveler, you could offer free wifi, a dining discount or a discount on dry cleaning service. For a millennial traveler craving an authentic experience, you could look at mobile check-in or discounted transfers. This can be achieved through a pre-stay email. With all roads leading to a oneto-one communication path in digital advertising, knowing your customer is becoming more and more critical. By generating more direct bookings, you can not only build a relationship with a guest but also create guest profiles that open the door to more precise marketing efforts – just like the big guys are doing. ■

management | Motel Market

Sales revenue is not the end result

Andrew Morgan Motel Broker, Qld Tourism & Hospitality Brokers

Every now and again, I hear the following comment: “The income is not high enough.” It usually crops up when a prospective investor is looking at a business. When I say ‘income’, some call it ‘turnover’, others call it ‘sales revenue’, and the list goes on. The only reason I can conclude, in regard to the objection, is that the potential buyer looking to buy the business is planning on operating it at a lower profit margin or higher cost base. Usually, new operators look to reduce overheads and improve profit margins to increase the net profit and therefore the value of the business. The value of any business is largely determined by two factors, the return on investment, capitalisation rate, or yield and the net profit of the business, against this yield. Depending on the structure of the business; how it produces its income; how it operates, and the resultant profit margin it achieves, will determine what income the business makes and what profit it can achieve. A business producing a high profit margin will have low overheads and therefore a high profit in relation to sales income. Vice versa for a low profit margin with high operating costs to produce its income. Every business will produce a different profit margin. The net operating profit of any type of business is the determining factor for assessing the business’ value. No valuer determines a

A simple comparison to consider: Motel A

Motel B

25 Units and a Restaurant

Annual Sales Revenue

$1,000,000

$750,000

Annual Net Operating Profit

$400,000

Net Profit Margin

40%

53%

Return on Investment

14%

$2,850,000

Freehold Value in the Market Now, with both these motels valued at the same price in the market due to their returns on investment being the same, why would a lower sales revenue make Motel B worth less than Motel A? These motels have very different sales revenues, however their net operating profit is the same. The reasons for this are numerous; however, a few explanations may be that one is operated more efficiently than the other, or because one has a source of revenue that is not as profitable as others, or because the particular location attracts higher operating costs, etc. A big

business valuation on the basis of what sales income is produced. Yes, it plays its role in the process, however, capitalising an income figure as opposed to a net profit is not done.

one is often the underselling of a unit. A 90 percent occupancy rate on a tariff 20 percent less than what is achievable will do it! In other words, discounting! The easiest way to create a higher cost base and operate less efficiently. Either way, the business with the lower sales revenue is not worth less than the one with the higher sales revenue… I would assume that the business with the lower sales revenue and higher profitability could end up being more attractive to the market than the motel with the higher sales revenue. This would be due to it being potentially less

The value of cashflow to a business relates directly to the day-to-day operation of the business, not the ongoing net operating profit over a period of say a year. It stands to reason

These motels have very different sales revenues, however their net operating profit is the same

labour intensive or having a lower level of risk than the other, by being able to operate at a lower cost base. As mentioned, a registered valuer who is doing a valuation on a motel property or business will base their valuation on a capitalisation rate of the net operating profit of the business, not the sales revenue. Therefore, in the above example, with all else being equal, Motel A and Motel B will be valued at approximately the same level, even though they have substantially different sales revenues.

that a motel with a higher sales revenue that also has higher operating expenses and may therefore have the same cashflow problems that a motel with lower sales and lower expenses has. ■

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resortnews | september 2018

Intonet |

management

How to put the ‘S’ in HTTPS Arvo Elias Cybercons

How often do you look closely at your browser search bar when surfing the web?

ownership. As an e-commerce business, this helps prevent any attackers from impersonating your company and your website.

If you don't check it, please do so the very next time you open your browser… and make it a habit! In July, Google Chrome started to mark all HTTP sites as “not secure”, according to a blog post by Chrome security product manager Emily Schechter. Chrome previously displayed a neutral information icon, but starting with version 68, the browser warns users with an extra notification in the address bar. Chrome currently marks HTTPSencrypted sites with a green lock icon and “Secure” sign. Firefox has employed a similar but arguably more detailed system with similar intent and features making both browsers the top of the tree choices. Their search bar graphics are also somewhat different but perhaps more enlightening. Google has been nudging users away from unencrypted sites for years, but this is the most forceful nudge yet. Google search began down-ranking unencrypted sites in 2015, and the following year, the Chrome team instituted a similar warning for unencrypted password fields. None of this is really new but if you have not kept up-to-date with your site-hosting, you may well put yourself out of business through your website. In the early days, webmasters were happy to simply employ the HTTP standard and provide a second layer of security through the SLL partition provided by most servers as an integral part of their hosting policies. That was abandoned by the mainstream quite a few years ago, however, and most sites were forced to use separate encrypted data bases if collecting sensitive information, such as credit card details, from clients. However, in recent years, the internet security community has come to realise that all web pages need protection. Pages served over HTTP are vulnerable to eavesdropping, content injection and cookie stealing, which can be used to take over your online accounts.

When it comes to purchasing or upgrading your site security certificate, there are two broad types to consider; the basic types that include domain validation and organisational validation and the extended validation type. All SSL certificates must be purchased from a certificate authority. Common CAs include Comodo, Symantec, GoDaddy and GlobalSign among others. Content injection is when someone adds data or code to your communications with an HTTP web page. For example, it is how the British spy agency GCHQ and the USA’s National Security Agency, took over a Belgian ISP’s computers. Content injection is also how China took down GitHub, a vast open source code repository, with a massive DDoS (denial of service) attack, dubbed ‘The Great Cannon’. Content injection is also becoming popular with ISPs. Verizon injected tracking headers into every request made by their customers, and Comcast injects pop-ups into sites where they don't belong. All of these attacks can be stopped by HTTPS, provided it is implemented and made default on enough sites. These code injections are known as supercookies. Supercookies might be sitting on your device without your knowledge, covertly tracking you when you browse from site-to-site. And here’s the worst part – you can’t delete them once they’re there. So your next step, if not already implemented, is to change your site over to HTTPS. This system relies on things called Security Certificates which, without going through the technical details, facilitate encrypted data transmission between servers and web browsers. The details on how to enable HTTPS on your site depend crucially on your hosting environment provided by your ISP. Depending on your

provider and the software your site is hosted with, HTTPS setup could range anywhere from automatic to a single click, to impossible if your hosting provider specifically does not allow HTTPS. Many hosting servers such as cPanel have the facility to migrate your site appropriately and at times without any or significant charge. For many website owners, the most challenging or unfamiliar step in enabling HTTPS is getting a certificate, a document issued by a publicly-trusted certificate authority. A valid certificate is required for browsers to confirm that encrypted connections to your site are secure. An SSL certificate is effectively a digital public document, which verifies that the appropriate, legitimate company owns the website that is being accessed. They ensure that visitors are accessing the correct site they want to visit by proving relevant ownership. As an e-commerce business, this helps prevent any attackers from impersonating your company and your website. For customers, an SSL certificate establishes a secure connection between their web browser and your site server. This protects important information like passwords and credit card details by adding a layer of encryption when the data is sent. They ensure that visitors are accessing the correct site they want to visit by proving relevant

resortnews | september 2018

The basic certificates do what they say on the tin. They verify your website identity by ensuring that the registered owner has the right to manage that domain name. Once you've passed this, often automatic procedure, your site will display a secure padlock and the URL address will change to HTTPS. If you want more serious security checks, an Extended Validation (EV) certificate requires more rigorous vetting criteria to be passed, the majority of which is checked manually. This often means the provision of corporate documents and the receipt of phone calls to your listed business number. In return, alongside the padlock and HTTPS benefits, you'll also be able to light the browser address bar green and display your company's legal name alongside the domain name, further increasing the legitimacy of your website. Prices for SSL certificates vary depending on the level of support, number of sub domains and extra features you might want. A basic RapidSSL one can cost as little as $9 per year, whilst EV certificates from GlobalSign begin at $899. So if you do not wasn’t to frighten your potential clients away by having your site marked as insecure please get yourself that very important address appendage "S". Not only does it reassure the punter but also improves your AdWords and search result ranking. ■

management | Digital Signage

The benefits of digital signage for hotels on the Gold Coast In recent years, the hotel industry has seen digital signage grow from a luxury that was nice to have, to a must-have communication and marketing tool. Digital signage is now the centrepiece of visual messaging in hotels across the globe and it’s rare to find a hotel without it. The bright, dynamic movement of digital displays are eye-catching and hard to ignore, making them the perfect way to effectively communicate information to enhance the visitor experience. The reason for the increase in uptake is simple: digital signage makes good business sense. Through the technology, you can share information and special offers with your guests quickly, easily and effectively. What’s more, digital signage solutions offer industry specific software, unparalleled flexibility and an affordable price tag. According to industry experts, guests form their impression of a hotel in the first 10 minutes. An inviting lobby, quick check-in and a clean room with a mint on the pillow is a great start. However, in a competitive industry like hospitality, your guests now expect more than a room service menu and a notepad on the side table. Through digital signage solutions tailored to the hotel industry, you can further engage with guests while also reinforcing your brand and message. Strategically installed digital signage throughout the lobby, outside conference rooms and near the elevator can provide guests with the information they need using eye-catching and dynamic visuals. From directions to their room to information on where to get a quick bite after a long trip, the possibilities are endless. These are just some of the ways digital signage can enhance the experience of your hotel guests:

Answer common FAQs What time is checkout? How far

From directions to their room to information on where to get a quick bite after a long trip, the possibilities are endless

in advance do I need to schedule a spa visit? Where is the business centre? Answering these common questions take time out of your employee’s day and what’s worse, your guests may have to wait in line to get the answers. An interactive digital kiosk provides useful information about your hotel’s amenities and nearby attractions. Creating a detailed and organised list of commonly asked questions that is easily accessible 24/7, saves your guests and staff time and energy, and avoids frustration.

Promote onsite amenities Large hotels offer dozens of amenities to guests, but it’s diff icult to describe all of them during check-in or on a small brochure. Digital signage in

hotels provides an opportunity to promote amenities and services in an unobtrusive way. Announcing Wednesday’s spa discounts on a digital display attracts more interest than relying solely on hotel staff to promote the special. Digital ads are easy to manage and edit and provide subtle but constant reminders about the services provided. This generates interest and increases revenue as guests act on the messages displayed.

Provide local information Hotel guests are generally unfamiliar with the area and often seek advice on how to best experience the Gold Coast and surrounds. In most cases, they’ll ask hotel staff or a concierge where to go and what

resortnews | september 2018

to do, which places a burden on employees during peak periods. Hospitality digital signage solves this issue by providing visual snapshots of the area and information about the most popular tourist destinations. Interactive digital displays allow guests to explore the destinations in depth by touching the pictures of attractions they’d like to visit, then reading a brief description. Digital signs are also the perfect place to display weather forecasts, so your guests can be prepared as they venture out for the day.

Display emergency notifications It’s not something we like to think about, but emergencies are inevitable and happen when least expected. Prompt, concise communication is essential and digital signage can keep your guests informed in real time to minimise confusion. By Brett Spicer, Signxtreme/Just Digital Signage

WAYFINDING SAFETY & COMPLIANCE ENTRY STATEMENTS DIGITAL - LCD & LED

No. 1 DIGITAL SIGNAGE SOLUTION FOR HOTELS AND VENUES ACROSS AUSTRALIA & NEW ZEALAND INSTALLED AT 50+ VENUES ACROSS AUSTRALIA & NEW ZEALAND

07 5572 9255

signxtreme.com

justdigitalsignage.com.au

management | Keeping House

Wily Irish Mammy helps herself This month, our Mammy has been under the weather; knocked for six by a banjaxed back. I am sure it’s only a bit of a repetitive sprain from donkeys’ years of cleaning, but I am out of sorts because the auld quack (doctor) told me to rest and lay off housekeeping duties for a while. Now I know what you’re thinking: a typical Irish Mammy must find it hard to ask for help or trust anyone else to do her housekeeping… and you’d be right! These whole shenanigans have been a nightmare; my heart broken by the long line of eejits that have presented themselves at my resort to help. Help? They certainly helped raise my blood pressure. If I was able – I tell you, I’d be hopping mad! Now, Mammy is never one to moan but Jaysus the set of these young-wans today. “Millennials” they call themselves, but they do everything arseways. Normally, I would send them off with a flea in their ear and get on with the cleaning myself.

Mammy’s motto: if a job is worth doing well, then just do it yourself.

Develop strengths to achieve wisdom – job done – wily and wise is Mammy’s name!

Learn new personal development management skills, new techniques of human resource management, adopt negotiation skills, and learn the art of dealing with difficult people. Ah go on, let’s have a bash at this.

So, when the latest young housekeeping recruit arrived for work, I practiced my best management skills. She was late, breezed in, talking on her phone and Jaysus, the young-wan had an arse like two ferrets fighting in a bag. She said: “Dude, wow this place is so cool!” I said: “Here's what's cool missus: showing up on time, apologising, saying 'thank you', being polite and nice to my guests, listen without interrupting, using people's names, holding doors open and the coolest of all is to follow my cleaning plan down to its last letter.”

But I’ve been reading some selfcare books while flat on my back and I’ve learned that I should improve myself and not be such a muggins (foolish martyr).

Young-wan took her phone, selfie

This is what I’ve learned...

and she knew that was all she

Self-care: Put yourself first because, “You can’t expect anyone else to love you unless you love yourself first”. What feckin’ narcissist thought this one up? Set goals for body, heart, mind, and spirit: Yes please! A glass of red or a pint of Guinness every night cheers. Have positive thoughts and manifest dreams – I hate the thought of this, it’s a load of old cobblers.

resortnews | september 2018

stick and jumped in an Uber. After Mammy wet the tea, she felt better and started cleaning again, needed, to love her wise old self again. On a serious note: Don’t be like Mammy! Housekeeping is a very tough job and hard on both your body and mind. So, make sure that you do take care of yourself and your housekeeping team and always reach out and ask for help when you are struggling. ■ Please note, Mammy’s views on Millennials are all her own.

Tourism Report

| tourism

Watchdog shows teeth over OTA pressure sales tactics The consumer watchdog is investigating accommodation booking websites over their ‘one room left' sales tactics. Tourism Accommodation Australia says the Australian Competition and Consumer Commission (ACCC) is investigating the relationship between accommodation providers and booking platforms following British moves to clamp down on misleading claims. The UK’s Competition and Markets Authority announced a probe into hotel booking sites late last year, saying it was "concerned about the clarity, accuracy and presentation of information on sites". While the ACCC refuses to comment on potential investigations, it’s understood the Australian inquiry will examine areas such as hidden charges, search results and discount claims, with those operators found to mislead consumers facing possible court action. “[The ACCC] is closely watching the outcome of the European changes to rate parity and the UK Competition and Markets Authority investigation into whether sites are misleading consumers,” the tourism association’s CEO Carol Guiseppi told The New Daily. “They are looking at … whether a false impression is created by claims about how many people are looking at the same room, how many rooms are left, and how long a price is available.”

and ‘in high demand’ will come under scrutiny from the consumer watchdog.

occupancy rates at record lows and several operators forced to close their doors.

Online travel agencies Expedia and Booking.com use these kinds of phrases on their booking sites and will need to be able to substantiate the claims.

The region’s registered accommodation providers are so concerned, they have banded together to push for speedy legislation against the home-share giant.

“We test many iterations of content as part of this optimisation process to ensure that the information displayed to users is relevant to their booking experience,” a Booking.com spokesperson told The New Daily. Expedia Group said it would continue displaying availability claims on its websites.

“They are destroying the local tourism industry”: World-renowned wine region calls for help In one of Australia’s most iconic tourist regions, Airbnb stands accused of forcing accommodation owners out of business. The home-share platform, which this week welcomed parliamentary rules regulating its operators in NSW, is allegedly undermining accommodation businesses unable to compete in Margaret River’s unregulated marketplace. According to local press reports, many of the WA town’s accommodation providers are struggling to pay their bills, with

Spokeswoman Debbie Noonan said more than 800 Airbnb listings, most of them unregistered, were having a profound effect on established accommodation businesses. “If things are allowed to continue as they have over the last three years, longstanding quality accommodation properties will continue to disappear in Margaret River, replaced by rented rooms in private houses offered by shortstay accommodation platforms like Airbnb,” she told The Weekend West. “If that is all the town can offer down the track, it will dilute the quality of the brand we have built for Margaret River, not only locally but, more importantly, internationally.” Welcoming the NSW government’s new limits on short-let rentals, Airbnb said it was “committed to working collaboratively” to create regulations which “protect people’s rights and support healthy tourism”. It pointed out that Deloitte Access Economics research had found Airbnb contributed more than $987 million to NSW’s Gross State Product in 2017 and supported

more than 7300 full time jobs. But in Margaret River, tourism operators claim the picture is very different. “Local tour operators are already seeing a steady decline in bookings as this Airbnb accommodation market seems less inclined to recommend guests take tours,” said Ms Noonan. “Several restaurants and shops have closed in the main street and winery restaurants report declines as these tourists self-cater and mainly do sightseeing, not purchasing goods.” In October last year, a report on the impact of Airbnb on WA's tourism industry showed the state had more than 8000 Airbnb listings - most offering entire house or apartment lets – accounting for a quarter of WA's room capacity. The Bankwest Curtin Economics Centre report showed supply increasing by around four percent each month. Australian Hotels Association WA chief executive Bradley Woods said the platform had become more like a hotel service. "The Western Australian government has an opportunity to lead with fairer regulation of commercial accommodation and develop a model that allows for legal Airbnb operators to exist alongside hotels and serviced apartments," he told WA Today.

Last year, the ACCC took Viagogo to court over the Swiss company’s alleged breaches of Australian Consumer Law when reselling entertainment, music and sports tickets. “Viagogo’s statements such as ‘less than one percent of tickets remaining’ created a sense of urgency for people to buy them straight away, when tickets may have still been available through other ticket sources,” ACCC Deputy Chair Delia Rickard said. Wording found on accommodation booking sites such as ‘one room left’, ‘ten people are viewing this page’ resortnews | september 2018

tourism | Tourism Report

"Planning guidelines should be developed for local government authorities to manage the sector whilst still delivering results for tourism, the economy and job creation. “The absence of regulation has created inequity that if not addressed will continue to put jobs at risk. “The AHA accepts genuine shared and hosted accommodation. However, the majority of listings are for entire homes or apartments.” Mrs Noonan said her group was calling for a “robust enforcement” of policies and regulations governing short-stay accommodation. “The group wants to work with state and local authorities to develop strategies to ensure the Margaret River brand remains strong and that the long-term, traditional accommodation operators who are the backbone of the tourism industry remain viable,” she said. Airbnb country manager San McDonagh last year flagged the company's willingness to engage in the debate over regulation, saying the Bankwest report reinforced "the urgent need for fair and progressive rules for home sharing in Western Australia".

Sydney occupancy worst since 2009 Sydney’s hotel occupancy saw a significant year-on-year fall in July as a flurry of new rooms came online and events hosted by the city decreased. According to preliminary data from data analysts STR, occupancy declined seven percent to 80.5 percent in July, as room supply increased by more than five percent. The average daily rate dropped by almost seven percent to $194.05 and revenue per available room decreased by a whopping 13.4 percent to $156.12. It was the second consecutive month with year-over-year declines in each of the three key performance metrics, with the average daily rate the lowest for any

month since September 2014, and occupancy the lowest for any July since 2009. The fall in winter demand followed a record May, in which the Vivid Sydney festival saw 186,000 travel packages sold and near-record crowds flocking to the event despite atrocious weather. July, in comparison, saw a dearth of marketable events compared with previous years - for example, Arsenal football club played two matches in Sydney on its summer tour in 2017.

Events are just one part of the picture, though. The decline comes as a new report by hospitality consultancy Horwath HTL shows more than 2400 accommodation rooms were added across 17 Sydney hotels in the year to June 2018.

additional rooms are likely to put pressure on occupancy.” In its 2012 paper titled Creating A Long Term Future For The Sydney Hotel Industry, Tourism Accommodation Australia recommended annual hotel supply increases of between 150-550 or 5,000 rooms by 2020 would “allow for market expansion, capture future demand and allow for a sustainable hotel sector in Sydney”. But it warned: “Supply increases above these limits will see declines in occupancy and room rates, thereby destroying the recent gains the industry has made and reverting back to a boom and bust development cycle.”

Industry urges caution following Airbnb apartment tragedy

About 4600 rooms in total will be added to the city’s hotel market by the end of 2022, which is expected to further affect occupancy levels buoyed by years of escalating demand and stagnated hotel growth. That figure does not account for hotels being delivered in the second half of 2018, including the newly opened 297-room Four Points by Sheraton Sydney, Central Park - providing international accommodation which Jerry Schwartz (who takes ownership of the property in October) says Sydney is "crying out" for. Crown Group’s Skye Hotel Suites will also open in the CBD in late 2018. “We are currently tracking some 60 hotel projects in the Sydney pipeline,” said Stefan Muff, Horwath HTL manager and the report’s author. “Not all of these will progress but at this point we are anticipating that there may be an increase in supply of around six percent in 2020. These

ARAMA has worked with the Victorian government for months on plans for measured changes, which would see anyone managing Airbnb lets on behalf of a property owner required to have a licence. Now Victorian premier Daniel Andrews is considering fast-tracking legislation which has been before the upper house of state parliament for more than a year and a half. CEO Trevor Rawnsley told Resort News: “We want the state government to continue its consultative process with industry representatives like ARAMA and those involved in the business of accommodation - and they must listen carefully to what we are saying. “We strongly recommend that it is essential that any person who operates as a letting business on behalf of another person needs to hold a licence. “This is absolutely critical.” The group proposes introduction of a 'restricted letting agents licence' which would require operators to invest in learning about a process Mr Rawnsley says is sophisticated and requires training to master.

A leading accommodation body is calling for calm as the Victorian government faces intense criticism over its lack of regulation following Laa Chol’s death in an Airbnb rental apartment. The 19-year-old law student was stabbed at a party in a Melbourne tower block rented through the short-let platform in one of a series of violent and destructive incidents at Airbnb rentals across the city. She died on July 21. The Australian Resident Accommodation Managers Association fears hastilyconstructed laws passed under political pressure could result in legislation like that proposed for NSW - which has drawn widespread industry condemnation.

resortnews | september 2018

The licence would be just a “little hurdle” for operators, Mr Rawnsley says, but one which would provide significant advantages. “It ensures the identification of a person that is operating, and that the money coming in from a property needs to be managed through a trust account. “It stops cowboy operators ripping off unit owners who don’t know if their property is being rented out for certain nights so don’t know if they’re being ripped off. “If licenced, an operator must open a trust account and have it audited every few months.” Richard Munro, CEO of the Accommodation Association of Australia, said the organisation

Tourism Report

has long held the view that consumer safety is the "number one consideration" for any short term letting policy. “In the interests of consumer safety, all illegal short-stay accommodation should be banned and all premises currently being used illegally for short-stay accommodation should be subject to fines of not less than $1 million per day per premise for each day that they continue to be operated illegally,” he said. "A go slow is not our approach." Mr Rawnsley argues ARAMA's proposals could help reduce the kind of situation in which Laa Chol lost her life. “We know that incident in Melbourne could have happened anywhere, but it is less likely to occur when an operator is professional, licenced and following a business process that’s

understood,” he said. “Professional operators who understand how their business works would have a process to identify the number of people who are staying, and some kind of guarantee or credit card with preauthorisation to cover any incidents as conditions of accommodation. “The difference with Airbnb now is that new technologies allow non-professional operators to look professional. “Airbnb don’t vet their operators and nor should they - they’re the booking platform. “But the government needs to step in, just as they have for Uber, and say ‘if you want to put yourself up as an agent for someone else, you need to have a licence’.” In the UK, meanwhile, a report by an all-party parliamentary group

has identified serious issues with the short-let model, including “considerable concerns that hosts providing accommodation via sharing economy platforms do not comply with health and safety regulations”. The group argues: “Local authorities claim professional landlords are converting residential long-term leasehold properties to short-term tourism accommodation businesses, leading to residential housing shortages and forcing up property prices. And it concludes: “The operation of de-facto-hotels is damaging local communities . . . Residents complain that local communities are being adversely impacted.” The report argues short-let platforms should take greater responsibility for informing hosts of their statutory obligations,

| tourism

recommending a new inspection regime and stipulations that hosts undertake fire and health and safety assessments and gas inspections. It is the latest in a series of setbacks Airbnb has encountered in recent days. The European Commission last week demanded the home share giant align its terms and conditions and the presentation of its prices with EU consumer rules. And New York City council voted to require Airbnb to hand over the names and addresses of its hosts in the city so the council can police hosts that operate illegally and drive up community rents. Airbnb says the bill represents an unreasonable violation of users’ privacy, with the new legislation predicted to cut the city’s short lets by half when it comes into effect in January. ■

Tourism International:

What a bloke! Kiwi hotelier to celebrate 100th half-marathon

Dick Breukink, general manager of Novotel Tainui Hamilton, is on a mission to achieve his goal of running 100 half marathons when he takes part in the Taupo Marathon this year. It’s not only kilometres he’ll be clocking up when he takes to the pavement in Taupo: Dick is also raising money for the Red Cross.

Dick was 52 years old when he took up the 100 challenge and has competed in half marathons around the world clocking up over 13,000 kilometres. As well as completing 99 half marathons, Dick has also run 14 full marathons, including New York and Sydney. Taking part in the Taupo halfmarathon is a return to where his

running journey began 10 years ago. “I did my first half marathon in Taupo in 2008. This year they’ve given me the privilege to run with start number 100, which is so cool,” says Dick. Dick has been managing hotels around the world, and settled in New Zealand 10 years ago,

resortnews | september 2018

where he initially managed the Ibis Christchurch before moving to Cambridge and taking on the general manager’s role at Novotel Tainui in 2012. To support Dick and help raise money for Red Cross – go to www.everydayhero.com 100 half marathons.

events & appointments | Events

RAAS Group memorial golf day

Although the field was smaller than previous years, the players, supporters and attendees were most generous and at end of day a sum of $7600 was raised for cancer research at the Mater Hospital. A wonderful effort.

with a trophy (which will have the winners’ names engraved) as well as a voucher donated by Above & Beyond Funerals.

4th J.Prentice, P.Spranklin, M.O’Farrell, M.Francis •

Longest drive: Ladies Bec Bailey & Mens Justine Beeton

This was won by the team consisting of:

•

Nearest to the pin: Sam Hodgetts

Our monster raffle was so large that the total value was $4500 and the successful winner was Phil Smith: What a surprise he got!

1. 2. 3. 4.

The RAAS group wishes to thank its incredible sponsors, namely:

Thanks to the generosity of Harvey Norman, the golf prizes on the day were exceptional. Winners on the day took home first prize, valued at $2800 and donated by Emerald Lakes Golf Club, along

Other winners:

Mark Small Antony Wiesener Justin Beeton Justin Taylor

2nd F.Higginson, S.Hodgetts, C.John, B.Deverson 3rd P.Reid, D.Farmer, G.Layton, R.Donkon

1. 2. 3. 4. 5. 6.

MWM Advisory Hynes Legal McAdam Siemon Savills Mike Phipps Finance Realestate.com

A special thanks to Bec Baily

resortnews | september 2018

from Above & Beyond Funerals, who designed and gave the perpetual trophy to RAAS, which will have the names of the winning teammates engraved. Each player will receive a replica. Special thanks as well, to Sally Head and Sandra Embleton; the RAAS staff members whose efforts were enormous both before and on the day. At the conclusion of the day, former CEO Rusty Lush introduced the Mater representative Sidonie Peterson, who gave a brief and professional talk. Rusty also thanked his fellow director of

Events

| events & appointments

INDUSTRY EVENTS CALENDAR Gold Coast

Ladies in Management Luncheons

Wednesday, 19-Sep-18 from 12pm-3pm, One50 Public House Gold Coast

Management Rights Induction Training Program

Wednesday, 3-Oct-18 from 9am-5pm Property Training Australia, 47 Ashmore Rd Bundall Gold Coast

new CEO. Chris gave a brief introductory talk and proposed a toast to Lorraine Lush - a touching end to the day.

Rusty announced that The Raas Group has strategically aligned itself with Savills Gold Coast, who will be taking over the management of RAAS, and then introduced Chris Jones as

The Golf Day was held at Palmer Colonial, which was in superb condition and boasted very professional staff. A great day was had by all and the course has been booked again for next year.

INDUSTRY EVENTS CALENDAR SEPTEMBER

The Exchange, Melbourne, info@destination.melbourne

14-16 VICBOUND 2018, Sydney, atec@atec.net.au Destination NSW Product Update Evening, Sydney, info@dnsw.com.au

Registrations Opening Soon

Property Law - How to adjust your fees and charges Registrations Opening Soon

Property Law - How to adjust your fees and charges

Wednesday, 14-NOV-18 from 6:30pm - 9pm, Arana Leagues Club

Thursday, 15-NOV-18, from 6:30pm - 9pm, Maroochydoor RSL Port Douglas

OCTOBER TNQ Tourism Industry Excellence Awards, Aqua Luna, Cairns, kelsey.andersen@ttnq.org.au

24-26 Inbound Up North, Cairns, atec@atec.net.au 30

Property Law - How to adjust your fees and chargers

Thursday, 8-NOV-18, from 6pm - 8pm. Coral Sea Resort Gold Coast

Registrations Opening Soon

Sunshine Coast Property Law - How to adjust your fees and charges

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

Airlie Beach

Registrations Open goo.gl/isVvM

Property Law - How to adjust your fees and chargers

Thursday, 1-Nov-18 from 5:30pm-8:30pm Campari House

Brisbane

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

Tuesday, 30-Oct-18, from 9am-5pm. Knowledge Bank, 37 Wembley Road, Logan Central Melbourne

Registrations Opening Soon

Management Rights Induction Training Program

Tuesday, 13-NOV-18, from 6:30pm - 9pm, Kurrawa Surf Life Saving Club

3-5 2018 WA Tourism Conference, Perth, tcwa@tourismcouncilwa.com.au 11

Brisbane

Registrations Opening Soon

BCCM Webinar

Wednesday, 24-Oct-18, 2pm. Webinar long-standing, Mike Butler who, he said, without his co-operation an event such as this would not have eventuated.

Registrations Open goo.gl/eJh6Gi

Ladies in Management Luncheons

Wednesday, 17-Oct-18, from 12pm-3pm, Edgewater Dining, Isle of Capri Queensland

Registrations Open

Property Law - How to adjust your fees and charges

Tuesday, 20-NOV-18, from 6pm - 8pm, Peppers Beach Club Cairns

Gold Coast

NOVEMBER 9

Industry Briefing South Australia , The Playford, Adelaide ask.us@tourism.australia.com

Industry Briefing Tasmania, The Grand Chancellor, Hobart ask.us@tourism.australia.com

Adventure Tourism Awards and Youth Tourism Conference, Surfers Paradise, Gold Coast, Ronwyn van der Zouwen, 0413 305 275

Registrations Opening Soon

Ladies in Management Luncheons

Wednesday 21-Nov-18 from 12pm-3pm, TBA Brisbane

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Wednesday, 21-NOV-18 from 6pm-8pm, Brothers RLFC

Australian Indigenous Tourism Conference, Lorne, aitc@thinkbusinessevents.com.au

Registrations Opening Soon

Management Rights Induction

Tuesday, 27-Nov-18, from 9am-5pm 50 Southgate Avenue, Cannon Hill

Registrations Opening Soon

N.B: Dates and other details correct at time of publishing, however, maybe subject to change according to the needs of ARAMA and its Members. More details will be added throughout the year as information becomes available.

resortnews | september 2018

events & appointments | Events

Urchins and heartists help clinch top hotel gong A newcomer to Sydney’s luxury hotel scene with a vast lobby aquarium and staff trained as “heartists” has been awarded the state’s top accommodation honour. The 10-month-old Sofitel Sydney Darling Harbour beat out perennial favourite The Langham to win Metropolitan Deluxe Hotel of the Year in the Tourism Accommodation Australia (NSW) Awards for Excellence. Emirates One & Only Wolgan Valley was the night’s other big winner, taking out the prestigious title of Regional Deluxe Hotel of the Year for the third year running. The awards, announced last week before a crowd of almost 800 political, industry and business leaders at the Star Events Centre Sydney, recognise excellence across a range of categories from deluxe bar (also won by the Sofitel for its Champagne Bar) to outstanding achievement in training (Holiday Inn, Potts Point). Sofitel Darling Harbour’s general manager, Greg Brady, told Resort News: “We’re very happy and proud to win the awards in our first year of operation. “It’s been a long journey opening a 590-room luxury hotel, both in the pre-planning and the establishment of the hotel. “The award recognises the fact that we’ve arrived as a luxury hotel in Sydney and exceeded all expectations. “It’s a beautiful hotel, representing the new essence of Sofitel luxury, which is modern luxury. “It has beautiful views, a fantastic location and ambassadors that we train to be true heartists, providing service from the heart through their own artistry.” This year’s awards broke all records, with some 320 nominations received from

and the Summit saw over 220 delegates united in the common goal of sharing knowledge.

Hospitality Solutions, IDeaS Revenue Solutions, Expedia Group and STAAH.

Mercure Sydney was named best mid-range hotel and Sheraton on the Park, Sydney was judged best redeveloped/ refurbished hotel.

Headlined 'Unite and Prosper', the summit was planned and hosted by the Australian Revenue Management Association (ARMA) in support with the Accommodation Association of Australia (AAoA), Tourism Industry Aotearoa (TIA) and the Caravan and Camping Industry Association NSW (CCIA NSW).

ARMA would like to thank all our valued partners with special mention to our Lanyard Partner HotelsCombined, Networking Partners Allotz and RateGain and Media Partners accomnews and HM.

The best apartment/suite hotel gong went to North Sydney’s Meriton Suites, while Fraser Suites Sydney was inducted into the association’s hall of fame for its victory in the same category over the previous three years.

The summit again featured the Connect program encouraging delegate engagement with partners; this also enabled them to enter the major prize draw, which was courtesy of P&O Australia.

TAA NSW chair Peter Tudehope said the 2018 winners exemplified the best in the state’s tourism industry.

Once again, ARMA used revenue management practices when pricing its summit, offering flexible pricing based around the varied needs of delegates.

a record 82 hotels across 34 categories. Metropolitan Superior Hotel of the Year was won by Novotel Sydney Darling Square while The Convent Hunter Valley took out Regional Superior Hotel of the Year.

“NSW really does set the standard when it comes to the quality of our accommodation venues and their hard-working staff,” he said. “Each year at the awards for excellence we honour the best in the business for their tireless efforts throughout the year in providing a great experience for visitors to this state.

This allowed ARMA to maximise demand for the event from a strong mix of local, interstate and international delegates representing a diverse range of accommodation models across our industry. This event would not have been possible without the support of our platinum partners – Sabre

“I congratulate all the winners on a job well done.”

Revenue summit an "overwhelming success" The APAC Revenue Management Summit was held at Rydges Melbourne and was an overwhelming success. Delegate and partner numbers increased on the previous years resortnews | september 2018

The APAC Revenue Management Summit will return again in 2019. Some testimonials from this year’s event: “Congratulations on an amazing event. So many revman leaders and tourism organisations in one space all working collaboratively together. Great ethos and lovely to be a part of.” “A big congratulations on a superbly executed event, Melissa. The warmth and spirit of the revenue management community was in full flight.” “A great event, inspiring for all levels of revenue management.” “Without question a standout event in this region, an all-round first class conference that delivers unique and inspiring content surrounded by wonderful industry professionals.” ■

People

| events & appointments

Exclusive: Meet the major new player in Australian accommodation there’s a level playing field. "I don’t think Best Western has done enough in that area - we have to join the cause.”

Airbnb sees two major players depart Eva Ross, former Asia Pacific marketing operations and strategy manager, has announced a move to postal courier company Sendle as chief marketing off icer. Ross, who has spent the last six years at Airbnb, will mastermind the Australian start-up’s next stage of national and international expansion.

Graham Perry Graham Perry will oversee a mammoth 125 hotels, apartments and resorts across New Zealand and Australia as new head of Best Western Australasia, Kate Jackson reports. As the group moves from management control through the Motel Federation of Australia to a 'property direct' relationship with its operators Down Under, we talk to Perry about the challenges ahead. You could say Graham Perry has weathered a roller-coaster career following his stint as a sales director for Disneyland Paris except that his trajectory has only ever been on the up. Having spent almost 20 years in management roles spanning everything from theme parks to publishing to digital retail, he has his feet firmly back on the ground in a role which, he says, returns him to his hospitality "roots". Perry spent three years directing hotels across Europe, the Middle East and Africa with UK-based group Utell International from 1989-92 and says he has “always had a passion” for accommodation. Asked what attracted him to this

specific role, he replies: “The Best Western Group brand is well known all around the world. “It is very strong in regional areas as well as having good hotels in the capital cities; it’s got great family values and is recognised for being a quality brand.”

he says. “We’re still very much in the review stages, if you really get to know a business, those areas of difference will reveal themselves to you.” Differentiation is at the heart of Perry’s strategy for Best Western Australasia.

Perry has spent his early days in the job visiting Best Western properties and picking the brains of managers and staff.

“We have a great opportunity to differentiate and to do things differently with our hotels and resorts,” he says.

“I think it’s very valuable - it always is,” he says. “You will learn more from five minutes talking to the team, staff, hoteliers than from five years in head off ice.

“Something I have always relished in my career is doing things differently”.

“They’re not backwards in coming forwards; they’re just really enthusiastic to talk and when they share that information, you get some really interesting things out of it.” Graham says Best Western needs to work harder in supporting those operators and making connections at a regional level: “We’re a regional brand, we need to do a better job of that”. There will not, though, be any knee-jerk decisions made by the new boss. “I’m determined not to make early changes for the sake of it,”

And while he is looking forward to project managing new initiatives within the company, Perry knows the key to success for any new venture is effective communication.

Airbnb marketing boss Ben Hallam is also departing the home share giant, relocating to Hong Kong to become vice president of customer engagement at Shangri-La Hotels and Resorts. Filling Hallam's role will be Daniel Gervais, who has been with the company since 2013 and is described by Airbnb country manager for Australia and New Zealand, Sam McDonagh, as “an integral part of growing the awareness of our brand among Australian and New Zealand travellers.”

Appointments making noise in the sector Aussie David Macklin will become general manager at the Four Seasons Resort Langkawi.

“Always make sure the stakeholders know why you are doing things, then relay them out really eff iciently,” he says. “We haven’t done a good job and I am determined to fix that.”

An 18-year veteran of Four Seasons Hotels and Resorts, Macklin began his career with the brand on the front counter and is a graduate of Adelaide Hospitality School.

Asked if he fears competition from industry disruptors such as Airbnb, he replies: “We are obviously well aware of those the important thing is to make sure Best Western is at the table with government and with industry in support to make sure

Back in the antipodes, the ubertrendy Ovolo Hotel Group has appointed Raoul Gundelach to steer brand development across its Ovolo and Mojo Nomad titles.

resortnews | september 2018

Gundelach previously worked for number of hotels in Brisbane. ■

developments | News

STAR GOLD COAST BREAKS GROUND FOR NEW $400 MILLION HOTEL TOWER A 53-storey mixed use tower set to create 2300 jobs and house one of the Gold Coast’s largest luxury hotels has broken ground in a sod-turning ceremony on Broadbeach Island. The $400 million development at The Star Gold Coast will also herald the entry to Australia of the internationally acclaimed Dorsett hotel brand. The Dorsett will be among an elite group of hotels on the coast with more than 300 rooms and be the second biggest in the Broadbeach region behind only The Star Grand. The tower will deliver The Star Gold Coast a third hotel – alongside The Star Grand and The Darling – boasting 316 rooms.

venture development,” said Mr O’Neill. “Together with our partners we have, in progress or planning, projects that will see our investment across Brisbane and the Gold Coast exceed $4.5 billion. “This latest commitment showcases the confidence we have in the future of the coast and its potential to become an even more established primary location for intrastate, interstate and international visitors. “The Star Gold Coast has been transformed over the past three years, and continues to evolve, with levels of investment that position us as a genuine global tourism destination.”

GREEN SPINE WITH SKY-HIGH HOTEL TO BECOME AUSTRALIA’S TALLEST BUILDING

The Dorsett and The Darling, opened earlier this year, are the first luxury hotels to be developed on the Gold Coast since 2011. The tower will also include apartment accommodation, with 423 one and two-bedroom options taking the overall supply at The Star Gold Coast complex to almost 1400 rooms. Exciting new restaurant and bar concepts are also planned, together with a recreation deck with ocean views and a resort pool for hotel guests. Economic benefits flowing from the project will include 2300 jobs, with 1800 in construction and a further 500 created once operational. The Star Gold Coast’s workforce will expand by 21 percent from 2400 to 2900 employees. Destination Gold Coast Consortium – a joint venture between The Star Entertainment Group and its Hong Kongbased partners Chow Tai Fook Enterprises and Far East Consortium – will develop the tower. It further extends a strong relationship forged in multi-billion-dollar investments for mega projects at Queen’s Wharf Brisbane and Sydney. The joint venture has also acquired the Sheraton Grand Mirage beachfront resort on the Gold Coast. Premier Annastacia Palaszczuk joined The Star Entertainment Group Chairman John O’Neill to celebrate breaking ground for the 4.5-star Dorsett hotel and apartment tower. “We are delighted to further enhance the tourism appeal of the Gold Coast and south-east Queensland more generally with this latest joint

A pair of twisting towers shaped around a vertical city of green spaces, terraces and verandas will rise from Melbourne’s Southbank to become Australia’s tallest building. The design by Dutch firm UNStudio and Melbourne-based Cox Architecture, known as Green Spine, beat off strong international competition to be chosen for the premier site on Southbank Boulevard and City Road. Owners Beulah International invited six of the world’s most innovative architects to partner with local firms to compete on ground-breaking designs for the $2 billion development. Contenders included Urban Tree, which incorporated a 24-floor hotel complete with a 317m high disc-shaped ‘cloud’ containing its amenities.

resortnews | september 2018

News

| developments

The winning plan divides the development into two freestanding towers; a 356m residential tower topped with a publicly accessible botanic garden, and an opposite 252m tower incorporating the hotel, as well as restaurants, bars and offices. Conceived as a "conceptual extension of the Southbank Boulevard", the Green Spine will provide a pedestrian connection through a series of stairs and stepped terraces, leading visitors up along the retail and entertainment precinct to The Garden. At street-level, it includes an Australian-first BMW experience centre, while a school and child care centre, library and cinema will all occupy the lower levels of the towers. Beulah International spokesperson Adelene Teh said: “At the macro scale, the two-tower silhouettes with twisting forms provide a new, site-responsive and elegant visual beacon. “In its details, the scheme displays a strong intent for well-considered public and private amenity, and at street level, the proposal displays qualities that will truly transform the public realm by eroding the hard edges that is prevalent in Southbank.” The winning proposal is yet to be submitted for planning assessment, but if approved, will become Australia’s tallest building, superseding the 322m Q1 on the Gold Coast. UNStudio’s Ben van Berkel said: “We are truly delighted that our design has been selected as the winning proposal for this very exciting project. “We worked with a fantastic team of cultural place makers, sustainability consultants, landscape designers, artists and engineers to achieve a fully integrated design.” Elsewhere in the city, Developer BPM has sold its proposed King Street hotel development to global investment fund InterGlobe for $91.3 million. The site, on the corner of Flinders Lane and King Street, will be developed by BPM for InterGlobe and managed by Toga Far East (TFE) Hotels under the Quincy brand. The tower will comprise 241 guest rooms over 30 levels and will include a cafe and rooftop bar.

WORLD FAMOUS HOTEL BRAND RETURNS TO SYDNEY Some 18 years after it disappeared from Australia’s accommodation landscape, iconic hotel brand the Ritz-Carlton is coming back to Sydney. The six-star luxury hotel will form part of a $500 million development on The Star’s Pyrmont site. The city’s two Ritz-Carlton hotels closed almost two decades ago and have since reopened as the Sir Stamford at Circular Quay and InterContinental Double Bay. Now the Marriott International-owned brand is back, with a 61-storey tower adjoining The Star’s casino expected to open in 2020/21.

foreshore.

ALMOST $1 BILLION IN HOTEL BUILDS TO REVIVE AND ENRICH CAPITAL Two multi-million-dollar hotels constructed around significant heritage buildings are set to transform Melbourne’s CBD and foreshore. Developers Riverlee Group have been given the green light for a $450 million redevelopment of the Northbank Goods Shed beside the Yarra River between Spencer Street and Charles Grimes Bridge. The project, named Seafarers Place, will revitalise the disused industrial waterfront site with a five-star luxury hotel, mixed-use precinct and public park which will connect the CBD and dockland areas. The Northbank site, bought three years ago from the state government for $28.5 million, is to be transformed into a 280-room hotel, 150 luxury apartments and a 1000-seat function centre and ground floor shops. Rejuvenation work on the historic wharf and heritage-listed crane will form part of the ambitious redevelopment, which won City of Melbourne approval in February and has now been given the go-ahead by state planners. While an operator has yet to be announced for the hotel, the developer confirmed that it will be a new brand to the city. Meanwhile, a 47-storey residential and hotel tower on Queensbridge Street in Melbourne has also won approval - after a three-year delay over heritage and overshadowing concerns. Victorian planning minister Richard Wynne has approved the $420 million mixed-use development, calling it a "great development'' for Melbourne's CBD. The initial development application was lodged in December 2015 but the design was scaled back after consultation with state and local planning officers to reduce overshadowing of Boyd Park and incorporate a large public forecourt.

The development, a joint venture between The Star Entertainment Group, Chow Tai Fook and Far East Consortium, will include a 220room hotel and 200 lower floor apartments along with food and leisure facilities. The Star project will see an overhaul of the existing casino amenities, including a rooftop pool area with harbour views and around 15 more food outlets. It will sit in direct competition with rival casino group Crown Resorts’ new luxury hotel development at Barangaroo on the Sydney Harbour resortnews | september 2018

developments | Hotel Design

Confessions of an interior architect: when refurbs just shouldn’t happen… As an interior architect who has won international recognition for my design and completed many refurbishments of resorts and hotels, it may seem odd for me to suggest that undertaking a refurbishment could be a complete waste of money. However, I understand how important it is to make sure every penny spent adds to the bottom line. There is nothing quite like being held accountable for the return on investment! By combining the professions of interior architecture and hotel management throughout my career, I have delivered successful hotel and resort turnarounds both within Australia and overseas. This unique professional insight and hands-on experience has taught me that far bigger issues than a refurbishment may need to be tackled first.

Case 1 An emerging Australian hotel group was ready to proceed with stamped plans for a multi-million-dollar refurbishment and extension of their flagship property. Upon request of the owner, I presented an alternate plan to deliver a better visual integration of the three separate sites.

preferred guest profile and offer.

Getting on the merry-go-round with refurbishing for new design trends may not produce a return.

My plan also addressed the shortfall of accommodation rooms to public space and integrated key design strategies to attract emerging niche markets and deliver weekend occupancy.

However, recognising the opportunity this niche presented, I persuaded the operator to pursue his vision, supported by creative and highly targeted operations strategies to enable the concept to work.

Occupancy grew from 55 percent to 89 percent and total income by 400 percent. What would the refurbishment and extension have delivered?

Whilst a soft refurbishment was overdue, more pressing concerns included a lack of privacy in-room, and a negative tourism industry perception of the region.

Case 2

Landscaping initiatives fixed the privacy issues, whilst a coordinated local tourism strategy made the region the country’s hottest new tourism destination. Under these circumstances, a refurbishment would not have delivered any return on investment.

A highly acclaimed, successful hotel operator in America was “losing his shirt” with his property in Fiji. He gave me one year to “work some magic”. No capital, no budget! At this time, the industry-held view was that dive + luxury, family + luxury, or eco + luxury were not viable target markets for a boutique luxury resort.

Guests had to meet his guest profile to book and guest ‘rules’ applied during your stay! The private owner, who was not a hotelier, had created something so special his resort had a 90 percent occupancy on limited inventory. The average length of stay was 14 days and many guests came twice a year. The average daily rate (25 years ago) was US$2000. Repeat and word of mouth guests represented 75 percent of bookings. There was no designer influence anywhere. No foyer, no pool, no TV, no phone, no restaurants, no 24-hour service and a soft refurbishment that was well overdue! The GM’s role was to nurture this unique experience within the defined model, not to fundamentally change it. This resort taught me how little physical amenities mattered. The experience was so exceptional, it opened up a new perspective on the possibilities of hotel management through service.

Case 3

Case 4

An iconic highly-acclaimed island resort offered a unique guest experience, based on the owner’s

A newly-built development failed soon after opening. The challenge: to successfully relaunch it.

Heritage considerations led to architects retaining and incorporating existing heritage facades into the design, including the former Robur Tea Warehouse and the heritage-protected Castlemaine Brewery.

development would fill a “missing link” within the area, creating a connection between the CBD, Boyd Park, arts precinct and South Melbourne.

The tower now comprises 733 apartments and 188 guest rooms, along with shops, offices and a pedestrian link between Queensbridge Street and City Road. Both projects are lauded by their developers as providing links between past and present, and between geographic areas of the city.

“The carefully sculpted design will help revive and enrich Southbank with an activated and pedestrian-friendly public realm,” he said.

Riverlee’s development director, David Lee, said it was “committed to rebuilding connections between people and places by delivering a master-planned precinct that is rich in history, adding to Melbourne’s vibrant culture”. “The open spaces and public park are designed to give the waterfront back to the community and celebrate the unique character and history of the site,” he said. Wharf and crane restoration works have started, with the construction of the new hotel due to start mid-2019. Daniel Lao, development manager of Sheng Le Group responsible for the Queensbridge Street site, told The Urban Developer that the

BOUTIQUE $100M HOTEL FOR SYDNEY AS STUDY SHOWS AUSSIES OPTING TO HOLIDAY AT HOME A family-owned former college in the heart of Sydney is set to become a $100 million short-stay boutique hotel. The existing facades of the old ECA Graduate Institute at 55-59 Regent Street will be retained as the property is transformed into a 119-room hotel with six ground floor retail shops. The site is adjacent to Fraser's $2 billion Central Park development and is opposite Central Station. Known as The Regent Hotel, it will be designed as an extension of the successful Spice Alley under the guidance of Sydney architecture firm Place Studio.

resortnews | september 2018

Hotel Design

The perception of the highend target market was that you could not get an authentic island experience at a mainland resort. This combined with barriers of distance and adverse climate conditions in the region made the physical location an almost unsurmountable issue. Identifying a winning concept to persuade key industry influencers to ‘give it another go’ was the key. But we could not open for business until a warehouse was built to hold operating stock. The resort achieved a TripAdvisor award for excellence in the first year of opening.

•

A site visit - a first-hand guest experience over several separate stays

•

Congruence of sales collateral and web content, social media strategies and industry perceptions

•

Approach A holistic, critical review of the micro and macro environment of your property will identify untapped opportunities and future challenges. Integrating these into your business strategy and capital funding budget will ensure congruence and a better return on investment, even if business seems to be on track. However, when you are too close to your business being objective can be hard. Commissioning an independent review is recommended as best practice and should include:

•

A competitor set market analysis, local and international when relevant Insight into physical changes or industry and government issues that have already, or may, come into play and affect business on a macro and micro level A review of the guest profile and expectations with an assessment of department operating standards, key performance indicators and training programs to deliver these

And there are caveats: •

rollout. This is especially important for smaller privatelyowned boutique properties where the brand may not be as commercially defined.

While getting ideas and inputs from other sources, keep control of your product and your target market. Ensure your team understand and commit to your vision in everything that they do. Ensure any change in strategy is effectively communicated to all partners for a seamless

“New developments can no longer be a built for purpose development, but rather, must adapt to the an ever changing social and economic environment,” Place Studio's James Alexander-Hatziplis said. “The ground floor here has proposed just that level of flexibility with street fronting tenancies and the opportunity to bleed uses within the common circulation core of the development.” The property is owned by Wang Management, a family-owned consortium which bought the Chippendale address in 1994 and operates two other hotels in Sydney, the Posh Hotel in Chippendale and the Sydney Boutique Hotel in Darlinghurst. The development is the latest in a slew of hotels proposed for the NSW capital as new research shows Aussies are increasingly shunning overseas holidays in favour of quality hotels in metro areas Down Under. Travel analysts Kayak studied the search habits of Australian holidaymakers, traditionally renowned for their penchant for foreign travel, to discover the most frequently-researched destinations. It found 56 percent of recent hotel searches were for domestic destinations, with Sydney, Melbourne and Brisbane top of the list

•

Product must be fit for purpose and comply for safety. A cohesive and appropriate style important. General managers come and go. Allowing one to own the concept direction or the look and feel of your property is risky business. Equally designers are not hoteliers. It is unlikely that they will understand the day-to-day service impositions of their furniture, fixtures or equipment selections, or the significant costs or savings that site and facility planning can have on the business.

To refurb or not to refurb Getting on the merry-go-round with refurbishing for new design trends may not produce a return. Consider a timeless design that reflects the property’s location or concept, then assess which items will make a quick visual impact and are cost effective to replace. Items that are inclined to show wear and tear may be better chosen as throwaways. While safety or compliance issues

| developments

must be addressed (i.e. a cot that may not comply causes a risk) ongoing guest comfort concerns (better mattress or pillow, or better light in the bathroom) are also important. If standards are being compromised it can affect your room income. Bad TripAdvisor reviews may not be a reason for refurbishment. Ensure incorrect web content is not giving false expectations. The first thing I did when managing a boutique vineyard hotel was to rewrite the web content and to address overdue maintenance which created a poor visual impression. A modest refurbishment of an otherwise well-maintained property may create a better impression for selling. But if it is a bulldozer job, don’t bother! Finally, poor staff attitude and service won’t be fixed by a refurbishment - no matter how much you spend. To know if it makes sense to refurbish your property, identify your business priorities first, before expending any energy or money on a refurbishment. A refurbishment should be the ultimate icing on an already perfectly-baked cake. ■

for the most popular destinations to visit for a short stay. Singapore, Bangkok and Seoul were the only overseas destinations in the top ten. Melbourne and Sydney also made the list of favourite destinations for visits lasting more than two weeks, with Bali, New York, and Honolulu representing international contenders in the top ten. The research also shows that while Aussies are down to earth about our choice of accommodation, they're not prepared to slum it. The most popular accommodation category is four-star, with 46 percent of Aussies searching for four-star hotels compared to 22 percent searching for five-star luxury - and a measly one per cent actively searching for one-star hotels. Boutique hotels, accommodation with a spa, great design and luxury elements all feature on the list of desired amenities. Aussies also have an eye on practicality, with budget-friendly, airport proximity and business-friendly venues all scoring high for desirability. And they are most likely to research hotels on a Monday, with a browsing average high of 4.5 minutes on the first day of the working week. ■

resortnews | september 2018

Property Guide

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

motel market Profiles New Manager Swaggers at Yass

RESORT NEWS SALES REPORT PROUDLY BROUGHT TO YOU BY ACCOM PROPERTIES

www.accomproperties.com.au MANAGEMENT RIGHTS Gold Coast Eastlake Robina

Brad & Anna Ellis

Robina

MRS

Murray & Janine Mortaruolo

Robina

MRS

Ikram Amarti

Pacific Pines

MRS

Olympus Apartments

Midastone Investments Pty Ltd

Surfers Paradise

RBA

Brooklyn Apartments

Park View Partners Pty Ltd

Varsity Lakes

RBA

Riverwood Crest

Naresh Kunwar

Murrumba Downs

MRS

Grove on Grand

Wayne Pennington

Forest Lake

RBA

Susannah and David Hart

Coolum Beach

ARMS

Adrian & Elmira Mayfield

Palm Cove

Shane Guinan & Sharon Williams

Clifton Beach

MRS

N Dunne & R Mclean

Yeppoon

RBA

Paul Schultz

Byron Bay

RBA

Emma & Rowan William

Malanda

RBA

Diane Collins

Corowa

CRE

Luke Burch

Wonboyn Lake

RBA

New George Holdings P/L

Wollongong

RBA

David Mumford

Lismore

RBA

Turnkey Property Group

Grafton

Junhao Investments

Dubbo

Valaze Group

Dubbo

Leigh Esler

Wodonga

CRE

50 Riverwalk Villa Milos

Brisbane

Michael Philpott of Tourism Brokers with Deepak and Rahul Khurana

Michael Philpott of Tourism Brokers would like to congratulate Deepak, Rahul Khurana and families on the purchase of the lease of Swaggers at Yass.

Sunshine Coast / Wide Bay / Fraser Coast

With a hospitality and business background, Deepak and Rahul are repositioning the property to the 4 star market, reopening the restaurant and increasing the use of the conference areas. The 30 rooms will be upgraded and other properties will be added to the portfolio. ■

North Queensland

Element On Coolum Beach

Oasis Palm Cove Clifton Breezes

Salt, Beaches on Lammermoor & Echelon

New South Wales Bayview Beachfront Apartments

MOTELS & OTHER Queensland Malanda Lodge Motel

New South Wales

Over 40 years of service to the Management Rights industry, providing assistance in:

Corowa Hotel Wonboyn Cabins & Caravan Park Normandie Motel & Function Centre Lismore Wilson Motel Hi Way Motel Cascades Motor Inn Matilda Motor Inn

Victoria Carriers Arms

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

resortnews | september 2018

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

Property Guide Agent Profiles

Agent Profiles Agent Profile:

Jon Love – The RAAS Group Jon Love is a highly motivated and experienced management rights specialist. Having spent many years in sales, he knows the importance of understanding the client’s needs and building relationships. Jon has been involved in real estate for most of his life and is an active investor of property both in Australia and abroad. Jon moved to the Gold Coast in 2010 with his wife, Karen, and three boys after living in Melbourne for 10 years. Having been involved with the highs and lows of the market first hand through family ownership in management rights and investments, Jon understands the emotions involved in selling and buying property. Combined with his genuine passion and thorough understanding of real estate, Jon can offer you outstanding service with honesty, integrity and results.

A Licensed Real Estate Agent based on the Gold Coast Jon can provide insight to the whole package, including unit sales, management rights sales and most importantly, maintaining your investment by protecting your rent roll in a changing real estate market. Management rights businesses are a unique Queensland icon that requires a unique and thorough understanding of the ‘Complex’ market. Jon has the knowledge and the edge required to be successful in this market. Having a thorough understanding of Management Rights and the many differences between each complex within the Queensland market, along with a good business acumen you can be ensured a great result when buying or selling.

Name: Jon Love Agency: RAAS Email: jonl@raas.com.au

Mobile: 0481 522 115 Area of Service: Gold Coast Web: www.raas.com.au

Love Management Rights Love the Lifestyle

New appointment at Calvin Bailey Management Rights

Introducing... Malcolm Thomson Calvin Bailey Management Rights welcomes aboard Malcolm Thomson to take advantage of a renewed industry market in the Townsville to Mackay areas.

love of the industry, and an empathy with buyers and sellers. He shares Calvin Bailey’s commitment to fair play, honesty and client loyalty, and is delighted to be joining Calvin’s team.

Malcolm will handle CBMR sales in Management Rights, Resorts and Motels servicing the Hinchinbrook/Townsville to Airlie Beach Mackay areas.

Proud North Queensland resident

From 2006 to date Malcolm has managed and owned a number of different management rights properties, spanning the Fraser Coast and the Wide Bay Burnett areas. His knowledge of the industry is recent and personal - having very successful hands on experience. Prior to this Malcolm had been overseas for over twenty years, working on resort and championship golf course developments in Africa, Asia and Europe. Malcolm’s twelve years in the management rights industry have been highly enjoyable, as well as highly instructive. He is very adept at resort management and has been around the buy and sell aspect enough times to understand its complexities. He has a genuine

Malcolm and his wife Sue have family ties to North Queensland and in particular Townsville, which is why they have decided to settle there permanently. Townsville is a wonderful city to live in, the dry tropics climate is very healthy and being the largest population area in North Queensland there is much to choose from in lifestyle and amenities. Being close to stunning areas such as the Whitsundays/Mackay and Capricornia holds great allure for Malcolm - and he intends to spend many enjoyable hours travelling to these iconic areas for both work and pleasure. If, like Malcolm and Sue you are contemplating the “sea change’’ option Malcolm is your man! Call him today to buy or sell your next management rights or simply get advice on our wonderful industry.

resortnews | september 2018

Name: Malcom Thomson, LREA Mobile: 0413 916 860 Agency: Calvin Bailey Management Rights Area of Service: Townsville to Mackay Web: www.calvinbaileymanagementrights.com.au Email: malcolm@cbmr.com.au

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MANAGEMENT RIGHTS FOR SALE

JULY FEATURED LISTING LEASEHOLD FOR SALE FRAME 1

AUCHENFLOWER, QUEENSLAND BRISBANE RIVER VIEWS FROM MAJORITY OF APARTMENTS

Nett: $605,000 Price:

$4,250,000

Prominent Promotion on HomePage including image and Listing information (Includes Price, Net Income, Managers Estate, Unit#, Letting Pool and Remuneration details)

B•

Each Featured Listing is promoted using Smart Remarketing cookie pools through Google Display Network over the month (50,000 impressions)

C•

Each Featured listing is promoted via Facebook Carousel ad to targeted Accom News users.

D•

Monthly eDM to database of 8,300 industry subscribers D Monthly Digital Newsletter

FRAME 2 MANAGEMENT RIGHTS FOR SALE

A•

AUCHENFLOWER, QUEENSLAND BRISBANE RIVER VIEWS FROM MAJORITY OF APARTMENTS

Nett: $605,000 Price:

$4,250,000

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Only $500+GST Per Listing! Contact Stewart Shimmin on 07 5440 5322 or email s.shimmin@accomproperties.com.au

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profiles | La Mer Boutique Apartments

In a building by the sea, Noosa’s latest MR duo live their dream

La Mer Boutique Apartments exemplifies exquisitely presented ocean view beachfront boutique holiday accommodation in Noosa.

resident managers – enthusiastic industry newbies, Ross and Toula Lynch. They smile: “We pride ourselves on offering a boutique, personalised service to all our guests.”

What a perfect way to start a profile: I could probably leave it right here because, really, what more could you ask for? Still, I must continue because there is indeed so much more to this building and its new management rights owners. The 20 tiered apartments sit beautifully in the Sunshine Beach hillside: this is the accommodation most holiday-makers would dream about. The property presents a stunningly peaceful, romantic

Ross Lynch

environment; all the apartments boast magnificent sea-scape views and the penthouse peers right down to Coolum. Late last year, La Mer Beachfront Apartments introduced its new

With 30 years’ in the scientific field, Ross has experience in laboratory analysis, sales and as a field service engineer while Toula has 30 years under belt in the mental health field as a social worker and family therapist. In a very ‘out of the box’ way, their previous work experience sets them up well for management rights! Ross told me: “We stayed in many manager-run complexes as guests,

‘Customer Service is important to us as it is to you.’

watched how they operated and asked other guests what they thought. So, when we decided to buy into management rights we had a specific list of requirements for what we wanted, and we were very lucky to find La Mer, which ticked all our boxes. “La Mer is in a great location opposite the beach; every apartment has an ocean view where guests can sit on their balconies and watch the whales and dolphins. The apartments span two streets, one property has the beach and pool the other has Sunshine Beach cafes and restaurants. All apartments are fully self-contained and offer a great place to spend a vacation.”

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La Mer Boutique Apartments

| profiles

YEARS IN BUSINESS

After less than one year in the industry I wonder how they have managed to keep La Mer operating at its high level, while keeping guests happy, and while getting to know owners, body corporate and the “ins and outs” of this industry? “We have been learning everything from scratch with no prior experience and yes that was a challenge but also huge achievement. The initial two months were very full-on but we managed to learn everything we needed to know and put our personal touch to it. From our experience we have also found others in the industry to be very helpful and willing to offer advice when needed” Ross said. Toula adds: “In addition we are very fortunate to have the assistance

of Anne who helps with the day to day running of reception and guest services. She is a much-loved, treasured by the guests because of her very happy nature, she is a friendly person who has a great knowledge of the Sunshine Coast.” The transition was smoother than most, due to the property having such a strong body corporate committee that made sure La Mer consistently maintains its high standards. Some very established unit owners have also been involved with La Mer as far back as 1992 and are supportive. Ross adds: “Due to its location and popularity, our apartments do not come up for sale very often.

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profiles | La Mer Boutique Apartments

All of our owners are actively involved in keeping La Mer a popular destination with many of our guests being return guests.” Ross and Toula especially enjoy the face-to-face contact with guests from all over the world: theirs is a holiday location people choose to come back to time and

time again, which they adore. The duo are proud to know that La Mer is so praised and popular, with a high 9.4 rating on Booking.com and having been voted number one in the area on TripAdvisor. Moreover, they aim to keep raising their in-house standards to make sure they continually provide a personal

service to their guests: “We try and help them with any request that they have.”

a happy outlook, even when some guests do their best to make this a difficult thing to do,” they share.

I ask, what motivates you? “We like to make improvements no matter how small, it’s a great feeling to make something better to improves someone’s holiday,” Ross reveals. “Stay positive and always maintain

“To any potential managers, it can be hard work, frustrating, but most of all an enjoyable lifestyle.” ■ By Mandy Clarke, Industry Reporter

SUNSHINE COAST & QUEENSLAND WIDE

We are pleased to be advisers to Ross and Toula regarding their business and to assist in achieving their aims.

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resortnews | september 2018

La Mer Boutique Apartments

| profiles

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profiles | Burleigh Mediterranean Resort

Peter and Karin Grace work smarter at Burleigh Mediterranean Resort

The resort industry does not suffer fools. Fortunately, the new management rights owners of Burleigh Mediterranean Resort, Peter and Karin Grace are not fooling around! They only entered this industry in March 2018, but they did so with open eyes and sharp minds, ready for some serious business. As unpredictable and complex

as management rights can be, it does require smart people with a willingness to work long, hard days; an ability to forward plan, be proactive and remain persistent. Many experts theorise the secret to a MR business success, but Peter explains it in a nutshell: “You must stay on top of the game competition is intense and always remember customers will vote with their feet!”

Burleigh Mediterranean Resort is the superb “twin towers of 110 units on the beach at Burleigh Heads”. With 59 units in the letting pool, it quite simply offers a top location, great facilities, and friendly service. Guests are thrilled with the location, service, quality of accommodation, facilities (two pools) and surrounding amenities. There is a beautiful beach just across the road and North

QLD - NSW - VIC - WA

Wishing Peter & Karin every success with their new business venture

resortnews | september 2018

Burleigh Surf Club is only a short walk away, offering great food and nice coffee. Peter and Karin, originate from Melbourne, where Peter had a consulting company that specialised in profit leakage and Karin had an online fashion business, having spent many years in China. They were attracted to a management rights business,

Burleigh Mediterranean Resort

motivated (Peter honestly states) by: “Making money and making sure people really enjoy the experience of staying at our resort.” Tell us your story... Peter: “We spent 15 years in Asia but came back to Melbourne to be nearer to Karin’s mum, who was unwell. I started my consulting business and several years after Karin’s mum passed away, we wanted a change and a chance to do something completely different. “I had been interested in management rights for over 15 years, inspired by our experiences on many great Gold Coast holidays. I thoroughly researched and studied the industry and when the opportunity presented itself, I contacted industry professionals on the Gold Coast; only those I considered to be genuine, honest and knowledgeable. “We wanted a great property in a top Gold Coast location with potential and great yields, one that we hope will be in our family for many years to come. Burleigh Mediterranean Resort came to our attention before it was even on the market, it was perfect, and we made an offer!”

Due diligence Taxation Business advice Trust auditing Finance strategies Sales figures

Peter and Karin moved quickly, they took over the MR in March with no experience and they hit the ground running. “It was a crazy but somehow we survived,” Peter jokes. What helped? “Our team, we are assisted by great people who have been at the resort for many years.” Peter describes them as a “friendly happy bunch who take pride in caring for guests and the owner’s assets”. He reveals: “We also did some industry training with Dennis Mackenzie’s team at Property Training Australia. We found the courses very valuable, they enhanced our skills and we also met some nice people who we have stayed in touch with. I also studied for my real estate licence with Dennis and recently sold my first property!”

| profiles

Your Management Rights Experts Michael Beddoes & Paul Gaffney

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www.mbapartnership.com.au www.managementrightsaustralia.net

The resort had been well maintained, offers great facilities and presents beautiful gardens, Peter says: “It really has a resort feel compared to others on the Burleigh Esplanade but it did need a refresh and after the first hectic three months of working non-stop with zero days off we were able to take a breath and work smarter.

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resortnews | september 2018

profiles | Burleigh Mediterranean Resort

“To ensure that fresh stock was a priority, we tasked ourselves with renovating seven units in five months! We managed it and are currently working on updating three more. We have a great relationship with our body corporate and owners who thoroughly support the investment.” Just six months in, Peter says he is able to concentrate on the “smarter side” of this business and is busy preplanning a “different landscape”.

Remember Peter’s background? He was a consultant, specialising in profit leakage and he has well and truly put these skills to good use at Burleigh Mediterranean Resort. Taken back by the size of the property’s regular electricity bill, he immediately went to work on reducing them and by simply installing LED lighting with movement sensors around the property and the car park, he has managed to shave “$5K off the monthly electricity bill”.

What has been your steepest learning curve so far? “To learn the dynamics of the many moving parts of resort management and then to find the time to understand the real drivers of the business. Also, we quickly learned to make sure we take time off to prevent burn out,” Peter admits. The resort is loved by many returning guests who have been visiting it for many years. Older guests make up a large

resortnews | september 2018

proportion of their visitors and Peter says: “Assisting our older guests to have a great holiday is especially rewarding for us and we enjoy watching families enjoy their stay. Up to 60 percent of our customers are repeat guests and we are very proud of all the lovely positive feedback we get from them and want to make sure that our resort continues to be their holiday choice for many years to come.” ■ By Mandy Clarke, Industry Reporter

Burleigh Mediterranean Resort

| profiles

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Audience Extension Advertising Package

Target 3,000 Potential Management Rights Buyers Adwords Re-Marketing

Accom Properties uses advanced website remarketing to reach qualified prospects in the purchase cycle through display advertising on high-reach Google partner sites. Each prospect that visits Accom Properties is identified based on the types of listings they engage with to qualify them into specific pools of prospects (listed below). These audiences are qualified based on the: •

Types of listings they engage with including management rights, motels, hotels, caravan parks etc

•

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Additional targeting overlays are available to further refine this targeting by search origin and demographics. These qualified cookie pools are offered to 3rd party advertising partners of Accom Properties to promote relevant listings – See your Accom Properties representative for more information. N.B. Audiences are also available via the Facebook Advertising platform for utilisation of video, carousel and static image ads.

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ACCOUNTANTS & AUDITORS

The Preferred Supplier Programme assisting the industry

It allows managers to access industry specialists who are committed to the highest levels of service and dedicated to the accommodation and hospitality industries.

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Brisbane: 07 3421 3421 shodgetts@mcadamsiemon.com.au

Listed below are the stages of the process that ensure only the best industry suppliers can participate in the Preferred Supplier Programme:

Noosa Heads: 07 5474 8955 Buderim: 07 5408 4622 porielley@mcadamsiemon.com.au

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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).

 Due diligence reports  Structure and taxation advice  Trust account auditing  Risk and superannuation

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.

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).

McAdam Siemon Pty Ltd Specialist Accountants & Business Advisors to the Accommodation Industry

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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.

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Specialist Advisers to the Accommodation & Hospitality Industry

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Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met.

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. ■

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MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:  Business  Strata  Landlord Protection With quick quote turnaround and hassle-free claims service Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com

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SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5539 8745 Email: mnp@spglawers.com.au

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resortnews | september 2018

Theyâ&#x20AC;&#x2122;ll thank you for it! 67

CELEBRATING OUR 23RD YEAR in BUSINESS! The original and still the best… Since 1995 PCS Finance has been the premier & leading Management Rights finance broker... • • • •

First with innovated finance solution Brought new banks to the industry Instrumental in the development of lending products Pioneered the purchase structures which are now common place We are committed to supporting our clients on an ongoing basis, to ensure we remain ahead of our competitors. Call the PCS Team today.

PCS Finance are proud to be in the Preferred Supplier Programme since its inception

BRISBANE

GOLD COAST

Damien Windle 07 3252 2219

Steve Burton 07 5576 7059

damien@pcsfinance.com.au

steve@pcsfinance.com.au

enquiries@pcsfinance.com.au | www.pcsfinance.com.au