Dec 2014 Informer by Resort Brokers

INFORMER Boom or Bust? A CONFIDENT PREDICTION … THE ECONOMY WILL MOVE IN CYCLES KNOWING WHERE YOUR VALUE REALLY LIES: WHAT ARE THE CRUCIAL STEPS WHEN DECIPHERING THE VALUE OF YOUR PROPERTY?

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THEY HAVE MASTERED THE FINE ART OF ACCOMMODATION: WE EXPLORE THE UNIQUE HOTEL COMPANY THAT IS ART SERIES HOTEL GROUP

No. 77 | December 2014

Australia’s No.1 tourism & business

inside... ART SERIES HOTEL GROUP FEATURE

MIKE O'CONNOR'S COLUMN

LESS IS LESS & MORE IS MORE

MANY FACES: RICHARD MUNRO

FEATURE: BOOM & BUST

KNOWING WHERE THE VALUE LIES

COASTING ALONG

SUNSHINE COAST AWARDS

REGIONAL SNAPSHOT: GIPPSLAND, VIC 51 RELIEF MANAGERS 54 INDUSTRY SPECIALISTS

EXCLUSIVE LISTINGS 56 MEET OUR TEAM

Upbeat As

THE YEAR TICKS OVER

IAN CROOKS MANAGING DIRECTOR

FEATURE: EVERYONE SEEMS TO HAVE AN OPINION ON THE ECONOMY THESE DAYS – EXPERT OR NOT. AND VIEWS DIFFER WIDELY. AS THE YEAR DRAWS TO A CLOSE, IT IS ONLY NATURAL TO LOOK AHEAD, WONDERING WHAT THE NEXT WILL HOLD. WELL, WE DON’T HAVE A CRYSTAL BALL. WHAT WE DO HAVE IS THE WISDOM OF HINDSIGHT. SO PERHAPS IT IS MORE HELPFUL TO LOOK BACK. SEE PAGE 30... I've been through four or five boom-bust cycles in my business life, giving me a bit of practice at studying economic form. But, I have to say, it’s quite hard to put my finger on the economic pulse this time round. In today’s non-stop media cycle, there is so much information and a lot of it is contradictory. For every optimist, there’s a pessimist with a different view. From a property perspective, conventional wisdom tells us, after hitting the post-GFC

bottom in 2012, we are now through the recovery phase and into the expansionary stage. Resort Brokers Australia is certainly performing well, and we can’t help but feel upbeat. My daughter Trudy (national sales manager) and I recently made another of our regular trips to Singapore, and there is still immense interest in Australian hotels. Tourism generally is on the up, with healthy domestic demand, strong inbound figures, and rising occupancies finally driving room rates higher. The growth is attracting good investment and encouraging operators to trade up. But that picture doesn’t tell the whole story. It doesn’t show how fragmented the market is. I’m sad to see motels suffering in areas affected by the mining downturn. After years of good trading, they’re now hurt financially by circumstances beyond their control. I have heard some promising news on the resources front. Santos proposes more Bowen and Surat Basin gas fields development that could add 1900 jobs. Peabody Energy says growth in India and China, plus the US recovery, should contribute to a coal market rebound. And the free trade agreement with China is exciting. World powers are moving to tackle

climate change. But demand for coal will continue. We just hope the touted clean coal initiatives are effective, and more can be done to address social problems that come with mining town booms and busts. This final 2014 Informer offers some economic analysis by our various experts, and the cover story reminds us, as I’ve heard it said, that history is a very handy early warning system. Its lessons are worth heeding. During the excitement of a rising market, never forget, if it sounds too good to be true, it probably is. The economic tide will always ebb and flow. So, while the going is good, make sure you put some money aside. Also in this issue, meet AAA chief Richard Munro, featured as our very influential ‘face of the accommodation industry’, and step inside the acclaimed Art Series Hotel Group. Next year, Resort Brokers Australia will celebrate our 30th birthday. After 29 years, through ups and downs, our business is as strong as it’s ever been. I am incredibly proud of our team, and I wish them and all of you a fantastic Christmas season and a cracking 2015.

GOT ANY COMMENTS? GET IN TOUCH: CARLACOOK@RESORTBROKERS.COM.AU OR PO BOX 5004, WEST END QLD 4101 resortbrokers.com.au

Exclusive SA

'Go west!' Golden opportunity in WA - branded serviced apartment business On offer to a prospective purchaser is the leasehold interest of a 21 key serviced apartment business. This property has been successfully operated by the current Quest fanchisee owner since opening in July 2005. The business is well positioned for significant future growth given its location and the growing demand for accommodation. Additionally there is the opportunity for a franchisee to purchase a greenfield business nearby. Located in West Perth and only minutes away from the CBD the business is within easy commuting distance to many of Perth’s popular facilties including Kings Park and Botanical Garden, Patterson Stadium, HBF Stadium, Perth Arena, University of WA and many of Perth’s major hospitals including King Edward, Princess Margaret, Sir Charles Gardner and the soon to be completed new Children’s Hospital.

• 21 x one and two bedroom fully self contained serviced apartments • Ideally positioned close to Perth CBD and corporate, mining and resource headquarters • Two bedroom owners apartment available for purchase ($570,000) • Near new property built in 2005 and apartments refurbished in 2011 • Member of Quest Serviced Apartment Group offering substantial support services • Potential opportunity to benefit from the ongoing growth plans of the Quest Group

Nett: $387,517

Price: $1,520,000 resortbrokers.com.au/motels-for-sale/LH003397

Jim Chapman Broker Mobile. +61 413 444 782 Email. jimchapman@resortbrokers.com.au Melbourne Office. 03 9347 3100 4

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Exclusive MR

Rare Broadbeach management rights offered for the first time in 10 years Under the same ownership for the last 10 years, Resort Brokers Australia are delighted to exclusively offer the opportunity to purchase this property in a prime location in central Broadbeach.

The current managers, who will retire after selling, have had the benefit of a fabulous body corporate committee that is both forward thinking and progressive.

Capricornia is located so close to the centre of Broadbeach you could through a stone and reach the mall and surrounding shops and restaurants! Given the close proximity to the Convention Centre, Jupiter’s Casino and the convenience of the light rail (only a short walk away), tourist and business visitors alike find this location very desirable and accommodation in this area is always in high demand.

The manager's unit comprises of three bedrooms, two bathrooms, lounge/dining, large kitchen, separate laundry and patio with some garden beds providing leafy surroundings.

The property consists of 66 units in the building with 26 in the letting pool. The letting pool has remained steady over the last 10 years. Unlike many new developments the apartments are spacious with high ceilings and generous balconies with breathtaking views. Given these aspects, patrons come back time and time again. The complex is due to be repainted and refreshed in February 2015.

• The perfect location 100m from Broadbeach Mall • High netting holiday complex • Spacious three bedroom, three bathroom managers unit • Extensive on site facilities for your guests to enjoy • Agreements topped up from February 2015

Nett: $300,000

Price: $2,195,000 resortbrokers.com.au/management-rights-for-sale/MR003447

Carolyn Griffith Broker Mobile. +61 419 675 429 Email. carolyngriffith@resortbrokers.com.au Headoffice. 07 3878 3999 6

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Exclusive MR

Large Sunshine Coast management rights opposite one of Queenslands best surf beaches Resort Brokers Australia are delighted to offer for sale this resort like property on the beautiful Sunshine Coast. Located opposite one of Queensland's best surf beaches, this complex features a range of studio, one bedroom, dual key two bedroom and three bedroom self contained apartments, most featuring ocean views. The property has great resort facilities including heated pool, games room, guest laundry and on-site cafe (separately operated), as well as a large stand alone reception building with two back offices. There are a total of 50 units (86 keys) in the managers letting pool at present. The net income to end of September 2014 was $531,000 and the Body Corporate remuneration is $90,612. The big bonus with this business is that the units are not suited for permanent residential use which goes a long way in protecting the manager's letting pool which has remained stable for many years.

• Flexibility in the breakdown of unit types to meet all requirements of the market • High net income showing strong growth • Solid body corporate remuneration • Consistent increase in the net profit for past five years • Low risk of the reduction in the letting pool plus history to support this fact • Long accommodation module agreements Investors and operators note: This offering is showing 20% return on investment after allowing $100K for managers wages and $15K for incidental costs.

Nett: $531,000

Expressions of Interest resortbrokers.com.au/management-rights-for-sale/MR003421

Glenn Millar Broker Mobile. +61 412 277 804 Email. glennmillar@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Exclusive

Exclusive Hunter Valley resort management business inc. restaurant & conference facilities This is your opportunity to purchase an incredible resort business in a spectacular location.

New function facilities also represent a new opportunity for this business to cater to corporate and business prospects.

Eaglereach Wilderness Resort is located just over two hours (195km) north of Sydney. In the beautiful Hunter Valley, on the outskirts of the charming village of Vacy, the property offers breathtaking views from a spectacular mountain ridge. The exclusive bistro and bar delivers a strong turnover – breakfast is included in all accommodation packages.

With scope for expansion and development, as well as the potential to utilise accommodation websites, this is a great opportunity to take an already lucrative and well-run business to the next level.

On offer is a business in a Resort which includes: • Management of 12 luxury lodges (of 40 lodges onsite) • 2 x one bedroom executive lodges • 1 x two bedroom lodge • 1 x six bedroom resort room complex • Additional developable land (subject to DA) • Licenced restaurant • Two bedroom, two bathroom residence • Workshop and storage facility

• Resort style holiday houses (over 40 houses on site) • Two hours from Sydney • Mountain top beauty with panoramic views • On over 1000 acres • Package includes developable land

Nett: $219,000

Price: $2,000,000 resortbrokers.com.au/management-rights-for-sale/MR003458

Shane Wynhoven Broker Mobile. +61 424 174 592 Email. shanewyhoven@resortbrokers.com.au Sydney Office. 02 9904 8224 8

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In conjunction with Raymond Tran M: +61 416 180 494 D: +61 2 9257 0355

Thursday Island

CAPE YORK

Exclusive FH Cape York

QUEENSLAND

Seisia

Bamaga

Mapoon

Bramwell Jcn

100

Moreton Telgraph Stn Weipa Lockhart River

Aurukun

Archer River

Coen Port Stewart

MUSGRAVE ROADHOUSE Pormpuraaw

De ve lop me nt

Ro ad

Hope Vale

rke

Laura

Cooktown

Lakeland Normanton

Busy, freehold roadhouse situated in a great position in Cape York This unique freehold offering is the Musgrave Roadhouse, located on the Peninsula Development Road (PDR) in the Cape York Peninsula. Situated on 767 hectares of land the property is still owned and operated by one of the early pioneering families of the region - the Shepard’s. They know it’s time for a change which means a world of opportunities for you!

For example, this will allow station owners to transport live cattle around the region from the Gulf via road trains, on shorter more improved routes. This road will open a new route into the north for domestic travellers and other industries – mining transport into Weipa, government (communities), fishing industry, etc. essentially connecting the West-Gulf region to the Cape.

The Musgrave Roadhouse is located 136 kilometres north of Laura, and is halfway between Cairns and Weipa. It provides services for all travellers heading north to the Cape York Peninsula and west to various communities. The roads coming out of Lakefield National Park, Kowanyama and Pormpurraw all meet up at Musgrave making Musgrave Roadhouse the only stop for miles.

• Over 50,000 vehicles trekked to the cape this year – every one of them has to pass the Musgrave Road House • A proposed $210 million Government upgrade on Cape York Peninsula Road • Accommodation – cabins & camping, fuel & F&B

The big news is that Musgrave is located on the three ways junction, between Lakefield National Park, the Cape and South to Laura. Approximately 20km south at a turn off point near Artemus Station the Burke Development Road is currently under expansion. This expansion will open up the north between Normanton and the Cape York, allowing a newer improved route into the Cape.

Nett: $420,000

Price: $2,800,000 WIWO resortbrokers.com.au/caravan-parks-for-sale/FH00315

Shane Mullins Broker Mobile. +61 447 185 001 Email. shanemullins@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Inspired AND A LITTLE EXTRAORDINARY

IN THIS SERIES OF ARTICLES, WE PROFILE LEADING SHORT-TERM ACCOMMODATION OPERATORS – THEIR ORIGINS, GROWTH, MARKET POSITION, AND FUTURE PLANS.

Wyndham on William Ayers Rock Resort, Ayers Rock in Melbourne

The Schaller Studio - Pantry

IN 2001, ON THE INITIATIVE OF MELBOURNE PROPERTY DEVELOPER AND ART COLLECTOR DAVID DEAGUE, 10 OF AUSTRALIA’S GREATEST LIVING ARTISTS SET OUT WITH MEMBERS OF HIS FAMILY ON AN EXTRAORDINARY EXPEDITION TO REMOTE CENTRAL AUSTRALIA. THEIR MISSION WAS TO IGNITE INTEREST IN AUSTRALIAN LANDSCAPE PAINTING. BUT THE CREATIVE JOURNEY ALSO PROVIDED THE SPARK FOR A HOTEL CONCEPT THAT PROVED A (BRUSH) STROKE OF GENIUS. Australia’s most revered and collected artists, among them John Olsen, David Larwill and Mark Schaller who joined the 2001 ‘William Creek and Beyond’ expedition, are the inspiration behind Australia’s critically acclaimed Art Series Hotel Group. Born in the cultural heartland of Melbourne and now expanding to cities and states beyond, the boutique art-themed hotel group is the brainchild of William Deague, the eldest of four siblings in the current generation of Victoria’s development dynasty. William is now CEO of Asian Pacific Group (APG) the family’s commercial property development company he joined in 1996 after finishing school at Melbourne Grammar. His vision for an avant garde accommodation collection, conceived during that outback art exploration, progressed to reality in 2009 when the Art Series Hotel Group unveiled its first property in Prahran, Melbourne’s eclectic bohemian precinct on the city fringe. Introducing the signature practice of naming each hotel for its artistic muse, The Cullen launched the group in a daring, edgy, even dangerous style, befitting its namesake. The late Adam Cullen, whose brightly coloured works from his infamous Ned Kelly series adorn its 10

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The Larwill Studio

EDITORIAL

walls, is remembered as a bold and fearless artist. Tangy green pods jut out from the building, two life-size cow sculptures and a portrait of Phar Lap greet guests in the foyer. Immediately, the hotel received two international accolades, a listing on the Conde Nast Traveler Hot List (2010) and a nomination for Australasia’s Leading New Hotel at the 2010 World Travel Awards. Art Series Hotel Group had arrived. Ordinarily, such a successful debut might be a hard act to follow. That is unless you do it with the might and magic of Australia’s greatest living artist, landscape painter Dr John Olsen AO OBE. The master of lyrical and lively watercolours is the inspiration for The Olsen, the group’s flagship hotel opened in Melbourne’s chic South Yarra in early 2010. Home to a number of Olsen works, the

The Larwill - Bedroom

16-storey hotel oozes luxury and comfort, from its glass-bottomed swimming pool and day spa to the $2,000 and $2,500 per night penthouses. According to Art Series Hotel Group Director of Sales and Marketing, Ryan Tuckerman, the art concept has resonated strongly with guests and helped influence the many awards conferred on the hotels by media heavyweights like Australian Gourmet Traveller, New York-based publisher Conde Nast, and Trip Advisor. “We promise a unique art inspired experience for guests, transcending the traditional with, as we say, a hotel experience a little extraordinary,” Tuckerman says. “Each hotel takes design inspiration from the namesake artist, with their works and personality infused throughout, from the colour palette to the quirky touches such as quotes on the pillowcases and drip hook door hangers. “We offer private tours with an in-house art curator, dedicated art channels and art

libraries, even challenge guests to embrace their creative side using art utensils provided.” The third hotel in the Art Series Hotel Group pays homage to Australia’s most famous figurative artist, Charles Blackman. The Blackman is built within and above historic Airlie Mansion on St Kilda Road, between Melbourne’s arts precinct and St Kilda Beach. Taking its design cues from Blackman’s famous Alice in Wonderland series, it exudes an enchanting and whimsical atmosphere. But there is a lot more to this hotel group’s success than the rich visual feast and serious cultural cred. “Art is at our core,” says Tuckerman. “But so too are attentive personalised service by knowledgeable, enthusiastic staff, sophisticated comfort and style, and up-tothe-minute technology. “Innovative features that have been really well received include our commitment to ecoconscious initiatives, and having Smart cars, Kronan scooters and bicycles, all branded with resortbrokers.com.au

the exciting works of the artists, available for hire by guests.” 2014 has been a busy year as the group doubled its portfolio, opening three more Art Series properties, including two that represent an innovative evolution of the brand. They have expanded to more locations at an affordable price point, launching the new ‘Studios’. The Schaller Studio, channelling the working studio of bold, contemporary expressionist artist Mark Schaller, opened in Bendigo in May with prices starting at just $125 per night. This first regional property features 128 rooms (‘workspaces’ as they’re known), big edgy communal spaces, largescale sculptures and mosaics and landscaped gardens. Schaller even designed and painted a tram on which guests can tour Bendigo. Back in Melbourne, adjoining the Royal Children’s Hospital at Parkville, The Larwill Studio reflects the bright, playful artworks of figurative expressionist and visual storyteller David Larwill. “It has a real sense of community, aiming to make art accessible, aligning perfectly with its namesake artist,” Tuckerman says. And finally, Art Series Hotel Group has just opened in Adelaide with The Watson, set in leafy Walkerville, overlooking the Adelaide Hills. Here guests immerse themselves in the art of Indigenous artist Yannima Pirkarli Tommy Watson. With striking Watson works spotted throughout and large communal spaces enriched by splashes of desert colour, the boutique luxury hotel boasts open-plan selfcontained suites and long-stay ‘Residence’ apartments. Did we say ‘residence’ apartments? Yes, longer term accommodation options are now available within the five-star hotel environment. Fully serviced and fully furnished residences are available in The Cullen, The Olsen, The Blackman, and The Watson for weekly, monthly or longer term stays. Plans for more expansion are already well advanced. The group will head north to Brisbane, where it plans a Spring Hill apartment development to include an Art Series Hotel called The Johnson, after Sydney artist Michael Johnson. And the group is part of a consortium recently selected as the preferred candidate to develop Brisbane’s historic CBD riverside Howard Smith Wharves site, beneath the Story Bridge. They’re now working with HSW Consortium, led by Adam Flaskas and Elisha Bickle, on an application to include a fivestar Art Series Hotel. Brisbane City Council is expected to announce the final outcome for the landmark project in June 2015. Meanwhile, if you can’t wait for a dose of Art Series Hotel inspiration, you can now head to their brand new online store, Artefact, where prints of the hotels’ artworks, furnishings and other quirky products from the unique accommodation group can be bought. 12

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Who's Been

SLEEPING IN MY BED: AVOIDING BOOM & BUST BY MIKE PHIPPS - MIKE PHIPPS FINANCE Motels and management rights are pretty simple businesses in theory. Guests arrive, sleep, pay and leave. As a motelier or resident manager you are essentially selling sleep and in some cases relaxation. Provided the punters keep coming all is well. Yes, you might encounter competition and need to adjust tariffs and there are certainly highs and lows in many areas as far as occupancy goes but the business essentials remain the same. In my mind one of the greatest risks a buyer can face is knowing who is sleeping in the property, why they are there and whether they will be returning. Understanding the profile of the guests and what drives them to your business is at the heart of any well-judged purchase decision. In the view of most valuers and seasoned operators, a wide variety of guests and a wide variety of demand drivers is key to essentially de-risking your business and ensuring that bookings do not suddenly dry up. Having a significant proportion of your occupancy being driven by one or two demand drivers is not always bad but certainly needs to be understood. The classic example is the regional motel running 95% occupancies at tariffs twice the regional average. Sounds fabulous but of course there is always a catch. Most motels reflecting these operating dynamics are enjoying strong demand because of something specific that is happening in the area. It could be an infrastructure project, a resource sector expansion or a special event. The trick is to understand the likely life of the project that is driving demand and the lay of land once the project is complete. In the case of south east Queensland located serviced apartment type management rights and motels we saw a significant lift in revenues during the G20 summit in Brisbane. For buyers looking at properties that have enjoyed this increase in income the obvious question is “Will the G20 be repeated every year in Brisbane?” If the answer is no then the buyer needs to contemplate the sustainable revenues year in, year out in the absence of a substitute major event. Conversely, if you

EDITORIAL

QUEST FAST TRACKS EXPANSION: $500-MILLION STRATEGIC PARTNERSHIP WITH THE ASCOTT LIMITED

are buying a motel in Toowomba, Tamworth or Bathurst there’s a strong chance the carnival of flowers, music festival and car race respectively will continue into the future so peak revenues for those events would be considered sustainable over the loan term. During the mining boom (is it still going I wonder?) some regional towns had the good fortune to enjoy substantial increases in motel and serviced apartment room demand as mining companies struggled to find accommodation for staff. Occupancies and tariffs went through the roof and many a canny operator put their business on the market with their much improved trading numbers underpinning the price. Trouble is, all that improved trade is concentrated on one demand driver. You buy a motel running 90% occupancy at record tariffs driven by a single economic trend that’s demand concentration risk personified. When or if the miners leave town (or build their own workers accommodation) or slow down (and they have) what's Plan B? You are back to 50% occupancy at $95 a night and if you borrowed money you are under the pump. The value of your asset has most likely declined significantly and your 50% geared loan is now notionally geared way higher on your current value. With any luck your rent will have been set before the boom and maybe you can survive. The sad reality is that some operators simply don't get through. That's a shame because these are incredible businesses with some of the best return on equity numbers I have seen. Just make sure you are not buying on a single unsustainable demand driver or trend and have a Plan B.

Quest Serviced Apartments is set to rapidly expand its network following the announcement of a major strategic partnership with one of the world's largest serviced apartment owner-operators – Singapore based The Ascott Limited. The deal will see a $500-million investment in new Quest properties across Australia over the next 5 years, fast-tracking the company’s plans to expand the network to over 250 properties by the end of the decade. The Ascott Limited is a wholly-owned subsidiary of Singaporelisted company, CapitaLand Limited – one of Asia’s largest real estate companies. The Ascott Limited operates under three international brands - Ascott, Citadines and Somerset, with over 200 properties globally, including five in Australia. The partnership includes Ascott Residence Trust (a listed Real Estate Investment Trust on the Singapore Exchange) acquiring a $83-million portfolio of Australian assets comprising three Quest properties in NSW located at Mascot Airport, Sydney Olympic Park and Campbelltown. These will continue to be operated and leased back long-term under the Quest brand and franchise platform. In addition, Ascott will become a minority JV partner within Quest. Following the announcement on the Singapore Exchange this morning, Quest CEO Zed Sanjana shared the news with the Quest Franchise Network at the company’s national conference in Melbourne this morning. He said the strategic partnership was a transformational opportunity for Quest; which would result in both accelerated growth of the brand’s Australian footprint, as well as fast tracking Quest’s global expansion. “This will provide us with an opportunity to accelerate our organic growth over the next 5 years to take advantage of the strong demand dynamics in the Australian accommodation market,” Sanjana explained. “We will now move quickly to close out a number of deals in our pipeline, by providing greater certainty to our Development Partners.” The strategic partnership also provides the opportunity for joint initiatives across sales, marketing and distribution; given both company’s strong common focus on the global mobility market and extended stay corporate customer. Whilst Quest has opened an average of 8 new properties per year for over a decade, the strategic partnership will enable Quest to accelerate its annual growth by an additional 20 new properties over the next five years. “The $500-million future commitment by The Ascott Limited and portfolio acquisition by Ascott Residence Trust, demonstrates the growing investment appetite in this asset class from global institutional investors, and their confidence in the strength of the Australian accommodation market,” Sanjana said. The Ascott Limited CEO Lee Chee Koon welcomed the partnership with Quest. Mr Lee said: “Ascott has an established presence in Australia where our serviced residences enjoy a strong demand from travellers to the country, and we see vast potential growth opportunities for serviced residences. Ascott has many global customer accounts and strong global systems to manage our properties. Through our strategic partnership with Quest, we can leverage each other’s knowledge and contacts in Australia to rapidly extend our presence in the growing market for international quality serviced apartments. We also expect a stronger pipeline of properties in Australia for Ascott to acquire.” “Foreign investment in Australia’s accommodation sector has been on the increase in recent years due to the reliable legislative environment, resilient economy and stable returns in Australia,” Mr Lee said. “We look forward to closer collaboration with Quest in cross selling, conducting joint marketing initiatives, and jointly exploring franchising opportunities outside of Australia.” resortbrokers.com.au

Exclusive FH

Rare freehold motel with upside - great position, great place to live, perfect for couple This property is a credit to the current owners who have taken it and made it into a multi awarded property in many different categories. It sits on a large block of 8060m2 with only 12% of the available land being used. The property is strategically positioned in one corner, leaving the bulk of the block still to develop or subdivide. This property enjoys a diverse customer base as it is a preferred supplier to booking agents for international guests, corporate clients, tradies, visitors and doctors. The hospital precinct is only a short walk away. It has enjoyed growth in each year of the vendor’s tenure. This motel is the first accommodation you reach as you enter Hervey Bay on your way from Maryborough. Hervey Bay is a dynamic coastal centre with a population in excess of 76,000 and is one of the fastest growing areas in Australia. It is approximately 300 kilometres north of Brisbane and encompasses the coastal area north to Burrum Heads and south to River Heads.

This is the perfect option for a couple. Come and see you’ll love it. • Multi award winning property 2009, 2010, 2011, 2012 Fraser Coast Awards for Excellence / 2013 Queensland Tourism Awards • 14 rooms • 3.5 star AAA rated • 8060sq metre of land with only 12% used • Oversized motel rooms 30sq metres • Units are 58sq meters • Future potential to add more units or subdivide for house blocks • Eco friendly practices used throughout complex • Great blend of clientele

Nett: $255,120

Price: $2,185,000 resortbrokers.com.au/motels-for-sale/FH003456

Lindsay Cooper Broker Mobile. +61 418 711 047 Email. lindsaycooper@resortbrokers.com.au Headoffice. 07 3878 3999 14

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Exclusive MR

Opportunity knocks! Sought after off the plan management rights at Dooandella If you are looking for a high quality add-on to your existing business, or just want something to get you started into management rights, then Eden Brook is the property for you. There is no requirement to live on site or buy a managers unit. So jump in now and pick your own tenants. This off the plan 33 town home development would be easily managed by one person. Given there is no residence to buy, the overall rate of return jumps to a very nice 23.7%. The body corporate salary of $29,700 per year is guaranteed and will increase annually by the CPI. The commission income should be substantial and reliable considering the high rental demand in Doolandella. This suburb is close to many industrial/commercial areas and that’s great news when looking for new tenants. More jobs equals more tenants!! The way that the development has been set up will ensure that all rental units will come into the rental pool. This is an exciting opportunity that will not be on the market for very long!

Doolandella is an outer Brisbane City suburb, 17 kilometres south west of the CBD. This is one of Brisbane’s faster growing suburbs with new housing and developments being built to cater for the demand. • Business only! • High quality design and finishes • No requirement to buy a unit or live on site • Located close to shops, public transport and two major highways • The south west to Ipswich is in high demand for commercial and industrial development • Lots of jobs are in this area equals lots of tenants • Great return on investment. 23.7% • All units are to be sold to investors

Nett: $87,788 projected

Price: $370,000 + GST resortbrokers.com.au/management-rights-for-sale/OTP003425/

David Janett Broker Mobile. +61 404 204 672 Email. davidjanett@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Coming Soon MR

The Gold Coast City's premier new address off the plan management rights in Robina Resort Brokers Australia is delighted to offer to the market the off the plan management rights and manager’s residence to Bohème Apartments, the latest development by the renowned Robina Group. Founded by Singaporean industrialist Dr Robin Loh back in 1980, Robina Group has been the driving force behind the growth of the thriving residential and business hub that is Robina. Bohème Apartments will become an impressive entry statement at the waterfront gateway to City Village, an exclusive community of uber-contemporary homes that forms the latest addition to Robina’s masterplan. The striking development will comprise of two towers, one of seven levels and one of nine. Bohème Apartments will be situated in an absolutely prime location, just a moment’s stroll from the super-regional leisure and shopping destination of Robina Town Centre, and within easy reach of an array of top-class dining, education, health, transport and sport facilities.

With apartments currently on the market and selling fast, construction is expected to commence in March 2015 and to be completed by March 2016. A 30 day ‘Expressions of Interest’ campaign will begin on January 15th. Robina Group is seeking experienced, professional, onsite management. • 129 apartments, mix of two and three bedrooms. • BC salary of $129,000, CPI linked • Spacious three bedroom managers residence + office on title • Brand new 25 year agreements • Prime location close to all amenities • Over 90% investors expected in letting pool • Area of high rental demand + low vacancy rate

Nett: $410,000 (projected)

Expressions of Interest resortbrokers.com.au/management-rights-for-sale/MR003486

Alex Cook Broker Mobile. +61 467 600 610 Email. alexcook@resortbrokers.com.au Headoffice. 07 3878 3999 16

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HiRUM

HiConnect Tomorrowâ&#x20AC;&#x2122;s Technology on your Front Desk today. HiConnect is a complete software solution for motels and smaller properties, which looks after all your front desk requirements, provides website connectivity and seamlessly integrates with all your favourite online travel agents. Contact us now and find out how we can simplify your business. sales@hirum.com.au www.hirum.com.au

Exclusive FH

Eco tourist motel plus pet motel on 77 acres only 20 mins from the Gold Coast Airport Resting on the Qld/NSW border, this rainforest retreat motel sits on 77 hilltop acres and boasts absolute ocean views. Part of the offering and located down the hill, is a separate business known as the Coolangatta Pet Motel. These motels offer the best of both worlds, being an unrivalled lifestyle location to live, work and play as well as being very close to the Southern Cross University, retail shopping centres, schools, beaches and a bus stop at the door. Given the expansive size of the land, this property also offers massive upside with up to eight new cash-flow business opportunities. It has already been council zoned and approved for future expansion. The owner’s residence, with its uninterrupted ocean views, is located on a separate 13 acre block with dams and Hereford cattle roaming free. There is also an additional two bedroom manager’s home. The Tailwaggers Rainforest Retreat is seven years old and has 10 fully self-contained eco pet friendly studio suites.

The Coolangatta Pet Motel is a dog and cat boarding complex is also Queensland’s No.1 dog training facility. Presently the complex caters for up to 200 dogs and 50 cats in individual state-of-the-art boarding kennels. The property also has a conference centre designed and set up for functions, events, seminars and weddings with a seating capacity for 100+ persons, including full commercial kitchen. It is currently under utilised and would benefit from marketing to the corporate sector. • Two separate lifestyle businesses with separate residences set in hilltop rainforest acreage • Opportunity to either sell or lease either established business • Price reduced!

Nett: $211,324

Price: $4.2m $3,950,000 resortbrokers.com.au/motels-for-sale/FH00332

Ian Dore Broker Mobile. +61 412 752 238 Email. iandore@resortbrokers.com.au Headoffice. 07 3878 3999 18

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Exclusive MR

The ultimate lifestyle & business opportunity meters from the beach A management rights opportunity like this rarely arises, offering a spacious four bedroom residence with a solid income and growth potential, as well as flexible office hours so you can enjoy the coastal lifestyle you have dreamt and planned for. One block from premier patrolled Town Beach, restaurants, cafe and speciality shops the 'box ticking exercise' is so easy. The region is perfectly located halfway between Sydney and Brisbane and is one of the most popular tourist destinations on the NSW coast. A place of natural beauty, the Hastings area is renowned for its wonderful beaches, scenic hinterland and beautiful waterways. It also hosts a variety of annual events and festivals. This is your ticket to raise the family or wind down with a sea change in a property that has consistently performed for the current managers for over a decade. A secure platform to operate with a happy owner’s corporation combined with consistent repeat holiday makers and event guests, make up this flexible lifestyle business ripe for the picking.

• 26 holiday apartments all in rare pooled income agreement • Unrivalled refurbished four bedroom manager’s apartment • Huge inviting reception area • 10 year caretaking and letting agreement • Flexible office hours to enjoy the lifestyle • A block from Town’s patrolled beach, award winning restaurants, clubs, cafes, shops • This property will benefit from the recently installed reservation system • Business multiple an attractive 3.5 times

Nett: $124,854

Price: $820,000 neg resortbrokers.com.au/management-rights-for-sale/MR003185

James Carrick Broker Mobile. +61 400 664 065 Email. jamescarrick@resortbrokers.com.au Sydney Office. 02 9904 8224 resortbrokers.com.au

Exclusive LH

Receivers & Managers’ sale - expressions of interest Alexandras on Takalvan Under instruction from Graham Robert Killer and Michael Gerard McCann in their capacity as Joint and Several Receivers and Managers of Alexandra Inn Bundaberg Pty Ltd (trading as Alexandras on Takalvan), Resort Brokers Australia is pleased to present for sale by Expressions of Interest, the leasehold and business of this 34 unit motel located at 11 Takalvan St, Bundaberg. The owner’s residence, recently re-carpeted, offers three bedrooms and a complete kitchen and living area which opens onto a private terrace. Other features include built in robes and two decked outdoor areas. The property, constructed of solid brick, has been built in two parts, the oldest being approximately 14 years and the new component being approximately 10 years old. The motel has two street frontage and main road appeal with a modern rendered fence that provides privacy for the pool area.

The motel business with leasehold is located on Takalvan Street, the main entry route into Bundaberg. Key features of the property include: • Licensed restaurant and adjoining cocktail bar • In ground swimming pool • Conference room • Three bedroom owner’s residence • Gardens • Off-street parking • Two street frontage

Expressions of Interest close on 6 December 2014 resortbrokers.com.au/motels-for-sale/LH003449

Trudy Crooks

Len Booth

Broker

Mobile. +61 477 882 210

Mobile. +61 438 139 422

Email. trudycrooks@resortbrokers.com.au

Email. lenbooth@resortbrokers.com.au

Headoffice. 07 3878 3999

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

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

www.hillhouse.com.au

Many thanks to Queensland Tourism for providing the image of Brisbane

The best in the west! Rent at 39% of net to freehold / ROI 39.3% - say no more! Don’t waste a second. Now is the time to buy this beautiful western Queensland motel lease. Based on the last 12 month's figures, you really are buying this at the bottom. The rent is a well below the industry benchmark. The return is well above the industry benchmarks – and the only way is up! A beautiful property with an endearing western homestead appeal, the rooms are housed in four separate buildings and the restaurant and residence in the fifth. The gardens and lawns are immaculate. The managers accommodation is a three bedroom residence situated behind the reception. There is a large living and kitchen area and a private back outdoor area for entertaining family and friends.

• Spacious three bedroom manager's residence • Brand new 30 year lease • DA in place to build 16 units stage one and then a further 16 stage two • Licensed dining room • In-ground swimming pool • Car rental agency • Showing an impressive 39.3% return • Rent set at an extremely low level • Currently run under management • Outstanding property / outstanding business

Nett: $391,000

Now is the time to act with stage two of the gas infrastructure about to get into full swing early 2015. With a motivated vendor ready to do business, this is a once in a lifetime opportunity.

Price: $995,000 resortbrokers.com.au/motels-for-sale/LH003461

Steve Campbell

Lindsay Cooper

Broker

Mobile. +61 407 220 668

Mobile. +61 418 711 047

Email. stevecampbell@resortbrokers.com.au

Email. lindsaycooper@resortbrokers.com.au

Headoffice. 07 3878 3999

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EDITORIAL

THROUGH BOOMS AND BUSTS, THE

Roller Coaster

ROLLS ON

BY MIKE O'CONNOR I was born in a boom, which would have been news to my parents as they battled to buy a house and bring up a family on a tradesman’s wage in 1950's. As a high school student I learnt that the postwar years into which I had been born, and which made me an official baby boomer, had been a period of great growth. "How come then," I wondered, "that we had no car, no phone and a toilet at the bottom of the yard?" Booms, I worked out early in my life, meant different things to different people. My Uncle Alf knew all about booms. He had a successful painting business on the Gold Coast and lived the life. He drove American cars, carried a roll of cash that would have choked an elephant and knew anyone worth knowing. Then one day he came to visit us and when he left I asked my father if there was a problem. "He’s broke," said my Dad. "It’s a thing called a credit squeeze. He came to ask if we had any money he could borrow to save his business." "What will you do?" I asked. "Give him what little we’ve got," he said. How could you, I wondered, drive a shiny new car and have pockets bulging with cash one day and be broke the next? This was my first experience of a bust and the memory stayed with me. I had a ringside seat to the boom that followed the 1960s credit squeeze for by then, I’d begun work as a cadet journalist. I was on the bottom rung of the newsroom ladder, my job being to go down to the Brisbane Stock Exchange each day and phone through the share prices to a typist back at the office. I had my own booth at the exchange, a phone on the trading room floor and watched as the nickel mining boom exploded onto the Australian share market and millionaires were made overnight. Wide-eyed, I watched on the trading room floor as a share

called Poseidon went from $1.85 to $280 in five months. "What’ll I buy?" I asked the traders on the floor as they yelled share quotes, buying and selling in a greed fuelled frenzy. "Buy this and this" they said and so I did and made five times my annual salary in six months. Then the boom burst and the market crashed in flames, taking the punters with it. The spectre of Uncle Alf, however, still lurked in my mind and I sold out of the market before in began its death dive, figuring booms didn’t go on forever. Flushed with sudden wealth, I did what any young male with a pocketful of cash in the early 1970s would do and went out and bought a panel van. I’d played the market and won but I wasn’t going to push my luck. The surf culture was thriving so I headed for the beach with my mates in my cream 1964 Holden panel van with blue side curtains and a mattress in the back. The van may not have been a particularly astute investment but my social life took off like Poseidon. Then I became sensible and bought a house and watched as interest rates headed towards the stratosphere and I began to feel the squeeze. My late father-in-law’s mantra was to always be prepared for the unexpected. He was a lot smarter than me and when the unexpected hit, I was unprepared. It came after months of negotiations between the journalists’ union and the newspaper owners and began with the cry "Everybody out!" It echoed through newsrooms around the country as journalists went on strike and walked out the door. One week without being paid became two and two became three. We were out for a month at the end of which I was stone broke. "So this," I thought, "is what bust is like." I crawled out the fiscal hole in which I found myself, worked hard, got married, became a father and rolled along nicely until life’s roller coaster took another dip and I got divorced. I was down but not out. The cycle, I knew, would turn and so I re-partnered and enjoyed the contentment that a happy relationship can lend to your life. Then redundancy, suddenly, became the whisper around the newsroom. There was a new CEO and he was slashing staff numbers. I inquired quietly of my entitlements and then rang my partner. "If I can swing this it will be like winning Lotto,’’ I said. The roller coaster soared and I took the money and began a new chapter in life. resortbrokers.com.au

Freehold offering of a modern well appointed tourist park up in the beautiful North BIG 4 Atherton Woodlands is a tourist park opportunity not to be missed. Over the last decade the current vendor has built a powerhouse business focusing on reputation and quality. In more recent times the park has been continually upgraded to meet eco certified nature tourism qualifications, offering a new opportunity in the market place, catering for eco travellers. Atherton Woodlands is also located at the foot hills of world famous bike tracks, presenting a new vibrant clientele wanting accommodation. The vendor has a purpose built bike shed and wash bay, to cater for this new opportunity. Atherton Woodlands is approximately 1.5 hour drive from Cairns. It is hard to find the right words to describe this magnificent park. It is like no other park in North Queensland. The property consists of seven luxury eco accredited cabins, 21 en-suited villas/cabins/cottages (ranging from family villas, holiday cabins, budget and permanent), 80+ powered sites, 10+ un-powered sites, multiple storage sites, large five bay workshop/ shed, toilet and shower amenities, laundry facilities and camp kitchen and BBQ’s.

The park is supported by other facilities including internet kiosk, a spectacular (and very popular) Balinese Cabana with BBQ, swimming pool, playground, carport and varying vehicles - golf buggy’s, quad bikes and scooter. • Two manager's residences providing a set up for two families or extra investment value • Offers variety of accommodation from luxury family villas to budget options • 1.5 hour drive from Cairns domestic and international Airport • Extensive refurbishment since owners took over in 2003 • Situated in the heart of the stunning Atherton Tablelands

Nett: $730,000

Price: $6,100,000 resortbrokers.com.au/caravan-parks-for-sale/ FH003465

Shane Mullins Broker Mobile. +61 447 185 001 Email. shanemullins@resortbrokers.com.au Headoffice. 07 3878 3999 24

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Exclusive MR

One of the biggest 'business only' MRs to hit the market - near new, high quality finishes Under instruction by FTI consulting, this 75 unit complex must be sold! These high quality units owned mainly by investors offer an astute manager the opportunity to take over a well established business with the benefit of a complex that is near new. Evvien is only eight kilometres away from Brisbaneâ&#x20AC;&#x2122;s CBD and is close to shops, a medical centre, Keperra Country Golf Club, gym facilities, transport, parks and entertainment. Although these units have a high concentration of investors, the quality of product is far superior to the typical investor style in the current market place. The fit out includes; high 3m+ internal ceilings, thick marble bench tops in kitchen and bathroom, split system air-conditioning, deluxe gourmet kitchens featuring wine cellar fridge and a lift from the undercover car park, allowing occupants easy access to their luxury apartment. The complex boasts a sparkling inground pool with a waterfall, plus landscaped gardens throughout creating a resort style ambience.

Ideal for a newcomer to the industry or an experienced operator looking for a solid mid sized permanent complex. There is no requirement to live onsite within the agreements, however, the current manager lives in an investor owned unit with a two year lease in place. This spans over three levels, with three bedrooms, three bathrooms and double lock up garage. On the ground floor there is a office and bathroom also on title. The unit can be rented or subleased for $550 per week. The business is being offered by expressions of interest. All interested parties will be requested to prepare a resume, references and a brief business plan with their offer document.

Expressions of interest resortbrokers.com.au/management-rights-for-sale/MR003478

Tim Crooks Broker Mobile. +61 422 208 450 Email. timcrooks@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

BY ALEX COOK RESORT BROKERS AUSTRALIA

LESS IS LESS & MORE IS MORE Whilst perusing through the November edition of the Resort News, I was very interested to come across a thought-provoking article written by Robert Collins, a fellow management rights agent at RAAS Rights. In the article, Mr Collins reflects on the current state of brokerage within the management rights industry. Echoing the sentiments of many of our fellow professionals, he voices deep-seated concerns about the emergence of several newcomers to the brokering sector. Moreover, he voices concerns over the ability of these ‘new agents’ to do the job properly and the negative impact that their unprofessionalism is having, and will have, on our industry. Even though these newcomers may be able to lure some unsuspecting vendors with the carrot of cheap commission, the end result is far too often one of disappointment and tears. I thought I would take a little of space in this edition of The Informer to expand on the article and to offer some personal commentary. Within brokering circles, we understand the critical importance of using an experienced broker from an established firm. We also recognise that our commission rates represent very good value when our level of service combined with our ability to achieve the best price are taken into account. But why? What are we able to do that newcomers will simply be unable to emulate? In all honesty, I could probably write a book on the subject. But here are a few thoughts. Firstly, it is important not to underestimate the importance of the firm that sits behind the individual broker. At Resort Brokers, we have a team of 26 brokers, with another 11 support staff and key associates working alongside them. The ‘behind-the-scenes’ side of our business obviously translates to higher operating costs, but it is critical to providing the best service to our clients and to supporting the ongoing stability and growth of our industry. The ‘non-brokering’ side of our team enables some critical things to take place. We are able to train our staff to a very high standard, as well as providing on going support to them. We are able to ensure our brokers meet regularly to discuss each other’s listings and to troubleshoot any issues they might have. We are able to organize and run seminars across to country to help bring new operators into the sector. We are able to carry out extensive PR, to ensure our industry is well represented in the wider media. We are able to produce high-level marketing material for our clients (including the magazine you are reading now). The list goes on. All these factors feed through into two key areas for a prospective seller. Firstly, a professional and established firm is able to present your property to the market in a far more professional and engaging manner. Only they have the industry knowledge and marketing processes in place to do so. This will attract better buyers, who are prepared to pay more for properties that they perceive to be better. Secondly, once your property has been taken to the market, that same firm is able to generate a lot more interest. As any agent will testify, the best way to get the best price for a property is to create a sense of competition. One of the new agencies that we have referred to may tell you that ‘they have a buyer’. That may well be the case. However, with 26 agents across Australia working together, we will have more. And that, quite simply, will get you a better price. However, achieving the best price for a property is really only half the battle. As Mr Collins rightly points out in his article, accommodation businesses are often not that hard to sell. What sets the men out from the boys (and women 26

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from girls!!) in our industry is the skill and knowledge required to hold the sale through to settlement. Our fall over rate is negligible. Most sales have their speed bumps, but we almost always get there. The fall over rate with these new fledging firms is quite alarming. Big promises are made, expectations are set high, but far too often vendors are left with nothing but a big legal bill. First and foremost, experienced brokers understand the importance of using other respected industry professionals to assist with the sale process. A sale can often live or die from having picked the right lawyer, the rights accountant and the right financier. Understandably, inexperienced agents simply do not get this. After all, if they are operating without extensive knowledge and experience, who’s to say that the other professionals can’t do the same thing. Good brokers will not only be able to guide prospective purchasers to the appropriate professionals, but they will have the know-how to ensure that they actually use them. Personally, I will simply not allow a sale to proceed to contract unless I am happy with the professionals that the purchaser is using. From signing a contract, through to the settlement of a sale, your broker really is the glue that holds a sale together. I regularly say to vendors that my job only really begins once a contract is signed. As I mentioned above, although the vast majority of our sales settle, they are very rarely without their issues. The simple fact of the matter is that an experienced broker will have faced a similar hurdle in the past and will know how to jump it. Moreover, a good broker will monitor the sale process so closely, that he/she will be able to foresee and deal with an issue before it even raises its head. I am sorry to say that I have heard several war stories of vendors using an inexperienced agency, only for the sale to fall over for an issue that could have been very easily avoided. I would conclude this article by suggesting a very simple idea to the many owners who regularly read this magazine. When you get around to thinking of selling your property, put a broker’s commission to one side. However, do concern yourself with what you are going to walk away with, and how long it will take you to get there. I find the old saying ‘you get what you pay for in life’ is very rarely incorrect. Experienced agents from professional agencies will never be able to compete with newcomers when it comes to commission rate. However, we will almost always blow them out of the water when it comes to the end result.

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EDITORIAL

THE MANY FACES OF THE TOURISM INDUSTRY

Richard Munro:

SMART OPERATOR CHASING BETTER OUTCOMES WHEN RICHARD MUNRO STARTED OUT IN THE ACCOMMODATION BUSINESS, HE FILLED THE WATER BOTTLE IN A HOTEL LOBBY. NOW HE RUNS THE HOTEL LOBBY. THAT IS, HE HEADS POWERFUL INDUSTRY ADVOCACY ORGANISATION, THE ACCOMMODATION ASSOCIATION OF AUSTRALIA (AAOA). As AAoA chief executive, Munro brings an insider’s eye to the job of representing the interests of employers in the accommodation sector. He has spent his entire career in hotel operations, advancing from part-time porter to general manager of Sydney’s high profile Star City. It seems he knew his destiny from very early on, nominating hotels when asked at school for his work experience preference. “It led to my first real job, at the Kangaroo Point Travelodge in Brisbane,” he recalls. “After a week of work experience, they gave me a job. Officially, I was a porter, but jack-of-all-trades, really. I still have the list of duties – things like running the flag up the flagpole every morning, putting the jug of water and glasses in the foyer, and filling minibars which, come to think of it, was probably not strictly legal as I was still only 17.” Despite some youthful adventures as a jackaroo in outback Queensland, and builder’s labourer for his father, Munro continued to be drawn to the hotel industry. He studied business at the University of Queensland’s Gatton Campus, and majored in hospitality. There was a brief return to the outback – as a food and beverage trainee at the Sheraton Ayers Rock Hotel & Resort – before a sea-change to the Gold Coast International Hotel in 1989 as a corporate trainee with Southern Pacific Hotel Corporation, later to become InterContinental Hotels Group (IHG). 28

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“That really kicked off my career,” Munro says. “It was a great training ground, and a lot of people who were there then have gone on to great things, among them Simon McGrath (now COO at Accor Pacific) and Simon Wan (now Staywell Hospitality Group chief ). Munro grabbed every opportunity he could with IHG to broaden his experience, advancing to work on hotel pre-opening teams, as Purchasing Manager at Brisbane’s Parkroyal Dockside, then Front Office Manager at Parkroyal Darling Harbour. It was his pre-opening experience that led him to one of the most challenging jobs of his career, that of Front Office Manager for Christmas Island Resort and Casino in the early 1990s. “It was incredibly difficult because of the remote location, in the middle of the Indian Ocean with virtually no regular flights. The requirement for 50 per cent of staff to be sourced and trained from the local population made it even tougher,” he says. Nevertheless, the Christmas Island Casino operated briefly as one of the world’s most profitable. Munro stayed two years, and the operation folded after four, falling victim to the Asian financial crisis, which stemmed the flow of high rollers from the north. Back on the mainland, Munro continued to broaden his horizons, making the leap to Director of Rooms at IHG’s Crowne Plaza, Surfers Paradise. “When opportunities came up I grabbed them. I really relished change and growth.” In the late 1990s, after two years as Rooms Division Manager at Landmark Parkroyal in Sydney, Munro was again enticed by opportunity. This time, the leap was a big one – to Director of Sales for IHG. “Actually it was Patrick Imardelli who tapped me on the shoulder for that one, and I’m very glad he did. (Imbardelli went on to distinguish himself as President and Chief Executive of Pan Pacific Hotels Group, and was named Hotelier of the Year - Asia Pacific, 2011 by HM Magazine.) Two years in that role laid the foundation for what would be a major career milestone. In 2001, Richard Munro was appointed General Manager of Star City, responsible for a $120 million division and a fulltime workforce numbering over 1200. He was clearly ready for senior leadership, thriving in the role for almost a decade. This period also saw Munro move beyond his own hotel lobby, so to speak. “I took up some honorary roles, with a view to playing a part in improving the future of the industry,” he said. “It was really the first time I started to look seriously at the broader industry profile, rather than simply considering the individual business perspective.” For almost three years, Munro presided over the Darling Harbour Business Association, representing key tourism and business assets in one of Australia’s most visited precincts.

“We lobbied very hard for some major projects, including the new Sydney International Convention, Exhibition and Entertainment Precinct, and Darling Quarter, which is now a really vibrant community precinct. It is very pleasing to see those come to fruition.” During this time he also chaired the Accommodation Division of the NSW branch of the Australian Hotels Association (AHA) – an invaluable precursor to his current AAoA role. The seed had been sown. After leaving Star City in 2010, Munro completed a number of projects for Tourism NSW, and took on a business development role in Australia for the 500-strong international Worldhotels group. But it was to industry leadership and advocacy he was now drawn. “I came to the Accommodation Association in mid-2011, where I work on behalf of the tourism accommodation sector, to provide leadership, services, a strong unified voice. As an operator, I wanted to see better outcomes for the industry, to be hands-on with decisionmakers, government and the media, gaining recognition for tourism and accommodation as a very significant growth sector in our economy.” The AAoA works in four key policy areas vital to accommodation operators – employment, taxation, regulation and demand drivers. “On the employment front, for example, this year we have prosecuted a major case

for the four-year review of the modern award, covering employment conditions and penalty rates,” Munro said. “We lodged a hefty submission on the merger of Wotif and Expedia, and we are working very hard in relation to building code regulations, and the difference between residential premises and commercial accommodation, in view of movements like Airbnb.” On penalty rates, Munro says all accommodation operators want is a fair approach, without hurting employees. “To be paying up to 275% penalty rates on public holidays is outrageous and it actually costs jobs,” he said. “Unlike restaurants and bars, we can’t just close our doors, because we have a 24-7 duty of care to our guests. We are working very hard to find a balance. It is a very costly process, not unlike going to court, but we are confident we will get there.” The AAoA is member-owned, representing a very broad church, from premium hotel and serviced apartment operators to tiny B&Bs and regional caravan parks. “That is the beauty of it,” he said. “If you have just one bed, you should be a member, because you can have the weight of large blue-chip companies fighting for you. “Recently we have announced a memorandum of understanding on a joint venture with the AHA, so the industry’s two peak bodies will be working together to provide singular, consolidated advocacy.”

Munro says this is crucial because tourism is a growth industry. “We are bigger in terms of employment than mining, and we are in a growth phase while other sectors, such as manufacturing and mining infrastructure development are in decline. We are a solution for government in terms of employment and economic growth,” he said. So, for a man always in the pursuit of new opportunities, what does the future hold? Munro says he is focused purely on what he is doing now and the people he represents through the AAoA. “I am constantly driven by the challenge of improving outcomes for accommodation operators, and the new joint venture with the AHA makes the possibilities very exciting. I’m not going anywhere.” With a wife and three children aged from four to 15, the boy who hailed from far western Queensland has very happily made Sydney home. When he’s not pounding the corridors of power on behalf of the industry, he indulges two sporting loves – rugby and fishing. He’s especially proud to be a founding member of Balmain Rugby. Though the suburb had a proud rugby heritage, from 1919 to 2004 it didn’t have it’s own club. That was until a couple of fans, Munro among them, decided over a quiet beer to re-establish the Balmain Rugby Club. “We won the grand final last year and are one of the fastest growing clubs in Australia,” he beams. Just the man to have kicking goals for accommodation operators!

1300 665 966

Have you visited our new website yet?

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EDITORIAL

Boom or Bust? A CONFIDENT PREDICTION … THE ECONOMY WILL MOVE IN CYCLES

IT’S OFTEN SAID, IF YOU REPEAT ONE THING OR ANOTHER ABOUT THE ECONOMY FOR LONG ENOUGH, YOU’LL EVENTUALLY BE RIGHT. THE TRIGGERS FOR AN UPSWING OR A DOWNTURN AREN’T ALWAYS THE SAME. BUT HISTORY CONFIRMS ONE THING ABOUT THE ECONOMY: SWING UP AND TURN DOWN IT WILL … AGAIN AND AGAIN. BY CATIE LANGDON It is very easy to be confused about the economic climate in Australia right now. We are constantly sent mixed messages. On one hand, many businesses say they are enjoying the strongest conditions since the dark days of the GFC. On the other, confidence measures keep dipping. Why? Commentary in the media doesn’t help. Writing in The Guardian recently, Greg Jericho described the November Reserve Bank statement on monetary policy as “a 68-page document that lets you know that if you thought the economy was just barely chugging along, you were right.” “The RBA continues to expect 2015 to be worse than this year and that the economy won’t grow at above-average levels until after 2016,” he wrote, saying the document was filled with “little optimism and lots of uncertainty”. Yet within hours, over at Business Spectator, Adam Carr was reassuring readers that the “surge in business conditions (not to mention house prices) is only just the start.” He accuses policymakers of running a ‘keep the fear alive’ campaign, because they’d look

AUSTRALIA’S RECENT ECONOMIC TIMELINE

1940s & 50s

1960s

Post-war Australia was prosperous, enjoying strong economic growth, high employment levels, rising foreign investment and new international trade markets. This was a time of high population growth, high government spending and a gradual relaxation of government control over ‘hire purchase’. Incomes and affluence rose.

With a booming economy and climbing imports, Australia soon had galloping inflation, so Menzies government treasurer Harold Holt brought on Australia’s first ‘credit squeeze’, starting the decade with a short but very sharp recession. The 60s, however, was to be a great decade of mineral wealth development by companies including CRA, BHP and Woodside, capped by the 1969 Poseidon nickel discovery boom. The prosperity was accompanied by a property boom.

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1970s In the ‘Poseidon bubble’, mining stocks peaked in January 1970, then promptly crashed. With speculation rampant, Poseidon shares had climbed from $0.80 in 1969 to hit $280 in February 1970, before the collapse. It was a grim decade, beginning with the failure of Mineral Securities Australia in 1971, sparking the worst money panic the nation had seen since the bank closures of 1893. In 1973, the Whitlam Government lifted interest rates to curb a speculative rush to property. Also in the mix was the 1973 oil crisis which plunged the US, Britain and many other western economies into recession. By 1974, all stock market confidence had vanished and we were in recession too (197475). The failure of the Whitlam Government to effectively manage the economy was a factor in its controversially removal at the end of 1975. From 1975 to 1979, growth was significantly lower than the first half of the decade.

198

1982-83 saw Austra another sharp rece the Australian doll perhaps the most s in our economic his market bounces b the activities of a generation of entre Bond, Robert Hol John Elliott, Laurie Christopher Skase a Cowboys took intense competition and foreign banks Keating deregulate industry in 1985. P skyrocketed. But it October 19, 1987 w Dow Jones lost a qua in a single trading se Tuesday, October 20 market opened 25% corporate collapses

a little incompetent for their failure to rein in the budget deficit if Australia was actually enjoying above-trend economic growth. No-one is game to get too confident, he says, even if business activity is booming. That’s because we are repeatedly warned there’s a slowdown in mining and, apparently, unemployment is rising. The consensus seems to be that things are ticking along quite nicely, but everyone worries in won’t last. In the end Carr contends, with the US economy accelerating at a strong pace, Australia has no good reason to expect a downturn. We’d all like to

80s

alia plunge into ession. In 1983, lar was floated, significant move story. The share back, thanks to a fearless new epreneurs – Alan lmes a Court, e Connell and among them. advantage of n between local sparked when ed the banking Property values t all crashed on when New York’s arter of its value ession. On Black 0, the Australian % down. Many s were to come.

think he’s right. The truth is, every business and property is subject to different circumstances and influences. There isn’t one market, there are many. Economic conditions vary from sector to sector, industry to industry, and state to state. They differ between cities and regions, and according to your customer base. Given the amount of rhetoric we are constantly fed on the economy, we decided not to add our amateur analysis and predictions to the mix. Instead, we delve into history for a nostalgic end-of-year trip

1990s The 80s boom begat the 1990-91 ‘recession we had to have’. During the asset price boom of 1988-89, the cash rate had reached 18%, the mortgage rate 17%, and many business loans more than 20%. The resulting recession saw GDP fall by 1.7% and unemployment rise to 10.8%. Monetary policy had to tackle the overheated economy, and a beneficial legacy of tough economic measures would be a lasting reduction in inflation. There followed a period of economic growth that continued for many years, despite a slowdown due to the 1997 Asian financial crisis. The official cash rate fell from 17.5% in January 1990 to sit at 5% at the end of 1999. House prices rose strongly

2000s The Australian economy entered the 2000s in a healthy state. Strong growth, lower unemployment, increased productivity and resilience to the Asian financial crisis were attributed to earlier inflation targeting and economic reform. But it would be an eventful decade. During the first four years, dwelling prices rose by around 70% and housing credit by 90%. Once again the resources industry came to the fore, with the China boom evident from 2003. Commodity prices soared on Asian demand. Unemployment was lower than it had been for decades. The mining boom helped shield Australia when the ‘global financial crisis’ that began in 2008 with the fall of Lehman Bros. But, with household debt high and savings rates low, we were not immune. While Australia technically avoided recession, there was a steep decline in equity prices, credit dried up, and confidence along with it. Our property market slumped.

down the memory lane of booms and busts. After all, as JFK once said, history is a relentless master. We’d all do well to heed its lessons. One thing is certain, booms follow busts … and they do it over and over and over. When the values of real estate, stocks and other assets rise, inevitably a new generation of borrowers and lenders gets excited by the prospect of quick profits. The danger always arises when they delude themselves they will be the smart ones, the ones who can beat the cycle and get out before it turns. continues page 32

2010... The official cash rate in Australia had risen to sit around 7% when the GFC hit, but a constant stream of reductions brought it down to 2.5% by August 2013, the lowest in half a century. There it has stayed. In its latest statement, the RBA said inflation was expected to sit within the 2-3% target range over the next two years. Home value growth has been volatile ever since the GFC, and even saw another downturn from late 2010 to mid-2012. The real estate market has since risen, led by Sydney and Melbourne, but growth outside those cities has been slow and patchy. Now, after years in the doldrums, loan growth is once again on the rise, and investors are leading the charge.

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value in a motel business. Obviously a business which has 5 years left to run under its lease is of far less value than one with a lease which has 20 years left. Where a lease has a few years left to run, a tenant should seek advice as to the details of the formula recognised in the industry which applies to negotiations for lease extensions. A tenant will in effect buy more years to add to the term of the lease. Enforcing the idea that short leases are of greatly reduced value is the fact that should a purchaser wish to buy a leasehold motel, obtaining finance will be particularly difficult when the remaining tenure of the lease is short. Again this is similar to the Management Rights Industry where the term of the resident unit manager's agreement with the body corporate raises similar issues.

RENT

THE MOTEL LEASE BY DAVID BURROUGH - HILLHOUSE BURROUGH McKEOWN We mentioned in our last article that it is important for the landlord and the tenant to understand how their relationship is controlled through the Lease. The Lease is an important asset which, if correctly structured, protects the value of the tenant's business and the value of the landlord's freehold investment. However a Lease that does not reflect current industry standards will be a cross that both parties will have to bear for many years. For those of you familiar with the Management Rights industry a Lease can be likened to the Management and Letting Agreements between a resident unit manager and the body corporate. The purpose of the Lease is to set out the rules by which the tenant is able to occupy the motel. It will also set out the responsibilities of both the landlord and the tenant.

TERM

The length of a tenant's tenure and security will be derived from the Lease. This is extremely important in creating the maximum

A Confident prediction …The economy will move in cycles continues

SO WHERE TO IN 2015 Although the impact of the GFC may have felt like a recession to many, Australia hasn’t actually experienced a true recession since 1991. In June 2014, we clocked up our 23rd year of uninterrupted economic growth. How long this impressive record can run cannot be predicted, even by the most qualified economic authority. There are so many influences to consider. 32

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On the plus side, low interest rates, low inflation, a lower Australian dollar, healthy tourism and property demand, and the recent major announcement of a free trade agreement with China. Cautionary factors include employment uncertainty, aging baby boomers, budget deficits, and peaked capital expenditure on mining-related projects. To most observers, though, the positives seem to significantly outweigh the negatives. In fact, confidence could be said to be the only thing lacking. Westpac chief economist Bill Evans

The Lease will set out the amount of the rent and how it is to be paid to the landlord. As mentioned in our last article there are industry formulae for the calculation of rent. It is essential that anyone considering purchasing a motel lease has experienced consultants to consider the rent compared with industry standards. This is important when assessing whether there is any room for improvement in the profitability of the business and whether the business is readily saleable.

REPAIRS & MAINTENANCE

An important subject for any motel lease is repairs and maintenance. It is a feature of most well drawn Leases that responsibility for maintenance and upkeep of the motel is clearly set out. It is important that the Lease clearly specify who is responsible for the replacement of the fixtures and fittings when they come to the end of their working life.

CONCLUSION

It is essential for all purchasers, tenants and landlords to understand as much as possible about the Lease document and how it works. In coming issues we will be examining matters which should be addressed in a well drafted motel lease.

recently observed: “With the Reserve Bank not set to raise rates until the September quarter of next year and house prices likely to maintain solid upward momentum, the wealth effect is likely to provide an important boost to overall consumer spending growth.” 2015 is not a year for pessimism. Westpac predicts GDP growth to hold in 2015 at 3.2 per cent and lift to 3.5 per cent in 2016. It seems Australia is riding high in the saddle on this economic cycle, and the growth momentum is set to continue for some time to come.

Exclusive LH

Townsville's most exciting opportunity in 10 years - multiple income streams! Townsville is on the brink of success with the most exciting new build in nearly a decade. Rambutan (ram-bu-tan) is a three level integrated resort offering a variety of revenue streams. Located in the heart of Townsville’s CBD precinct the hotel will cater predominantly for accommodation, food and beverage, self-drive tourist market and commercial tenancies. The property will offer a new proposition to the market and although targeted at a backpacker space, will provide accommodation and F&B to the greater CBD, both locals and travellers alike. The accommodation will consist of upmarket backpacker style rooms, ensuited dorms, ensuited motel rooms and flats.

Townsville's event calendar throughout the year will provide additional sources of occupancy providing a more stable market place. The offering will attract local and interstate purchaser’s wanting a larger foot print. These include successful operators, larger hotel groups, backpacker groups and smaller astute operators. • 58 rooms configured to 275 beds • 30 year lease at settlement • Brand new build in Townsville CBD precinct • Roof top bar and restaurant • Retail tenancies • Large reception

Expressions of interest

The property will have up to 60 car spaces for the 'drive yourself market'. This will allow guests to park and pay and use the hotel facilities. This in itself is a unique offering and a much needed proposition in a CBD environment.

resortbrokers.com.au/backpackers-for-sale/ LH003464

Shane Mullins

Des Fagg

Broker

Mobile. +61 447 185 001

Mobile. +61 427 849 119

Email. shanemullins@resortbrokers.com.au

Email. desfagg@resortbrokers.com.au

Headoffice. 07 3878 3999

lt's all a buzz on Bribie Island - holiday & permanent management rights It Is all a buzz on Bribie Island due to the anticipated increase in demand for accommodation by workers and tourists. This is attributed to the Comiskey Group's $50,000,000 development beside the entrance to Bribie Island. This project will include a large outdoor entertainment venue, with a capacity of more that 10,000 people, to attract big-name acts. This should be a boon to accommodation providers on Bribie. Tourists and holidaymakers are attracted to this boating paradise and marine sanctuary which is home to dolphins and turtles, pelicans and other waterbirds. Apartments and villas at On the Beach Resort Bribie Island are stylish and contemporary and feature high-quality appointments including reverse-cycle air-conditioning throughout, broadband access, CD/DVD players, Foxtel and free to view cable TV. This is holiday accommodation as luxurious as it is elegant. Every apartment and villa has an ocean view and all apartments have contemporary style furnishings.

Each apartment has an ensuited master bedroom with queen bed, a second bedroom with two single beds and another separate bathroom. • A high return business with great potential to increase the profit • Easily managed by a couple • Holiday and permanent letting • Close proximity to hotel, surf club, cafes, restaurants, a newsagent and doctor’s surgery • Accommodation module with 22 years remaining

Nett: $302,000

Price: $1,960,000 resortbrokers.com.au/management-rights-for-sale/MR002939

Neville Littleton Broker Mobile. +61 407 727 194 Email. nevillelittleton@resortbrokers.com.au Headoffice. 07 3878 3999 34

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Be a part of thriving Cairns - take this rare motel lease to the next level City Sheridan is an exciting opportunity for a savvy operator to take this strong, consistent performer to the next level. This 31 unit motel is experiencing a great upsurge in business given the improved and up graded appearance, central location and strong trade in the region. Well situated, the motel has a prominent highway position on Sheridan Street (Cairns). City Sheridan is close to the Esplanade and a short stroll to the restaurant and shopping precinct. The motel operates under management with high year-round occupancy. This property offers an opportunity for an incoming owner/operator to come in, manage the property themselves and reap the rewards. It is in fantastic condition and is well supported by corporate travellers and domestic/international tourists. Motels in the Cairns region are tightly held and this proposition is a great opportunity to own a blue chip investment.

There is also an opportunity to purchase the freehold going concern at $3.5 million. There is a current DA available with this purchase that will offer the appeal of another 18 larger units and one retail shop. The extra units are designed to adjoin the existing building. • Centrally located on the CBD fringe • Clean comfortable and affordable accommodation • Currently staffed – which provides good upside to new owners • Unique opportunity to own a leasehold motel close to the CBD • Strong consistent performer with highway location • Lease length 30 years at settlement

Nett: $230,000

Price: $850,000 resortbrokers.com.au/motels-for-sale/FH003285

Shane Mullins Broker Mobile. +61 447 185 001 Email. shanemullins@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Exclusive FH

Seaside harbour view motel freehold offering an outstanding opportunity Excellent location, great presentation and solid turnover add up to a very attractive opportunity on the beautiful NSW South Coast. Motel Harbour Royal, in the heart of seaside Ulladulla, has prime position with picturesque harbour views, strong street appeal, and modern, comfortable facilities. 21 spacious units cater for families, couples and business travellers. Accommodation comprises 15 motel units and six suites with separate queen bedroom and kitchenette. Two offer corner spas. Facilities include a generous breakfast room, indoor heated pool, undercover BBQ area, and low-maintenance landscaped grounds. A great asset is the large two storey, four bedroom residence, with spacious downstairs lounge area providing internal access to reception. Our vendors have run the motel under management for nine years, attracting a good client mix and consistent turnover. This spectacular region of pristine beaches, crystal ocean waters and majestic mountains is the ideal place to own a prime accommodation property.

With plenty of upside potential, a terrific opportunity awaits the astute buyer. • 21 well-appointed units many with private balconies • Harbour views • Indoor heated pool • Spacious 4 bedroom residence • Indoor heated pool • Coastal living close to fishing, surfing, shops, clubs and restaurants • Motivated vendor

Nett: $277,576

Price: $2,500,000 resortbrokers.com.au/motels-for-sale/FH003399

Russell Rogers Broker Mobile. +61 416 166 909 Email. russellrogers@resortbrokers.com.au Sydney Office. 02 9904 8224 36

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Exclusive LH

Best buy motel in Rockhampton - fully renovated leasehold with no money to spend On offer is an outstanding 30 unit resort style motel leasehold. Positioned on a main road in stable Rockhampton, this property consists of a two bedroom residence, a small 18 seat in-house licenced restaurant and a unique conference centre. The property has been fully renovated and is built around a tropical landscaped beach style pool. The motel sits on the left hand side exiting Rockhampton and faces the traffic arriving in town from the north. Once entering the property you are enveloped by resort style gardens and pool. Rocky offers flights both north and south. The town caters for a large outlying community, hence the need for accommodation for many government and private sector visitors. Of course not to be forgotten is the obvious tourist market. Home of the giant bull, the town offers a glimpse of the enormous beef industry.

• All ground floor units • Opposite central Qld university campus • Rent is less than normal industry standard • Lessee only pays half of rates and insurance • Unique conference centre • Presently run under management • Turnover $819,702

Nett: $256,480

Price: $860,000 resortbrokers.com.au/motels-for-sale/LH002854/

Len Booth Broker Mobile. +61 438 139 422 Email. lenbooth@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Exclusive LH

Amazing outback opportunity- leasehold of a large western motel Ready for a lifestyle change? It has always been known that heading west produces more profit so why not grab this opportunity and run to Longreach?

The residence is huge to say the least; four bedroom, two bathroom, massive lounge, dining and separate kitchen attached to the reception for ease of running the bookings and managing guests.

This motel and restaurant already have staff in place and unbelievable forward coach bookings (in excess of $600,000 and easy to accommodate) as well as a Queensland Rail contract now in place. Naturally the farming industry, education and government departments make up a large part of the business as well.

• 56 ground floor units with undercover parking • Own commercial laundry as well as guest facility • Fully licenced restaurant and bar • Spacious three bedroom owners residence • 22 years on lease • Set on 2.5 acres and the newest motel in town • Close to Stockmans Hall of Fame, Qantas Outback Museum etc • 3 star and presently run under management

With 56 rooms, this is the largest and most modern motel in town. The restaurant is well supported by the local population with a continuing strong trade. The motel is well laid out and by laundering their own linen on site, is self sufficient. There is a linen service from Toowoomba that goes to the town should the incoming lessee choose not to do the linen on site.

Nett: $326,496

Price: $1,100,000 resortbrokers.com.au/motels-for-sale/LH003121

Len Booth Broker Mobile. +61 438 139 422 Email. lenbooth@resortbrokers.com.au Headoffice. 07 3878 3999 38

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EDITORIAL When the claw back arrangement for each lot less than 35 in the letting pool was provided the developer pushed back. The essence of the conversation was this:-

DEVELOPER - ‘I’VE SAID I WILL DELIVER 35 AND I WILL’ PURCHASER – ‘WELL WHY DON’T YOU WANT TO INCLUDE THAT IN THE CONTRACT?’ DEVELOPER – ‘BECAUSE I HAVE MADE THAT COMMITMENT AND I WILL STICK TO IT’

PRICING LEGAL RISKS BY FRANK HIGGINSON - HYNES LEGAL Alan Greenspan (the then Federal Reserve Chairman in the USA) coined the famous phrase ‘irrational exuberance’ in relation to the dot-com bubble of the late 1990’s, but it could apply to any boom since (and before - even back to the tulip boom of the 1600’s.) For me, if you were to Australianise that phrase it would be along the lines of something being ‘too silly for words’. It is not for a lawyer to talk about risk when it comes to valuations / asset pricing as Greenspan could, but it is certainly within my ambit to talk about legal risk. I think a very interesting barometer for the state of the management rights market is off the plan management rights sales. Firstly, when things are on the way up, there are a lot more of these types of matters about because the property market is flying. During the GFC we didn’t need to bother sharpening up on our off the plan skills because there were simply none about! As it sits right now, we have been involved in more off the plan deals in the last 12 months than we have had for the last few years. Any purchase (and really any business decision) involves the pricing of risk. You are happy to pay a price of $X if you are going to a return of Y. If there is a risk to that return, you will probably pay $X minus a factor for that risk. The returns being sought from management rights businesses are not necessarily just financial ones. What I mean by that is that when you place funds on a term deposit with a bank all that may matter is the rate. In management rights other factors (particularly around lifestyle) usually contribute to the purchasing decision. Factors which affect lifestyle choices are not the subject of this article but legal factors which affect the financial return are. One of the key legal risks in an off the plan sale is the negotiation of claw back arrangements. There are obviously quite a few more, but the documentation of the claw back / claw forward arrangement is about the most important thing to get right. In the run up to the GFC in 2007 I remember second guessing the legal advice a purchaser had received when a deal turned bad. The management rights deal itself was for a relatively small off the plan business. The developer had apparently said they would deliver 35 of the 36 lots in the letting pool (the missing one being the manager’s lot). An offer to purchase was made which was based on that.

The developer then threatened to move on to the next buyer – who were allegedly (and in fact probably were) thick on the ground. The purchaser capitulated and the deal ended up being struck on the basis that the purchaser paid a fixed purchase price no matter how many lots ended up in the letting pool. The risk with any missing letting appointments was shifted wholly and solely to the purchaser. As lawyers our role is to point out risk, assume clients have (or will) price that risk, and then move on to the next component of the deal. In this matter the lawyers acting for the purchaser had done that. At the end of the day the ultimate commercial call for the purchaser in this off the plan deal was whether they priced the risk of the potential for less letting pool lots than they had been promised. Perhaps they didn’t think they needed to document it because they thought the developer would deliver what it had promised given their dealings with it. Maybe the multiplier was so low, or the caretaking remuneration so high, they could drop some letting units and it would not matter as the business still worked. Perhaps the decision to buy that particular business (even with that risk) was irrelevant having regard to the lifestyle considerations that led them to purchase it in the first place. Who knows? There are no prizes for guessing what happened on settlement and why we got involved. There weren’t 35 lots. There were less than 30. Perhaps my view of developers is a little bit jaundiced but you could hardly call me surprised when a developer did not deliver something they had not contracted to deliver. Litigating one of these things for misrepresentation is also a hard road, and given the relatively small size of the business, it wasn’t worth it. It is easy to get caught up in the rush to do the deal. Part of the art of buying well is being able to not become emotionally involved and walk away, and that decision to walk away depends at a very macro level on whether the risk in your particular deal has been priced right for you. Irrational exuberance. Words worth bearing in mind. resortbrokers.com.au

EDITORIAL

BY TRUDY CROOKS RESORT BROKERS AUSTRALIA

value

KNOWING WHERE YOUR

REALLY LIES

WHEN CONTEMPLATING THE SALE OF YOUR ACCOMMODATION PROPERTY, ONE OF THE MOST CRUCIAL STEPS WILL BE TO DETERMINE A FAIR AND REASONABLE PRICE. A RANGE OF IMPORTANT CONSIDERATIONS NEEDS TO BE WEIGHED UP, BUT THE PRINCIPAL GUIDING FACTOR WILL ALWAYS BE NET PROFIT. At Resort Brokers Australia, when appraising an accommodation property, our brokers have two key goals in mind: to achieve the best possible price for their vendor, and to ensure the sale passes the due diligence test with flying colours. Valuing a motel, hotel, resort or management rights isn’t simply a matter of arriving at a figure acceptable to both seller and buyer. An experienced broker knows reaching that point is only the start. In our business, you’ll often hear us refer to the period after contract exchange as the ‘rocky road to settlement’. Several parties are involved in accommodation property transactions, and their agreement on the value of your business is critical to your sale proceeding. The vast majority of buyers will depend on finance. Banks, in turn, will require a report by a qualified valuer to support their lending decision. Due diligence is the final hurdle

to clear in the sale process. So, from the outset, a conscientious broker will always take into account the roles played by accountants, valuers and banks, and where possible help manage the process. As a rule, banks lend up to 50% for leasehold purchases, 60% for freehold passive investments, and 70% for freehold going concerns. They lend on the basis of the property value as per the valuer’s report, not on a price agreed between seller and buyer. So your broker needs to know the accommodation property market and industry practices intimately, and understand the thinking and methodology that will be applied by those assessing the deal. Here are the primary considerations in any assessment of your property:

1. NET PROFIT The value of your business will always be based on your net profit, after all operating costs. A business does not sell on turnover or occupancy rates. The capitalisation of net income is the primary method of valuation. That is, taking the net income and capitalising it at an appropriate rate, according to recognised and current industry standards for comparable properties, to determine the value. The capitalisation rate is also referred to as the yield, or return on investment. In the case of management rights, the term used is ‘multipler’ (net profit x 100, divided by anticipated return). They are all terms for much the same thing. We cannot stipulate standard return rates or multipliers that might apply in your circumstances. Rates vary considerably, depending on market forces. Actually, during almost three decades in this business, Resort Brokers Australia has rarely seen such a broad and fluctuating range of rates in play as are now. The potential yield ranges suggested below are purely indicative. Please consult an experienced broker in regard to your individual property. But, here is a broad guide:

PROPERTY YIELD RANGES LEASEHOLD: 25–35%

Varies from CBD or coast to regional and remote

PASSIVE INVESTMENT: 8–10%

Although may fall to 7% in high demand CBD locations

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2. LOCATION, LOCATION, LOCATION This old real estate mantra always rings true. Location is certainly a consideration in determining the value of your property. But remember, location is a primary driver of profit. The two are inextricably linked. So, because your net profit is the result of many variables including location, efficiency of management, occupancy levels and so on, it is a much stronger indicator of value.

COASTING ALONG

BY SHANE WYNHOVEN RESORT BROKERS AUSTRALIA

3. TERM OF LEASE/ MANAGEMENT RIGHTS AUSTRALIA’S EAST COAST HAS TRADITIONALLY BEEN A HOTSPOT FOR TOURISM. AGREEMENT The longer the period remaining on your agreement(s), the more secure the business. We would always, therefore, recommend owners with diminishing terms seek to increase the length of their tenure to the greatest extent possible before going to market. The longer the tenure, the more appealing it will be to buyers, and the easier it will be for them to secure finance. Long term agreements help ensure you attract the best possible price for your property. This is an exciting time to be in the market. Demand for CBD and high-netting properties has increased significantly. And we are seeing the management rights model become increasingly popular outside its traditional home state of Queensland, with hotel groups warming to this management model. In recent years, we have seen new buyer profiles emerge, including syndicates and selfmanaged super funds. They have recognised accommodation businesses compare more than favourably to other commercial property classes in terms of secure and generous long term returns. In closing, I’d remind you that valuing your property according to market conditions and industry practices is one thing. Saleability is quite another. Factors such as redevelopment potential may not necessarily affect the price you can achieve. But it is certainly one of the factors that would enhance the saleability of your property. But that’s another story.

FREEHOLD GOING CONCERN: 11–18%

Varies from CBD or coast to regional and remote

MANAGEMENT RIGHTS: 1X TO 6X

Multipliers can range from 1x to 6x, across the spectrum from a low-tenure, distressed asset to a unique, highly desirable, high net profit business. Generally the average range is from 3.5x and 5.5x.

BUT WHEN THE AUSTRALIAN DOLLAR HITS RECORD HIGHS, IT WEAKENS BOTH OUR DOMESTIC AND INTERNATIONAL TOURISM MARKETS. THANKFULLY, THE AUSSIE DOLLAR IS COMING DOWN. In global terms, Australia is considered to be a premium travel package. It is a long way to travel for most, at considerable expense. And when tourists arrive, they are met with even higher travel costs. So, when the Aussie dollar peaks, heading ‘down under’ becomes a less attractive holiday option for the international traveller. With our South East Asian neighbours offering far better value for money, we struggle to attract the budget and mid-range traveller. At the same time, the Australian traveller’s money stretches further than ever before under these economic conditions, making international travel more accessible and affordable than ever. Not only close-by travel destination like Bali and Fiji, but longhaul flights to the USA and Europe have been frequented like never before. Now, it looks like our economy is righting itself. There is no doubt that the country performs at its best when the AUD sits around the 80 US cent mark, and it appears now to be heading in that direction. While imports like TVs and Xboxes might not be quite as cheap as before, Australia’s appeal to international travellers will be reignited. It may take a little longer to coax the ‘extreme’ budget-conscious market back to our shores, given that a backpacker will still buy far more for their dollar in South East Asia. But we will see international tourism arrivals grow as our dollar comes down. Furthermore, the purchasing power of Australians abroad will decline a little, putting our own fantastic travel destinations back on their radar. If you ever want to check the temperature of tourism in Australia, take a look at the Gold Coast. Anecdotally, the previous two financial years had been among the worst in 30 years for the Gold Coast. However, all reports are very positive so far this year, and the future looks prosperous. The Gold Coast is benefitting from major capital investment in the lead-up to the 2018 Commonwealth Games, including its new light rail system, major refurbishment and

expansion of Pacific Fair Shopping Centre and Jupiters Casino, and some large scale resort and apartment proposals. But it doesn’t stop there. There is good news all over the country. Here are just a few of the tourism-boosting developments happening or in the pipeline on the east coast: •S ydney’s $6 billion transformation at Bangaroo on Sydney Harbour, is shaping up to be the city’s most vibrant precinct with a focus on bringing international visitors on a large scale. • The NSW Central Coast has a proposed $500 million Chinese Cultural Theme Park, which Wyong Shire Council describes on its website as “one of the biggest tourism projects NSW has ever seen”. • The Queensland government is encouraging major new integrated resort developments to go ahead, with three new casino licences potentially on offer. Huge projects on the drawing board as a result include the Queen’s Wharf development in Brisbane, the $8.15 billion Aquis Great Barrier Reef Resort north of Cairns, and ASF Consortium’s cruise ship terminal proposal for the Gold Coast. • The $1.4 billion Ella Bay integrated resort in tropical North Queensland is set to be the largest eco-tourism development in Australia. •A revival of a $100 million Skyride cablecar proposal for the Gold Coast hinterland. • I n the Whitsundays, Hayman Island has had a beautiful $80 million refurb, and Hamilton Island’s world class Qualia resort sets a new standard in sheer luxury. So, with that immense level of investment heading our way, much of it targeted to the international market, there is every reason to be confident in our tourism future. As I was concluding this article, Reserve Bank deputy governor Philip Lowe was telling a gathering of business economists in Sydney that he expected to see the exchange rate fall further. Excellent news as we ‘coast into’ what, from all accounts, should be a bumper summer holiday season. resortbrokers.com.au

2014 RESORT BROKERS AUSTRALIA

Sunshine Coast AWARDS

THE SUNSHINE COAST TEAM HAS RECENTLY PRESENTED THEIR SUNSHINE COAST MANAGEMENT RIGHTS AWARDS FOR 2014. THESE AWARDS HAVE BEEN PRESENTED TO A SELECTION CATEGORIES HONOURING THE BEST OF THE BEST OF OUR CLIENTS ON THE SUNSHINE COAST.

GLENN MILLAR & TYLER MILLAR RESORT BROKERS AUSTRALIA

GLENN MILLAR (RBA) & GEOFF HUSSIN ENTREPRENEURIAL AWARD

BARRY & BARBARA MITCHELL BEST BOUTIQUE COMPLEX

MICHAEL & LESLEY MINNS BEST PRESENTED COMPLEX

This award has been presented to Geoff and Tamara Hussin, two of the most inspiring, forward thinking and creative managers we have ever met. Geoff and Tamara started their management rights journey with the management rights of Element on Coolum in which they excelled. In 2013 Geoff and Tamara purchased the rights of the under performing Ivory Palms Resort and in such a short period have already instituted programs and marketing initiatives that have exponentially grown the business at an incredible pace. They have negotiated massive improvements with the body corporate, installed new operators in the onsite restaurant and hosted and fed over a 100 guests each night over the recent Noosa 7's Rugby Tournament.

The Best Boutique Complex Award has been presented to Barry and Barbara Mitchell from Montpellier Boutique Resort in Noosaville. With a 97% satisfaction rating and winner of Trip Advisor Award for Excellence in 2014 this complex was a standout winner as the best boutique complex on the Sunshine Coast. Barry and Barbara Mitchell have recently taken over as resident managers and have kept up, and improved on, the high standards this complex has been known for over the past few years.

The best presented complex has been awarded to Lesley and Michael Minns, Resident Managers of La Mer Sunshine, located in a beachfront location in Sunshine Beach. This complex is always immaculate in presentation, from the grounds to the presentation of the apartments, and it shows in the many favourable reviews.

GARY RICE BEST OPERATOR AWARD SUE BOUGHTON & VINCE GALLE BEST LUXURY RESORT ERIC & TANYA SEALEY MOST IMPROVED AWARD This award has been presented to Tanya and Eric Sealey from Aqua Vista in Cotton Tree. Hailing from the deep south, both having backgrounds in the education sector taking on this resort was a major career change. Since taking over just over twelve months ago the results have been amazing. A resort which was looking tired is now under final stages of being revamped. Guest comments state it all ,with many comments personally stating how great the service and facilities are. Under the stewardship of Tanya and Eric this business with continue to grow and prosper. 42

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Oceans Mooloolaba is one of the few 5 star rated management rights on the Sunshine Coast. However taking on such a high profile high complex in the heart of the GFC may have seemed risky to some. But under the astute management of Sue Boughton and Vince Galle the resort simply prospered with the business growing year in year out. With high profile corporate backgrounds, and the only experience in the accommodation sector as a guest, this certainly was a bold move . With a commitment to excellence, providing high levels of guest service and investing heavily in marketing, attendance at trade shows and working with the industry, Oceans continues to stand as one of Queensland's top accommodation venues.

After a stellar career holding some of the country's top media roles, Gary joined the management rights industry after leaving Sydney where he held the position of CEO of the Seven Network. Gary purchased the management rights of the Landmark Resort on the Esplanade in Mooloolaba off the plan in early 1999,which was developed by The Juniper Group. In 2005 Gary was then asked to take on the rights of Oceans on The Esplanade Mooloolaba, again developed by the Juniper Group. This was the first, and remains today the finest 5 star management rights on the Sunshine Coast. In 2009 Gary acquired the rights of The Rise Apartments in Noosa, where he transformed a business that was operating below capacity to one of the best in Noosa. In 2013 Gary purchased the rights to the 128 unit Peppers Pier Resort in Hervey Bay, which is operated today by members of his family. The Resort was renamed Oceans Resort and Spa Hervey Bay and is the premier accommodation conference and spa resort in the region.

Exclusive MR

Be a part of the Northern Territory property boom! Management rights with or without unit We are delighted to be taking the premium Casa on Gregory complex to the market in two ways; the traditional method, which allows the purchaser to buy the managers unit and business for a reduced multiplier; or as a 'business only' management rights, where the purchaser rents the managers unit and buys the business. Located in the heart of Parap, this property oozes potential for an incoming purchaser. The high rentals enjoyed in the Northern Territory help ensure a secure letting pool, as the owners will receive solid returns. Whilst the occupancy rate is slightly lower than the average, meaning a buyer can be confident they are not buying at the top of the market and that there is plenty of future growth available. This complex also benefits from perpetual agreements, therefore the long term viability of this property is certain. This 50 unit complex consists of one bedroom apartments and is built around a pool and entertaining area. There are 37 units in the letting pool. All are fully self contained and open into the central courtyard.

The spacious two bedroom, two bathroom managers unit is ideally located behind reception. It has a very modern kitchen and a large private patio space. Making it ideal to enjoy the Territory's balmy weather. Business + Unit • Net profit $135,406 • Business Price $338,000 • Unit Price $450,000

Total Sale Price $785,000 Business Only • Net Profit $112,000 (after rental $450 per week)

Business Price $370,000

resortbrokers.com.au/management-rights-for-sale/MR003484

Trudy Crooks Broker Mobile. +61 477 882 210 Email. trudycrooks@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Exclusive LH

Tasmania seaside money maker Situated on the North West coast of Tasmania in the area's major regional town. This accommodation gem has proven to be a little goldmine over its long established lifetime and offers the purchaser a great lifestyle and a substantial bottom line.

• Guests’ facilities include a heated pool, guest lounge, DVD and book library and free WiFi • Sold with a 25 year lease with market rent • Offered with an impressive 38% net return

The motel accommodation consists of 11 x one and two bedroom units and 16 cabins. The caravan park is the only one in the city with 37 power sites, tents sites and backpackers bunkhouse. The property boasts an excellent manager's accommodation - a two bedroom, two bathroom house with office, lounge and kitchen / dining. The reception adjoins the house for ease of operation.

Nett: $286,849

Price: $750,000 resortbrokers.com.au/motels-for-sale/LH003322

Jim Chapman Broker Mobile. +61 413 444 782

Melbourne Office. 03 9347 3100

Email. jimchapman@resortbrokers.com.au

Exclusive MR

Rare Victorian management rights This is truly a wonderful opportunity to secure the management rights to a stunning complex overlooking the water at Metung. Edgewater Terraces comprises of 13 stylish individual terrace houses. Along with the houses are a beautiful pool and BBQ area, indoor spa, children’s playground, stunning grounds and private jetty for owners/guest boats. The property is located just a short stroll into Metung’s cute little lakeside township. The income is broken down by letting commission (15%), caretaking salary, owner’s corporation management salary, exit cleaning charges and services to owners.

• Beautiful complex with stunning views overlooking the water • Consistent financial performer over many years • Truly a lifestyle business - part time or semi retired role • Large four bedroom manager's residence over looking the lake with additional self-contained unit

Nett: $112,286

Price: $910,000

(inc. f/h house $500K)

resortbrokers.com.au/management-rights-for-sale/MR00328

Stuart Charles Broker Mobile. +61 458 588 472 Email. stuartcharles@resortbrokers.com.au 44

resortbrokers.com.au

Melbourne Office. 03 9347 3100

Exclusive LH

Established motel business with 'bricks and mortar' The Shepparton Belltower provides motel buyers with the chance to secure an excellent leasehold in a very strong accommodation town. Comprising of 19 units, in-ground pool, large storage sheds and a neat three bedroom residence, the Shepparton Belltower would be perfect for the first time owner or an experienced operator looking for a business with a proven track record. Part of the Budget chain, this motel is ideally located on Shepparton's main street and is only a short walk to fast food outlets and the Shepparton Aquatic centre.

• High profile main street location on large corner block • Attractive In-ground pool • Freehold also available or vendor will split into leasehold and investment • Land area 2,900 sqm

Nett: $224,055

Price: $1,600,000 resortbrokers.com.au/motels-for-sale/FH003444

Gerard Hurry Broker Mobile. +61 417 250 211

Melbourne Office. 03 9347 3100

Email. gerardhurry@resortbrokers.com.au

Exclusive LH

Stunning motel resort complex - Murray River leasehold Comprising of 40 beautiful 4.5 star units, the Madison Spa Resort provides an outstanding inspection and its high quality fitout will impress even the most discerning motel purchaser. The property boasts a day spa with Roman Bath House, hydro spa pool, outdoor pool with 25m lap lane, restaurant and cocktail bar as well as a retail outlet. There is an extra parcel of freehold land (1200sqm) with approved plans for conference facility.

• 40 unit resort style 4.5 star motel • Fantastic facilities including retail outlet • Well maintained landscaped gardens throughout • Beautiful manager’s residence

Nett: $547,315

Price: $1,900,000 resortbrokers.com.au/motels-for-sale/LH003427

Gerard Hurry Broker Mobile. +61 417 250 211

Melbourne office. 03 9347 3100

Email. gerardhurry@resortbrokers.com.au resortbrokers.com.au

Exclusive FHGC

With a whopping $900k nett this is your opportunity to purchase a FHGC in S.W. Sydney Resort Brokers Australia are excited to present the opportunity to purchase a 51 room freehold going concern in South West Sydney. Located just 45 minutes from the Sydney CBD and 30 minutes from Sydney Airport, this motel is located in a booming area of Sydney. The motel is in a prime location next to an expanding shopping centre that includes multiple restaurants and cafes, allowing the property to operate with minimum fuss as a breakfast only offering. The property also includes a private three bedroom split level residence that can easily accommodate families.

• 51 rooms and apartments • 3.5 star rated • Recently refurbished • Swimming pool and new BBQ area • Breakfast only • 45 minutes to Sydney CBD and 30 minutes to Sydney Airport • 3 bedroom residence • Cafes, restaurants, shopping on your doorstep • Ample parking for cars, trucks and buses

The property features motel and apartment style rooms that are 3.5 star AAA rated. The motel can accommodate a wide range of guests with double, twin share, family and queen rooms, two bedroom suites, spa suite and self-contained apartments. For those looking for a great business in the Sydney area, this property is for you.

Nett: $908,907

Price: $8,250,000 resortbrokers.com.au/motels-for-sale/LH003319

Shane Wynhoven Broker Mobile. +61 424 174 592 Email. shanewyhoven@resortbrokers.com.au Sydney Office. 02 9904 8224 46

resortbrokers.com.au

Exclusive MR

More bang for your buck - large netting complex by the Brisbane River Resort Brokers Australia are proud to offer Brisbane’s most exciting well-established corporate management rights business. The opportunity for an incoming purchaser is remarkable given the significant upside. The current long term owners have done a great job in maintaining the current trading income over the last seven years and have built a strong database of corporate travellers. The average rate for most parts of the year starts at $175 per night. The exciting thing about this business is that there is room for growth as you continue to build the business through good management and business initiatives. The property is made up of 69 well appointed apartments inspired by the location of the Brisbane River. This property is popular with both corporate and rep trade as well as families and sporting clubs who frequently visit Brisbane. A tropical resort style pool setting, with rainforest creek flowing water features, acts as a great centre piece for the property and is popular during the hot summer months.

There is real excitement in the surrounding area due to the new state and federal planned works, including a proposed $120 million dollar bikeway infrastructure project and the new Kangaroo Point to CBD Bridge. • Approximately 15 min walk to the Brisbane CBD • Pool, BBQ area, sauna, gym, river frontage • 69 units, 32 are in the letting pool • $103,000 BC salary adjusted annually with CPI • Three bedroom, two bathroom manager's unit • Possibility for an astute operator to acquire 49 extra units in the Quays complex (adjacent to this complex)

Nett: $414,300

Price: $2,800,000 resortbrokers.com.au/management-rights-for-sale/MR00324

Nathanael Marler Broker Mobile. +61 424 077 288 Email. nathanaelmarler@resortbrokers.com.au Headoffice. 07 3878 3999 resortbrokers.com.au

Exclusive FH

Immaculate four star motel freehold with genuine upside This is a wonderful opportunity to secure a large freehold and business located in Traralgon, one of Victoria’s best motel towns. The economy in the region is driven by primary industries (forestry, wool, dairy and vegetables) and secondary industries (including coal mining, processing and fossil-fuel power generation). This property is branded a ‘Quality Inn’ due to its fantastic facilities and high 4 star rating. This is a genuine full-service property with 61 rooms, 4 conference rooms, café, restaurant, pool, tennis court and gym. Given the recent room upgrades and large number of rooms off line over the last few years, both turnover and net profit are expected to increase naturally. The motel would benefit from an experienced operator who is looking for a more hands on role.

• 61 rooms • Large and prominent 4 star motel with fantastic restaurant and conference facilities • First time offered since 1985 • Extensively renovated and refurbished • Revenue growth expected as rooms have recently been upgraded • Opportunity for new operator to improve net profit with a more hands on role • Large three bedroom managers residence • Huge parcel of land (1.921ha) with Princes Highway frontage and adjacent to Traralgon Golf Course

Nett: $616,116

Price: $4,690,000 resortbrokers.com.au/motels-for-sale/FH003393

Stuart Charles Broker Mobile. +61 458 588 472 Email. suartcharles@resortbrokers.com.au Melbourne Office. 03 9347 3100 48

resortbrokers.com.au

Exclusive FH

Fantastic freehold investment opportunity at 9% return - only 1 hour from Melbourne The Seymour Motel offers an excellent investment opportunity given that it has just been fully refurbished prior to sale. There is also a very strong lessee in place with great experience and knowledge.

The current vendor is prepared to keep the lease of the business, which is a great advantage to the investor as he is an experienced operator, who runs two other motels.

This is an 18 unit B&B motel with a large three bedroom manager's unit. The property is situated on fives acres of street front land, and is only a short one hour drive north of Melbourne.

Take advantage of this solid investment opportunity, with an excellent tenant and no money to spend!

Seymour is a strong motel town attracting many different visitors including personnel from the local defence base at Puckapunyal, contract workers to access nearby towns, visitors to the snow fields and the Goulburn Valley wine trail and the drive market stopping prior to Melbourne. The town is also ideally located on the railway line between Sydney and Melbourne. The investment is providing a good rental return of 9% underpinned by a long term lease. Capital structural works have been completed in 2014 including stumps, rewiring, underground plumbing, sewerage and storm water drains. All rooms have also been renovated with new carpet, paint, TV’s, beds and upgraded bathrooms.

• Situated on five acres of highway fronted land • Brand new 30 year lease • The property has been fully renovated in 2014 including capital works • Large newly renovated and extended three bedroom manager's residence • Rent based on very conservative projections.

Rent: $76,500

Price: $850,000 resortbrokers.com.au/motels-for-sale/INV003412

Liz Galea Broker Mobile. +61 417 334 298 Email. lizgalea@resortbrokers.com.au Melbourne Office. 03 9347 3100 resortbrokers.com.au

NEW KIDS ON THE BLOCK

JENNY SORENSON SOUTH GOLD COAST - MANAGEMENT RIGHTS

PAMDA TO POA – THE CLEAR AND THE UNCLEAR BY JOHN MAHONEY - MAHONEY LAWYERS The Property Occupations Act, is set to commence on 1 December 2014. The government has released the regulations and the new forms to replace the PAMDA forms such as the Form 20a that we have come to know over the past 13 or so years. The essential elements of POA are: • Deregulation of commission – agents will be free to negotiate commission without any maximum. • Letting appointments assignable – no longer will letting appointments have to be ticked and initialled to be assignable. The quid pro quo though is that all appointments under the new Act will be subject to a maximum 30 day notice of termination. • Residential requirement removed – it will no longer be a requirement for a letting agent’s licence that the agent reside onsite. Managers should though be aware that their letting agreement with the body corporate may well impose a requirement for the manager to reside onsite. • Body corporate approval not required – aimed at cutting red tape, it will no longer be a requirement that a resident letting agent provide evidence of body corporate approval when applying for a licence. Likewise a licence will no longer apply to a specific building so can relate to a multitude of buildings without the need for the buildings to share a common boundary. • Corporate licensees do not need a licensed director – under PAMDA a company cannot hold a licence unless a director of the company holds a licence. Under the new Act it will be sufficient if a “person in charge” holds the licence. The assignability provision, and POA generally, pose a number of questions about letting appointments the most important 50

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of which, and the answers as best we can determine from the Act, are: 1. Are new letting appointments required when POA starts? The transitional provisions of POA state that an existing letting appointment by a resident letting agent remains in place after POA commences and continues in force as though it was an appointment as a letting agent under POA. So there is no need to seek new letting appointments from all your owners when POA commences. Your existing forms 20a will continue in force. 2. Does the 30 day termination provision of POA apply to PAMDA forms 20a in place when POA starts? The transitional provisions state that a valid existing form 20a continued in force under POA continues according to its existing terms “with necessary changes” and ends on the day it ends according to its terms. Interpreting “with necessary changes” is difficult. We consider that only those parts of POA that are not inconsistent with a form 20a will apply to the form 20a after POA commences and that therefore the 30 day termination of POA will not apply to your forms 20a. 3. Do all existing forms 20a appointments become assignable under POA? Based on our interpretation of the transitional provisions of POA we are of the view that a form 20a that is not expressed to be assignable, will not be assignable once POA commences. On the sale of the management rights, such non-assignable appointments will need to be dealt with just as they are now – get the owner’s consent to assignment or get a new appointment in the new manager’s name.

RESORT BROKERS AUSTRALIA CONTINUES TO EXPAND TO MEET GROWING DEMAND AND DELIVER EXCEPTIONAL STANDARDS OF SERVICE ACROSS KEY MARKET AREAS. WE WELCOME OUR LATEST APPOINTMENT, JENNY SORENSON, WHO FURTHER BOOSTS THE STRENGTH OF OUR BUSY MANAGEMENT RIGHTS TEAM ON QUEENSLAND’S GOLD COAST, BRINGING AN IMPRESSIVE RANGE OF SKILLS AND EXPERIENCE FOR THE BENEFIT OF SELLERS AND BUYERS. With a career record spanning corporate development, sales, business management and property law, it is hard to imagine anyone could be more ably equipped for her new role as management rights specialist on the Gold Coast. But when you also consider that Jenny and her husband Mark are management rights owners themselves, it’s quite clear this is a perfect fit. “This job is just made for me,” she declares, clearly relishing a new direction after 15 years in the motor vehicle industry. Jenny had practised law in New Zealand for 19 years before the couple lived and worked in Indonesia for a time. When they settled in Queensland, Jenny joined the Zupps Group. Within months she was top salesperson, rose to be a Top 10 Mitsubishi sales achiever and, ultimately, the first female Dealer Principal in the group’s 54year history. Jenny then took a senior appointment as Queensland Corporate Development & Event Manager at Mitsubishi Australia Limited, where her sales and negotiation skills, flair for business development and dedication to client service were invaluable. But after some eight years, the division closed, and she was keen for a new direction. The opportunity with Resort Brokers Australia fitted like a glove. The Sorensons own the management rights to a luxury owner-occupied Broadbeach property. She loves the lifestyle, and understands the business first-hand. So you can be sure Jenny will drive the best deals for clients on the southern Gold Coast.

REGIONAL SNAPSHOT: GIPPSLAND, VIC WE SHINE A SPOTLIGHT ON KEY REGIONS TO REVEAL WHAT IS DRIVING TOURISM AND ACCOMMODATION INDUSTRY GROWTH

Gippsland, a one-and-a-half-hour drive southeast of central melbourne, boasts an extraordinarily diverse landscape, stunning national parks, abundant wildlife and pristine lakes. It also showcases some very fine food and boutique wines, and encompasses rich resource reserves, making the district a key energy and business hub. The region’s outstanding natural beauty, cultural diversity and nationally significant resource-based economy are why Gippsland includes some of Victoria’s fastest growing municipalities. The area is home to over 270,000 people, a number expected to grow to 386,000 by 2041. Gippsland’s principal business and civic centre is Latrobe City, an ideal base from which to visit nature-based and heritage attractions including the Gippsland Lakes, Tarra Bulga and Mt Baw Baw National Parks, historic Walhalla township, and the rail trails. Other key tourism assets include the Latrobe Regional Gallery, Latrobe Performing Arts Centre, Hazelwood Pondage, arcYinnar contemporary arts centre, the internationallyrenowned Morwell Centenary Rose Garden with over 3,000 rose bushes, Lake Narracan, Old Gippstown, and many tracks and trails including the Grand Strzelecki Track into the Strzelecki Ranges.

LATROBE VALLEY

The Latrobe Valley offers strong investment opportunity, excellent road and rail transport links and established infrastructure. It lies just 150km southeast of Melbourne along the Princes Freeway (M1) coastal route to Sydney, less than two hours from Melbourne Airport. V/Line runs hourly rail services to and from Melbourne. Latrobe City is one of Victoria’s most vital regional hubs, recognised as the centre of the state’s electricity industry thanks to its resource riches, which include one of the world’s largest coal reserves. Gippsland produces around 90% of Victoria’s electricity, 97% of its natural gas and 14% of Australia’s oil. It is also the centre of a large forestry industry, which services Australia’s largest pulp and paper mill and a number of sawmills. Being the largest population centre in Gippsland, Latrobe City (pop. 72,395, ABS 2011 Census) acts as the regional headquarters for Government agencies and private businesses including banks and

insurance companies. Other key industries include food processing, engineering, postsecondary education with the new Federation University Australia, and the services sector.

TOURISM ECONOMY

The Gippsland Visitor Economy generates an estimated $2.8 billion per annum in total expenditure, according to Destination Gippsland, and attracts 10.8 million visitors each year, including 5.4 million overnighters. Latrobe City Council and Destination Gippsland work in partnership with Tourism Victoria to promote and expand the region’s tourism economy. Stated goals of the Gippsland Tourism Master Plan 2013-2018 include increasing overnight visitation from 5.4 million to a target level of 5.7 million overnight visitors per year, and to lift visitor expenditure to $3 million per annum. State-wide statistics (Tourism Victoria, year ending June 2010-2014) show solid gains are being made. Total domestic tourism expenditure in Victoria increased at an average annual rate of 4.3% for the period, and in regional Victoria at an average annual rate of 3.9%. Overnight visitor expenditure in regional victoria increased by 6.4% year-on-year for the year ending June 2014. Gippsland generated one of the State’s highest regional domestic overnight expenditure levels for the year ending June 2014, with visitors spending $563 million, up an average of 5.8% p.a. from 2010-2014. Based on the ABS Survey of Tourism Accommodation, there were 60 hotels, motels or serviced apartments with 15 or more rooms in the Gippsland region as at the June quarter 2013. (note: the ABS has moved the Survey of Tourist Accommodation (STA) to an annual collection and reporting cycle, on a financial year basis. So the next release of STA data is due mid-December 2014.)

VISITOR MARKET

Tourism Victoria’s Gippsland Market Profile: YE Dec 2013 shows the overnight visitor market is dominated by the intrastate market, which accounted for 84% of all overnight visitors. This was followed by 13% from interstate and 3% from overseas. “Since 2008, domestic overnight visitation to the region has increased at an average annual rate of 1.8%, compared to an increase of 1.3% per annum for regional

Victoria generally,” the report stated. “For the year ending December 2013, the region received an estimated 5.1 million domestic visitor nights, an increase of 19.2% from 2012 to 2013. The average length of stay was 3.1 nights in 2013, up from 2.9 nights in 2012. Since 2008, domestic visitor nights to the region have increased at an average annual rate of 1.9%, while growth of 0.9% per annum was experienced for regional Victoria generally.” The Gippsland region received an estimated 56,000 international overnight visitors in the year to December 2013, an increase of 19.2% on the previous year. Since 2008, international overnight visitors to the region also grew at a higher rate (2.0% p.a.) compared to regional Victoria generally (1.6% p.a.). Data published by Latrobe City Council shows the purpose of visitors to Latrobe City (year ended Dec 2012) for overnight visits in 17.4% holiday, 23.7% visiting friends and relatives, 15.5% business, and 4.3% education.

EVENTFUL

Latrobe City hosts many widely recognised national and international sporting challenges such as the Victorian Junior and Senior Tennis Championships and WaterSki Championships. It promotes a diverse and exciting events calendar with highlights including the annual Latrobe Spring Racing Carnival, prestigious Moe Cup, the Chinese Festival, and Moe Jazz Festival. The business events market is of particular importance and has been deliberately targeted by the Latrobe Tourism Advisory Board for promotion for growth. In its 2012 Annual Report, the board states: “Latrobe City will be to Gippsland what Melbourne is to Victoria. A vibrant, vital, energetic destination known for hosting major events, conferences, complemented by natural and cultural attractions and regarded as integral to the Gippsland visitor experience.” Destination Gippsland says the existing conference and business events sector generates approximately $15.77 million in revenue, excluding revenue associated with accommodation. It also stimulates a further $19.33 million in other expenditure by conference delegates during their visit. The total direct economic contribution is therefore $35.1 million p.a. resortbrokers.com.au

AGENT PROFILE

SHANE MULLINS FAR NORTH QUEENSLAND

OUR AGENTS PRIDE THEMSELVES ON THEIR LOCAL KNOWLEDGE. THEY EACH LOOK AFTER A GEOGRAPHICAL PATCH, AND GROW TO KNOW IT INTIMATELY. WE FEEL THIS ADDS GREATLY TO THE CONFIDENCE WITH WHICH A PROPERTY CAN BE SOLD. IN THIS FEATURE WE WILL GET SOME THOUGHTS ON THEIR LOCAL AREA AND WILL ALSO LEARN A BIT ABOUT THEIR PERSONALITIES. HOW LONG HAVE YOU WORKED AT RESORT BROKERS AUSTRALIA?

I started with Resort Brokers Australia in 2008, so I celebrated five years with the company a couple of years ago. Time has flown by since then with a lot of changes in my region.

WHAT IS YOUR BACKGROUND?

I used to work in the liquor sales force with industry heavy weights DIAGEO and Lion Nathan; both companies provided me with a great foundation in sales. I still refer back to many of the ideas and techniques I learnt while I was there.

TELL US ABOUT YOUR MY AREA

I am the go to guy for Far North Queensland and surrounds. I handle all forms of sales, including management rights, resorts, motels, caravan parks and pubs. Traditionally I service an area from Ingham (south of Cairns) up to Cape York. There are lots of holiday properties within my boundaries. The North Queensland market has been experiencing much stronger enquiry and subsequent sales than it has had in quite some time. With a 17% surge in international arrivals there is clear confidence in the market going into 2015 -

resortbrokers.com.au

this is evident with the amount of investors at present. I think it is safe to say Cairns and Port Douglas are back!

satisfying thing is knowing that the vendor and the buyer are happy and that a deal has been done that suits both parties.

TELL US ABOUT AN ISSUE WITH A SALE THAT YOU HAVE OVERCOME AND WHAT YOU LEARNT FROM THAT?

WHAT HAS BEEN YOUR BIGGEST SUCCESS SINCE STARTING AT RESORT BROKERS?

Always use industry professionals to assist with transactions and ensure your vendor is motivated and flexible!! Recently I sold and settled the Lions Den Hotel. It has taken approximately 12 months to get the original purchaser across the line. With a dedicated plan at her end and even a more flexible approach from the vendors, a successful result was achieved. We were lucky that our vendor did everything possible to help facilitate the sale. Problems arose from funding and inexperience within the industry. We like to work with banks and valuers to make the deal as smooth as possible. The purchaser is a third generation cattle farmer and was determined to purchase the Den as a part of her families succession plan to own and operate a hotel. In the end all parties were delighted with the result!

WHAT DO YOU LOVE MOST ABOUT YOUR JOB? The people you meet, hearing their stories and what motivates them. The most

I was recently appointed to sell Latitude 16 which consisted of 10 management rights properties in close proximity. After an extensive marketing campaign we had over 100 interested parties, with over 40 individual offers.

WHAT ANNOYS YOU?

Weather reports on TV (everyday!) more often than not they say it is raining in North Qld whilst I'm looking out my window, blue skies and kids in swimming pool.

DO YOU HAVE A NICKNAME?

I have always been known as Mullet (origin unclear). I have always been a keen fisherman and at one stage had a boat to match the name!

WHAT DO YOU DO IN YOUR SPARE

My free time is spent with my young family, fishing off Palm Cove jetty, going to Four Mile beach to laze on the deck chairs and swim. My partner Clare and I are mad AFL, Geelong Cats supporters and Wallabies fans - so it is not unusual on a weekend for us to be seen screaming at the TV!

Sold Properties RESORT BROKERS AUSTRALIA HAS SOLD AND SETTLED 156 PROPERTIES SINCE THE 15TH JANUARY 2014. WE HAVE A FURTHER 59 PROPERTIES UNDER CONTRACT

FREEHOLD CARAVAN PARK ARMIDALE, NSW

LEASEHOLD MOTEL BAIRNSDALE, VIC

MANAGEMENT RIGHTS BRISBANE, QLD

SERVICED APARTMENTS LEASE ECHUCA, VIC

MANAGEMENT RIGHTS SCARBOROUGH, QLD

FREEHOLD CARAVAN PARK HERVEY BAY, QLD

MANAGEMENT RIGHTS BYRON BAY, QLD

LEASEHOLD MOTEL TAREE, QLD

LEASEHOLD MOTEL SPRINGWOOD, QLD

MANAGEMENT RIGHTS MELBOURNE, VIC

MANAGEMENT RIGHTS NOOSA, QLD

FREEHOLD MOTEL SVENSSON HEIGHTS, QLD

LEASEHOLD MOTEL MERIMBULA, NSW

MANAGEMENT RIGHTS NOOSAVILLE, QLD

LEASEHOLD MOTEL BLACKHEATH, NSW

FREEHOLD MOTEL MITTAGONG, QLD

MANAGEMENT RIGHTS REDLYNCH, QLD

MANAGEMENT RIGHTS SOUTHBANK, QLD

LEASEHOLD MOTEL TAMWORTH, NSW

MANAGEMENT RIGHTS LUCINDA, QLD

FREEHOLD PASSIVE INVEST. LISMORE, NSW

MANAGEMENT RIGHTS SPRING HILL, QLD

LEASEHOLD MOTEL BONDI JUNCTION, NSW

SERVICED APARTMENTS LEASE PRAHRAN, VIC

LEASEHOLD MOTEL MERIMBULA, NSW

MANAGEMENT RIGHTS CAIRNS, QLD

FREEHOLD CARAVAN PARK NAMBUCCA HEADS, NSW

CARAVAN PARK LEASE CORRYONG, NSW

MANAGEMENT RIGHTS DUNSBOROUGH, WA

LEASEHOLD HOTEL ROSSVILLE, QLD

MANAGEMENT RIGHTS GOLD COAST, QLD

MANAGEMENT RIGHTS MARGATE BEACH, QLD

MANAGEMENT RIGHTS BURLEIGH HEADS, QLD

MANAGEMENT RIGHTS GLADSTONE, QLD

MANAGEMENT RIGHTS SURFERS PARADISE, QLD

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Relief Managers

PLEASE NOTE: THIS IS SIMPLY A DIRECTORY SERVICE THAT WE PROVIDE TO ASSIST YOU, SHOULD YOU CHOOSE TO GO ON HOLIDAY OR TAKE A BREAK. WE RECOMMEND YOU INTERVIEW AND QUALIFY ALL MANAGERS YOURSELF BEFORE HIRING.

Barry & Lesley Roberts

Tony Payne

Belinda & David Gustafson

Motel Manager Nationwide

Motel Manager South East VIC

All Property Managers NSW & QLD

+61 40428 422 456

+61 429 998 044

+61 403 219 562

les.baz@bigpond.com

tonypayne2@bigpond.com

gustafsondavid@hotmail.com

Gary & Robyn Loakes

Llew & Trisha Pointon

Christopher Hillman

All Property Managers Nationwide

Motel Manager Nationwide

Management Rights, Motels & Resort Managers Capital Cities, Australia Wide

+61 408 798 352

+61 400 035 359

+61 488 550 005

grl21@bigpond.com

llewp@tpg.com.au

christopher.hillman@bigpond.com

Garth & Trish Carey

Chris & Carmel Moloney

Maryanne & Geoff Cheeseman

Resort & Motel Manager QLD & NSW

Motel Managers Nationwide & New Zealand

All Property Types Nationwide

+61 421 359 059

+61 400 483 291

+61 410 662 963

garth@careynominees.com.au

ccmoloney-315@hotmail.com

cheezmg@bigpond.com

Grant & Kerry O'Sullivan

Nanette Mortimore

Peter & Janine Templeton

All Property Types QLD & NSW

Management Rights Manager Brisbane Area

Motels, Backpackers & Caravan Parks Managers Australia Wide

+61 404 473 100

+61 419 707 773

+61 408 178 130

grant2466@bigpond.com

nanette.mortimore@gmail.com

tempy7@bigpond.com

Peter & Pam Kotevski

Sharyn & Phillip Stallman

Paul & Jane Hansen

Motels, Caravan Parks & Resort Managers Australia Wide

Motel Managers Nationwide

Caravan Parks & Villa Managers QLD, NSW & VIC

+61 408 187 222

+61 428 931 589

+61 438 877 932

twopees26@yahoo.com.au

pjstal@bigpond.com

happycamperparkmanagement@gmail.com

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Industry Specialists Do you want a holiday

Expert management rights lawyers The team at Hynes Legal can assist you with all of your management rights needs.

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We are different, not in what we do, but in how we do it - fixed fees, returned phone calls, accessible lawyers, no billing surprises and more. Try Hynes Legal.

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1300 RICHARD (742 427)

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Relief manager of Management Rights

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Specialising in Hotels & Motels

Service Stations

Management Rights

Residential Development

Caravan Parks

Industrial

Child Care Centres

Commercial & Retail

Mike Phipps 0448 813 090 Paul Grant 0448 417 754 mike@mikephippsfinance.com.au paul@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld

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

The Management Rights Lawyers

Buying or selling Hotels Caravan Parks, Motels, Management Rights?

Servicing resident unit managers throughout Queensland and New South Wales

www.mahoneys.com.au 07 3007 3777 info@mahoneys.com.au Brisbane office L15, 167 Eagle Street Brisbane Qld 4000

Gold Coast office 235 Varsity Parade Varsity Lakes Qld 4230

Call (07) 3220 1144 or email@hillhouse.com.au

www.hillhouse.com.au

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

Services | Taxation Accounting | Benchmarking

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

(07) 3421 3421

Email: cpa@mcadamsiemon.com.au www.mcadamsiemon.com.au

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

    

Associate Director

Buying & Selling Developer Setups Dispute Resolution Body Corporate Advice GST, Stamp Duty & Tax Col Myers 0417 620 516 www.smh.net.au

Owen Barbeler (07) 3620 7900

Owen Barbeler

‘ALL PROFESSIONAL FEES QUOTED UP FRONT’

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

LOOKING TO REACH THE ACCOMMODATION AND TOURISM INDUSTRY? WHY NOT ADVERTISE HERE. YOU WILL SEE A RANGE OF INDUSTRY SPECIALISTS ARE ADVERTISING IN OUR WIDELY READ INFORMER. CIRCULATION - 8,750 - MAILED HARD COPIES AND 15,650 - SENT DIGITALLY IF YOU WOULD LIKE A COMPANY ADVERT ON THIS PAGE PLEASE CONTACT: CARLA COOK: 0467 600 611 OR EMAIL US CARLACOOK@RESORTBROKERS.COM.AU Qualifications

Owen has worked in the valuation industry since 2002 and specialises in going concern valuations. Owen has experience across many types of accommodation properties including hotels, motels, resorts, student accommodation, management rights and affordable housing.

> Bachelor of Business Management (Real Estate and Development), University of Queensland > Associate of the Australian Property Institute (AAPI) > Certified Practising Valuer

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Exclusive Listings

PROPERTY TYPE

TYPE

LOCATION

UNITS

PERM/HOL

NETT

PRICE

Great Business Only Permanent Management Rights in New Farm

New Farm

Permanent

$105,500.00

EOI

Permanent Management Rights - Brisbane CBD fringe high rise MR

Brisbane

Permanent

$140,362.00

$1,240,000.00

34% return, low rent and 30 year lease

Mount Gambier

Short Term $337,883.00

$995,000.00

North West Tasmanian Coast Motel and Caravan Park Lease

Burnie

Short Term $286,850.00

$775,000.00

Permanent/ Student Management Rights - Parkwood, Gold Coast MR

Parkwood

Permanent

EOI

Online Auction - Stunning Freehold Motel - Amazing Business/

Bermagui

Short Term

Auction

Netting a massive $1.8million

Palmerston

Short Term $1,843,332.00

$5,995,000.00

A true performer that has withstood the test of time

Goulburn

Short Term $327,897.00

$750,000.00

Opportunity to purchase a desirable Brissy management rights

Toowong

Mixed

$695,000.00

$4,900,000.00

Lucrative leasehold in sought after Sydney

Narellan

Short Term $508,907.00

$1,950,000.00

Lifestyle and Security

Calamvale

Permanent

$97,254.00

$860,000.00

This location = 100% occupancy

Calamvale

Permanent

$78,738.00

$810,000.00

Excellent returns only 2 hours from Sydney

Marrangaroo

Short Term $230,000.00

$595,000.00

Award Winning Sydney Serviced Apartment Business

Campbelltown

Short Term $710,818.00

$2,900,000.00

Location Location! Centre of town motel leasehold

Biloela

Short Term $242,282.00

$795,000.00

Surf your way to success with this high netting MR's

Kirra

Mixed

$816,000.00

Administrator's Sale!! Timing is the key...

Mildura

Short Term

$500,000.00

Administrator's sale must sell! Excellent leasehold opportunity LH

Horsham

Short Term

$400,000.00

Exclusive Boutique Development in New farm

OTP

New Farm

Short Term $35,532.00

$160,000.00

Bayside Corporate Management Rights

Redcliffe

Permanent

$240,272.00

$1,731,224.00

Married with children?

Daisy Hill

Permanent

$38,120.00

$650,000.00

Panoramic Oceanfront Management Rights

Sunshine Beach

Holiday

$284,000.00

$2,298,000.00

A great couple business just 1 hr from Brisbane

Harrisville

Short Term $174,523.00

$895,000.00

First time offered in 10yrs - Fantastic Freehold Tourist Park

St George

Short Term $301,737.00

$2,000,000.00

Waterfront Luxury with Strong Income

Kangaroo Point

Short Term $414,300.00

$2,990,790.00

Massive property with genuine upside!!

Traralgon

Short Term $616,116.00

$4,690,000.00

Gold Coast beach lifestyle for single operator

Tweed Heads

Short Term $139,183.00

$495,000.00

Quality Serviced Apartment Business Perth

West Perth

Short Term $387,517.00

$1,520,000.00

Brand new lease to 4.5 star hotel

Launceston

Short Term $770,000.00

$2,800,000.00

Near New CBD Apartment Hotel - Passive Investment

INV

Launceston

Short Term

$7,055,000.00

Own Launceston's best freehold 4.5 star Hotel!

Launceston

Short Term $1,404,903.00

$9,855,000.00

Rare find - Freehold motel in beautiful Ulladulla

Ulladulla

Short Term $277,576.00

$2,500,000.00

Entry level motel lease in idyllic Port Macquarie

Port Macquarie

Short Term $82,619.00

$250,000.00

Best motel leasehold in town fully refurbished top to toe

Mundubbera

Short Term $254,184.00

$605,000.00

Gold Coast Permanent Management Rights - $180k Net

Pacific Pines

Permanent

$1,445,000.00

Best Buy in Country Victoria!

Seymour

Short Term $109,000.00

$350,000.00

Best Buy in Country Victoria!

INV

Seymour

Short Term $76,500.00

$850,000.00

Best Buy in Country Victoria!

Seymour

Short Term $179,000.00

$1,200,000.00

What a Ripper! Freehold Motel on Highway in Country QLD

Inglewood

Short Term $154,360.00

$970,000.00

Gold Coast Student Management Rights Business

Ashmore

Permanent

$275,000.00

$1,895,000.00

86 key beachfront resort - Stunning business

Coolum Beach

Short Term $531,006.00

$3,720,000.00

No requirement to buy a unit or to live on site

Surfers Paradise

130

Permanent

$1,298,000.00

Leasehold motel on NSW South Coast

Moruya

Short Term $154,779.00

$520,000.00

Rare New Permanent Complexes - Zero Real Estate to Buy

Mountain Creek

Permanent

$1,163,000.00

resortbrokers.com.au

$165,645.00

$210,000.00

$179, 000.00

$230,000.00

$245,000.00

PROPERTY TYPE

TYPE

LOCATION

UNITS

PERM/HOL

NETT

PRICE

Rare in Runcorn

Runcorn

Permanent

$339,135.00

Expressions of Interest

Opportunity Knox

Wantirna

Short Term $224,645.00

$850,000.00

Off the Plan MR in high demand suburb

Kedron

Permanent

$127,863.00

$520,402.00

MR for sale for the first time in 15 years!

Spring Hill

Permanent

$145,000.00

$1,229,000.00

The Easiest Large Netting Permanent in Brisbane - West End

West End

Permanent

$273,000.00

$2,066,000.00

Excellent leasehold to suit first timer or experienced operator

Shepparton

Short Term $134,055.00

$470,000.00

Great Opportunity for Operators or Investors

Shepparton

Short Term $224,055.00

$1,600,000.00

Opportunity to invest in a solid town

INV

Shepparton

Short Term

$1,130,000.00

Western QLD Gold Mine Leasehold Hotel Motel

Quilpie

Short Term $238,000.00

$775,000.00

First time offered in 10 years, 100m from Broadbeach Mall!

Broadbeach

Short Term $300,000.00

$2,195,000.00

Receivership Leasehold Motel

Bundaberg

Short Term

Expressions of Interest

Fabulous Freehold Motel in Sydney

Narellan

Short Term $908,907.00

$8,250,000.00

Rare short term letting in Belongil/Byron Bay $422k p.a

Byron Bay

Short Term $422,286.00

$2,500,000.00

Award winning freehold motel can be yours on the coast

Hervey Bay

Short Term $255,120.00

$2,185,000.00

Modern + waterfront + permanent management rights!

Biggera Waters

Permanent

$1,450,000.00

Passive investment with monthly income

INV

Miriam Vale

Short Term

$1,400,000.00

Freehold going concern

Miriam Vale

Short Term $280,640.00

$1,900,000.00

Motivated Vendors With Retirement Plans

Carseldine

Permanent

$650,631.00

Big lease at a low price!

Traralgon

Absolute perfect lifestyle opportunity

Southport

BEST WESTERN Drouin Motor Inn Drouin, VIC

$172,256.00

$73,877.00

Short Term $309,116.00

$1,050,000.00

Permanent

$570,000.00

BEST WESTERN PLUS Launceston Launceston, TAS

$44,000.00

BEST WESTERN PREMIER Terrace Hotel Perth, WA

Three hotel types. One brand. Experience the difference. info@bestwesternaustralia.com.au AUSTRALIA | NEW ZEALAND | FIJI

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