Informer Issue 106

ISSUE N O . 106

AUSTRALIA’S BEST ACCOMMODATION INVESTMENT SHOWCASE

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Golden Years

Back in the ‘70s in my native New Zealand everyone used to talk about this sparkling paradise across the Tasman called the Gold Coast. When I first visited in ’79 the hype didn’t disappoint. I was absolutely blown away by it. It had a beachline of golden sand that seemingly stretched forever, luxury high-rise to rival Miami, and there was a real energy about the place.

The tallest building at the time was a circular apartment building called Focus built by the late great Lou Ferro, who was a friend of mine. It was a tremendously eye-catching skyrise that looked like a kind of tall colosseum and dwarfed everything else.

I stayed at a medium-sized apartment complex that was one of the first management rights ever sold on the Gold Coast. It was called Moorings on Cavill, which was just off Cavill Avenue on the river side. I got talking to the owner, a lovely bloke who told me he paid the royal sum of $70,000 for it. That kind of money wouldn’t even get you a caravan these days, but back then it was enough to buy you a solid management rights business and a nice caretaker’s unit to boot.

That apartment complex is still there, as is the Focus building and so is the eternal charm of the Gold Coast. In this issue of Informer, we explore the enduring appeal of this great Australian wonder for both holidaymakers and those in the accommodation business.

After some very tough and unprecedented years during the pandemic, the famous Glitter Strip and the wider Gold Coast is back. I’m so pleased to hear from operators that their Christmas/New Year was the best on record, not just back to pre-Covid levels but much better than. Our Gold Coast brokers are consistently hearing the same thing from the many operators they speak to.

It seems the Goldie has weathered the storm of Covid and come out firing the other side. Covid interruptions to our economy are well behind us, and the glitter is back on the Gold Coast.

It’s a lesson we need to learn again and again as businesspeople — always take the long view, especially when it comes to the Gold Coast. I’ve been in this business going on five decades and have seen my fair share of booms and busts.

One thing’s for sure — if you invest wisely, the Goldie is always a good bet.

Smart operators and hands-on owners know this. In this issue of Informer, our first for 2023, we talk to several operators right across the spectrum, from big players to small complex managers, to showcase the strong business appeal the Gold Coast continues to hold for our industry.

The other thing to remember about the Gold Coast is the resounding success of the management rights model. As we know, management rights started on the Gold Coast in the mid-’60s with a single deal. Today, it’s the backbone of the accommodation property

Words_Ian Crooks, Chairman

Welcome to our first issue of Informer for 2023 where we look at the glittering return of Queensland’s fabulous Gold Coast.

business there. The Goldie has the highest concentration of management rights in the country, which lays the foundation for the city’s tourist market — the best in the country. If it ceased to exist, tourism to this wonderful city would be severely impacted.

Not to ignore the other coast — there’s some good news there too! (see right).

Our Sunshine team, Glenn and Chenoa, have seen a huge amount of market activity, particularly in larger scale assets. Good assets are always harder to find on the north coast due to more stringent development restrictions compared to the Gold Coast.

Looking further afield, we focus our regional spotlight on South Australia where we’ve seen a huge volume of activity in the motel and caravan park space. Suffice it to say that our broker there, Kelli Crouch, has been extremely busy! In fact, for this financial year Kel has been our top broker having sold and settled a record 18 transactions to date.

There’s a lot of great reading in this issue, but a feature I really like is our Success Stories profile. We love helping people on the road to success,

Bonza beauty!

ResortBrokers’ Sunshine Coast team says the launch of budget airline Bonza will be a further boon for the Sunshine Coast which has seen overnight visitor expenditure up 8.4 per cent on pre-Covid levels for the year ending June 2022.

especially first-time operators who come to the accommodation business without any prior experience.

This young couple (well, young for me!) initially thought buying into the management rights business was beyond their financial capability. It turns out that with a little input from investors we were able to help that young couple into business with not one but three of the best management rights schemes in Yeppoon. After four very successful years there — some of them smack dab in the middle of Covid — they sold out of Yeppoon at a much higher price than what they paid. The upshot is that this has enabled them to buy into an even more lucrative management rights business in Brisbane.

It’s these sorts of success stories that ResortBrokers is so happy to help make happen and that personally keep me invested in this industry after almost 50 years.

We’re anticipating a big year for our industry in 2023. From everyone here at ResortBrokers, we hope your year is a great one, both personally and professionally. END

“The launch of Bonza is terrific news for Sunshine Coast tourism,” says Glenn Millar and Chenoa Daniel.

“A budget airline gives travellers more options and opens up the Sunshine Coast even more for holidaymakers. There’s still an enormous amount of pent-up demand for holiday travel because of Covid, and Bonza will help to unlock that. It’s great for our industry and the region.”

of the Seal The Art

Well, what a difference a few months make. At the start of this year, I was a little cautious given the negative press regarding the economy, especially regarding interest rates and inflation. However, I knew there was a lot of pent-up activity from owners and operators wanting to make a move based on what I’d been hearing on the ground. So, although a little cautious, I had a good feeling about the market.

But even I didn’t think it would be this good.

Hotel, motel and park operators are reporting not just a great Christmas but a bumper Christmas. Bookings are not just back to pre-Covid levels, they’ve smashed them. ADRs are better than pre-Covid, and yields are remaining solid. On the road ahead, Covid is now well and truly receding in the rear-view mirror.

I was delighted to be invited by our good friends at Accor to speak at their recent conference in Sydney. I was pleased to learn they’re seeing solid bookings from international guests again. Given Accor’s global scale and incredible loyalty program this is a good sign of things to come. It’s not only a welcome trend for Australia’s largest hotel chain but for all operators, big and small.

We’re also seeing the return to full health of the accommodation property sector in the number of enquiries ResortBrokers is receiving, which are up 22 per cent on this time last year.

All great, great news for our industry.

There’s a few interesting anomalies though. While operators are reporting record turnover from a booking perspective, the trend of shorter lead times seems here to stay. Freak weather events haven’t helped, particularly the terrible floods we’ve seen across the country. It seems guests are being more spontaneous with their bookings and are reluctant to make reservations too far ahead. Can’t blame them, but it’s not something operators want to see because it makes it harder to manage and forecast revenues.

This is the main question we’re hearing from buyers: “Is this profit sustainable?” While there’s no crystal ball, history has always been the best predictor of the future. Should tariffs

remain strong and international guests return as expected, the answer will be a resounding “Yes.”

This is not only great news for buyers but for operators too. Australian tariffs have been too low for too long, which has had a negative effect on profitability and operators’ ability to refurbish and reposition their assets.

Staff shortages also remain an issue. We’re pleased to hear from operators this has eased a bit. They’re receiving more job enquiries and filling more vacancies. Hospitality staff complements were hollowed out during Covid, stretching operators to the limit. It’s great to see some improvement on this front, and a huge relief for operators.

By far, the main thing we’re noticing is the time it’s taking to see deals through to settlement.

I’ve been in

this

industry for over 20 years. If I look back, say, seven years ago to 2016 the time from contract to settlement wouldn’t take three months. Nowadays, it’s nearly five months.

On the plus side, it’s taking less time to get a deal agreed. Demand is driving this. There was a huge appetite for quality stock pre-Covid and that appetite has grown even more ravenous now. That’s a great thing and I don’t see it easing any time soon because of all the pent-up demand from Covid.

But the time it’s taking to settle deals is exceptionally long and it’s frustrating vendors and buyers. Vendors are keen to exit, whether it’s for a deserved retirement or to rejig their portfolio. Buyers are keen to get their hands on the asset they’ve bought and start operations. What’s more, the longer a deal takes to settle the more opportunity there is for things to go awry. That’s bad for all concerned.

Settlement delays are being caused by a few factors. Firstly, due diligence is taking longer. Assets were traditionally sold on the previous 12 to 24 months, but the Covid interruption means we have to go back many more years which takes a lot longer to analyse.

Words_Trudy Crooks, Managing Director

Making a deal is one thing but getting to settlement as quickly as possible is a craft.

Four of the Best Across Australia

But the biggest thing we’re seeing is that Covid has created a psychological effect where everything just takes longer. If our industry is suffering from “long Covid” in any respect, this is it.

Clients shouldn’t have to suffer inordinate delays. That’s where the skill and experience of the broker comes to the fore.

A rarity of stock makes remote properties like this a great opportunity. Buyer enquiry is extremely high across the Territory, but there’s a limited amount of stock and quality assets like this are being snapped up. Mud Hut Hotel was listed for only six weeks with ResortBrokers, resulting in the vendor receiving five offers — an outstanding result for such a remote and unique location. Sold by our top broker this FY, Kelli Crouch.

It’s your broker’s job to get things moving for you as swiftly as possible. If they’re any good, that’s exactly what they’ll do.

Being proactive is key. There’s no point burying your head in the sand — issues will arise in due diligence and the earlier they are discussed the more time and money is saved for all parties. So, it’s important to try to anticipate problematic issues before they arise so a deal doesn’t get held up by, say, a vendor’s local banker. Also, a good broker will line up all necessary third-party associates — and the right ones — as early in the piece as possible. It’s your broker’s job to make sure the right parties are on the court — and on the ball.

Black Dolphin Motel & Apartments_ Merimbula NSW

Freehold opportunities on the Sapphire Coast are tightly held so this motel presented a rare opportunity for buyer Aspen Group who already owned the adjoining Tween Waters Holiday Park. Aspen has now integrated the two sites, which it has rebranded as Tween Waters Merimbula. Sold by our Broker of the Year 2021/22, Russell Rogers.

Specialist agencies like ResortBrokers are in an ideal position here. Because we deal exclusively in accommodation property we not only know the best associates in the business but also have the sales volume and longstanding working relationships with them to push things through. We’re glad to have this sort of clout with our associates because it benefits our clients. Our sway with our associates means they prioritise settlements for our clients and get them done as quickly as possible.

Breeze Mooloolaba_ Sunshine Coast QLD

The management rights to this 57-key beachfront beauty was under contract within two days of being advertised by ResortBrokers. The MLR was bought by Winston Hall of Seabreeze Resorts to add to his company’s Sunshine Coast portfolio. The quick sale shows the Sunshine Coast is still turning over high-end properties. Sold by our Sunshine Coast team of Glenn Millar and Chenoa Daniel.

We also make sure we have a really clear dialogue with our vendors and buyers on our strategy for getting a deal to settlement as quickly as possible. At the same time, we make sure there’s no slack with our associates in making our deals their top priority and keeping things moving along at pace. We work with urgency ourselves, and we expect the same from our associates.

There’s no getting around it. The three deciding factors in how long your deal takes to settle will be a broker’s experience and expertise in addressing problems before they arise, working with the right associates, and creating a sense of urgency with all stakeholders. It’s in your client’s best interests to be a little pushy and get them their desired results than be too friendly and see their deal fall through.

Manor Apartment Hotel_ Brisbane QLD

The management rights to this heritage-listed stunner in the heart of Brisbane was the largest short-term MR sold in Brisbane since Covid and signifies the return of demand in the short-term MR space in Queensland’s capital. The rights were purchased by Collective Hotel Management for a price in excess of $6 m, making it the group’s second significant short-term acquisition in Brisbane after Gabba Central Apartments. Sold by Alex Cook and Jessie Shi.

Looking ahead to the rest of 2023, I’m anticipating a lot of properties coming onto the market. Supply and demand is the biggest driver on price. The greater the supply, the lower the price vendors can attract. So, if you’re thinking of selling, get in early to reap the rewards.

In this market, the broker who acts with urgency will be key to getting optimal results in as short a time as possible for vendors and buyers. In the end, that’s all that counts. END

Of course, due diligence must be completely thorough with no corners cut. But due diligence shouldn’t mean overdue diligence.

Timber Creek Hotel and Caravan Park_ Timber Creek NT

Superannuation Changes

How the proposed super changes might affect your asset

Words_ Trudy Crooks, Managing Director, ResortBrokers

No matter which side of the political fence you sit on, Labor’s proposed changes to super that are set to apply from 2025/26 will definitely have a profound effect should the government win re-election in 2025.

Like most government policy around super, it is complex and hard to dissect. As always in these matters, ResortBrokers strongly recommends you seek professional advice from a qualified financial adviser.

I did, though, want to share a few thoughts about what I understand the effects of these proposed super changes will be for you. I know a great many of you will be affected, either as landlords who hold your asset in super or as investors in syndicates with your shares in super.

Should you have a great asset and have enjoyed great capital gains because you were wise enough to invest early, when you decide to sell your asset or pass it onto your children or otherwise divest yourself of it, there is discussion that the tax you will pay will rise from what is effectively 10 per cent, which is a one third discount to the standard 15 per cent taxation rate for assets held longer than 12 months, to as much as 30 per cent.

This means, for example, that if you own a motel originally purchased for $1 million that is now worth $6 million, your tax on the capital gain ($5 million) could rise from $500,000 up to $1.5 million — a million-dollar difference. Obviously, this will have a profound effect on the quality of your retirement.

To add to the speculation, there are concerns of potential double taxation meaning the rate of tax you pay on your accumulated super year on year will possibly rise from 15 per cent to 30 per cent on amounts over $3 million, which will significantly decrease returns on dividends.

Should you be considering diversifying your income to protect it from having to pay these proposed new taxes, now might be a good time to act. In the current market,

there is enormous demand for assets on very tight yields. As long as you settle before July 2025 you will enjoy not only the compression in yield but also the lower tax rate. Again, we reiterate the importance of seeking professional financial advice. But if the implications of these proposed super changes concern you, I would encourage you to reach out to our broker in your local area who can talk you through in general terms how it might affect your asset. Our phones are always on and we’re always happy to speak with you.

Up, up & away

Words_ Todd Warner

Our Gold Coast & Northern NSW Broker of five years, Todd Warner, says the Goldie is set to soar in 2023.

The Gold Coast is back. The beaches are full, the cafes are buzzing, and the restaurants are pumping. I’m a Goldie local and I’ve never seen the coast busier, especially over this Christmas season just gone.

Every operator I’ve spoken to without exception has told me their Christmas was the busiest ever. And the happiest, too. Having been couped up for so long during the pandemic, holidaymakers were in a great frame of mind because they were out with their families and friends enjoying a terrific holiday. While Covid is still a fact of life, this was the first full-on Christmas we’d had since lockdowns began, and what a belter it was. Even the weather was back to its beautiful best.

We’ve got record room rates, record occupancy rates, and guests are staying longer and spending more. Operators have come through an extremely challenging three-year period and their businesses are back and performing stronger than ever. A Burleigh Heads client, who operates a 110-key property, told me he’d had the highest grossing December in the 26-year history of the complex. He reaped more revenue in that one month than any other in the entire history of the building. It just goes to show you that the Gold Coast is back, baby!

At the end of January, operators will have a consistent 12-month picture of how their businesses are going because they’ve cycled out any impact from Covid. Talking to operators, valuers and accountants, if you read the signs there’s a lot of management rights businesses who are getting their figures ready for sale. Some of those include operators who were probably ready to sell prior to Covid but were forced to dig in when the pandemic hit. Now, they’re in a position to sell and get the price they’re looking for because they’ve finally got the numbers to back it up. I expect we’ll see a lot of stock come onto the market for this reason. My fellow brokers who cover the Gold Coast with me feel the same regarding their patches. We’re all seeing the same signs that this will be a year of movement across the industry.

All this means there’ll be a lot of choice for buyers. Being a nationwide company, ResortBrokers is able to track listing enquiries across the nation. In 2022, our listing enquiries were up a staggering 52.9 per cent in Queensland, with the Gold Coast accounting for an appreciable proportion of that.

KEY TAKEAWAYS

• For short-term holiday letting businesses, expect a lot of quality stock to come onto the market in 2023 that has been trading back from the impact of Covid.

• Buyers will be spoiled for choice. Multipliers will continue to be governed by fundamentals and quality will still command attention.

• Permanent residential businesses were strong during Covid and will continue to be as we navigate the national rental crisis.

The migration from down south to premier lifestyle locations like the Gold Coast, and the attraction of being your own boss in a management and letting rights business, is fuelling demand. For vendors, it doesn’t necessarily mean multipliers will be through the roof, but they’ll certainly continue to be strong. Multipliers still depend on the key fundamentals: your net profit, the length of time remaining on your term, the quality and size of your business comparative to others in the market. There are still healthy multipliers pushing 6x for high net businesses circa $600,000. We’ve got a couple of $1m net clients looking to move on, and once they sell, we’ll have some great benchmarks to compare the current market to for that high-end of town, which has been tightly held for some time.

None of this surprises me. People still see the Gold Coast as a great place to invest. We’ve got both local and interstate investors ready to throw money at the coast. Local tourism is set to thrive for a long time yet while most Australians still won’t travel overseas with confidence. They’re coming to the Gold Coast in droves and certainly are coming back more often. That’s the trend we’re seeing and we’re going to see a lot more of it in the years ahead.

The Goldie’s permanent long-term residential market is also extremely strong. That was the case right throughout Covid. Everyone knows we’re in the midst of a national rental crisis. Vacancy rates for rental housing have dropped sharply and rents are rising faster than incomes around the country. The Gold Coast’s residential market is experiencing the lowest rental vacancy rates in history, about 0.8 of a per cent. In this market, having a residential management rights business is like gold and they are very tightly held. When they do come on the market they go very quickly, and there are a lot of off-market deals happening in this space. That’s probably true with every other market, but none more so than the Gold Coast because we have high interstate migration and a construction and development boom, so there’s a lot of people moving to the coast to rent. What’s more, the value of the underlying real estate has grown through the property boom like everywhere else. So, that’s a strong segment of the market and one that will continue to be in favour with banks and lenders, and in high demand from buyers.

All in all, whether you’re a vendor or buyer of a short-term letting business or permanent residential one, 2023 is shaping up to be an exciting time for the Goldie. Watch this space. END

Our Top Recent Sales & Listings QTR 3

We’ve been experiencing incredibly high demand across all accommodation asset classes. Here’s a selection of some of our biggest and best sales and listings.

LISTING

LAKES RESORT

FREEHOLD, TOUKLEY, NSW

Exceptional freehold lakeside resort on the tightly held Central Coast.

Tim Mayoh

M: 0419 038 882

Jacqueline Featherby

M: 0424 497 056

LISTING

QUEST CRONULLA BEACH LEASEHOLD, CRONULLA, NSW

Join the highly successful Quest brand in one of Sydney’s best beach locations.

Jacqueline Featherby M: 0424 497 056

Tim Mayoh M: 0419 038 882

LISTING

VENUS BAY CARAVAN PARK

LEASEHOLD, VENUS BAY, SA

Enjoy a beachside lifestyle while reaping solid returns with this Eyre Peninsula park.

Kelli Crouch M: 0410 441 750

SOLD

FLYNNS BEACH RESORT, MANAGEMENT RIGHTS, PORT MACQUARIE, NSW

Best climate in Oz, unbeatable beach location and over 19% ROI.

Greg James

UNDER OFFER

POTTSVILLE BEACH MOTEL, MANAGEMENT RIGHTS POTTSVILLE, NSW

Boasting $349k NOP, this MR in peaceful Pottsville was under offer within weeks of listing.

Todd Warner M: 0438 170 763

LISTING

GASWORKS RESIDENCES, MANAGEMENT RIGHTS, BRISBANE, QLD

High NOP of $491,500 backed by a BC salary of $327,875 in highly sought-after Newstead.

Frank Matus M: 0435 742 698

Tim Crooks M: 0422 208 450

UNDER OFFER

BALLINA COLONIAL MOTEL FREEHOLD BALLINA, NSW

This 12-key freehold hotel in beautiful Ballina was under contract within weeks of listing.

Miguel Bozina M: 0419 848 444

SOLD

PLATINUM INTERNATIONAL INVESTMENT, TOOWOOMBA, QLD

Known as “the best in the West,” this premium 52-key hotel is now sold.

Ian Crooks M: 0411 171 648

Jason Vogler M: 0427 431 213

SOLD

BOAB CARAVAN PARK LEASEHOLD, KATHERINE, NT

Long lease, good returns and a Top End lifestyle.

Kelli Crouch M: 0410 441 750

LISTING

HENRY PARKES MOTOR INN FREEHOLD, PARKES, NSW

Full refurb in 2022, 24 keys with 75% occupancy year round in lovely Parkes.

Chris Kelly M: 0431 055 221

SOLD

CLUBARHAM MOTEL HOTEL MANAGEMENT AGREEMENT, BARHAM, NSW

Tim Mayoh facilitated a Hotel Management Agreement for cluBarham whereby a white label management group will manage the properties on the owner’s behalf and aligned franchise arrangements to brand the properties with Choice Hotels.

Tim Mayoh M: 0419 038 882

Tim Crooks M: 0422 208 450

LISTING

CATALINA & STANHILL, MANAGEMENT RIGHTS, SURFER’S PARADISE, QLD NOP of $515k backed by a solid BC salary of $255k in Australia’s No. 1 tourist destination.

Tim Crooks

M: 0422 208 450

SOLD

HAMPTON COURT MANAGEMENT RIGHTS, SYDNEY, NSW

Prime location, outstanding business, this fantastic MLR was snapped up in a dynamic market.

Jacqueline Featherby M: 0424 497 056

Tim Mayoh M: 0419 038 882

A groundswell is building for a new golden age.

After the Covid tsunami, Australia’s No. 1 tourist destination is riding the perfect wave

The Gold Coast was dumped by Covid, a mountain of a wave if ever there was one. Its annual $6 billion tourist economy leaked $4 billion during the pandemic as the city endured lockdowns and border closures which drowned its tourist industry.

Hotel operators couldn’t get a break, and the start-stop-start-stop approach to the lifting of restrictions and the resumption of business made for a choppy ride on the way out of the pandemic.

But since the end of October when the last restrictions lifted, the Goldie has come out shining.

Operators are reporting a cracking Christmas, for some the best on record, reaching historically high room rates and occupancy. (Our long-time local broker Todd Warner gives us his inside take on p9.)

What’s more, a spate of billion-dollar pipeline projects, top-line developments and glitzy openings herald a new dawn for the Goldie. At Southport, construction is underway on the Gold Coast’s biggest development, the $2.3 bn Imperial Square whose centrepiece will be the 108-level Imperial Tower which is set to knock Q1 off its spot as Australia’s tallest building.

ResortBrokers Top 10 Gold Coast Sales

At Surfers, St. Regis Gold Coast will roll out the red carpet at Budds Beach in 2027. The Marriott-owned luxury hotel is part of Gurner’s $1.7 bn four-tower La Pelago project.

St. Regis will be Marriott’s fourth Gold Coast showcase joining its existing JW Marriott Gold Coast Resort, also in Surfers, and Sheraton Grand Mirage Resort Gold Coast at Main Beach, as well as its pipeline Ritz-Carlton Gold Coast, slated to open in 2026 in Main Beach. St Regis is the latest luxury hotel brand to enter Surfers’ coterie of five-star resorts that includes the $1.5 bn Langham, which opened to critical acclaim late last year.

Another Surfers development, the $1 bn three-tower Paradiso Place residences, which was given the green light by council last May, scooped up nine gongs for its developer Hong Kong-based SPG Land at the Asia Property Awards in December. The prestigious Garfield Terrace strip is primed for three new luxury high-rises, including Coast, a $200 m 37-storey tower, which will be the first skyrise built on the stretch in 15 years.

At Burleigh Heads, Australia’s largest hotel chain Accor is nearing completion of its twin tower development, the

Mondrian Hotel and Mondrian Residences Gold Coast on The Esplanade. Mondrian Residences owners will have the best of both worlds: an ultra-premium private abode fully serviced by an international fivestar hotel. (See our feature on p14.)

At Broadbeach, Star’s $2.3 bn fourtower master project continues apace. The first stage of the project, The Dorsett and Star Residences, which includes the luxury 316-key Dorsett hotel and 423-apartment Star Residences, opened its doors in late December 2021. Next door, construction on Epsilon continues, while construction on the final two towers is yet to begin. When fully realised, The Star Gold Coast will be Australia’s largest mixed-use resort, comprising 1,200 hotel rooms and 900 residences.

Ultiqa Hotels & Resorts continues its love affair with Broadbeach. Its fourth property, Ultiqa Signature, opens there in the second half of this year (Our feature on p16 has more.)

Main Beach is set for the biggest overhaul of all. The Gold Coast suburb will see three major projects come to fruition over the next few years,

breathing new life into a part of the coast that fell by the wayside over the last decade. (For more, read our developer profile on p18.)

To bring in tourists, Gold Coast Airport expanded its capacity by six new gates when its $260 m expansion opened last September. Domestic tourists are already coming in droves to the coast, and the return of international visitors is only a matter of time.

Cranes on the coast are as natural as surf and sand, but the colossal scale of developments up and down the coast from Main Beach to Coolangatta indicate a groundswell is building for a new golden age. END

From Main Beach to Coolangatta, operators large and small give us a 360 on the Goldie’s resurgence post-Covid

Smooth operators

Kirra Beach Apartments Coolangatta Sandringham Apartments Bundall

Witches Falls Cottages Tamborine Mountain

Cashelmara Beachfront Apartments, Burleigh Heads Central Park Apartments Varsity Lakes

Accor’s Golden

Appetite

Australia’s largest hotel operator is invested in the future of the Gold Coast. John Warn, Accor’s Chief Operating Officer for Apartments and Realty Pacific, explains why.

There’s good reason why the world’s leading hotel group is calling the Gold Coast “the leisure capital of Australia.” The French hospitality giant has coined the slogan as a working mantra among its team for the country’s most popular holiday destination.

“Leisure is all about enjoyment,” says John Warn, Accor’s COO. “It’s about engaging in different experiences, and that’s what the Gold Coast has in abundance.

“It doesn’t matter if it’s theme parks or small boutique experiences in the hinterland or hot-air ballooning or sky diving or fine dining, the Gold Coast is the ultimate playground for leisure.

“We also think the Gold Coast is a real hub for travel, whether it’s Queenslanders or interstate and now international travellers. The expansion of the Gold Coast Airport in 2022 cements the idea of it being the leisure capital because people from all over come here looking for a break.

“We think it’s an apt description. And, of course, the climate is perfect.”

Accor’s extensive investments in the Gold Coast backs up the French multinational’s belief in the city as a holiday playground. Accor has 27 properties on the coast centred around Surfers Paradise, Broadbeach and Coolangatta.

Accor’s Gold Coast portfolio includes 11 of its popular Mantra brand, as well as fellow midscale brands Novotel (Surfers Paradise) and Mercure (Carrara), and premium and luxury brands Peppers (Surfers Paradise and Broadbeach) and Sofitel (Broadbeach). In June last year, Accor opened The Sebel Twin Towns Coolangatta, a first for Accor’s premium Sebel brand, following an extensive upgrade of Mantra Twin Towns Coolangatta.

The Sebel Twin Towns Coolangatta features 120 superior guestrooms across five floors, including a suite of king, queen and twin rooms.

Accor also recently relaunched its hugely popular Hyde Paradiso restaurant at Peppers Soul in Surfers Paradise.

“The pandemic disrupted travel behaviours and now people are even more inclined to travel domestically and stay local,” says Warn. “It reminded us of how incredible Australia is. We saw an upsurge in demand for properties on the Gold Coast last year and there are positive early signs for this year. Booking demand for quarter one is solid and Easter is looking excellent, and winter is also looking very promising.”

Accor’s $1.2 billion acquisition of the Mantra business in 2018 had its roots on the Gold Coast and the company is now firmly entrenched there. Corporately, Accor has more people employed in its Gold Coast support office than it does in Sydney, including Warn himself.

Warn says Accor is looking at the Gold Coast to expand both its traditional hotel base and beyond. Accor’s first internationally branded residences in Australia under its luxury/ leisure Ennismore brand, Mondrian Residences Gold Coast, is currently under development on The Esplanade in Burleigh Heads.

MANTRA ON SALT BEACH, KINGSCLIFF

PHOTO CREDIT: ADRIENNE DUFFICY

The prestige $450 million property comprising 84 apartments over 25 levels will give owners an ultrapremium private residence, fully serviced by an international five-star hotel.

Owners will have full access to the adjacent Mondrian hotel’s five-star services and amenities, including 24-hour room service. Demand was so high, residences at the property were already fully sold out within the first six months and the waiting list of potential buyers continues to grow.

“We’re actively exploring other opportunities,” says Warn. “We think the Gold Coast is a great city and that the existing infrastructure and future planning between the local council and state government is working optimally for the city. We’re very excited about its future.”

Despite the upsides, Warn says it hasn’t all been plain sailing, especially regarding employment challenges for the industry.

“We’ve been at 90, 95, 98 per cent occupancy with different properties on the Gold Coast, and it’s been a hard time for our teams. The amount of team member vacancies in the middle of last year was a concern. I’m pleased to say we’re now on top of it, but our teams had to work very hard through those tough months.

“There were two cyclical factors responsible for it. The pandemic pushed out all backpackers who were part of the workforce, around eight to 10 per cent. When Covid started we went to many of our staff and said, unfortunately, we can’t give you as many hours or you don’t have a role in the short term. What happened to those people is they went and found employment in another sector. When hotel business returned, we got some of them back but not all of them back. Of the new employees, many didn’t have hospitality experience. I’m sure when you’ve gone out to dinner in the last few months you’ve had a really indifferent or poor experience, less than what it was pre-Covid because often the person waiting the table has never waited table before or poured a drink or served a meal.”

Warn says Accor is proactively working with both state and federal governments to bring back holiday workers. It has also done a lot of work with smaller organisations including indigenous groups to encourage work placement into the hospitality sector. Accor’s other big focus is offering career development and career pathways around the world in its business.

“So, when you come and work for us in hospitality it’s not just about pulling beers or making a bed,” says Warn. “You can head up finance one day, you can run a hotel, work in commercial, you can run distribution, or you can be working in the acquisition and development space.” END

HYDE PARADISO CREDIT: KIRRA SMITH PHOTOGRAPHY

PEPPERS SALT RESORT & SPA CREDIT: ADRIENNE DUFFICY

THE SEBEL TWIN TOWNS COOLANGATTA CREDIT: ADRIENNE DUFFICY

The Ultiqa

Way

No one knows Broadbeach like Ultiqa. The successful management rights operator discusses how to build a loyal following, the Gold Coast’s post-Covid recovery and the city’s enduring appeal.

Ultiqa made a splash on the coast when it launched Ultiqa Air at Broadbeach 13 years ago. Since then, the boutique apartment operator has raised the bar with every subsequent property, which comprises a portfolio of four on the Gold Coast and one each in Brisbane, the Sunshine Coast and Fiji.

On the Gold Coast, Ultiqa Air on Broadbeach was followed by Ultiqa Freshwater Point Resort in 2011 and Ultiqa Beach Haven on Broadbeach in 2013. The group’s fourth property, Ultiqa Signature at Broadbeach, has just opened.

ResortBrokers checked in with Sue Fairweather, Ultiqa’s Executive General Manager, to discuss the secret to the group’s success.

How was your Christmas trading period?

We had an incredible 2022 and we’re finding this is continuing into 2023. Some of our resorts are still at record occupancies and ADRs for January, and this is continuing up to April. We expect to see a strong Easter. People feel like they’ve earned the right to travel, and the Gold Coast is the number one destination right now.

Any lingering effects from Covid?

So far only good ones. We’re seeing very positive trends with return guests. Many Australians have gained a new appreciation for what we have in our own backyard. People feel safe and relaxed when they come to the Gold Coast. We don’t see the trend of people travelling overseas yet and don’t believe this will occur until people can see stability across the globe, not only with the pandemic but also with wars and civil unrest in many countries. Our mature population want to go somewhere that makes them feel safe, relaxed and unstressed. That’s the Gold Coast, which has great accommodation, great beaches, great activities, great restaurants, all with the sun shining. What’s not to love about the Gold Coast!?

What’s the secret to earning a strong following?

From the moment they contact us to book, all guests are treated with respect and kindness. It’s the ‘Ultiqa Way’. Understanding your target market and being creative with different offerings is also very important. The market is constantly changing, and we have to adapt and tweak things daily. The lead time for bookings is getting shorter and guests want flexibility with their bookings so that if the world changes, they want to be able to move their booking accordingly. We do everything we can to look after our guests every step of the way.

How’s Ultiqa Signature progressing?

Our three existing Gold Coast resorts have a strong following and a great reputation that attract return guests year after year. Even with the increase in tariffs, guests just keep returning to the Gold Coast and in particular Broadbeach. For Ultiqa Signature at Broadbeach we launched a large campaign and have been blown away with the bookings for the opening specials. We’ve had to move resources to manage the amount of bookings per day. That’s a nice position to be in.

What specifically about Broadbeach appeals to Ultiqa?

Ultiqa’s Resorts on the Gold Coast have everything for a guest’s stay and Broadbeach offers the same. Broadbeach appeals to a broad demographic, guests love the proximity to the numerous dining and entertainment options, beautiful, patrolled beaches on your doorstep, shopping centres and the easy-going classy people who live in the area. END

ULTIQA FRESHWATER POINT RESORT

ULTIQA SIGNATURE BROADBEACH

ULTIQA SIGNATURE BROADBEACH

Developer Feature Drew Group, Tedder Avenue

Main Beach Makeover

Highflying Tedder Avenue crashed in the late 2000s but is set to soar again. Drew Group’s owner and managing director Jonathan Drew spoke to ResortBrokers about Main Beach’s revival and his exciting new development Lagoon

Tedder Avenue was the place to be in the ‘80s, ‘90s and early ‘00s. In its heyday, Main Beach’s most famous street was a haut monde haunt, so much so that it earned the suburb the nickname “Vain Beach.” But the Global Financial Crisis ended the party. For Lease signs replaced A-listers as Tedder Avenue fell into disrepair for over a decade.

Now, Main Beach is set to shine again. A trio of super projects is set to reenergise the suburb, the first new developments in the area since Palazzo Versace opened in 2002. Melbourne-based Pelligra Group and Giannarelli Group’s $480 m Mariners Cove will house a new Ritz-Carlton, the luxury hotel chain’s third in Australia after Perth and Melbourne. Then there’s Gordon Corp’s $100 m Mantaray Marina &

Residences, which will comprise 24 lavish waterfront residences and a marina able to berth almost 70 superyachts. And Makris Group has just lodged plans to redevelop ‘80s showcase Mirage Marina to the tune of $500 m.

Joining Main Beach’s rejuvenation is Jonathan Drew of Drew Group. The property developer started construction in January of its luxury $395 m Lagoon project on Cronin Avenue, a cross street of Tedder Avenue. Slated for completion in Q3 2025, the prestige complex will comprise twin towers of 143 and 116 apartments. Connecting the towers will be a large lagoon-style pool (hence the complex’s name) with cabanas, a heated spa, gymnasium and yoga deck. Lounges with work-from-home facilities will accommodate new remote working arrangements that businesses have grown accustomed to since Covid. Hutchinson, Australia’s largest construction company, has been appointed to build it.

“Now these three major projects have been announced, together with my project and some other projects that are already under construction, it will put

Main Beach front and centre again as one of the most prestigious suburbs on the coast,” says Drew.

“Hot pockets like Burleigh and Palm Beach had a really great run over the last five to ten years and have drawn some attention away from the northern part of the coast. With these three major projects all next door to each other, it will be a magic period for Main Beach in the lead up to the 2032 Olympics.

“Between these projects you’re going to have a very high-end residential and retail precinct, all within short walking distance of where Lagoon is. It’s going to bring a number of top retail operators and restaurants into the precinct that will grow the whole area. It will also make existing retail step their game up too. If they’re going to survive the influx of new operators it will force them to renovate, refurbish, and generally raise their standards.”

Drew Group’s development expertise now spans three decades. The family-owned and operated business developed its first project in 1982 and now has an impressive list of highly successful apartment residences and hotels across Brisbane and the

Gold Coast. The group’s Brisbane portfolio includes Riverstone (Newstead), Elevate (Windsor), Lewin (Woolloongabba), Annexe (Bowen Hills) and three Fortitude Valley properties, Precinct, Atrio and The Constance hotel. On the Gold Coast, the group developed Village in Palm Beach, The Beach Houses in Kirra, Cerulean in Main Beach and Lexington in Nerang.

As for Lagoon, the developer has adopted many of the winning features that proved popular with owners in Village, Drew Group’s most recent project at Palm Beach, which was completed last year. This included generously sized apartments and double-car parking bays.

“Generally speaking, most existing Main Beach apartments were built in the late ‘80s and ‘90s,” says Drew. “The size of the apartments then were a lot larger than what are now being produced on the coast. So, we wanted to make sure we had a scalable size in the individual apartments.

“There was also an overwhelming demand that the people who would be buying these apartments need spaces

for two cars. That’s why 88 per cent of Lagoon’s apartments have side-by-side carparks. I could have got a lot more apartments if I reduced carparks to one per apartment.”

Drew says he has been overwhelmed with how well Lagoon has been received since it launched off-the-plan sales last year. “We’ve already secured enough sales to commence construction with a fully funded project,” he says. “We’ve taken learnings from Village and studied other projects that have been successful in the market up and down the coast. We always strive to make sure the next project we do we learn from previous ones and make sure it’s better.”

The developer says Main Beach and Tedder Avenue are already on the upswing, and that the spate of new projects will supercharge the area even more.

“There was always the saying of the tumbleweeds rolling down Tedder Ave,” he says. “One of the biggest problems

that Main Beach, especially Tedder Ave, has always struggled with is when it was in its absolute heyday in the late ‘80s and ‘90s it had high-end retail, and the real estate, especially the commercial and retail real estate, was snapped up by a lot of very wealthy outof-town investors.

“They bought up Tedder Ave and just kept on cranking the rents not understanding that business wasn’t as profitable as it once was. So, the high-end retailers started leaving the street. But if you go down Tedder Ave today, you’ll see no For Lease signs, every shop is full, and every restaurant and cafe is full. And that’s without any new retail out of any of these new developments.” END

IMAGES CREDIT: VOLUME VISION

Toast of theCoast

Australia’s east coast specialist Dreamtime Resorts discusses the Gold Coast’s staying power as an investment destination.

With properties dotted along the eastern seaboard, Dreamtime has distinguished itself as one of Australia’s foremost independent resort management groups.

Dreamtime’s hallmark is to offer a “home away from home,” which it does superbly with its modern, selfcontained, apartment-style holiday accommodation.

Its east coast portfolio includes two properties in Brisbane — Belise in Bowen Hills and The Docks on Goodwin in Kangaroo Point — two on the Sunshine Coast at Mooloolaba and Caloundra, three in North Queensland — two in Palm Cove, one in Cairns — three in Yeppoon on the Capricorn Coast, and one at Bargara on the Coral Coast.

On the Gold Coast, Dreamtime has been active since 2004 and now has more properties there than any other destination. Its four Gold Coast properties include one at Coolangatta and Mermaid Beach, and two at Broadbeach.

Dreamtime is anticipating a strong year of growth in 2023 coming off strong post-Covid bookings over the recent Christmas period which exceeded pre-Covid results.

ResortBrokers caught up with Dreamtime’s Managing Director, Bryan Fitzpatrick, for a chat.

How important is the Gold Coast to Dreamtime?

As a company that was founded on the Gold Coast with our head office based in Robina, the Gold Coast is certainly a high priority for Dreamtime.

While we’ve bought and sold a variety of Gold Coast properties during this time, we’ve seen strong and consistent growth over the years, excluding Covid.

In terms of performance, three of our top five performing properties are on the Gold Coast. So, as we continue to grow our portfolio, Gold Coast opportunities will always pique our interest.

What’s Dreamtime’s longterm view of the Gold Coast? The Gold Coast offers what we believe are some of Australia’s best tourist drawcards with the infrastructure of a major city, uniquely positioning it to attract both professional and leisure travellers and host major events.

I think the continued growth and interest in the Gold Coast from domestic and international travellers and investors shows it is a muchdesired destination on a strong upward trajectory, and we don’t expect that will change anytime soon.

What are Dreamtime’s future plans?

We’re now also supporting other Gold Coast properties, offering our expertise to property managers through our outsourced reservations service Stay Queensland and our specialised property marketing services Dreamtime Resort Marketing in the hope our experience and proven success can help other local properties also achieve stronger growth and better results. END

Operator Feature Dreamtime Resorts

BackOn-Board

Operator Features

Mediterranean Resort, Burleigh Heads

Mediterranean Resort is a shortterm holiday complex of 110 keys at the North Burleigh Surf Club end of Burleigh Heads. Operator Peter Grace has held the management rights for five years coming off the back of a successful career in logistics, including 16 years in Asia. Says Peter, “December 2022 was our highest achievement in 26 years of history. It was absolutely over the top. That’s the best December ever and the best result ever. We had high occupancy, very high average daily rates, and we had just a fantastic Christmas. And December 2023 is sold out with people who have already rebooked for next Christmas.”

“The Gold Coast is a proven destination and a reliable destination. But there are what I call ‘golden pockets.’ Burleigh Heads is the Noosa of the Gold Coast. It’s a lovely area. Here at Burleigh the sand is beautiful, it’s just calm water, it’s really, really good.”

burleighresort.com.au

The Goldie is not just marquee hotel brands. The backbone of its tourism industry are the thousands of small to medium letting businesses, both short term and permanent. Here’s how three of them have been tracking since Covid restrictions lifted.

Park Breeze, Southport

Five minutes’ walk from Broadwater, Park Breeze is an 84-unit permanent management rights and letting business operated by Lani and Steve Furlong.

Lani worked for Fairfax media and Steve was a tennis pro who played the Australian Open and Wimbledon before the husband-and-wife team entered the management rights space. Says Lani, “The Gold Coast is one of the premier tourist destinations in Australia. People come here for a holiday, they love the environment, we’ve got the Broadwater, we’ve got the ocean.

“It’s just a beautiful place to live! The way the Gold Coast has bounced back very quickly after Covid, I don’t think there’s anywhere else we’d rather be.”

Beachcomber Resort, Surfers Paradise

Located in the heart of Surfers, Beachcomber Resort is a short-term holiday complex of 130 apartments keys run by experienced management rights operator Shayne Batros since 2016.

Says Shayne, “We’re back to normal and better than pre-Covid. Come September 2022, the tap just turned and we’ve been busy ever since, running at 90 percent occupancy.

We had a great December, January has been exceptionally busy and February is looking exceptionally busy as well. Our guests are 100 per cent local. To travel overseas is so expensive. Business is going well, so we’ll just enjoy it while we can.”

beachcombergoldcoast.com.au

Cali Beach Club keeps it real

Californiyay!

Artesian Hospitality’s Cali Beach Club turned heads when it opened on the Goldie in September 2021 with its killer mix of rooftop pools, ocean views and the sickest DJ line-up in the country. Now, the slick venue is rumoured to have its own reality show, airing as early as June.

Artesian’s founder and managing partner, Matthew Keegan, knew Cali Beach had to make a splash from the get-go.

“Attention spans these days are shorter and expectations higher than ever before, so we knew we had to create something that was more than a bar or nightclub,” says Keegan.

“We wanted to create a wonderland of events and environments capable of captivating guests for hours.

“The Gold Coast has always been a tourist hot spot, but what we’re seeing now is a tourism offering that has matured and diversified into a truly world class standard.”

Cattle Station From Coastto

Craig and Danielle Dunne were completely new to the management rights industry when they turned a trio of struggling holiday properties in Yeppoon on Queensland’s Capricorn Coast into a roaring success. Here’s how they did it.

Growing up on a cattle property west of Yeppoon, the idea of operating a management rights business was not on Craig Dunne’s horizon. The 35-year-old became a sparky straight out of school and fell into work as a fly-in-fly-out electrician at mining sites in Queensland. The prospect of running a hotel just wasn’t in his frame.

“I had a good trade background but was more of a people person than your average tradie. I knew there was probably something else out there for me where I could use my trade but also my communication skills,” says Craig.

“I remember my parents talking about management rights for years, but when you don’t know about something, you don’t even know where to begin, so we never took any steps towards it. But it was always something at the back of our minds,” he says.

All that changed in 2017 when Craig’s father got wind of a management rights opportunity in Yeppoon. Being from central Queensland the family knew Yeppoon well. Craig himself had spent part of his childhood in Yeppoon as well as in nearby Rockhampton. Craig’s father called the vendor and was surprised to learn he was selling three management rights not one: Salt, Echelon and Beaches on Lammermoor. Salt and Echelon were arguably the top two beach properties in Yeppoon. Built in 2015 and 2009 respectively, these premium 40-key resorts were located 50 metres apart on Anzac Parade, Yeppoon’s main street. Beaches on Lammermoor was a short drive away, also on the coast.

Enter ResortBrokers. Founder Ian Crooks made the connection with the Dunne family and assured them that, with a little input from investors, who were former management rights operators themselves, they could afford the trio of management rights on offer in Yeppoon.

Says Craig, “It wasn’t until we met the investors that my wife, Danielle, and my parents put our heads together and thought, ‘This is actually possible now, should we have a crack?’”

Their plan was to operate the Yeppoon properties as family-run businesses. Craig’s parents would move from the country to Yeppoon, and help Craig and Danielle run the three properties. The investors would take a passive role and not be involved in day-to-day operations.

“Things really kicked off when the investors came on board,” says Craig. “They had an incredible wealth of knowledge. They weren’t just people who had a little bit of spare cash, their experience helped us enormously when the deal was coming together. They knew industry experts in every field we needed. They gave us an amazing hand during the start-up process.

“When the vendor mentioned three buildings, we immediately assumed it was no longer an option. Three buildings is elite level. Plus that’s a lot of money that we couldn’t afford, so we sort of walked away,” says Craig.

PHOTO CREDIT: THE COURIER-MAIL

Faces Of The Industry

“When things got up and running, they were never more than a phone call away. As soon as I called and asked, ‘What shall I do about this body corporate issue or this accounting issue,’ they were ready with really great advice. Bear in mind, we were all incredibly new to this so it was good to be guided by former management rights operators.”

The Dunnes started operating the three Yeppoon properties at the beginning of 2018 and found it a steep learning curve.

“It was a very tough first year to get on top of everything,” says Craig. “With holiday short-term letting it’s a hectic, seven days a week concern, especially running three properties. But you either do it or you don’t. The sheer volume of work across three locations was a really big challenge. Something goes wrong in one building, then something goes wrong in another, then a computer doesn’t work here and then there’s no hot water there. There was a lot of running around between the three buildings. We inherited under 10 staff from the previous owners, and by the end we had 30.”

The couple were helped by excellent relationships with their bodies corporate from the get-go.

“It helped that we were originally from the area,” said Craig. “West of Rockhampton there’s many country people who have our last name. People liked that. It wasn’t like some big foreign investment company coming in, it was locals moving back.”

“Everything went completely dead for three months. The only people we could take in was essential travel. We didn’t know what to expect but we just hung in there. Then I remember as clear as day when the Queensland premier announced in June 2020 that Queenslanders could travel anywhere they wanted to within the state.

“The phone went ballistic. Yeppoon is very locally based. We don’t get a lot of interstate or international tourists. The main people who come to Yeppoon are from those country and mining towns within a 300-km radius. People from Blackwater and Emerald, for instance, they love coming to Yeppoon as much as they can. After months of being stuck in a country town, the volume of phone calls we got was incredible. People just could not wait to get out.

“After June 2020 it didn’t stop, we had to get a lot more staff as it got super busy. It was a lot of hard work. Our occupancy rates never went backwards. We were operating at 80 to 90 per cent occupancy, which was incredible.”

“Danielle was most of the brains of the operation,” Craig admits. “She was the glue that held everything together. With a toddler at home, we certainly questioned whether we could maintain running a management rights business of three busy holiday properties. When an opportunity was presented by Resort Brokers to sell out in 2021, we decided to take the chance.

“We had a six-to-seven-year plan. Four years was probably a bit short for us. We’d kept in touch with ResortBrokers who told us there were buyers in Southeast Queensland looking to get out of the boom and bust in that market and spread their wings up the Queensland coast. Because of the success we’d made of the place they told us they could get us a much higher net profit than what we paid. It was an offer we couldn’t refuse. Working seven days a week without a real break can really get to you.”

The Dunnes have since relocated back to Brisbane where they currently have a management rights business under contract. They are hoping to start operations when the deal settles in early April. The couple are looking forward to the change of pace of operating a permanent management rights business compared to the faster pace of a holiday letting business. Craig says that’s one of the main attractions of the management rights business — you can fit it in with whatever stage of life you’re at.

“Our goal with this one is to think more long term,” he says. “We’re going for longevity this time around, something we can hang onto for a long time with a manageable workload. This one is very much Monday to Friday, certainly not as fast paced as what we had in Yeppoon.”

The now-experienced management rights operator has some advice to anyone looking to break into the industry.

“One of the best attributes you can have is being a people person. We were so fortunate to be introduced to experienced investors, but it certainly helped having the right people around you. Above all, you’ve got to be prepared to work hard. We really did put in big hours, especially in that first year.” END

The couple had an excellent run of trade in the first two years of operation throughout 2018 and 2019. Then Covid hit in early 2020.

Why syndication works

“We’ve seen a phenomenal increase in syndication over the last five years in the accommodation industry, especially in management rights. What makes the model so attractive is that it works so effectively for all parties in the syndicate. Investors get the great returns of a going concern business, while it remains a passive investment with no hands-on management. But they also have their operator in place who has skin in the game because they’re part of the syndicate, unlike external management which creates an element of risk. For the operator in the syndicate, it means they can run a management rights business on a far larger scale than what they could have afforded alone.”

Trudy Crooks ResortBrokers Managing Director

by the numbers Gold Coast tourism

Despite a false start, the Gold Coast’s tourist industry is set for a mammoth return

ResortBrokers’ in-house property economist Josh Mangleson examines the current state of the industry

Although the challenges of state borders acting as barriers for tourism operators seem in some ways a distant memory, Queensland’s borders only reopened a little over a year ago — 17 December 2021 to be precise. This created a “false start” for Gold Coast tourism leading into 2022, with the traditional Christmas and New Year heavy trading period missed by many. But all signs now suggest the Gold Coast is well and truly back as a top tourist destination nationally.

According to Tourism Research Australia, the Gold Coast saw over 3.7 million domestic overnight visitors stay a total of nearly 13.7 million nights in the year ending September 2022, making it the fifth most popular tourist destination in the country by total trips and the top non-capital city destination. While these statistics are still only available to September 2022 as of the time of writing, they still paint a very positive picture for the

Gold Coast. And incredibly, these numbers aren’t helped by the return of international tourism, which though long anticipated is yet to materialise.

Tourism data company AirDNA reports the Gold Coast saw an average occupancy rate of 80 per cent over the 12 months to February 2023, with an Average Daily Rate (ADR) of $236 for the year. ADRs have continued to climb month-on-month across this whole period, reportedly sitting at $308 in January 2023 after starting out at just $188 in February 2022, representing whopping growth of 64 per cent annually.

Similarly, Howarth HTL’s latest Hotel Market Outlook for the year ending December 2022 reports the Gold Coast’s RevPAR has increased by 69.5 per cent compared to the previous year, and is up 36.1 per cent compared to 2019, highlighting how strongly tourism has rebounded on the Gold

Coast compared even to pre-Covid market conditions.

Perhaps most impressive are on-the-ground reports of exceptional recent holiday season results from around the Gold Coast. One client with a longstanding relationship with ResortBrokers who operates a familyfriendly resort in Burleigh Heads reported seeing their strongest revenue month in January 2023 in over 26 years of trading, a remarkable result indicating that tourism is well and truly back.

And this isn’t just a southern Gold Coast boom either. On the Gold Coast’s northern end, a family-friendly beachside high rise on Main Beach saw similarly outstanding results which are outlined below. There’s clear evidence of a modest season last year compared with recent trading, with ADRs and occupancy consistently up, leading to higher overall RevPAR.

Concerns over sustainability of strong domestic tourism markets such as the Gold Coast are being raised as cost of living pressures climb across the nation. But international tourists have only just started to dent markets they have traditionally played a much larger role in. Tourism Research Australia’s forecast to 2025 suggests international visitation is set to continue to flow into Australia this year, with an expected increase of 78.8 per cent in inbound visitors compared to last year. This should put sure footings under the Gold Coast’s tourism market as it surges further forward into an exciting period for operators.

Words_Josh Mangleson, Property Economist

Lakes Resort Toukley Toukley, NSW

Opportunity of a lifetime to secure a stunning waterfront freehold going concern in paradise!

ResortBrokers is delighted to exclusively present a rare opportunity to own and operate a premier lakeside property in Toukley on NSW’s gorgeous Central Coast an hour’s drive from North Sydney.

On offer is the freehold going concern of Lakes Resort comprising 35 beautifully appointed hotel studios and apartments and a manager’s suite in an optimal Toukley position between the two glittering waterways of Tuggerah Lake and Budgewoi Lake. Toukley is a rising star of the Central Coast whose undoubted appeal as a holiday destination was recognised with a 2021 NSW Top Tourism Town Award finalist nomination.

Built in 2020, Lakes Resort is ready for a new operator to take immediate advantage of the property’s appeal as a Sydney getaway with little to no further expenditure needed. The property is showing strong forward bookings with an upward trajectory for quality accommodation in the much sought-after Central Coast region. There is huge potential to increase revenues through enhanced marketing and sales strategies, complemented by very low outgoings and a strong capital growth region. Lakes Resort is primed for growth and ready to provide an owner with a dream location.

Extremely desirable Central Coast location surrounded by beautiful lakes and beaches

115km from Sydney CBD, highly appealing for Sydney weekenders

Newly built in 2020, incoming operator poised to capitalise on flourishing business

Lakeside, steam room, spa, sauna, 20m lap pool, games area, boat ramp and breakfast cafe

Low outgoings and opportunity to optimise performance

Secure asset in a rapid growth region with expanding infrastructure focus Studios, 2, 3 & 4 bedrooms with kitchen facilities

Coachman’s Eden Eden, NSW

Solid-performing 4-Star Freehold motel on the picturesque Sapphire Coast of NSW

Coachman’s Eden, an exceptional 4-star motel located at Eden on the majestic Sapphire Coast of NSW. Freehold opportunities on this part of the coast are tightly held and astute investors should be quick to consider this offer.

The motel has only recently been fully renovated and promises minimal maintenance for years to come. Rooms have been extensively refurbished, with custom cabinetry, modern fixtures and fittings, new floor and window coverings, and soft furnishings. No expense was spared on renovations, which presents any new owner with little to no further expenditure required.

Comprised of 26 rooms, owner’s residence, pool precinct, commercial kitchen and laundry, and licensed restaurant/function area, Coachman’s Eden is set on 7,500 sqm of low maintenance, landscaped grounds. Accommodation is flexible and comfortably caters for singles, couples and family/group bookings.

Currently run under management, the property sets up beautifully for the incoming owner whether a couple, family, enterprise or motel consortium. Coachman’s Eden is a genuine 4-star property, and one of the best presented motels currently for sale on the Sapphire Coast.

26 spacious ground-floor units with a modern design

Large three-bedroom, two-bathroom family residence

Currently run under management

Experienced and friendly staff to assist with smooth transition

Preferred north-side town location with prime highway frontage

Licensed restaurant with refurbished commercial kitchen, bar and open fireplace 4-star motel set on 7,500sqm of landscaped grounds with potential for development (STCA)

In-ground pool, children’s wading pool, communal barbecue area and guest laundry $290,899

Profit $ $542,981 Turnover $ $3,300,000 Price

Highpoint International Gladstone Central, QLD

Gladstone’s best hotel hits the market boasting a new 30-year lease

The Highpoint International Hotel presents a unique investment opportunity for those looking to establish themselves in the hotel industry. The property is equipped with 49 one-bedroom self-contained units and a fully licensed restaurant that can seat up to 70 people, making it an attractive prospect for generating a steady income stream. The property is being offered with a new 30-year lease, consisting of a 10-year term and four 5-year options. Rent is tied to the Consumer Price Index (CPI) annually, with a minimum increase of 2.5% and a maximum of 5%, providing a transparent and predictable rental increase that can be easily managed during times of high inflation. Moreover, the commercial laundry facilities allow business owners to maintain control over linen, ensuring a consistent level of quality for guests.

With a price of $1,965,000, this investment opportunity offers a favorable return on investment and a stable income stream, making it an attractive option for those seeking a secure investment in the hospitality industry.

Highpoint International Hotel presents a unique opportunity for investors. With a stable income stream and potential for long-term growth, it is an investment worth considering for those seeking a profitable and secure investment opportunity in the hospitality industry.

Established and fully staffed business operation

Fixed CPI range provides stability and predictability

Upcoming economic development in the surrounding area

Significant potential for growth and expansion of the business

Picturesque views from every room, enhancing guest experience

Prime location in the heart of the CBD with strong repeat clientele

Quest Cronulla Beach

Cronulla, NSW

Successful award-winning Quest property in the prime Sydney location of Cronulla Beach

The lucrative and desirable asset Quest Cronulla Beach is an opportunity not to be missed and presents a solid ongoing investment for the buyer.

This premium, award-winning business has grown year-on-year and with the incredible hard work already done by the existing franchisee you are set to have a lucrative business on your hands.

Offering strong mid-week corporate and solid weekend leisure clientele, Quest Cronulla Beach offers it all. This prime location benefits from being a part of the highly reputable and successful Quest brand, which means you will be supported every step of the way. Located on one of Sydney’s most premium beaches and surrounded by shops, cafes and all other amenities, this prime coastal position will be highly sought-after. Do not miss out and contact Jacqueline or Tim for more information.

Huge potential upside with increase of lease tenures

Zoned short term giving the business security

Attracts both leisure and corporate guests

Fantastic value with reasonable multiple for a Sydney property

Very secure business with diverse guest profiles

Award winning, highly reputable Quest branded business with strong ROI

Regular ongoing updates including recent flooring and painting

Solid relationships with landlords and experienced staff in place

Premium location on Cronulla Beach $2,033,429

Profit $ $6,800,000 Price $ $5,432,615

Ramada SkyHotel Hervey Bay, QLD

Rare and unrivalled to acquire ‘at cost’ premium hotel development investment opportunity

ResortBrokers is excited to exclusively present a rare and unrivalled opportunity to invest in and own ‘at cost’ a premium hotel development on the Fraser Coast, one of Australia’s fastest growing tourist regions. A cornerstone of this opportunity is its financial structure to optimise returns and growth and mitigate risk. The current land owner is providing the land, DA approved, and other benefits at no entry cost with payment on ultimate sale. Their associated company operates the adjacent Ramada Resort.

This experienced operator will manage the build process and guarantee the investor a 7% return on the total build cost. This is a rare opportunity to get in early, enjoy solid returns while owning a key asset and enjoying the capital gains when it is right to exit.

Ramada SkyHotel is the second and final stage of a stylish integrated development that began with Ramada Hervey Bay in 2009. The proposed hotel will adjoin the well-established Ramada Hervey Bay and capitalise on the latter’s proven success over more than a decade.

Ramada SkyHotel’s elevation will offer gorgeous 360-degree views of the Great Sandy Strait out to Fraser Island on one side, and the Fraser Coast hinterland on the other. The seven-storey plus ground level Ramada SkyHotel comprising 83 hotel rooms and a top floor multipurpose conference and wedding facility as well as a restaurant and bar will complement the low-rise Ramada Hervey Bay and benefit from a synergy whereby the two hotels can be managed as one, as well as share a common pool, second restaurant and second reception lobby. There is no other development like this in Hervey Bay. Combining Ramada SkyHotel with Ramada Hervey Bay creates an extremely flexible property asset catering to a wide range of leisure, corporate, wedding and conference options that will ensure high occupancy and rates throughout the year.

Both hotels will benefit from the worldwide reputation of Ramada as one of the accommodation industry’s most trusted brands.

$ $8,000,000 - $10,000,000 Forecast Equity Requirement

Jade Apartments North Ward, QLD

Pristine permanent management rights in North Ward - 500m to The Strand

If you’re looking for a lifestyle choice and sound financial investment, then Jade Apartments is for you!

This very well maintained and managed permanent management rights with consistently high rental returns, 22 years left on the contract, good size letting pool plus the ability to increase the revenue stream through unit sales, it is a must for the savvy buyer. The complex features 5 towers with 93 units in total with secure undercover parking with all units fully air-conditioned.

With a generous 3-bed, 3-bath manager’s residence (a studio, 1 bed, 1 bath can be achieved) with a balcony looking towards the ocean, a supportive Body Corporate and a spacious pool/barbeque area along with a clean and tidy gym facility, the only thing left to do is move in.

Situated only 500 metres from the beautiful Strand, 2 kilometres from the CBD and within a 5 minute walk of all the fantastic cafes, bars and restaurants that Gregory Street has to offer.

22 years left on contract

Supportive Body Corporate

Consistent 5 years financials

BC Salary - $156,018 with CPI increases annually

Generous 3 Bedroom, 3 bathroom manager’s residence

Consistent high rental returns

Increase revenue through unit sales

Spacious pool, gym and barbeque area

Henry Parkes Motor Inn Parkes, NSW

Superior accommodation in the heart of Parkes, fully refurbished in 2022

Located in the centre of Parkes, this easy-to-run property has a strong occupancy rate averaging over 75 per cent all year round.

With no restaurant, no pool and only a small garden space, this motel has a low cost/ high profit ratio which is above normal industry standards.

Parkes is located on the Newell Highway and enjoys strong trade from both tourism and business travellers. The motel has longer than average stays with multiple room nights through corporate and business trade.

The majority of guests stay longer than a single night which minimises housekeeping hours attributing to low operating costs. The motel’s adjusted net profit last year was $513,421, which includes two months of lockdowns. This year’s figures show a larger turnover and a higher net profit which is expected to be approximately $736,917.

Parkes is one of NSW’s fastest-growing regional towns. Current works include a rail upgrade and a highway bypass that will improve connectivity, road transport efficiency and safety for local and interstate motorists.

Ideally located in town centre

Multiple night stays resulting in low operational costs

Consistent performer - high occupancy

64 solar panels installed to minimise operational costs

Comfortable two-bedroom owner’s residence located adjacent to reception

A good variety of room types to cater to a wide market

Easy to manage - no restaurant, pool or gardens

All 24 rooms and reception refurbished to a high standard. Nothing more to spend 2023 projected turnover $1,037,912 with an expected net profit of $736,917

Property inspections are by appointment only

$736,917

Net Profit $ $1,037,912 Turnover $ $5,500,000 Price

What’s Cool In The Accommodation Industry

Director of New Developments and Hotels Tim Crooks checks in to check out the latest in the hotel industry.

Tim Crooks

m: 0417 544 562

e: tim@resortbrokers.com.au

La Dolce Vita

A makeover three centuries in the making. The IHG-owned Six Senses group has repurposed the 18th century UNESCO-listed Palazzo Salviati Cesi Mellini as a luxury hotel. Opened this month, Six Senses Rome has reimagined this Baroque beauty, which was once a residence for cardinals, into a 95-key luxury offering complete with a rooftop escape overlooking the Eternal City. Six Senses Rome is the boutique hotel brand’s sixth offering in Europe and its first in Italy. Overlooking Via del Corso, Six Senses Rome is a short stroll from the timeless Trevi Fountain. Throw a coin in it because you’ll want to return to this one. sixsenses.com/en/hotels/rome

The Seven Pillows Of Wisdom

Bling, thy name is Atlantis The Royal. Billed as the world’s “most ultra-luxury experiential resort,” Dubai’s latest hotel takes luxe to a new level.

Opened in February, Atlantis

The Royal shares prime position with its sister hotel Atlantis The Palm which is a lazy chauffeur-driven ride down the road on Dubai’s iconic Palm Islands. You can’t miss it, just look for the ginormous Jenga tower. The cheapest room is $1,700, but a suite will set you back a cool quarter of a million dollars. For that you get a personal butler, a “menu” of seven pillows, hotel swag that includes a gold-plated toothbrush, and arguably the best bragging rights in luxury hotel stays. atlantis.com/atlantis-the-royal

Killer Villa

Old aircraft never die they just reincarnate as hotels. Opening in April, Jet Villa by Hanging Gardens is the brainchild of highflying Russian entrepreneur Felix Demin who turned a defunct Boeing 737 into a functioning hotel in Bali. The 31-year-old developer first turned heads in Bali when he launched his see-through Bubble Hotel chain in 2017. Perched on a clifftop at Nyang Nyang Beach on the western side of the island about 12 minutes’ drive from Uluwatu, Jet Villa has two rooms, an infinity pool, ocean views and a soaring price tag of $10,000 a night. This plane will never leave on time but does any these days?

@privatejetvilla

Cedar Glen Farm Stay Darlington, QLD

A profitable farm stay leaseholdthe ultimate tree change awaits!

ResortBrokers is excited to exclusively present to the market the unique opportunity to secure a 15-year lease with 12.5 years remaining for a farm stay. Formerly owned and run by a farming family, they are now a very supportive landlord. Situated in the foothills of Lamington National Park, Cedar Glen has been successful for over 30 years and is steeped in history and family tradition.

The property offers a choice between four private cottages, which are either fully catered or self-contained. There are a variety of activities for guests to enjoy, or guests can choose to simply relax and enjoy the beautiful scenery. The upside in the property is huge, and the current owners have begun adding campsites and additional accommodation options recently.

Consistently netting approximately $115k per year, this business would be well-suited to operators looking for a tree change with a vision for expansion to drive additional revenue and profit.

12.5 years left on the original 15-year lease

Supportive landlord

Upside aplenty via expansion with potential for camping and cabins

Significant land within leasehold boundaries

One of the most scenic locations imaginable

Netting approximately $115k per year, even during Covid

Suitable for hands-on buyers looking for a lifestyle change

WIWO sale including activities

$117,816 Net Profit $ $350,000 Price

A home away from home for young Australians in need

Quest Woolloongabba has supported You Can Stay since the program’s inception. Its close proximity to three of Brisbane’s major public hospitals — Mater Public, Queensland Children’s and Prince Alexandra — make it an ideal base for patients such as 15-year-old Tahlia (pictured, top) from Toowoomba who stayed in Quest Woolloongabba for 21 nights while undergoing vital cancer treatment.

Quest Woolloongabba General Manager Andrew Edsor has seen the positive impact the program has had on the lives of returning patients and their carers.

“The sense of relief they feel at having a familiar space to return to here at Quest makes us all proud,” says Edsor. “We arrange for patients and carers to have the same room each visit where possible. With all the uncertainty and disruption they’re going through, the Quest team works to ensure they have the space they need to recharge and relax, and a place they can be themselves with those they love most.

Australia has one of the best healthcare systems in the world, consistently ranking among the top developed countries. Our system works exceedingly well for most people, especially those living in major cities. But for those in regional and rural areas, the life-saving healthcare they desperately need is often hundreds of miles away. While the cost of the healthcare itself is affordable, the cost of travel to and from accommodation in our major cities places a heavy financial burden on the families of patients who live in outlying areas.

This is especially true for young cancer patients who need specialist hospital treatment that is only available in capital cities, particularly those with rare and complex cancers like bone, blood and brain cancer. On average, the cost to the family of a young cancer patient for travel and accommodation is around $8,000. This poses another enormous strain on family finances as carers need to

stop work to look after their loved ones, given the rising cost of living, This is where the You Can Stay program comes in. In 2020, Quest Apartment Hotels partnered with Sony Foundation Australia to fill this gap in the provision of affordable accommodation for young cancer patients from regional areas. Available nationally to all young cancer patients undergoing treatment aged 15–25 who live 100km or more from their treating hospital, You Can Stay provides accommodation at Quest, Citadines, Somerset or Oakwood properties at no cost to patients and their families.

Since its inception, Quest has provided accommodation for over 200 patients and their families accounting for more than 13,000 room nights.

You Can Stay continues to make a meaningful difference in the recovery journey of patients and provides a heart-warming and uplifting sense of purpose to everyone administering this critical program.

“When families start their You Can Stay journey with us we support them all the way. Quest provides spacious, safe and comfortable rooms at a time when so much of the patient experience involves uncertainty and the unknown.”

Another example of Quest going further to create moments that matter is Quest St Leonards, which provided six weeks accommodation to 15-yearold Harriet (pictured, bottom) from Kanmantoo, South Australia, who travelled 1,337 km to Sydney for her cancer treatment.

“We cannot put a price on any life, and the You Can Stay program is so important to the families we have assisted and the families we will assist in future,” says Quest St Leonards team member Pritema Bivona. “We have the privilege of being able to offer quality accommodation to patients and their loved ones while they are fighting for their lives. You Can Stay allows every family to focus on what really matters without the added burden of worrying about how much everything costs.”

Since 2020, Sony Foundation Australia’s You Can Stay program in partnership with Quest Apartment Hotel has supported young cancer patients and their carers with spacious accommodation

Managing Director of Ascott Australia, David Mansfield, said he was taken aback by the shortage of accommodation for teenager and young adult cancer patients when Sony Foundation first approached Quest to partner with You Can Stay. As Australia’s largest serviced apartment operator with properties across the country, Mansfield knew Quest could make a difference.

“We knew we could make an impact and were compelled to act,” says Mansfield. “We know that when these families come to us, it’s a terribly challenging time so we implemented a tailored bookings process to make things easier and support their unique requirements. Today, we can proudly say Quest is only a phone call away.” END

What other Quest properties are saying about You Can Stay

“We support the program because like many of the families we have teenage and young adult kids ourselves and couldn’t imagine being in their situation. But most importantly we’re able to provide a home away from home to the individuals and families that they can make their own and not have to worry about in any way.”

“We support the program because we genuinely care and want to make a difference. The reward for us is the appreciation shown by the families. Hearing their stories and how we’ve helped has been a real heart warmer. That’s reason enough to participate in the program. It’s really well managed and simply a wonderful cause to be involved with.”

“We focus on providing not just comfortable quality accommodation but also show that we’re here for the families, be it for emotional support, a grocery shop, a chat, or just being present in those moments when they need us the most. We love welcoming back our repeat guests, it’s like welcoming back a family member.”

“We support this program because it takes away some of the worry these patients and families experience at a time when their world has been turned upside down. Home comfort is something that’s missing when you need to travel to a new town to receive hospitalisation. That’s what we endeavour to provide, a place where they can just be themselves.”

“Given the long-stay nature of these families, it has been a true pleasure getting to know them as friends. It’s been a blessing to hear their appreciation for our staff’s friendship and care. Also, being a pet-friendly hotel, we’ve found it has been extremely beneficial for families to have their pets as a comfort during the hard times they face.”

MICHAEL BEVILAQUA, QUEST SOUTH PERTH FORESHORE

JOSHUA HARKNESS, QUEST NORTH SYDNEY

ANGELA CLARKE, QUEST ON RHEOLA & QUEST WEST END

JARROD GWYNNE, QUEST SOUTH BRISBANE & QUEST CANNON HILL

REBECCA WOODS, QUEST BREAKFAST CREEK

Edgewater Motel Burrill Lake, NSW

Rare waterfront motel with plenty of upside potential on the NSW South Coast

This exceptional 2,410 sqm freehold site is currently hosting a fully operational waterfront 10-room motel plus a three-bedroom two level manager’s residence with foreshore views of Burrill Lake. Offering plenty of upside potential, new owners can renovate into a 4-star motel, upgrade and significantly expand the accommodation capacity, possibly adding a function area with catering and waterfront deck.

Located seven kilometres from Mollymook, a town that has seen significant and ongoing growth as Sydney locals continue to migrate south post-Covid, the Edgewater Motel has access from the Princes Highway and ongoing exposure to passing traffic. With Burrill Lake frontage, the site has so much to offer with expansive views across Burrill Lake, to views of the distant mountain ranges.

This motel presents a great opportunity for someone looking to put their own stamp on the place. If you’re looking for an easy-to-manage business with plenty of upside in one of Australia’s most beautiful coastal areas, then this is for you.

Prominent location, 7 km from Mollymook, 2.5 hours from Canberra and 3 hours from Sydney

Walking distance to Burrill Beach, cafes and shops

Opportunity to renovate into a boutique 4 star property

Absolute waterfront location at Burrill Lake

Upside potential to increase occupancy and revenue

Flexible SP3 zoning to support tourism related residential and retail uses (STCA)

Quest Wodonga Wodonga, VIC

Highly lucrative Quest leasehold business In Victoria

Showing a net profit of over $1,000,000 for 2020/2021, this is your chance to secure the leasehold and build on this highly lucrative business. Local and corporate relationships mean this business is thriving, with a strong and solid income, along with repeat and ongoing bookings. Quest Wodonga consists of 80 well-appointed keys in the heart of town. It has an exceptional conference room, gym, barbecue and beautiful pool area.

With modern refurbishments now underway throughout all motel rooms, to keep them in line with Quest’s high standards, the incoming buyer will enjoy the benefit of pushing tariffs to new heights with new rooms, creating ample upside in revenue and profit. This business continues to grow and shine with an upside trajectory to welcome the incoming purchaser. All the hard work has been done with the current vendor spending the last nine years building an extremely profitable business and all round highly desired accommodation destination. Quest Wodonga is an exceptional opportunity presented within the highly regarded Quest Brand.

Solid forward bookings and consistent clientele

Strong corporate relationships

Huge developments in the pipeline

Newly refubished rooms

Prime location in the heart of thriving Wodonga

Part of the highly reputable Quest Brand

Incredible property in high-demand Wodonga area

Close to shops, schools, restaurants, sporting facilities and clubs

Year-on-year growth with the business performing exceptionally well

$1,184,462

$4,588,314

$4,587,494

The Arbour on Charlotte & Woodstore Apartments Chermside, QLD

Two premium business-only established MLR in Chermside boasting $391K net profit

Located just 170m apart, these two mid-rise management rights businesses generate a cool $391,000 net profit. Being sold in one line, they present an outstanding add-on with upside potential that would suit an experienced operator.

The Arbour on Charlotte and The Woodstore Apartments are two modern, permanent let buildings that are efficiently and easily run under management. They are superbly located for ease and convenient living in the buzzing northside neighbourhood of Chermside, only 20 minutes’ drive to Brisbane’s CBD.

Two striking buildings comprising a total of 188 apartments

Genuine business only with no real estate to purchase

Located 170m distance apart, under 2 minute walk

Combined letting pool comprises of total 106 units

Arbour built in 2015 and Woodstore in 2016

Both on 25-year agreements, with 19 and 17 years remaining

5-year top up on Arbour currently pending

Body Corporate salary component makes up 54% of net income

No set office hours in either complex

Handy office under occupational authority in Woodstore

No common facilities in Arbour

Manageable gymnasium and rooftop terrace in Woodstore

Prominent corner position in central Chermside

Proximity to airport, employment and transport hubs

Superb rental appeal with very low vacancy rates

All inspections by appointment only $391,505 Combined Net Profit $ $213,793 Combined BC Salary

Inner City MR Brisbane, QLD

Brisbane super rights with 1 BC and high $912k net profit

ResortBrokers exclusively brings to market this exceptional management rights and associated real estate business in the highly sought-after inner city of Brisbane.

This lucrative business represents an unprecedented opportunity for an experienced manager/management team to secure an incredibly high, verified net profit of $912,000 and a fully established management rights complex with strong upside.

The prestigious complex comprises a total of 369 apartments with 225 managed in the onsite letting pool. There is also plenty of scope for the incoming manager to convert external letting appointments back into the letting pool.

Sitting under one Body Corporate scheme, the property consists of four mid-rise buildings and attracts a significant BC salary of $498,814 per annum.

Fully established complex with permanent rentals

Recently topped up agreements with 24 years remaining

Exceptional BC salary of $498,814 p.a.

Only one Body Corporate scheme

369 apartments with high letting pool of 225 and scope to grow

Luxury 1-bed / 1-bath / 1-car unit forms part of sale

Onsite manager has flexibility to live in any unit in complex

Spacious manager’s office and storage under OA

Standard 9am–5pm Mon-Fri office hours (contactable by phone)

Net profit of $912,394 verified by specialist industry accountant

Extremely manageable caretaking duties

Excellent transport, vibrant village lifestyle

All inspections by appointment only

$912,394 Net Profit $ $550,000

Real Estate Price $ $7,392,955

Total Price

Mungo Lodge Arumpo,

NSW

This is a unique multi-income stream freehold and business opportunity with unlimited potential, situated on 60ha of land

Currently run under management, Mungo Lodge is an eco-friendly outback resort perfect for an owner-operator duo or equally suited to investors. Multiple income streams include accommodation, local tours, food and beverage and plenty of room to expand means unlimited potential for any incoming purchaser.

Located at the gateway to the World Heritage Mungo National Park providing an easily accessible outback experience, Mungo Lodge is just a 1.5 hour drive from Mildura and has its own private airstrip.

Mungo Lodge has a full range of accommodation options including 16 deluxe cabins, one self-contained family cabin, 4 bunkhouses and 8 glamping tents along with 50+ non-powered caravan and camping sites. It is also a licensed tour operator conducting 2 tours per day of the national park. The Mungo Bar and Bistro area is open seven days a week for breakfast, lunch and dinner and is a popular stopover for travellers heading back to Mildura or other surrounding towns.

Multiple income stream business

60 ha freehold land

Limited competition

Well maintained accommodation

$3m investment in the property in 2010

Ongoing refurbishment and replacements

An extensive inventory of furniture, fittings, plant and equipment Opportunity to expand

Shady Rest Motel Gympie, QLD

Your opportunity to secure this outstanding 18-room motel investment in the tightly held Gympie region

ResortBrokers presents to market the golden opportunity to purchase an 18-room freehold passive investment motel in the bustling township of Gympie.

This well-presented and maintained motel has plenty on offer, including a large twostory manager’s residence, 18 good sized motel rooms, in-ground swimming pool, spacious office and reception, commercial kitchen and linen storage rooms. The motel is of brick construction with colour bond roofing and a 35.91kw solar system and set back off the highway and positioned high on the top of the hill with views out to the west.

The Shady Rest Motel offers guests multiple room configuration options and provides undercover parking to each room. The motel attracts a balanced mix of leisure, corporate and workers from diverse industries to the area enjoying consistently strong occupancy levels.

This well presented and popular regional motel has regular repeat clientele and is well placed to benefit from the continued demand in regional travel.

In-demand investment location with excellent ROI

New 35-year lease

Experienced tenant in place

Consistently performing motel with strong occupancy and turnover

Commercial 35.91kw solar panel system on roof

Large 2039m2 elevated block with ample parking set back from the main road

Positioned well above flood levels

Excellent location in a growing regional town

No capital expense required

Property inspections by appointment only

$ $190,000 Annual Rent $ $2,780,000

Cunnamulla Cabins Cunnamulla, QLD

Money maker cabins with massive multiple income stream upside

Capitalise now on the hard work of the current owner with this great cabin and caravan park offering. Where else can you purchase a solid business with four income streams over two properties?

Site one, Cunnamulla Cabins situated on 4.64ha complete with 14 cabins, 8 large drivethrough ensuited powered sites, ample unpowered sites, pool, camp kitchen, outdoor theatre, laundry, commercial kitchen, cafe/takeaway, coffee shop, 3-bedroom owner’s residence and plenty more.

Site two, Cabins on Mabel, situated on 2,024m2 consisting of 2 x 1 bedroom selfcontained and 2 x 2 bedroom self-contained cabins, four carports, BBQ area and verandahs. Turnover has been limited by the capacity of one owner operator being able to keep up with demand. Bookings are regularly turned away, as there is not enough time in a day for one person to complete all tasks. Instant upside for a family-run operator.

Construction is almost complete on the $10m Cunnamulla Hot Springs and River Walk precinct which will hugely increase tourist numbers and multiple-night stays. Grand opening set for June/July 2023.

Enquire now to fully understand the opportunity on offer.

4.64ha property with approximately 2.4ha already developed

Zoned industrial/commercial

Multiple income streams from 2 properties, shop and undeveloped land

Quality cabins across two sites with sewer connections in place for a further 8 cabins

$10m Cunnamulla Hot Springs and River Walk Precinct opening in June/July 2023

Huge upside for hands-on operators, built from the ground up by one person

Superb family tree-change business, limited by your imagination

Instant upside in growth through more hands on deck

$212,658 Net Profit $ $2,150,000 Price $ $307,142 Turnover

Gunnedah Tourist Park

Gunnedah, NSW

Fantastic regional caravan park with brand new 30-year lease

Here is your chance to capitalize on the booming north-eastern NSW and secure a brand new 30-year lease for Gunnedah Tourist Caravan Park.

Construction has begun on the new $23.6 million Gunnedah Koala Sanctuary, this development will pave the way for more tourism dollars and increase occupancy rates on weekends and holiday periods.

Gunnedah Tourist Caravan Park offers a range of cabin, caravan and site accommodation set among 3.75 acres of spectacular rural land. This tranquil 3.5-star tourist park boasts a separate three-bedroom, two-bathroom residence with an enclosed private yard adjoining the reception area.

All 15 self-contained cabins are air-conditioned with lounge areas and 11 of them include ensuites. Facilities include Wi-Fi, a covered in-ground pool, shaded outdoor areas, two barbecue areas and two guest laundries all within easy walking distance to the local shops, clubs and restaurants.

You may choose to operate with the current tourist focus, however, should you wish to capitalise on the initial development income along with the ongoing permanent stream of income, the Gunnedah Tourist Park has a licence to operate 20 permanent dwellings.

Brand new 30-year lease

Year-on-year growth and consistent business

Peaceful rural lifestyle

Key future growth planned for the local region

Growth prospects with ability to add relocatable homes

Experienced staff happy to assist in transition

$182,933 Net Profit $ $460,000 Price $ $587,332 Turnover

Permanent Management Rights

First time on market in almost two decades! Outstanding Southside permanent MR opportunity with 22 years agreement terms remaining!

ResortBrokers is delighted to exclusively present to the market for the first time in 18 years this outstanding opportunity to purchase the permanent management rights located in the highly sought after southside suburb of Runcorn.

Boasting a generous Body Corporate salary of $105,823 (72% of the total net profit), the workload is very manageable for either a single operator or a couple. There are no set office hours and no requirement to live onsite so the incoming operator can enjoy the freedom and flexibility supported by the agreement to suit their circumstances in how they operate this business over time.

Following another recent successful top-up, the business has 22 years remaining on the agreement. The P&L has been prepared by a professional industry-specialist accountant. This well established permanent townhouse complex presents as a solid business suitable for a first-time buyer looking to secure a stable low maintenance business or an experienced operator who wants to expand their existing portfolio.

No requirement to live onsite

No set office hours

Solid Body Corporate salary — 72% of total income

P&L prepared by industry professional accountant

Long agreement terms — 22 years

Strong and consistent letting pool

Easy to run with manageable caretaking duties for either a single or couple

Located in highly sought-after area with high rental demand

Bank valuation on manager’s unit

Suitable for either first-time buyer or experienced operator as add-on to existing portfolio

Property inspections are by appointment only

$146,206 Net Profit $ $1,315,000

Total Price

Quest Bundoora Bundoora, VIC

Lucrative Melbourne leasehold - beautifully presented 76-keys

ResortBrokers presents an outstanding opportunity to purchase the leasehold of an extremely lucrative business, Quest Bundoora, part of the highly reputable Quest brand, the most successful hotel franchise system in Australia.

This exceptional 76-key property only 15 km from Melbourne has increased from strength to strength and has been on an upward trajectory since Covid.

Quest Bundoora is currently in the process of landlord capital works and new FFE which includes beds, ensuring this already beautifully presented property remains a step above others in the region.

With a long 35 years on the lease, recent rent reduction and soon-to-be-completed refurbishment, this is truly a prime investment for the new franchisee.

Exceptional Melbourne property, prime location

Recently revised six per cent rent reduction

Long tenure of 35 years

76 well-appointed keys with diverse configuration options

Ample upside in revenue with enhanced projected figures

Part of the prestigious Quest brand

Close proximity to shops, schools, universities and hospitals

Business performing from strength to strength

Take time to explore Quest Bundoora before it gets snapped up and contact Tim today on 0422 208 450 for further information. $1,365,370 Net Profit $ $5,206,365 Turnover $ $6,024,000 Price

TIM CROOKS DIRECTOR

Comfort Resort Blue Pacific Blacks Beach, QLD

Lifestyle business opportunity not to be missedan ultimate beachside holiday destination

This exquisite beachfront resort is offered to the market for the first time in 22 years. Boasting a consistent high occupancy rate, coupled with a solid net profit and Body Corporate salary, this 43-unit complex has ample opportunity for revenue growth via recommissioning the restaurant/commercial kitchen and conference room.

This is an exceptional opportunity for a management rights operator to purchase a rare and highly sought-after business, combined with a fantastic location and great systems in place.

This resort-style property presents an outstanding management rights business, comprising 43 units, with 33 in the manager’s letting pool being split between 24 holidays and nine permanents. This offers a rare opportunity to benefit from the stability of the permanent letting, coupled with the high-income potential of shortstay letting.

26 spacious ground-floor units with a modern design

Large three-bedroom, two-bathroom family residence

Currently run under management

Experienced and friendly staff to assist with smooth transition

Preferred north-side town location with prime highway frontage

Licensed restaurant with refurbished commercial kitchen, bar and open fireplace

4-star motel set on 7,500sqm of landscaped grounds with potential for development (STCA)

In-ground pool, children’s wading pool, communal barbecue area and guest laundry

with BWH Hotel Group Enhance Your Reach

Become part of an iconic, trusted and globally recognised brand in Australia

Win-Win Partnership with outstanding return on investment (ROI) where incremental revenue received far exceeds fees incurred

Dedicated Revenue Management Team to work with you to increase occupancy, ADR and RevPAR

Access to our award-winning Loyalty Program: Best Western Rewards with 50+ million members globally and over 500k in Australia

Digital marketing and social media services to elevate awareness of your property

Distribution via bestwestern.com.au domain at a lower commission cost

Dedicated local and international sales team who will solicit new business opportunities in the corporate and leisure segments

Comprehensive GDS Distribution with access to strategic TMC partnerships including consortia programs, all major OTAs and over 3,000 corporate & government accounts

Access to our procurement program and leverage the BWH Group buying power to reduce operational costs and achieve operational savings

Danilo Curcuruto Director of Development

+61 450 774979

danilo.curcuruto@bwhhotelgroup.com

Fawad Duraiz Brand Development Manager

+61 404 157384

fawad.duraiz@bwhhotelgroup.com

Absolute Beachfront MR Surfers Paradise, QLD

Rare absolute beachfront MR in Surfers Paradise –$430k+ NOP

Enviably located on the Gold Coast Esplanade, this well-presented high-rise comprises 37 apartments consisting of one and two bedrooms. There are 19 apartments managed in the on-site letting pool on a holiday basis.

Continually showing high occupancy rates, this property’s prime location, uninterrupted views and repeat clientele seem to have made it bullet-proof from the fluctuations of the tourism market for many years.

The unit owners receive above average returns due to the units being configured primarily for short-term use and not lending themselves to long-term occupation, the letting pool has remained stable for many years.

Without a doubt, the biggest selling point is its absolute prime beachfront location, never to be built out. It is hard to underestimate the enviable pull of directly overlooking the world-famous golden sands of Surfers Paradise.

Serious upside is available here, with identifiable growth opportunities. This incredible property requires minimal caretaking duties and offers flexible management and living options suitable for a range of buyers.

NOP in excess of $430K with room to grow

Lifestyle flexibility with no requirement to reside on site

Pro-active Body Corporate with 25-year agreements

Incredible Surfers Paradise beachfront location — never to be built out

Apartments all have direct views of the ocean and beach

Continually showing high occupancy and repeat clientele

Pool, barbecue area, gardens and reception have been upgraded

Minimal caretaking ensures a manageable, well-presented property

$431,122

Net Profit $ $2,895,000 Price

Local Experts

Nationwide Coverage

Work with the only law firm that delivers industry leading transaction services and advice across all accommodation business types in every state and territory.

Helping hundreds of resident managers, moteliers and park operators each year to acquire, sell, protect and grow their businesses.

Unmatched accessibility and certainty on fees.

A Green Haven MLR Brisbane, QLD

An elite-level business-only management rights, 5km to Brisbane CBD

On offer for the first time to market is this fully established business comprising five exceptional apartment buildings set over a stunning natural parkland.

Developer owned and operated since inception, this multi-staged complex hosts a total of 159 apartments with quality on-site facilities. With the first stage completed in 2018 and, the final off-the-plan stage due to complete very soon, the developer is ready to hand over the helm of this beautiful residential complex to new management.

Verified net profit of $234,040

Combined letting pool of 23 units – scope to grow

Strong combined Body Corporate Salary of $223,090

21-25 years remaining on Accommodation module agreements

No requirement to live on-site or own a lot

No set office hours

Spacious manager’s office located on-site

Optional real estate on offer - luxury 2 bed, 2 bath and 1 car unit

Outdoor pool and dining area with BBQ

Community centre with gym, parks and parking

Located under 5km to Brisbane CBD $234,040 Net Profit $ $1,123,392

Business Price $ $849,000 Optional Real Estate

White Manor Motel Cooma, NSW

Rare passive investment motel in gateway to the Snowy Mountains

Investment opportunities of this quality rarely come to market in the Snowies. With an experienced and secure operator in place, White Manor Motel offers an outstanding investment opportunity in one of Australia’s top tourist destinations. The current tenants have successfully operated White Manor Motel for several years and have over 21 years remaining on the lease, providing certainty to the new owner that the hotel is in safe hands.

White Manor Motel’s 12 rooms are well-appointed and come with the customary accommodations such as free Wi-Fi, Smart TVs with free Netflix, keyless entry and ample off-street parking. A short stroll away is the heritage-listed Royal Hotel, which was built in 1858 and is the oldest hotel in the Snowy Mountains region.

Incoming purchasers can be reassured this property has been impeccably maintained by both tenant and landlord. All 12 rooms have been recently refurbished to offer modern comfortable accommodation.

Passive investments of this kind are rare in the Snowies and astute investors should be quick to consider this exceptional opportunity

Impeccably maintained 12-unit motel

Located in a vibrant regional town

Secure tenants in place with over 21 years remaining on lease

Experienced and successful leasehold operators

Extensive renovations done by both tenant and landlord

Solid masonry building

Rare passive investment in a tightly held motel town

Main street presence

SouthAustralia

Words_Kelli Crouch, Broker South Australia & Northern Territory

When I took on the challenge of driving ResortBrokers’ expansion into South Australia in 2017, I could see the huge potential for growth in my home state. Six years on, I still do.

Despite a patchy national economic recovery from the pandemic, the SA division of ResortBrokers has posted our strongest financial year yet. My confidence in the potential of this great state continues to be sky high and 2023 is shaping up to be one of our biggest years on record.

There are several reasons why I’ve never been more upbeat. Over the peak holiday period just gone, South Australian operators enjoyed an

incredible run of trade. This is only set to continue. With overseas travel more expensive for Australians on account of our weaker dollar, domestic travel will remain strong. Tourist numbers everywhere took a major hit during the pandemic, but the latest economic figures released in December 2022 by the South Australian Tourist Commission show domestic expenditure in our state was $7 billion, which is up 2 per cent on the previous high of $6.9 billion in December 2019 when the last report was published just prior to the lockdowns. Victoria, and in particular Melburnians, continue their love affair with SA, comprising almost half the number of our interstate visitors and contributing handsomely to day trip expenditure which was up 2 per cent to

$1.7 billion. We’re also seeing healthy visitor numbers from NSW (26 per cent) and Queensland (13 per cent).

It’s no wonder I’m continuing to see strong buyer enquires. There’s enormous interest from interstate purchasers, particularly for regional stock. These investors know, as I do, that there’s still so much untapped potential in the South Australian accommodation sector. Combine that with a large number of properties operating as freehold going concerns compared to the eastern states, and with no stamp duty payable on commercial properties, South Australia is a fantastic place to invest.

Our capital, Adelaide, is leading the charge. The CBD is alive again with a return to high occupancy and

Whether it’s the charm of Adelaide, the glorious wine country of Clare, Barossa, and McLaren Vale, or the spectacular scenery of the Flinders Ranges, Limestone Coast and Murray River, South Australia has plenty to crow about. It’s no wonder investors are quickly catching on.

Robe Town Motor Inn

Robe Citrus Valley Motel Renmark Ellen Hotel Port Pirie

Ceduna Motel East-West Ceduna Moonlight Bay Apartments, Rye

improved tariffs almost back to prepandemic levels. With a full event schedule returning to Adelaide, the second quarter will be an exciting one. Our annual showcase is Adelaide Fringe, which has a longstanding reputation as one of the best arts festivals in the world, second only to Edinburgh. It’s been a fixture since 1960 and I’ve seen it blossom over the years into the world-class festival it is today. It kicks off a chock-a-block couple of months that includes the Adelaide Festival of Arts, Adelaide Writers’ Week and the four-day world music festival WOMADelaide. You can well see why we locals call it “Mad March.” The city is positively buzzing with activity during this time. And that’s just one month in a year packed with regular events including our annual sporting calendar which includes the Adelaide 500 motor race, the Tour Down Under cycling race, as well as our regular footy and cricket seasons. Adelaide’s pride is our beautiful Adelaide Oval, one of the loveliest sporting grounds in the world and up there with the historic Lords in London for cricketing splendour.

On the hotel front, little old Adelaide is fast becoming big, brash and new Adelaide. Our capital has now well and truly outgrown its cliche of just being “the city of churches”. On King William St, our beautiful old GPO building is being transformed before our eyes into the $200 million 16-storey Marriot hotel, the first ever in our state and a real show of confidence in Adelaide as a tourist destination by one of the world’s most recognisable marquee hotel brands. Meanwhile, another global brand TRYP by Wyndham is close to opening its new $50 million hotel on Pulteney St. Yet another luxury opening slated to open soon is the 18-storey Vibe Hotel on Flinders St and its neighbouring apartments building ONE. The complex has a “sky bridge pool” that allows guests to swim between buildings. How cool is that?

Another sign of our state capital’s rising star in the global accommodation industry is its hosting

of Tourism Australia’s signature incentive showcase Dreamtime this November. This is Dreamtime’s first event in Adelaide and its first since Covid. Also, the Australasian Hotel Industry Conference and Exhibition (AHICE) will return to Adelaide for a third consecutive year this May. Outside the US, AHICE is the largest hotel industry conference in the world and for Adelaide to be chosen as host three years in a row is another feather in its cap. ResortBrokers has a proud history with AHICE, at which our Managing Director Trudy Crooks has presented at past conferences. Driving the state-wide accommodation market upward is simply great quality stock with strong returns. The most popular asset classes are definitely freehold going concerns, particularly larger scale motels and caravan parks. I’m also seeing strong enquiries on larger leaseholds. A recent major sale for us was the Wallaroo Beachfront Caravan Park, a passive investment with a very heathy sub-7 per cent return. We received several competitive offers in the first five days of going to market — an incredible response in such a short time. I wasn’t surprised at all this asset was snapped up. The property itself is exceptional and the location is perfect. Wallaroo is about two hours’ drive from Adelaide and is one of the most popular coastal spots on the Yorke Peninsula. I’ve been there countless times and always find something new to do or see. As I said, it comes down to great quality stock in superb locations — it’s a pattern I’m seeing repeated right across the state whether it’s in the major urban centres or the regions.

All in all, I’ve never been more excited about South Australia. This financial year alone, I’ve sold and settled 18 properties, including two record sales with a combined value of $4.75 million. Six years on from when I first took on the challenge of growing ResortBrokers’ market here, I remain incredibly upbeat. If SA’s accommodation sector can emerge this strong in just its first year from the pandemic, then watch out — the next six years are going to be our best yet.

@joeyjoenes

Travelway Motel Port Pirie

Mud Hut Motel Coober Pedy

Bompas & Bonnies of Beachport, Beachport

Wallaroo Beachfront Tourist Park, Wallaroo

Alexander Motel Whyalla Whyalla Playford

to Success The road

From managing a small caravan park in Streaky Bay, Andrew Chapman has grown his portfolio to eight parks and a booming nationwide consultancy

On offer was a modest management contract with council, but the location was good. Streaky Bay was a renowned fishing haunt and its position just off the Flinders Highway made it a popular stopover for caravaners before setting off across the Nullarbor Plain. Taking on the park seemed a viable proposition, and for Chapman a nice progression from his motel and resort background which gave him his start in the hospitality industry.

Today, Chapman operates eight caravan parks in South Australia and Victoria under the Innoviv Park Services banner and also as a Director of Across Australia Parks and Resorts, which was established in 2017 with partners Mark Manteit and Steven J. Lutz. Before AAPR, Chapman built a solid track record of running parks and motels for others. After moving on from Streaky Bay in 2004, he ran the

Port Vincent Foreshore Tourist Park and an Adelaide hotel before a ten-year stint with Australian Tourist Park Management before it was acquired by NRMA.

With ATPM, Chapman rose through the ranks to eventually become general manager of operations and development overseeing some 50 parks.“I was able to take all the knowledge I’d learned over the years working for others and put it into play for myself,” says Chapman.

Innoviv’s current portfolio includes six parks in South Australia and two in Victoria. Four are owned outright by AAPR, while four are run under management for other owners. AAPR’s largest concern is Victor Harbor Holiday & Cabin Park, a sprawling 22acre 350-site park on the spectacular Fleurieu Peninsula, which also doubles as Innoviv’s headquarters. The smallest is Wallaroo Beachfront Tourist Park, a picturesque beachfront site at Wallaroo on the western side of the Yorke Peninsula, which was sold by ResortBrokers’ Kelli Crouch in 2022 and is managed by Innoviv.

In 2016, Chapman branched out into caravan park consultancy with Innoviv Park Services. Today, Innoviv is Australia’s leading caravan park

consultancy with clients ranging from giant corporate operators such as BIG4 and NRMA to small single-park operators as well as local councils. Whether it’s master plans, business plans, marketing plans, pre-purchase inspections or giving advice on valuations — if it’s caravan park related, Innoviv does it.

Innoviv now has more consultancy work than Chapman can keep up with, which takes him on the road to most states and territories to see clients.

“It very much helps that I’ve owned and operated my own parks,” says the 53-year-old. “When I give advice it’s not just some consultant who’s read it in a book. It’s stuff I’ve done myself in my own parks or I’ve built or I’ve experienced or I’ve lived through. It gives me a lot more credibility on the consulting side of the business.”

After 20 years in the game, Chapman knows what makes a successful park and that doesn’t necessarily mean the best location. “It doesn’t have to be in the most awesome location,” says Chapman. “It’s about making the park the destination and ensuring guests have a memorable experience when they’re there.”

“Take Victor Harbor, for instance, which is the best performing park in

Venus Bay Beachfront Tourist Park_ SA

our portfolio. It sits on a main road and isn’t looking out at a pretty beach or lake or anything spectacular. But we’ve developed it into a place where the park itself is the destination. A lot of our guests check in and never go anywhere else because we’ve got plenty for them and their kids to do. We’ve got pump tracks, mini golf, swimming pools and water slides. Guests who come never leave the park, and the park itself becomes the destination.”

Since owning the park, turnover has grown by nearly four times in the space of just four years.

AAPR/Innoviv has recently added a park in Esperance to its management portfolio, which Chapman says is not in the best location but has enormous potential. “Esperance is a renowned tourism region, but the park itself is seven or so kilometres out of town. Other Esperance properties might sit on the beachfront, but we love this place because with some love and attention we’ll turn it into a destination. For us, it’s more about the potential to develop a park and make it a destination in its own right.”

Chapman says it’s also important to recognise that parks attract a different type of holidaymaker than hotels.

“With a hotel, it’s just somewhere for guests to sleep at night and then they’re gone for the rest of the day. But the attraction of a caravan park is the comradery with all the people around you. You form friendships with the people in the site next to you and you may get to know each other really well. Whereas in a hotel there’s really no interaction with anyone else other than yourself in your room. That’s the nice thing about caravan parks, the interaction of guests with other guests.

“It’s a nicer environment and the whole outdoor vibe that goes with it. People are more relaxed, more easygoing, it’s more family focused, it’s more about the experience. Pets, of course, are always welcome.

“That’s why you see so many repeat guests, people who keep coming back year after year after year.”

Chapman says the interaction between guests and park management is also very different than hotels.

“In a caravan park, you tend to find as an owner or manager you’re out and about in the park, you’re liaising with guests, you’re interacting with them within the park, so you have a lot more contact with them, which I didn’t find in my days in hotels and resorts,” he says.

As for a guiding business strategy, Chapman says AAPR’s success has been built on long-term park development and that the company doesn’t take on parks to flip them.

“We don’t buy to sell. We buy to keep as operators. We’ve certainly had offers to sell all the parks we’ve got at one point or another.

“But for us it’s more about coming in, developing them, building them up, getting them to the level we want and then reaping the rewards.

“If you have a buy-and-operate viewpoint it gives you a different investment outlook. We don’t mind spending two, three, four, five million dollars to improve a park.

“That’s a lot of money if you’re only going to sell it in three years’ time for six million dollars. But if you sit and hold for the next ten years then it’s a different play. We see ourselves in the industry for another ten, 15 years yet.” END

“A successful caravan park doesn’t have to be in the most awesome location. It’s about making the park the destination and ensuring guests have a memorable experience when they’re there.”

Levi Adelaide Holiday Park_ SA

Levi Adelaide Holiday Park_ SA

Port Broughton Tourist Park_ SA

Victor Harbor Holiday and Cabin Park_ SA

Delivering strategy, ideas and certainty to protect the accommodation industry

S P E C I A L I S E D I N S U R A N C E

S O L U T I O N S F O R

Y O U R I N D U S T R Y

T h e a c co mm o dat i o n s e c to r i s a n i n d u st r y ex p o s e d to a d i ve rs e ra n g e of st rate g i c an d o p e rat i o na l ri s ks T h e ri s ks va r y co n s id e ra b l y d e p e n d i n g o n t h e s t y l e of a c co mm o dat i o n , l oc at i o n , t a rg et c u s to m e r an d ow n e rs h i p st r u c tu re Wh i l e a c co mm o dat i o n b u s i n e s s e s m ay have co mm o n b u s i n e s s o bj e c t i ve s an d ex p erie n c e t h e sa m e r i s k i s s ue s , t h e re a re u n i q u e a s p e c t s to eve r y s i t uat i o n T h e s e u n i q u e a s p e c t s d e m an d a t a i l o re d ap p roa c h to ri s k m a na g e m e nt an d i ns u ran c e

O U R E X P E R T I S E I N A C C O M M O D A T IO N

We h ave a n ex p er i e n c e d a n d s p e c i a l i s t te a m , fo c u s e d o n s e r v i c i n g c l i e n t s i n th e a c c o m m o d a t i o n i n d u st r y We’ ve h e l p e d h o te l s an d m o tel s , s t u d e n t a c c o m m o d a t i o n an d w o r ke r f a cil i t i e s , th ro u g h to l u x u r y h o l i d ay re s o r t s

O u r p u r p o s e i s to h e l p yo u s u c c ee d We a s k w h a t b u s i n e s s s u c c e s s l o o k s li ke fo r yo u a n d i d e n t i f y t h e b a rr i e r s to re a c h i n g yo u r g o a l s We a d d va l u e by th o ro u g h l y i nve st i g a t i n g yo u r ex i st i n g ri s k m a n a ge m e n t ac t i vi t i e s a n d m a k i n g re c o mm e n d a t i o n s o n re f i n i n g o r en h a n c i n g th e s e s o t h a t w e c a n p re s e n t yo u r b u s i n e s s i n th e b e s t p o s s i b l e l i g h t

T h i s u l t im a tel y p rov i d e s b e t te r a n d m o re c o s t- e f fe c t i ve p ro te c t i o n

Good records of asset valuations, inventory, financials, compliance and management policies are critical to having the right insurance.

Photos cataloguing your buildings, plant & equipment can really assist in demonstrating quality to insurers.

Start activities for your next renewal early. Doing so will allow you to anticipate and respond to any possible challenges.

Work with experts in your industry

Whether brokers, lawyers, accountants or valuers.

Social! Let’s Get

give presentations at Australia’s major conferences.

WOMEN IN MANAGEMENT RIGHTS SUNSHINE COAST

ResortBrokers’ Sunshine Coast broker Chenoa Daniel and Operations Manager Marissa von Stieglitz joined some 20 other industry professionals at the Women in Management Rights Christmas luncheon on 9 December at The Wharf Mooloolaba to celebrate a great year in the business.

API NSW PROPERTY MARKET OUTLOOK SYDNEY

ResortBrokers’ Managing Director Trudy Crooks presented ResortBrokers’ market outlook at the API’s conference in Sydney on 28 February. Following her presentation, Trudy joined a power panel including Belinda Botzolis (Add Valuer), Ben Burston (Knight Frank), and Sass J-Baleh (CBRE).

ACCOR PACIFIC FRANCHISE CONFERENCE SYDNEY

ResortBrokers’ Managing Director Trudy Crooks joined a panel of experts to discuss the 2023 outlook for capital investment in regional markets at the Accor Pacific Franchise conference held at Swissotel Sydney on 23–24 February. The event was Accor’s first franchise conference in three years and was attended by over 100 delegates from across the region.

ACCOMMODATION INDUSTRY GOLF DAY GOLD COAST

ResortBrokers was a proud sponsor of the first Accommodation Industry Golf Day for 2023. Held at the Links Hope Island Course at Sanctuary Cove on 9 March, industry professionals donned green for an Irish themed day. Teeing off for ResortBrokers were Gold Coast broker Todd Warner (second from left) and Brisbane broker Nathan Eades (second from right).

2022 PRET AWARDS BRISBANE

On 26 November, ResortBrokers’ Director of New Developments Tim Crooks, Brisbane broker Jessie Shi and Sunshine Coast broker Glenn Millar joined 700 real estate and property management industry leaders at the annual PRET Awards, which celebrate the achievements of professionals in the property industry. ResortBrokers was proud to be a gold sponsor of this charity dinner and congratulates Glenn and Jessie who were shortlisted finalists for the Top Agent Award.

RESORTBROKERS’ LUNCH AND LEARN NOOSA HEADS

ResortBrokers held its inaugural Lunch and Learn event at The Reef Hotel in Noosa Heads on 7 March. More than 40 attendees listened to presentations from industry professionals Mike Phipps, Trent Pevy and Tony Rossiter, as well as ResortBrokers’ own Sunny Coast broker Chenoa Daniel. To register your interest for the next event in Mooloolaba/ Maroochydore in May please email Chenoa at chenoa@resortbrokers.com.au.

As industry leader, we’re always looking to host events to help educate everyone in our network. We also

The rise of motel syndication

The first exposure of investing in a motel for most people starts with the purchase of a small motel leasehold. This generally leads to the purchase of a larger leasehold or even freehold going concern motel.

Freehold going concern owners can choose to on-sell the property as a whole or may decide to split the leasehold business from the freehold property and thereby retain the freehold investment.

Moteliers looking to take a step back from operating a motel but who still wish to invest in the industry invariably purchase a freehold investment property.

Returns on each vary from 6–9 per cent for a freehold investment, 12–17 per cent for a freehold going concern, and 23–32 per cent for a leasehold.

But what options do you have if you want to stay invested in the motel industry but no longer want to actively manage a leasehold/freehold going concern or you don’t have the funds to outright purchase a motel freehold investment? The answer is syndication.

Essentially any syndication involves a group of investors pooling their money together to purchase and manage a property or properties, most typically through a real estate investment trust (REIT).

While syndication is common in management rights, it has over recent years increased as a purchase method in the motel sector.

Advantages of real estate syndication

Real estate investment syndication can offer several advantages, including:

1. Access to larger and more profitable investment opportunities. By pooling resources with other investors, a syndicate can purchase larger and more expensive properties than an individual investor could on their own.

2. Reduced risk. By spreading investment capital among multiple properties, syndication can reduce the risk of loss for individual investors.

3. Professional management. Syndication allows individual investors to benefit from the expertise and experience of professional real estate managers who can handle the day-to-day management and maintenance of the properties.

4. Diversification. Investing in a syndicate allows an individual to diversify their real estate portfolio across different properties and locations, thereby reducing overall risk.

5. Passive income. Real estate syndication can provide investors with a steady stream of passive income in the form of rental income (freehold investment) or share of profits generated by the properties (freehold going concern and leasehold).

6. Liquidity. Real estate syndication may allow individual investors to buy and sell their units/shares of the investment on a secondary market, providing liquidity that is not typically available with traditional direct real estate investments.

Real estate investment trust (REIT) vs. direct property investment

A property trust is a legal entity set up to hold and manage property. It is typically established by a trust deed, which sets out the rules and regulations governing the trust.

Trusts are an effective way for everyday investors to gain exposure to investment opportunities with higher priceentry points. High dollar value property assets generally provide better returns than lower value assets.

Trusts are typically able to achieve better debt rates and cheaper management costs due to having large portfolios and applying the benefits across all assets under management. The increased efficiency of trusts generally means the net returns to investors are better than what can be achieved by an investor on their own.

Words_ Gareth Oakley, Australian Accommodation Property Group

Listed vs. unlisted trusts

A property trust purchases commercial property and then manages it on behalf of the investors. There are two types of property trusts: listed and unlisted.

A listed property trust, as the name suggests, is listed on the Australian Securities Exchange (ASX). In a listed property trust, units are available to be bought and sold just as easily as shares.

An unlisted property trust is not listed on the ASX and therefore is generally more difficult to sell units in as there is often no formal market for buying and selling the units.

There is a vast array of both listed and unlisted property trusts available to investors in Australia in sectors such as industrial, retail, agribusiness, hotels and offices. In recent years, multi-sector property trusts have also been a popular scheme to invest in.

Are there motel specific property investment trusts?

There are several entities in the Australian market that manage motel specific property trusts. These include Red Hill Hospitality, Trinity Accommodation Regional Hospitality Funds, Regional Accommodation Group, Elanor Hotel Accommodation Fund and the Australian Accommodation Property Group. Each group has its own specific focus, whether that be investing in freehold going concern, leasehold or freehold investment motels. Returns and risk accordingly correspond to the structure invested in.

What is the investment process?

Investing in a property trust is a different process to buying a property directly, and each group may have slightly different processes. All commercial property trusts should have a Product Disclosure Statement (PDS) outlining the terms and fees of the investment. Generally, investors are purchasing a unit within the trust, and the trust manager who buys and manages the property delivers distributions per unit back to investors on a quarterly or monthly basis.

The PDS generally outlines the targeted returns and the targeted property/properties that the trust or fund intends to source. Other factors include debt gearing ratios, fees and the term of the trust.

Investing in motels whether directly or by way of a trust comes with its own set of risks. It is important to do your own research and consult with a financial advisor before making any investment decision. END

间的物业，他告诉我，该物业创下了 25年历史中最高的12月总收入记录。 他在那一个月内获得的收入比该物业 历史上任何一个月都要高。这表明黄 金海岸已经重现繁荣！

到一月底，经营者将有一个持续12 个月的稳定业务状况图景，因为他们 已经摆脱了Covid的任何影响。与经 营者、评估师和会计师交谈，如果你 仔细观察，会发现很多管理权业务正 在准备出售。其中一些经营者可能在 疫情之前就准备出售，但在疫情来袭 时被迫坚持下去。现在，他们可以出 售并获得他们所寻求的价格，因为他 们终于得到了有说服力的数据。我预 计，出于这个原因，我们会看到很多 物业涌入市场。和我一起负责黄金海 岸的经纪人对他们所覆盖的区域也有 同感。我们都看到了今年行业活动将 会十分活跃的迹象。

这意味着买家将有很多选择。对于卖 家来说，这并不一定意味着利润价格 乘数会飙升，但它们肯定会继续保持

强劲。利润价格乘数仍然取决于关键 基本面：你的净利润、剩余合约的长 度、你的业务质量和规模与市场上其 他业务的对比。$600,000高利润的 生意仍然可以获得6倍的利润价格乘 数。我们有一些净利润达到 100 万元 的客户打算转型，一旦他们出售，我 们将有一些很好的基准来比较目前的 高端市场，在这个市场业主惜售已经 有一段时间。

对这一切我并不感到惊讶。人们仍然 把黄金海岸视为一个理想的投资地。 我们有本地和州际投资者做好了投资 准备。当大多数澳洲人仍然缺乏出 国旅游的信心时，本地旅游业仍将蓬 勃发展。他们成群结队地来到黄金海 岸，并且会更频繁地回来。这是我们 正在看到的趋势，未来几年我们还将 看到更多。

黄金海岸的永久性长期住宅市场也 非常强劲。在整个 Covid 期间都是 如此。众所周知我们正处于全国性的 租房危机之中。出租房的空置率急剧

下降，而房租涨幅高于全国范围的收 入增长。黄金海岸的住宅市场正经 历着历史上最低的出租空置率，约 为 0.8%。在这个市场上，拥有住宅 管理权业务就像拥有黄金一样，业主 严重惜售。而当它们进入市场时，通 常会非常迅速地被抢购，而在这个领 域中有很多非公开交易正在发生。在 其他地区的市场中可能也是如此，但 黄金海岸尤其明显，因为本地有大量 的州际迁徙和建筑开发，所以有很多 人搬到黄金海岸来租房。此外，房地 产的基本价值在房地产繁荣期间像其 他地方一样得到增长。因此，这是市 场中一个强劲的细分领域，将继续受 到银行和放贷者的青睐和买家的高度 需求。

总之，无论你是短期出租业务或永久 性住宅业务的卖家或买家，2023年对 于黄金海岸来说都是一个令人兴奋的 一年。敬请关注。END

David Adolphe is a Queensland Law Society Accredited Business Law specialist and has been in practice for 20 years. He has advised clients in all manner of business transactions and takes a specific interest in tourism and hospitality matters. David takes a practical approach to delivering the best possible strategic legal advice to clients on all aspects of business and commercial law matters.

Enyo Lawyers is a leading boutique commercial and litigation firm with offices in Brisbane, Gold Coast and Melbourne. The firm focuses on delivering efficient outcomes for clients in small to large sized commercial enterprises.

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Numbers

Words_ Mike Phipps, Mike Phipps Finance

“Here is wisdom. Let him who has understanding calculate the number of the beast, for the number is that of a man; and his number is 666.”

- Revelation 13:18 from the best-selling book of all time

“Woe to you, oh earth and sea, for the devil sends the beast with wrath. Because he knows the time is short. Let him who hath understanding reckon the number of the beast. For it is a human number, its number is six hundred and sixty-six.”

- ‘The Number of the Beast,’ Iron Maiden, 1982 from the best-selling album of the same name

The opportunity to quote Iron Maiden and The Book of Revelation in the same bulletin was just too hard to resist. Forgive me, please. Of course, if our mortgage rate hits 6.66% any time soon I’m outta here!

The use of numbers as a means of calculating and communicating goes back a way. The first known system with numbers as we would recognise them today dates to 3100BC in Egypt. Bones and other artifacts with tally marks suggest that keeping a score or a record goes back even further. Our world today would be unimaginable without numbers.

All modern computers use binary numbers at the core of their operation. A virtual world of zeroes and ones is at the very heart of pretty much every bit of technology we interact with and every process we encounter. Numbers inform our lives and have very significant real-world impacts. From telling us a safe speed to drive, to making our mortgage payments unaffordable, the numbers rule our lives. We can speak the truth with numbers, we can deceive, and we can lie. There is no part of our lives in which numbers don’t play a part. But wait, Mike, surely when my soul mate and I are in the throes of physical intimacy numbers play no part. Be done in five minutes and I can guarantee you your soul mate will have a very specific number in mind. Sadly, the number may be the beginning of the end for what was a wonderful relationship.

Like much in life, when it comes to numbers lots of people like fancy terms and definitions. For some it’s just the default position after years in academia, for others a way to feel superior.

For a very select group that includes politicians and activists it’s a way to hide fundamental lapses of knowledge and/or a complete lack of understanding of the subject matter. For our Reserve Bank governor, it’s a way to test if anyone is listening. Turns out plenty were when he promised no interest rate rises until 2024. Luckily, he’s apologized on the basis he didn’t think anyone would take any notice. I think his number might be up. Nowhere is all this numeric malfeasance more evident than in the worlds of finance and economics. It has ever been thus, and that’s a shame. The fact is that the average

punter, thanks to a substandard education system, has the intellect but not the guidance to understand what’s going on. The result is a population who are largely financially illiterate.

This sad state of affairs is aided and abetted by a banking system with a pretty poor record in transparency and a media who, for the most part, don’t seem to be able to report accurately. The final nail in the finance coffin is legislation that compels lenders to provide borrowers with an almost incomprehensible level of information and disclosure. In fact, our lawmakers appear to take the view that most people are stupid and need to be protected from themselves. Legislation assumes a complete lack of self-responsibility and financial education. It’s a mess.

So, in a one-man crusade to help here’s a few thoughts on how best to see finance and economics through the prism of numeric simplicity. It works for me albeit I’m a pretty simple bloke.

Money

If ever there was a numerically based device less well understood I’m yet to find it. All that we do to plan our economic lives and measure the outcome stems from currency-based values. Here’s the thing, though. Money, of itself, is worthless and as such needs to be seen for what it really is. That’s a way of valuing and exchanging things of value such as labour, goods and services, and assets. You could have a million bucks in the bank but if you can’t use that money to trade for food, shelter and sports cars what’s the point? Start thinking of money as a numeric measure and you’re on the right road.

Interest rates

Rates go up and rates go down. By the time it’s clear they are on the way up the fixed rate horse has probably bolted. If having rate certainty helps you sleep fix before the variable rate starts to move. It’s a punt because you will pay a higher fixed rate in most cases, and you will only be ahead of the game once variable rates rise past your fixed rate. If variable rates don’t rise your punt is a loser. Even if variable rates eventually exceed your fixed rate you are only ahead for the balance term of your fixed rate. Until then you are behind the eight ball and may never get your fixed rate interest premium back. If you are using interest-only debt to invest, be sure the return on that asset exceeds your interest costs. Remember, the return will comprise both day-to-day cash flow and capital growth. If your cash flow doesn’t cover your costs and there’s limited capital appreciation, you’re on a loser. It’s called negative gearing for a reason.

Here’s a simple but useful little formula: Debt x interest rate less income = negative number. Add expected annual asset appreciation = positive number = happy days. Add tax write offs and happier days. Sell at huge profit, take cost base adjusted capital gain, pay some capital gains tax = investment nirvana.

Shares

Like interest rates, shares go up and down. Rising interest rates tend to place pressure on share prices as the rates give improved returns on cash. If you are happy with your share portfolio don’t panic and sell at the bottom. People say they have lost money on shares they haven’t sold. That’s a paper loss, not a real one. If you don’t need the dough, don’t crystallise the loss. Unlike house prices you can see the value of your shares down to the last cent every day. This can create a sense of panic which tends to drive a sell low, buy high mentality in many investors. Resist the temptation to look at them every day.

Return on investment (ROI)

This is where the dreaded percentage calculation rears its ugly head. Percentages can be useful, particularly when comparing investment opportunities or tracking trends. Of course, percentages can also be used to quote Mark Twain, to tell lies, damn lies and statistics.

Anyway, this is a simple calculation of gross return. Take the profit from the investment, divide by the price and multiply by 100. You end up with a number which you can compare with other investment opportunities. Importantly, you also end up with a number you can use to decide if the investment risk is reflected in the return.

Return on Equity (ROE)

Often confused with ROI but usually a very different beast. Most investors borrow after putting in some of their own coin. ROE is the calculation to determine what return that equity will achieve. Here we need to know the adjusted net profit after interest costs, from there it’s the same calculation as ROI. Adjusted profit divided by equity x 100. If you are in a syndicate, simply use your individual equity and your share of the adjusted net.

Leverage

Ah, the miracle of leverage. Put simply, leverage is an investment strategy of using debt to increase potential investment returns. Put even more simply, the more 5% debt you can get to put into a 14% ROI asset the better. And yet, not. Just as leverage can multiply upside opportunities it can also greatly increase downside risk. I think “over leveraged” and “highly leveraged” were two terms most used during the GFC. The trick is to find a balance point where leveraged return and gearing risk can be managed at acceptable levels. This is particularly true in an environment where interest rates have been at historic lows and are rising fast. If you want a benchmark to risk assess ROI, ROE and leverage strategies you could do worse than looking at bank deposit rates and returns on blue chip shares.

Net Present Value of Future Cash Flow

At the risk of lapsing into the esoteric this one is important. If you are in the business of buying assets with term contracts attached (motel leases, management rights) then you are in the future cash flow game. Let’s say you pay a landlord for a few more years on a motel lease or spend some dough lobbying a body corporate for a 5-year top up. Unless you are selling, in which case more years will improve your price, you have basically invested in a future cash flow. You’ve paid today’s money in order to derive a cashflow many years distant.

That future cash flow has a today’s money value and it’s important to appreciate the dynamic at play here. Sadly, I’m not bright enough to explain the formula here and there are way too many variables to make the explanation simple. Talk to your accountant.

Opportunity Cost of Employed Capital

Another pretty simple concept that’s largely overlooked in the numbers game. In essence your choices on how you use your capital come at a cost. A good example is a do-nothing investment strategy. Let’s say your super fund is poorly run and returns are modest while other more appealing super funds are available. The opportunity cost of doing nothing becomes the difference between the two funds.

I think every investment decision should be informed by a “what else could I do with the money” analysis which compares opportunities in the context of risk and return. Of course, if the investment is jewellery for the managing director, then the opportunity cost calculation looks more like this:

Mike says no = opportunity to live elsewhere –desire to retain current assets = visit to jeweller. I’ll leave you with Albert Einstein, a bloke who I suspect could do a way better job of explaining numbers.

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

Ok, now I feel superior. Feels good! END

Accommodation Module Trap

Most readers will be acutely aware of the importance of your complex being in the accommodation module which, apart from reducing some of the red tape associated with the standard module, allows for management rights agreements to be for a term of up to 25 years.

Unsurprisingly, developers who choose what module to apply to the complex they are developing, opt for the accommodation module, often without too much regard as to whether the complex actually qualifies for that module. However, doing so in circumstances where the complex clearly

never qualified for that module, can be a problem for the resident manager.

The effect of the Body Corporate and Community Management Act and various case authorities is that for a new complex to qualify for the accommodation module, when the first CMS is recorded (when the complex is completed), the majority of the lots in the scheme must be intended to be accommodation lots (i.e. lots being let out or immediately available to be let out for shortor long-term residential purposes).

While historically little attention has been paid to this requirement, as a consequence of a relatively recent decision from the Body Corporate Commissioner’s Office, lawyers for managers buying off the plan are investigating this issue with much greater scrutiny. That decision confirmed the right of a body corporate, or even an owner, to subsequently challenge the developer’s selection of the accommodation module in

circumstances where the complex clearly did not qualify. In that case, the outcome was that the complex was ordered to transfer to the standard module.

The good news is that in a subsequent QCAT decision regarding that complex, where Mahoneys represented the manager, the body corporate’s argument that in such case the caretaking and letting agreements were void, was rejected. QCAT accepted the position put forward by Mahoneys that this was not the case, that while the scheme was (albeit incorrectly) initially placed in the accommodation module, the subsequent change to the standard module did not change that initial position as the module change was not retrospective and that in such instances agreements will retain their 25-year term.

The not so good news is that the consequence of the change of module is, based on certain QCAT decisions about the impact of an

Words_ John Mahoney, Mahoneys Founding Partner

assignment on caretaking and letting agreements, likely to be that if these agreements are assigned in the future, the term will reduce to 10 years from the assignment. Still, this is a far better position than the outcome sought by the body corporate.

As a consequence of the decision from the Commissioner’s Office it is likely that off-the-plan buyers of management rights, and subsequent buyers from them, will look closely at the makeup of

unit buyers, i.e. owner occupiers versus investors, when the scheme is established. In the case of an off-the-plan buyer, unless it is clear when they go to contract that the complex will qualify for the accommodation module, they are likely to require a mechanism in the contract to deal with what happens if there are more owner occupiers than investors at settlement which is usually shortly after the scheme is established.

What that mechanism might be will no doubt depend on many factors including the multiplier used to calculate the proposed purchase price, the buyer’s experience in the industry and what appetite the buyer has for risk. It will be interesting to “watch this space” as the industry grapples with yet another twist. However, as has been shown over many years and many challenges, the ever resilient management rights industry will find a way to deal with this latest one. END

Experts in Management Rights and Motel Law

For over 20 years Mahoneys has been one of Australia’s leading

We are a preferred supplier to

Ÿ buying and selling accommodation businesses

Ÿ preparing and reviewing leases, licences and service agreements

Ÿ renewing and varying existing management arrangements

Ÿ assisting with remuneration reviews, disputes and other disagreements

New Kid On The Block

At 27 years old, Joshua Roberts joins ResortBrokers with a decade of sales experience under his belt. Meet our bright new broker for the Mid North Coast of New South Wales whose patch covers Woolgoolga, Coffs Harbour, Port Macquarie, Taree, Forster, Tamworth, Armidale and Kempsey … and everywhere in between.

Born and raised in Sydney’s western suburbs, Joshua Roberts realised he thrived in sales and customer service from an early age. After joining the team at Wilkinson’s Real Estate at 15 he went on to earn his real estate certificate from REINSW and became a part-time sales assistant with Wilkinsons in Riverstone. While still at school, he was holding open homes and showing properties in the afternoons and on weekends.

“I always knew I was going to be in sales because I care a lot about people, and I care about achieving the best results for the people around me,” says Joshua. “I like to work hard. I like to make sure I’m exceeding expectations. I like to get the best for my clients and customers. These things are always front of mind for me. Plus, I’ve always had a passion for property. I probably spend two hours a day online just looking at properties for sale. And now it will be commercial properties.”

Joshua cut his teeth working for Wilkinsons where he stayed for six years from 2010 to 2016. He simultaneously held down a job as a bank clerk with NAB looking after retail clients. A year as a sale rep for Menora Foods, the specialty food wholesaler, further honed his customer service skills.

“I genuinely get invested in all of my interactions and taking the time to hear what a client needs is the difference. Striving for the very best outcome means looking after every client individually. I have found that generally If you look after someone, they will look after you.”

In 2017, he made a foray into car sales and thrived at it. He started as a Mitsubishi salesperson trainee for Nepean Motor Group, a well-known Penrith dealership, and soon graduated to assistant manager. At 22, he was entrusted to sell a car brand that was

completely new to him when he was promoted to the position of Volkswagen commercial manager, managing a team of seven salespeople. His success in the position was rewarded when, out of a staff of 150, he was made Employee of the Year in 2019.

He says recognition came his way just by trying his best. “Every time I turned up to work, I tried to do better than what I was doing the week before,” he says.”

He spent three years with Nepean before landing a position as a new car sales consultant with John Oxley Motors in Port Macquarie where he has been based since.

His wife is from Port Macquarie which prompted their move there in late 2020. Joshua says he was attracted to ResortBrokers because of its peerless reputation as an accommodation property specialist.

“I’m really looking forward to getting to know operators on the Mid North Coast and surrounds,” he says. “I genuinely get invested in all my interactions and taking the time to hear what a client needs is the difference. Striving for the very best outcome means looking after every client individually. I have found that generally if you look after someone, they will look after you.” END

Dedicated to property

With experience dealing in a diverse range of transaction and non-transaction based commercial advisory and property work, we want to guide you through the activities that you undertake in the marketplace to achieve that optimal outcome.

The Importance of Heads of Agreement in Accommodation Transactions

Accommodation transactions, being the purchase and sale of motel leasehold businesses, passive investment purchases or freehold going concern purchases can be complicated transactions that can be difficult to keep on track from initial negotiations through to contracting and ultimately completion.

In order to limit the risk of the deal falling through at any stage, it is important to ensure the transactions start off on the right foot with all parties on the same page. To do this, it is crucial that the parties begin with a Heads of Agreement (HOA).

A heads of agreement, often referred to as an HOA or simply as the ‘Heads’, is a written document that sets out the critical or essential terms between the parties of the transaction such as:

• The names and details of the contracting entities.

• Description of the business, address, contact details, websites and email addresses.

• The purchase price and amounts and timing of payment of deposits.

• Conditions such as due diligence, finance approval, transfer of liquor license and the time frames for the satisfaction of those conditions.

• Any other particular conditions which may apply to the unique circumstances of the transaction (e.g. completion of works, grants of further lease terms or amendments to leases).

• The completion or settlement date.

Parties can also negotiate other terms in the Heads such as obligations of confidentiality or grants of exclusive dealing (where the parties agree not to negotiate any sales or purchases with third parties for a certain period) or this may be done in a separate document. This can be very common where it is intended that purchasers undertake pre-contractual due diligence enquiries with increased costs and risk at this stage.

The purpose of the Heads then is to enable the parties to reach consensus on the essential terms of the transaction so that they can move to the next stage of negotiations of the transaction involving the payment of an initial deposit (which will be applied under the contract) and preparation of the draft contract (or contracts) for the parties to then review, negotiate, execute and exchange. The Heads should be signed and exchanged by the parties.

As the purpose of the Heads is to facilitate consensus in a staged negotiation process, it is strongly advisable that the parties make it clear in the Heads (and in their initial communications) that they do not intend to be legally bound to any purchase or sale until such time as the parties execute and exchange the formal contract. This means that either party can discontinue negotiations at any time, for any reason, with any deposit paid being refunded to the buyer and the parties facing no liability.

The non-binding nature of the Heads is a very important aspect of the negotiation process because the Heads should be viewed as a step on the path of negotiating legally binding contracts. It allows the parties to reach a meeting of the minds on essential terms so that they can feel a certain degree of

confidence that there is a genuine intent to progress the negotiations to a finalized contract without being unintentionally bound to terms yet to be agreed.

This aspect of the Heads can be particularly helpful where one party may be comprised of a group of people (e.g. different family members, a board of directors). The requirement to negotiate and sign a Heads, even if not legally binding, will usually mean the members of the group will need to be consulted and reach agreement between themselves to proceed which may limit (if not eliminate) the risk of a dispute arising between members of the group at a later stage that may derail pre-contractual negotiations. However, each party has a risk that the other may discontinue negotiations at any time resulting in the loss of time, costs and other opportunities. With these costs of doing business in mind, certain precautions should be taken at the Heads stage, such as:

• Parties should be properly vetted at the outset to ensure they are genuine in their intentions, and their capabilities of selling and buying. For example, for vendors comprised of a group, all members should be involved and in agreement with the terms of a Heads even if only one member is the point of contact. For buyers, consideration should be given to previous industry experience and financial capabilities and resources that may reflect a willingness or ability to conduct genuine negotiations and satisfy contractual conditions (e.g. finance approval).

• Negotiations should be conducted in a timely manner to reach execution and exchange of contracts as soon as possible. It may be helpful for the parties to agree to negotiate time frames particularly where there are certain identifiable milestones that need to be reached during the negotiation process so the parties can be kept on track. Parties should be aware that the longer negotiations last the greater the risk that a successful outcome may not be achieved. END

Words_ David Adolphe, Special Counsel, Enyo Lawyers

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 relief managers yourself, before hiring. You’ll find more managers listed on our website: resortbrokers.com.au/buy/reliefmanagers

DILYS & NEIL HARVEY

Motels Nationwide

0420 948 996 neil.dilys@xtra.co.nz

KARLA HARDING

Holiday & Serviced Apartments, Resorts, Boutique Hotels, Bed & Breakfasts

0414 767 499 karla.boutiqueaccomrelief@outlook.com

RICHARD TEMPLE SABINA WUNSCH

All property types, Australia Wide

0412 567 214 richard@rmtsolutions.com.au

CARMEL MOLONEY

All property types, Australia Wide

0413 155 648 info@swmotelyadvisory.com.au

ROGER ANDREWS & JILLIAN CAIN

Hotels & Motels, VIC & SA

0400 483 291 c.m.j64@hotmail.com

Motels QLD Coast VICTORIA MCDONOUGH & BRENDAN HUGHES

Motels, East Coast

0412 138 642 vickymcdonough@bigpond.com.au

GRANT SKINNER

Management Rights Nationwide

0408 996 188 grantandjuliet@bigpond.com

0488 780 071 0403 021 504 jilliancain@optusnet.com.au

DONNA & WALTER SIMMEN

All property types QLD

0497 675 105 info@simmenanderson.com

THE GOOD KNIGHTS

All property types Nationwide

0412 005 537 info@thegoodknights.com.au

resortbrokers.com.au

MARION & PETER KEULEN 0411 865 905 marion_keulen@hotmail.com

Caravan & Holiday Parks

Nationwide DAVID & SANDRA CAIRNS

Management Rights QLD

0411 335 539 moretonbeachhouse@bigpond.com

FRED BISHOP 0429 444 010 flashb2261@yahoo.com.au

Motels Nationwide PETER & MICHELLE JACOBI

Motels & Caravan Parks Nationwide

0427 183 416 casabargara@gmail.com

SUE BARTON 0432 411 900 bartonsue@rocketmail.com

Motels Nationwide

CHRISTINE WILMOTT

All property types QLD

0413 452 263 christine.09@bigpond.com

JOHN & SUSAN DONE

All property types Nationwide

0447 077 420 suedone@mac.com

SHARON & STEPHEN DEWSBURY

All property types Nationwide

0402 142 075 sharon@airliebeach.net.au

GEORGIANNA DYSON

Motels Nationwide

0438 527 894 georgi1440@icloud.com

KRISTY & LANCE BUTT

All property types QLD & NSW

0428 902 878 kristymay22@outlook.com

PAUL & TANYA GREEN

All property types NSW

0411 874 392 tanyacooper1@msn.com

KAREN & ROBERT NISBET

Motel & Caravan Parks Nationwide

0427 933 414 0488 934 899 karen.nisbet70@gmail.com.au

CHARLES & COLLEEN LUBANS

Management Rights QLD

0432 586 099 colleenlubans@hotmail.com

THOMAS GRAF

Management Rights, Motels, Caravan Parks & Resorts, Nationwide

0438 014 035 07 4032 1573 tomas49@me.com

BRUCE DRURY

Motel & Caravan Parks Nationwide

0428 631 573 bruceandsandra34@gmail.com

SCOTT & LIN MCKENZIE

Management Rights Brisbane Only

0451 010 117 scott@mcwu.com.au

GRAEME & DEBORAH FILIPPE

Motels, NSW & VIC

0427 512 751 graemedebmotelmanagers@outlook.com

BAY6 MOTEL MANAGEMENT

Motels Nationwide

0416 016 614 info@businessbay6.com.au

CHRIS CAMPBELL

Motel & Management Rights Nationwide

0449 957 414 cj.jwcampbell@gmail.com

CHARLIE MILLINGTON & JACKY RYAN

Caravan Parks & Motels Nationwide

jacquelineryan1@bigpond.com

Meet our team

Introducing ResortBrokers' national team of accommodation business and property brokers. We are the industry experts at your service in every state and territory.

PAUL MUELLER

Broker Gold Coast North

0439 255 507 paul@resortbrokers.com.au

Broker Gold Coast South & Northern NSW

TODD WARNER 0438 170 763 todd@resortbrokers.com.au

JASON VOGLER 0427 431 213 jasonv@resortbrokers.com.au

Broker South East & South West QLD

NATHAN BENJAMIN 0459 955 649 nathanb@resortbrokers.com.au

Broker Central QLD

JOSHUA ROBERTS 0439 654 464 joshua@resortbrokers.com.au

Broker Gold Coast & Northern NSW

Broker Gold Coast & Northern NSW

MIGUEL BOZINA 0419 848 444 miguel@resortbrokers.com.au

GLENN MILLAR 0412 277 804 glenn@resortbrokers.com.au

CHENOA DANIEL 0403 143 151 chenoa@resortbrokers.com.au

Broker Sunshine Coast

Broker

Townsville and Surrounds

CHRIS KELLY

Broker NSW Central West

GLEN CUMMINS 0427 215 863 glen@resortbrokers.com.au

Broker North QLD

JACQUELINE FEATHERBY

Broker NSW Central Coast, Hunter & Blue Mountains

Broker Far North QLD

SHANE CROGHAN 0418 451 006 shanec@resortbrokers.com.au

RUSSELL ROGERS

Broker NSW South Coast

DAVID FAIERS 0432 766 788 davidf@resortbrokers.com.au

Broker Sunshine Coast & Fraser Coast

SARAH HUTCHINS

Sales Manager to Russell Rogers, South Coast NSW

DES FAGG 0427 849 119 des@resortbrokers.com.au 0407 020 443 0431 055 221 0424 497 056 0416 166 909 sarah@resortbrokers.com.au chris@resortbrokers.com.au jacqueline@resortbrokers.com.au russell@resortbrokers.com.au

559 545 debbie@resortbrokers.com.au

ResortBrokers

For more information, contact Marissa von Stieglitz at marissa@resortbrokers.com.au or 0437 198 164

is going from strength to strength, become a part of our family.