Informer Issue 107

ISSUE N O . 107

AUSTRALIA’S BEST ACCOMMODATION INVESTMENT SHOWCASE

NUMBER ONE IN HOTEL FIT OUTS

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What’s Inside Informer

Old

Our Director of New Developments and Hotels Tim Crooks checks out the hottest hotel launches.

Property Economist feature. Our inhouse number-cruncher Josh Mangleson explains how ResortBrokers’ intern program is helping the next generation of industry professionals. New Kids on the Block. Meet our newest team members, Syd Douglas on the Gold Coast and Twee Nguyen in Victoria.

80 Relief Managers. If you need a break, you’ll need a manager. Find one here.

82 Meet our Team. Resortbrokers’ national directory #weareeverywhere

On the Market. Managing Director Trudy Crooks on the accommodation industry’s new players looking to reposition old assets.

Q4 Sales Activity. our biggest deals from around the country for Q4.

On the Road. Northern Interests CEO Ben Seekamp on what makes a good roadhouse and on giving back to the outback.

Regional Snapshot: Sunshine Coast. Our dynamic duo Glenn Millar and Chenoa Daniel say there’s ample room for growth in the Sunny Coast’s accommodation market.

School Cool. Our cover story celebrates Australia’s retro motels and our abiding affection for them across the decades.

Faces of the Industry. Managing Director of Radisson Hotels Australasia, Lachlan Hoswell, talks to us about the group’s ambitious plans for the region.

Property Profile. How a Hong Kong financier turned a Charters Towers mental hospital into a boutique accommodation property.

Words_Ian Crooks, Chairman

EL DORADO Surfers Paradise, QLD

THE PINK HOTEL Coolangatta, QLD

THE SAILS MOTEL & POOL CLUB Brunswick Heads, NSW

They say if you hold onto something long enough it will eventually come back into fashion. That’s certainly true of some clothes I own (good taste never dates), and it’s also true of retro motels, which is our theme for this issue of Informer.

There’s no doubt about it, there’s a great demand for retro motels. Back in the day, I sold one of them, El Dorado in Surfers Paradise. It was a cracker of a motel, ultra-modern for its time and, if memory serves me correctly, the first motel in Surfers Paradise where guests could park directly outside their room. It’s gone now, but I imagine if it were around today it would be all the rage.

Australian holidaymakers seem very taken by retro motels. And they can be very profitable for owners. If they do a good job retro-fying (is that a word?) the motel they can achieve great tariffs. I know of one such motel on the northern NSW coast that was very rundown. The family who bought it completely gutted it and refurbished it in the retro style. This didn’t cost them anywhere near the cost of buying a new motel, and now they’re charging around $600 per night while enjoying strong occupancy. I imagine the revival

of the roadside motel, especially of the retro kind, will continue for some time. Covid has made us fall in love with Australia as a tourist destination again and the great Australian road trip is back in vogue.

We’re on the road ourselves this issue. We shine our headlights on the Sunshine Coast, which, as our dynamic duo of Glenn and Chenoa write, still has a long way to go to fully realise its potential. The Sunshine Coast’s star is rising and is set to rise even further. This Easter, the Sunshine Coast was the third most popular tourist destination in the country after Melbourne and Sydney, as revealed in a recent Tourism and Transport Forum report. We also visit roadhouses in South Australia and the Northern Territory, owned by Adelaide-based Northern Interests who have steadily grown their portfolio of six properties since the late 1990s. We also speak with an operator of a unique accommodation property in Charters Tower that was once a mental hospital. We also talk with Lachlan Hoswell, who ResortBrokers knows very well from his long career in the industry, who’s now spearheading Radisson Hotel Group’s expansion in Australasia.

We’re delighted to introduce our two new brokers, Syd Douglas on the Gold Coast and Twee Nguyen in Victoria. Syd joins us after seven successful years as a property manager, including the last four years at Boardwalk Burleigh Beach. Twee has operated two successful management rights businesses in Melbourne for the last seven years. We first met Twee when she attended a ResortBrokers’ seminar on the Gold Coast in 2014, which encouraged her to get into the management rights business. Now, she’s joined us. I wish both Syd and Twee well, and I’m sure they’ll do well. You’ll also notice in this issue we have offshore properties listed for sale: four in Vanuatu and eight beautiful villas in Bali. Finally, I’m delighted by ResortBrokers’ outstanding Q3 results and want to congratulate all vendors and buyers who’ve transacted through us this quarter. These results indicate the strength and resilience of the accommodation property sector nationally coming off some tough years due to Covid. My entire career, I’ve held the view there’s no better business than running an accommodation property, and I’ve no reason to doubt it now.

Enjoy the issue. END

MOTEL MOLLY Mollymook, NSW

THE CUBANA RESORT Nambucca Heads, NSW

BLUE WATER MOTEL Kingscliff, NSW

BLACK DOLPHIN MOTEL Merimbula, NSW

Image courtesy of the National Archives of Australia.

Are you

positioned for a reposition?

Everywhere we look these days we’re being encouraged to recycle — and that’s no bad thing. In our industry, a recycling of sorts is also taking place. Up and down the country, we’re seeing a recycling of accommodation property assets. Except we don’t call it recycling, we call it “repositioning.” Old motels are being converted into retirement villages. Retirement villages are being turned into affordable housing. And on and on it goes. This is nothing new. Different purposes have been found for buildings as long as buildings have existed. But what’s interesting is the new money that has entered this space and the opportunities this creates for the owners of accommodation property assets.

Last year, ResortBrokers sold Port Denison Motor Inn, located in Bowen in Queensland’s Whitsunday Region. The buyer was ASX-listed Eureka Group Holdings which is in the business of providing quality, affordable accommodation for seniors. This property had a very interesting history. It was originally built in 2001 as a 46-unit retirement village, then it was repositioned as a short-term holiday let, and now Eureka plans to reposition it once again as a retirement village to the tune of $105 million. And the vendor was very happy to let it go for a figure just over $5 million, which was a phenomenal return on their investment.

retirement homes — a 30-unit property in Windsor, Brisbane, and a 50-unit property in Toowoomba — for conversion into social housing.

These purchases are part of a $3.9 billion investment by the state government in social housing, consisting of new builds as well as repurposed assets, such as the ones sold by Aveo.

What’s clear is that there are new buyers with considerable capital entering the repurposing space, both government and corporate.

Private sector buyers will always look at past trade, but these new buyers are now looking much closer at the underlying real estate with an eye to repositioning it. Traditionally, sales have transacted largely on what the asset has been earning.

Now, we’re seeing a new kind of buyer looking at properties in great locations and building their own cashflows based on what they think the asset can generate if repositioned. This, in turn, has led to record sales and some very happy vendors.

I see no end to this trend. Australian towns and cities are continuing to grow apace and are pushing the limits of their own boundaries, especially in our regions. Traditionally, motels and caravan parks were built on the outskirts of a town. But as those towns have grown, those assets are now sitting on great pieces of land. What was once the outskirts of a town is now virtually in the heart of town!

It’s a trend we’re seeing right across Australia — assets changing hands for changing purposes. At present, we’re in talks with the NSW government for the sale of an asset listed with us on the Central Coast. If it comes off, the property may be repositioned towards social housing, which would be great to see.

In Queensland, the state government has been buying up former aged care facilities to be repurposed as social housing. In January, it purchased a 30-unit former aged care facility in Clayfield from Aveo Group for $9.4 million. In March, it purchased two more Aveo

The domestic tourism boom has highlighted the need for better accommodation throughout regional and coastal Australia. Cashed-up funds and operators are responding to that need. They’re looking at these assets differently, not just on what they’ve earned in the past but on what they think they can earn in the future if repositioned.

What does all this mean for you? Well, if you’re a landlord of one of these assets and there’s big money splashing about, perhaps it’s worth seizing the moment. Opportunity, like land, is a non-renewable resource. And, as the saying goes, opportunity waits for no one.

“Opportunity, like land, is a non-renewable resource.”

Big funds are looking at old assets with new eyes to reposition them, which is creating enormous opportunities for owners.

Yields for freehold going concerns are very tight at present. If your passive investment is underperforming in the current market, then perhaps it’s worth having a conversation with your broker about selling. If your lessee is selling up, perhaps it’s time to reunite the freehold with the leasehold and selling the whole kit and caboodle. The demand is certainly there from this new generation of funds looking to reposition underperforming assets.

The freehold passive of this 4.5-star motel came to market for the first time since it opened in 2008 and sold for a 6.7 per cent return on investment. The 52-key hotel is one of Toowoomba’s premium assets and enjoys high occupancy supported by corporate and leisure trade. Toowoomba continues to enjoy high investor appeal as the epicentre of Queensland’s Darling Downs. Sold by Ian Crooks and Jason Vogler

Bridge Motel Wellington_Wellington NSW

The freehold going concern of the largest motel in Wellington was sold by Chris Kelly for a 17.3 per cent yield. This 35-key motel has a mainly corporate clientele with a solid 75 per cent occupancy. The buyer had been looking for a freehold going concern to place under management rather than a passive investment. Freehold going concerns continue to be in short supply in the Central West, but there’s plenty of buyers helped by favourable yields and cap rates.

A lot of landlords will naturally question why they should sell. They will say, this has been a great passive investment for me, and passives are hard to come by, so I’d better hang on to it. It’s true, passives are in short supply.

But it’s also true that demand is sky high from large funds on the hunt for prized real estate. If your asset is presently underrented, there’s enormous upside in reuniting the leasehold with the freehold and selling the whole shebang.

Finally, ResortBrokers’ outstanding Q3 results indicate the strength of the accommodation property sector nationally. Across the country, we settled 123 properties totalling $246 million last quarter, with another 82 new deals worth $169 million heading towards settlement before the end of the financial year.

Most encouragingly, our number of enquires for the quarter was 8,802, which surpassed pre-Covid levels. In April we also saw our strongest month on record for the number of enquiries for freehold going concerns. Interest in this asset class has surged by 75 per cent compared to this time last year.

Ultimately, the accommodation property business is about people. We love setting people up in a great business, and we love helping people sell their business to set them up for their next step or a well-deserved retirement. So, hearty congratulations to all vendors and buyers who transacted through us this quarter. We’re glad we could help make it happen for you. END

Travelway Motel_Port Pirie SA

The vendor had owned and operated this property for 41 years! SA continues to see very strong buyer enquires, with enormous interest for quality stock, especially in the regions. The freehold going concern of the 29-key Travelway made a highly attractive offering with a strong repeat clientele made up of mostly workers and corporates. Sold to an experienced buyer in an off-market sale brokered by our top-selling agent this FY, Kelli Crouch

Grange MR portfolio_Brisbane QLD

Alex Cook and Jessie Shi sold this trio of business-only management rights in one line: the 169-unit Linton Apartments in Woolloongabba, and the 64-unit Mahogany and 55-unit Tranquillity Gardens, both in Mt Gravatt. The vendor was a Sydney-based group, and the buyer was an established management rights operator on the Gold Coast looking to enter the Brisbane market, which they did with this purchase, which went for a 6x multiplier.

Platinum International_Toowoomba QLD

“It’s a trend we’re seeing right across Australia — assets changing hands for changing purposes.”

Words_Trudy Crooks, Managing Director

Our Top Recent Sales & Listings QTR 4

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

LISTING

GRANTHAM FARMWORKERS

LODGE FREEHOLD, GRANTHAM, QLD

High income housing asset with 272 beds running at 100% occupancy.

Nathan Eades

M: 0448 339 920

Jason Vogler

M: 0427 431 213

SOLD

OCEAN SHORES MOTEL LEASEHOLD, OCEAN SHORES, NSW

30-year lease on nifty 12-room motel, only minutes to Brunswick Heads and Byron Bay.

Miguel Bozina M: 0419 848 444

UNDER OFFER

LE BEACH HOLIDAY APARTMENTS

MANAGEMENT RIGHTS, BURLEIGH HEADS, QLD

The management rights to this Burleigh Heads beachfront beauty is business-only and boasts a solid $530K net.

Todd Warner M: 0438 170 763

SOLD

GOLDEN REEF MOTOR INN INVESTMENT, STRATHDALE, VIC

Handy 26-key freehold passive investment in the heart of Bendigo.

Debbie Cooper M: 0427 559 545

Trudy Crooks M: 0477 882 210

UNDER OFFER

ATHERTON HINTERLAND MOTEL LEASEHOLD, ATHERTON, QLD Brand new 30-year lease offering an exceptional 48% ROI.

Shane Croghan M: 0418 451 006

UNDER OFFER

QUEST CRONULLA BEACH LEASEHOLD, CRONULLA BEACH, NSW

Prime Cronulla Beach opportunity to join the highly successful Quest brand.

Jacqueline Featherby

M: 0424 497 056

Tim Mayoh

M: 0419 038 882

LISTING

BATEMANS BAY LODGE FREEHOLD

BATEMANS BAY, NSW

Turnkey business opportunity for 43-room prime waterfront property.

Russell Rogers M: 0416 166 909

Sarah Hutchins M: 0407 020 443

LISTING

ATRIO APARTMENTS & THE MIRO MANAGEMENT RIGHTS, FORTITUDE VALLEY, QLD

Absolutely prime short-stay MR in Brisbane CBD fringe netting $1.35M.

Alex Cook M: 0467 600 610

Frank Matus M: 0435 742 698

SOLD VICTORIA COVE

MANAGEMENT RIGHTS, VICTORIA POINT, QLD

Beautiful 150-townhouse bayside complex netting $480K.

Jeff Keast M: 0414 669 007

Alex Cook M: 0467 600 610

SOLD QUEST JOONDALUP LEASEHOLD, JOONDALUP, WA

90-key Quest apartment hotel in Perth’s northern growth corridor netting over $540K.

Blair Macdonald M: 0433 149 144

LISTING

KIN KORA VILLAGE CARAVAN PARK FREEHOLD, GLADSTONE, QLD

11-acre mixed-use caravan park and manufactured housing estate.

Nathan Benjamin M: 0459 955 649

UNDER OFFER

TWO RIVERS MOTEL FREEHOLD, WENTWORTH, NSW

Easy-to-run 25-room motel offering incredible value at $40K per key.

Russell Rogers M: 0416 166 909

Kelli Crouch M: 0410 441 750

SOLD

SCAMANDER SANCTUARY HOLIDAY PARK LEASEHOLD, SCAMANDER, VIC

New 30-year lease of a glamping and caravan park on Tassie’s east coast.

Marissa von Stieglitz M: 0437 198 164

New South Wales

01. Motel Molly, Mollymook Motel Molly’s owners call their refurb “Moroccan inspired,” but the hotel’s impeccable pastel palette makes it retro enough. motelmolly.com.au

02. The Black Dolphin Motel, Merimbula

Designed by famed Australian architect Robin Boyd, this 1960 roadside icon was recently sold by ResortBrokers’ Russell Rogers to ASX-listed Aspen Group and is now part of Tween Waters Merimbula. aspenholidayparks.com.au/ tween-waters-merimbula

03. The Blue Water Motel, Kingscliff This Tweed region retro revival has a soothing pastel palette and a cool coastal vibe. thebluewatermotel.com.au

The 18-key The Isla opened its burntorange doors in 2022 after a makeover featuring a sunset-inspired colour palette and a nod to the ‘70s. theisla.com.au

Built in the ‘60s as The Casablanca Motel, the 22-key motel was given a makeover in 2015. The hacienda archways leading from the carpark to the rooms are a nice twist on the classic roadside motel. thesailsmotel.com.au

Opened in 1962 during the heyday of the roadside motel, the 45-key Astor Motel reopened in 2021 after a refurb which restored its retro roots by bathing it in vibrant pink, orange and teal, beautifully contrasted by white. The revamp reestablished the Astor as an Albury landmark and is now enjoying the “Fine Times!” promised by its neon sign. astorhotelalbury.com.au

04. The Isla, Batemans Bay

05. The Sails Motel & Pool Club, Brunswick Heads

06. The Astor Hotel Motel, Albury

This 13-key Shoalhaven sanctuary has been newly renovated with bright orange doors beautifully offset by white. theberryview.com.au

The 10-key Blueys Motel is relaxed, coastal chic with an appealing palette of teal, blue and white. blueysmotel.com.au

The 12-key Chalet Motel is a classic ‘60s motel with a tropical vibe and one of the few dog friendly retro offerings around. chaletmotel.com.au

This 20-key Wollongong wonder is textbook retro: two-storey red brick, a curled-iron banister and gorgeous green, pink, blue and yellow doors. thirroulbeachmotel.com.au

Turning heads at Nambucca Heads is the 37-key The Cubana with its bright colour scheme and setting on 5 acres of tropical gardens. thecubananambucca.com.au

The Sunseeker is a 12-key ‘80s brick motel given a retro reboot a few years ago. thesunseeker.com.au

Formerly a surfing motel called The Hideaway, the 22-key Halcyon House re-opened in 2015 after extensive renovations that saw it reborn into a boutique offering that evokes memories of carefree summers past. halcyonhouse.com.au

07. The Berry View, Berry

08. Blueys Motel, Blueys Beach

09. Chalet Motel, Brunswick Heads

10. Thirroul Beach Motel, Wollongong

11. The Sunseeker, Byron Bay

12. The Cubana, Nambucca Heads

13. Halcyon House, Cabarita

Victoria

14. Kyneton Springs Motel, Kyneton

Recently reopened after a retro refurb, the 20-key Kyneton Springs Motel, about an hour’s drive from Melbourne, has serious street presence with its eye-catching three-part neon sign. The retro renaissance continues inside with kitschy cool rooms adorned with pop art featuring ‘50s icon Jayne Mansfield. kynetonspringsmotel.com

15. Sunnymead, Aireys Inlet

Previously Lightkeepers Inn Motel, this 20-key boutique hotel on the Great Ocean Road re-opened in February after a retro revival boasting whitewashed walls, palm trees and orangepainted doors. sunnymeadhotel.com.au

16. River Drive Motel, Tarwin Lower

This cosy 5-key hotel was lovingly refurbished with a nod to nostalgia. riverdrivemotel.com.au

South Australia

17. Seaview Motel, Kingscote

The first ever motel built on Kangaroo Island in the 1920s, the heritage-listed 17-key Seaview has enough pastels to warrant inclusion in the retro camp. seaview.net.au

18. Retro Paradise, Adelaide

This one-bedroom workers’ cottage was built in the 1880s. Today, it’s a magnificent melange of vintage Hawaiian, retro atomic and pop art styles. retroparadiso.com.au

19. The Retro Shack, Aldinga Beach

Built in 1955 and renovated a la retro a few years ago, The Retro Shack is adorned with vintage wares such as Tretchikoff prints and plastic flamingos. theretroshack.com

20. 1965 Lobethal, Lobethal

This Adelaide Hills hotel is tiny but has ‘60s in spades. Vintage lamps, Danish furniture, a vinyl record player and Onkaparinga blankets that first put Lobethal on the map, way back when. 1965lobethalbnb.com.au

21. Marion Hotel, Adelaide

This 62-key hotel’s reception has serious late ‘60s cred and was reopened in 2018 after a $20 million refurb. marionhotel.com.au

Tasmania

22.

Riverfront Motel & Villas, Rosetta

Built in 1960, this hotel’s signature feature is a gigantic Googie-style double catenary arch, originally created to celebrate the 1954 Royal Visit. riverfronthobart.com

23.

Alabama Hotel, Hobart

Opened as a hotel in 1867, “The Bam” as it is affectionately known had a midcentury makeover about a decade ago. ago and is now a 17-key masterpiece. alabamahobart.com.au

Queensland

24.

Built in the 1950s, this 10-key weatherboard wonder was restored to retro glory about 15 years ago. The self-described “beach shack” is painted mint green and adorns its front garden with ‘50s nostalgic: rainbow-coloured beach umbrellas, red-and-white striped sling chairs and a white picket fence. Oh, and plastic pink flamingos. lacostamotel.com.au

the

aesthetic. Opened in the 1953 as The Ocean View Motel, this 17-key hotel was given a retro reboot in 2018. Undoubtedly, this is Australia’s most iconic retro hotel and consequently one of its most Instagrammed. A Muriel’s Wedding cameo adds to its star power. thepinkhotelcoolangatta.com

Palm Beach Pastel perfection, the 7-key Mysa Motel occupies the site of former Gold Coast institution, the Palm Trees Motel. Mysa pays homage to its bygone occupant by way of two intertwined palm trees in its flashy pink neon marquee. themysamotel.com

A rare retro(ish) offering on the Sunshine Coast. The 10-key Loea opposite the Maroochy River has a vintage coffee van and an understated beach vibe. loea.com.au

La Costa Motel, Bilinga

25. The Pink Hotel, Coolangatta Awash with pink, this mid-century masterpiece ticks every box of

retro

26. The Mysa Motel, Palm Beach

27. Loea Boutique Hotel, Maroochydore

28. Ventura Beach Motel, Mermaid Beach

This classic ‘70s Mermaid walk-up shows its retro credentials with a coat of powder blue and candy pink paint.

venturabeachmotel.com.au

29. Blue Heron Motel, Mermaid Beach

Calling itself a “classic seventies motel,” this 14-key Mermaid motel has retro-fied its reception, and the kidney-shaped pool out back is mid-century magnificence. blueheronmotel.com.au

Western Australia

30. Indian Ocean Hotel, Scarborough

Built in 1968, the then White Sands Motel was modelled after the famous Sands Hotel in Las Vegas. During the ‘70s, this 59-key beachside hotel was the place to stay for bands touring Perth, including Led Zeppelin and The Rolling Stones. Today, the Indian Ocean Hotel keeps the beat going as a live music venue and with inspired installation art in the shape of a giant amplifier. indianoceanhotel.com.au

Northern Territory

31. K – Town Hotel, Katherine

This 20-key Katherine hotel is a classic roadside inn… and stupendously pink. ktownhotel.com.au

Quay & Isle Residences

NEWSTEAD, QLD

‘Quay’ and ‘Isle’, two architecturally stunning river-side high-rises, are the latest exciting instalments of Mirvac’s landmark Waterfront Newstead Precinct.

Comprising c. 127 apartments in each tower and offering a range of resort-style facilities, Quay is scheduled for completion in mid-2024, with Isle to follow in 2025. Both rising 25 levels to enjoy magnificent river and park views from their prime Newstead locations, these two exceptional buildings are destined to set a new benchmark for refined urban living.

‘Quay’ and ‘Isle’ represent an opportunity to secure large-scale, off-the-plan Management Rights in Brisbane. Combined with the exceptional quality and prime location, makes for a highly desirable offering.

For the astute, experienced operator, this is a rare opportunity to acquire highly sought after business in its infancy. The successful purchaser will benefit from a considerable BC salary, 25-year accommodation module agreement and secure operational areas. ResortBrokers will shortly be inviting Expressions of Interest for these truly exceptional marquee assets. Interested parties will be required to sign confidentiality agreements and inspections are by appointment only. Dataroom and EOI closing date information will be provided.

Before acting on any information in this publication, purchasers should fully consider the appropriateness of the information, having regard to their objectives, and financial and tax situation and needs, and seek their own advice from appropriately qualified advisers.

All images are artist’s impression. Architecture, services and finishes are indicative only and subject to change. Image shows upgraded finishes and fittings options. Furnishings are not included in this apartment. Views depicted are indicative only. Views and view corridors may be affected by other developments and planning issues outside of the control of Mirvac. The location, extent, height and design of the upstand balustrades is subject to change.

What’s Cool In The Industry

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

Tim Crooks

m: 0417 544 562

e: tim@resortbrokers.com.au

Dive Bar

In 2010, divers exploring the Åland Islands off the coast of Finland discovered a shipwreck with 46 perfectly preserved bottles of Veuve Clicquot champagne, untouched for 170 years. Inspired by how well this bounty of bubbly aged over time in deep water, Veuve Clicquot decided to do it all over again. In 2014, the Champagne house submerged 300 bottles and 50 magnums of its champagne at the same location.

To showcase the results of this eccentric experiment, Veuve Clicquot is offering its three-day “ v” experience in June. This includes a comparative tasting of the submerged champagne alongside Veuve Clicquot’s regular variety. Certified divers will be able to descend into the depths to see the Åland Vault, where the aging bottles are submerged. veuveclicquot.com/en-int/cellar-in-the-sea-experience

Rolling In It

Melbourne keeps bringing it on the hotel front. March saw two 5-star openings: The Ritz-Carlton Melbourne on Lonsdale St, which has bragging rights of being Australia’s tallest hotel (the lobby is on the 80th floor), and Le Méridien Melbourne on Bourke St, which was originally a hotel, then a theatre, then a cinema, then a nightclub … and back to a hotel again. But my pick of Melbourne openings is The Royce Hotel which rolled out the carpet in February. This Art Deco darling on St Kilda Rd in South Yarra was built in 1928 as a dealership for luxury cars, including Rolls Royce, hence the name. Now, it’s reopened as a 94-suite boutique hotel after a two-year reno. roycehotel.com.au

OWO wow

Singapore’s celebrated Raffles chain, part of Accor since 2015, has reimagined London’s Old War Office (OWO) as a swanky hotel. The Edwardian-era OWO, where Churchill once orchestrated Allied forces in WWII, boasts luxury guest rooms and suites. Raffles London at The OWO is the chain’s first UK opening. If these interiors seem familiar, it’s because you’ve seen them before. They’ve featured in every Daniel Craig Bond film from Casino Royale to No Time to Die. Raffles London at The OWO opened May 8 to coincide with the coronation of King Charles. theowo.london

A Radisson

Individual

Marquee brand Radisson Hotel Group has a mammoth global presence but only a small footprint in this part of the world. Lachlan Hoswell is looking to change that.

A little more than six months into his new role as Managing Director Australasia of Radisson Hotel Group, Lachlan Hoswell has ambitious plans to drive the group’s growth here.

While the 114-year hotel giant has an international presence of more than 1,700 hotels in operation or development, including an operating portfolio of over 100 properties in India and 76 in China, its presence in Australasia is limited to four hotels with one each in Melbourne, Sydney, Fiji and Papua New Guinea.

In Australia, the group’s two flagship properties are Radisson on Flagstaff Gardens Melbourne and Radisson Blu Plaza Hotel Sydney. Since joining Radisson in October 2022 after an 11-year stint as general counsel and commercial officer for Minor Hotels, Hoswell has been tasked with driving the group’s expansion in a huge expanse of territory that includes Australia, New Zealand, Fiji, New Caledonia, Papua New Guinea, Vanuatu, Solomon Islands and other islands in the Pacific.

“We’re looking to aggressively grow our portfolio in this region,” says 50-year-old Hoswell. “Obviously, you always want more hotels in Sydney and Melbourne. But we’re also keen to get ourselves into

markets like Brisbane, Canberra, Adelaide, Gold Coast, Auckland and Wellington.

“And when you go to the islands themselves, Fiji, Vanuatu, New Caledonia, they’re all places we think the group can do well in.”

So far, Hoswell has signed two new hotels to be constructed in Queenstown, the 171-key Radisson Blu Hotel, Queenstown Remarkables Park and 257-key Radisson Queenstown Remarkables Park, which are next door to each other and within walking distance of the Queenstown Events Centre and close to the Remarkables ski fields.

Radisson Hotel Group also has a pipeline of new openings for Lake Tekapo, located halfway between Queenstown and Christchurch, Eden, and Radisson Collection hotels in the Blue Mountains and Queenstown.

“We’ve also had letters of intent signed this year, and we are close to finalising a number of these,” he says. “Radisson Hotel Group has a portfolio of well-known global brands, and we have an extremely strong presence in leading international source markets for Australasia like China, India and Europe.

“We’ve been focused on innovation and our strategic priorities are constantly evolving so that we not only deliver strong revenue but do so efficiently to better serve our owners and partners.”

Hoswell says the group’s agility enables it to put forward better commercial terms than other big majors.

“We do different deal types,” he says. “We lease as well. We’ll underwrite our management agreements. We’ve got a new franchising package we’re putting forward this year that we’re looking to include services like revenue management and reservations. So, we know when our brand is on the door we’re going to make a difference to owners.

“It’s not just about distribution. It’s about what services we can add that are going to make life better for a franchisee. Our revenue management services allows owners to have access to their own specialist dedicated revenue manager who has the latest revenue management systems to maximise their performance at cost better than having a revenue manager onsite. Even things like our essential reservations’ hours. If an operator wants to operate only between 9 am and 5 pm, but they want to redirect calls of a nighttime, they can redirect calls to us.”

Faces of the Industry

Another useful string to the group’s acquisitions bow is Radisson Individuals, its affiliation brand. This allows an existing hotel to join the Radisson family but retain its own individuality. The offering sets the group apart from other major hotel brands. In 2022, the group made its first foray into Papua New Guinea this way by opening the 156-key Grand Papua Hotel in central Port Moresby.

“When you’re talking top tier hotel groups, our Radisson Individuals brand is unique,” says Hoswell. “The smaller hotel groups have what’s called a ‘white label’ presence, which means they operate the hotel, but you don’t know they do. The majors don’t do that.

“Radisson Individuals will be a very compelling regional brand because it allows an existing hotel to plug into Radisson Hotel Group’s global distribution, but they can keep their own brand.

“Their property is what it is but is referred to as a Radisson Individuals property.

“It means it’s a low transition cost to an owner as well. So rather than us sitting there and saying, look it must be a Radisson Hotel, these are the brand standards, you need to change all your showers, change your furniture, change this, change that, provided you sit in that upscale market segment you really don’t have to do too much to jump onboard.

“A lot of individual owners like to hold onto their individuality, so I think there’s some strong merit behind our Radisson Individuals brand.”

Hoswell thinks the Radisson Individuals brand would be perfect for established upscale hotels on the Gold Coast, Brisbane and Sunshine Coast.

“For us, a good management rights offering, whether it’s Gold Coast,

Brisbane or Sunshine Coast, Radisson Individuals could be a perfect fit,” he says. “I know there are a few conventional competitors in that space, but they’re not going to give you the global presence of Radisson Hotel Group.

“For us to be able to introduce some additional services like revenue management, reservations and other key things we can support them with, I think that could be a good fit for properties who want to broaden their client base.”

Hoswell is a 20-year hospitality industry veteran. He began his hospitality career as legal counsel for Wyndham in 2002 in their development team, then with Accor where in addition to his in-house legal role he rose to the executive team.

After four years with Accor, he joined the up-and-coming Thaiheadquartered Minor Hotels where his legal and commercial roles synergised. Hoswell says the fusing of his roles helped his transition to his new role with Radisson.

“When I was at Minor my role evolved, so pretty much the last five years at Minor I was leading development,” says Hoswell. “I was overseeing the legal team, but I wasn’t tools-on anymore.

“I oversaw the property team, the contract team, sat on the executive committee, and I was a director of the organisation.

“I had already started moving in a different direction within Minor. So, I had a lot of knowledge to take with me into Radisson Hotel Group. Obviously, Radisson Hotel Group is very different to Minor.

“But with the network of people I have, and the brand Radisson Hotel Group is, this allowed me

Radisson Blu Resort_Fiji Radisson on Flagstaff Gardens_Melbourne VIC

to make the transition relatively smoothly. So far, so good.”

Hoswell says one of the biggest changes he’s seen in his two-decade career has been the rise of the Chinese and Indian tourist markets.

“Australasia is seen as a very desirable location to holiday for these markets,” says Hoswell.

“We provide natural beauty with a well developed tourism industry, and a safe environment to travel.”

Since 2018, Radisson Hotel Group has been a subsidiary of Jin Jiang International, which is one of the leading hotel operators with a global portfolio of over 11,000 hotels.

“Jin Jiang’s loyalty program alone has 180 million members,” says Hoswell. “The size of the Chinese market, we just can’t comprehend that volume as a membership base.”

As for the group’s plans in Australia, Hoswell sees regional areas getting stronger with international visitors on top of the already wellestablished tourist destinations.

“It’s going to open up more regional tourism to international travellers, which I think will be a positive trend in the future,” he says.

Based in Radisson Hotel Group’s Sydney business unit, Hoswell resides in Buddina on the Sunshine Coast, where he finds himself

on weekends when he’s not travelling.

“I’ve been fortunate to work for some of the best hotel groups in the world but still live in one of the best places in the world,” he says. “I’m very blessed to live where I do and have the job that I do.”

While hard pushed to name a favourite Radisson hotel, Hoswell says the group’s Fiji property is something special.

“I love Fiji and the Radisson Blu there,” he says. “It’s on Denarau Island, which is a great spot to be. That’s the one I love to escape to.”

Radisson Blu Resort_Fiji

Radisson Blu Resort_Fiji

Radisson on Flagstaff Gardens_Melbourne VIC

Radisson Blu Plaza_Sydney NSW

Sunshine Coast Regional Spotlight

Words_Glenn Millar & Chenoa Daniel

The Sunshine Coast’s accommodation market is already highly sophisticated but there’s ample opportunity for growth, writes ResortBrokers’ Sunshine Coast team.

We’re biased of course, but there’s so much to love about the Sunshine Coast.

Gorgeous beaches, a lush hinterland, award-winning restaurants, chic bars and a thriving cafe scene. Our ‘rival’, the Gold Coast, has all this too, of course. But our key point of difference (other than our better beaches) is that we have mostly low-rise resorts. Holidaymakers who prefer the Sunshine Coast over the Gold Coast like coming back because they don’t feel they’re having a break from the city by coming to... another city.

The other point of difference is that the Sunshine Coast still has so much untapped potential. We both feel the Sunshine Coast is where the Gold Coast was 30 years ago. Don’t get us wrong, the Sunshine Coast is already a very mature accommodation market but there’s enormous potential for growth.

Take Mooloolaba, for instance. Mooloolaba and Noosa are as close as we get to matching Surfers Paradise in terms of nightlife. While Noosa is highly sophisticated, Mooloolaba is still very basic. That’s all set to change, and we feel Mooloolaba is nicely poised to be “the next Noosa.”

Come 2025, Minor Hotels will roll out the carpet on its 180-key Avani Mooloolaba Beach Hotel. It will the group’s first Australian property under its Avani Hotels brand (there are several Avani Residences dotted around the country but no Avani Hotels). Its location on the corner of Brisbane Road and First Avenue, right across from the Mooloolaba beach foreshore, couldn’t be better. Calile Malouf Investments, the group behind The Calile Brisbane, has announced plans for a luxury resort on the Sunshine Coast. Currently awaiting council approval, the resort will occupy a 2.4 ha site at

3-7 Serenity Close in Noosa Heads, which will feature 178 rooms, 12 suites and 15 villas.

Both projects are a major show of confidence in the development potential of the Sunshine Coast.

As far as management rights goes, it’s worth noting that management rights businesses on the Sunshine Coast provide approximately 90 per cent of short-term letting options. Unlike the Gold Coast, the Sunshine Coast has only a handful of full-service freehold hotels. On that front, we’ve got the likes of Prestige Residential, operators such as Ross Lynch at Noosa Pacific Resort (see sidebox), and Seabreeze Resorts investing in the Sunshine Coast.

These are smart and sophisticated management rights operators, which should reassure smaller players about the strength of our management rights market. That’s not all to say it’s all plain sailing. Real estate prices have skyrocketed on the Sunshine Coast. No more so than Sunshine Beach, which is now the second

most expensive suburb in Australia. While this is great news for people who own apartments on the Sunshine Coast, it’s proving a bit of a challenge in management rights because it’s driven up the prices of managers’ units which are routinely part of the management rights package.

Most people who’ve been in the management rights market long enough understand that when you buy a manager’s unit you usually pay a 10 per cent premium, precisely because it is a manager’s unit.

Management Rights Operator Profile

Ross Lynch Noosa Pacific Resort

After working as a field service engineer for a decade, Ross Lynch was contemplating a major lifestyle change. Like many other Melburnians, the Lynchs were regular Noosa holidaymakers and were taken by its laid-back lifestyle.

ResortBrokers’ Sunshine Coast Sales Record

$350m worth of sales

200 management rights businesses sold

1+ settlement every month

Now, it’s the reverse.

To purchase a management rights business, the usual ratio for the sale price is around 60 per cent for the business and 40 per cent for the manager’s unit. But now we’re dealing with sometimes 70 to 80 per cent of the purchase price being the unit.

Something’s got to give. We’re having a bit of a battle at the moment convincing vendors that although their unit may be worth, say, $1m if it wasn’t attached to the management rights, it will now attract a lesser value precisely because it’s tied to the management rights.

This isn’t so much of a problem where the management rights

Having previously lived in Maroochydore in the 1990s and having developed a love for the Sunshine Coast, the Lynchs decided to take a chance on management rights.

“We thought we’d give it a go,” says the 55-year-old. “Noosa is a wonderful natural beauty, with great beaches, a fantastic national park and stunning river.

It has something for everyone, from relaxing to thrilling, with great restaurants and cafes.”

Starting with the 20-key La Mer in Sunshine Beach, which they managed with great success for four years, the Lynchs eventually made the decision to upgrade to the 51-key

$108m worth of sales

59 management rights businesses sold $14.8m currently under contract

agreement doesn’t require the manager to live on-site.

In those cases, the business and the apartment can be decoupled, and the manager can monetise their apartment by letting it out just like any other apartment in the holiday pool.

All that said, the Sunshine Coast is still the best place to buy a management rights business. Good assets will sell at the right price. We’re still turning over properties, particularly high-end properties, with very healthy multipliers and at a volume and rate of any market in the country, except perhaps the Gold Coast.

But we’re hot on its heels. END

Noosa Pacific Resort located on a stunning inlet of the Noosa River.

Since taking on the management rights in August last year, the Lynchs have focused on transforming Noosa Pacific Resort into a premier destination.

One of their key initiatives is the introduction of a luxurious pontoon boat available for guests to rent.

Unlike other pontoons in Noosa, the Lynchs’ pontoon is the first of the luxury kind and doesn’t require a boat license, allowing any adult to drive it during daylight hours.

www.noosapacific.com.au

GLENN MILLAR

CHENOA DANIEL

While studying my Bachelor of Property Economics at Queensland University of Technology (QUT), I was required to undertake an internship as part of my studies. My time spent as an intern acted as a springboard to my first property career opportunities and was vital in shaping my early professional experience.

There is nothing more valuable to a student than hands-on experience, particularly in the property industry. While theoretical knowledge is vital, learning how to apply it in a realworld context is indispensable.

On-the-job training is something we are now excited to offer today’s students through ResortBrokers’ internship program. The students of today are the valuers, brokers, developers and analysts of tomorrow. Their learning is vital to the ongoing success of the property industry today and into the future.

For Semester 1 2023, we’ve selected three promising students from a competitive group of QUT Property Economics candidates to participate in the internship program. ResortBrokers’ interns work for our research arm and/or our new buyer enquiry follow-up system called ResortBrokers Concierge.

Our first intake of interns, Hesmatt Amini, Grace Taplin and Jet Lim explain more in our Q&A.

Introducing ResortBrokers’

Internship Program

Our in-house property economist Josh Mangleson introduces our brand-new initiative to help train the next generation of accommodation property professionals.

What have you enjoyed about the experience so far?

Hesmatt: The opportunity to be able to interact with real buyers and build my communication skills while learning from the experienced individuals working here at ResortBrokers.

Grace: I’ve enjoyed building my confidence over the phone. Gaining real world experience chatting with buyers has developed my understanding of the accommodation property sales industry.

Jet: Everyone is friendly and really experienced in what they’re doing. It’s nice to hear about their experience and ask them questions with the idea of applying what I learn in the future.

What made you want to join ResortBrokers’ internship program?

Hesmatt: My long-term career aspiration is to become a successful real estate broker upon graduation. I thought there’s no better way to do this than by completing my internship at Australia’s longest established and most experienced specialist agency in the accommodation property sector.

Grace: I was really intrigued about the accommodation industry. It was something I knew nearly nothing about, so I was keen to learn more. I think specialised knowledge is really valuable and is definitely something that can set you apart from the crowd. ResortBrokers specialises in the sale of accommodation assets, produces in-house reports and has brokers all around Australia, so it ticked all the boxes for me.

Jet: I’ve always been a fan of Selling Sunset (a Netflix reality TV series) and researching. Upon learning ResortBrokers deal with some exquisite properties I knew it was the right fit for me.

What are some tasks you are involved with day-to-day?

Hesmatt: My main task involves acting as the concierge servicing new listing enquiries by initiating first contact with clients and potential buyers. After collecting and logging the necessary information into the system I then liaise with our brokers by appropriately allocating those enquiries.

Grace: I spend most of my day on the phone following up recent listing enquiries. I really enjoy chatting with potential buyers and learning a bit more about what they’re looking for. This helps us ensure buyers are alerted when a suitable listing comes to market and helps our brokers know who to contact.

Jet: Preparing data for Information Memorandums for regions/LGAs and data clean-up and improvements to property records.

What’s something you’ve learned about the accommodation industry?

Hesmatt: Before working with ResortBrokers I never gave much thought about the different sale types in the accommodation property sector such as freehold going concerns, passive investments, leaseholds and management rights. I learnt the particulars in the different sale types and how they work, but I was also surprised to learn how some businesses are priced differently using a multiplier rather than a yield.

Grace: I’ve learnt so much in my short time at ResortBrokers. My key takeaway so far is learning how a multiplier is achieved to value management rights.

Jet: I’ve learned more about management rights and that there are different sale types in the accommodation sector that cater to the needs of different investors that want a piece of the accommodation property market.

Words_Josh Mangleson, Property Economist

Collie Hotel Collie, NSW

institution the Collie Hotel in NSW’s Central West

The very well known Collie Hotel is centrally located being on the Oxley Highway 80 km northwest of Dubbo, 50 km east of Warren and just 36 km up the road from Gilgandra. The property also has a separate home for the new owners which has three well-sized rooms and large open living areas. The local tennis courts are located directly next door to the hotel. The hotel’s location makes the business the central meeting point for all locals but also a huge tourist attraction being located on a major thoroughfare.

The hotel has shown year-on-year growth and traded well through Covid. The turnover for this current financial year is well in front of last year’s turnover of $1,475,406 and an adjusted net profit of $334,020. The hotel’s location adds to year-round consistent trading with seasonal workers from pickers to shearers and solar-farm workers constantly working in the district for extended periods. This constant trade creates a solid business case for making more rooms for motel guests with new owners. Properties like this do not come to market often so if you have been looking in this area, don’t let this one pass you by.

• Strong local as well as strong tourist clientele

• Year-on-year growth in turnover and net profit

• Located on Oxley Highway in large stock grazing, cotton & grain growing region

• Four rooms of various configuration as well as five caravan sites

• Projected turnover of $1.8 million this year and adjusted net profit of $334,020 last year

• Separate three-bedroom home for owners/managers

• Staff to continue on in accommodation, bar and kitchen

• Huge social media presence to stay for new owners

$334,020 Net Profit $ $1,475,406 Turnover $ $2,200,000 Price

Chris Kelly Broker, Central Coast NSW chris@resortbrokers.com.au

SummerHill Motor Inn

Merimbula, NSW

Fantastic growth opportunity, renovated, sustainable energy cost savings

Voted as the #1 motel by Tripadvisor in the area for 8 consecutive years, SummerHill continues to rank as a top performing motel each year. Boasting 20 well-maintained rooms; a spacious, double-storey 2-bed owners’ residence with an adjoining 1-bedroom self-contained unit (which could be converted into additional motel letting); swimming pool; BBQ area; landscaped gardens; and on-site laundry.

Recent renovations geared towards sustainable energy and cost savings include solar systems and 2 EV charging stations. The property has already seen a 32% increase in ADR, 33% increase annual turnover and significant reductions in electricity (approx. 45%) and gas (approx. 85%) expenses. Installing solar batteries to the system has the potential to reduce utilities costs even further.

The SummerHill Motor Inn is currently marketed as an adults-only property, popular with repeat corporate travellers. By welcoming families and coach / tour groups, the new owners could easily increase revenue and occupancy rates.

With a fantastic lifestyle, great location, established reputation and ample opportunities ahead, there is every reason for buyers to seriously consider this property as a solid next investment.

• Ranked #1 motel in Merimbula on Tripadvisor for eight consecutive years

• Newly invested facilities for energy reduction

• Opportunity to renovate into high-end motel

• Opportunity to convert one-bedroom self-contained unit into motel letting

• Enjoys repeat corporate clientele

• Operates an efficient contactless booking system

• Run as adult accommodation with opportunity to open up to families

• Well-maintained motel

Prestigious Newstead Management Rights Opportunity

Premium management rights — High $303K net, one body corp and no requirement to live on-site

ResortBrokers exclusively presents this outstanding Management Rights opportunity, located minutes from Brisbane’s CBD in the city’s most desirable riverfront suburb.

With an extremely strong net profit of $303K (including apartment rental income), significant return on investment and no requirement to live on-site (the luxury unit can be rented), this business boasts premium accommodation in a complex that is exceptionally well-maintained with processes easily transferred to the incoming manager.

With a strong salary, topped-up 24-year agreements, high-yield letting appointments and only one body corporate, contact Frank for a confidential discussion and inspection as this business will sell quickly.

• No office hours or requirement to live on-site

• High net profit ($303k) with very manageable duties

• Only one body corporate with great relationships

• Long, topped up agreements in place (24 of 25 years)

• Over 13.8% ROI including apartment rental income

• Premium location with excellent tenancy rates

• Convenient on-site office to run your business

• Extremely well run with transferable processes

• Inspections are by appointment only

$303,000 Net Profit $ $2,200,000 Price

Frank Matus Broker, Brisbane frank@resortbrokers.com.au

94 LETTING 25 YEARS 238 UNITS OFF THE PLAN

Estilo on Kittyhawk & Estilo on the Park Chemside, QLD

Attention — Incredible off-the-plan business-only management rights — $517K net!

On the market for the first time is the management and letting rights to Estilo on Kittyhawk and Estilo on the Park. This is a unqiue opportunity that offers the best of both worlds: a proven income from a fully established complex as well as upside from the off-the-plan complex currently under construction next door.

This well-known developer has intentionally retained the management rights of the first complex until such time that the commencement of the second development is opportune for acquisition. The combination offers economies of scale to attract an exceptional operator who can bring their expertise in both established and off-the-plan management rights to the table.

Estilo on Kittyhawk and Estilo on the Park offer:

• 25-year Accommodation module agreements

• Verified P&L showing $517,120 net profit

• Total of 238 apartments with 94 in the combined letting pool

• No set office hours and manageable duties

Estilo on Kittyhawk Established

• 116 apartments over two buildings with 48 in current letting pool

• Good size office of 16 sqm on ground level of Building 1 (east)

• 3 sqm storage on basement level 1 and 2

• Optional 2 bed / 2 bath unit for sale priced at $899K

Estilo on the Park Off The Plan

• Under construction and due for completion in Q3 of 2024

• Comprises 122 residential lots

• Projected letting pool of 46 apartments

$ $343,594 Combined BC Salary REF // OTP007737

$ $2,999,296 Business Price

$ $899,000 Optional Real Estate

Tim Crooks Director of New Developments

Arena Hotel Chullora, NSW

Arena Hotel in Greater Western Sydney is a box seat opportunity

Arena Hotel is a well-established 88-key budget hotel on the Hume Highway in the Greater Western Sydney suburb of Chullora.

On offer is the freehold to a hotel held by a family for 17 years, ready to hand over the reigns and see the asset propelled to the next level.

The hotel’s prime position on the Hume Highway is in a rapidly growing Sydney location, only 15 minutes’ drive from Sydney Olympic Park, providing easy access to venues such as Accor Stadium, Qudos Bank Arena and Sydney Showground. The new owner will reap the benefit of a quality hotel build, options to revitalise the asset including the surrounding land, generous parking availability and a simple accommodation concept. This property is ready to flourish.

Hotel freeholds such as Arena are tightly held, making this a rare opportunity to buy into the rapidly developing Greater Western Sydney market.

• Rare 88-key Sydney freehold going concern

• Incredible opportunity to revitalise, rebrand or reposition an outstanding asset

• Ground-level cafe can be leased out or used for guest breakfasts

• 2-bedroom ground-floor manager’s unit

• Large parking area, guest laundry and barbecue facilities

• Spacious 4,238 sqm lot

• Inspections by appointment only

Tim Mayoh Broker, Greater Sydney tim.m@resortbrokers.com.au

Russell Rogers

Senior Executive Broker, South Coast NSW russell@resortbrokers.com.au

Photo credit: Derek Swalwell

ABC TV presenter and architecture aficionado Tim Ross channels our national romance with retro motels

For the past several years, Tim Ross has had a love affair with Australia’s roadside motels. That affair was consummated in his resplendent 2019 book Motel. Images of Australia on holiday, which is populated with a collection of around 80 photos from the National Archives of Australia lovingly curated by Ross. Fittingly for a book about roadside motels, Ross has taken his show on the road, which will run until 13 August at various locations across the nation.

An American import, roadside motels became an integral part of the Australian holiday experience from their heyday in the ‘50s and ‘60s through to their decline in the ‘70s and ‘80s. Roadside motels were stylish and sophisticated, with novelties such as breakfast hatches and carparks right outside hotel rooms which revolutionised the Australian road trip for holidaymakers.

“It’s important to remember that before the advent of the motel most people stayed in guest houses or with friends or you stayed in a pub with a shared room,” says Ross. “Roadside motels were a revolution. You could go to a motel and have your own bedroom and bathroom. They were so modern. For most Australians, it was their first taste of staying in a modern building.”

Australia hit peak retro between 1955 and 1960 when the number of motels doubled every year. Particularly in vogue was Googie-style architecture. Named after Googie’s coffee shop in West Hollywood, the style was characterised by bold and futuristic designs that incorporated elements such as geometric shapes, vibrant colours, and steel and glass construction.

Googie-style found its natural habitat on Queensland’s Gold Coast. One of the best exemplars of Googie was El Dorado Motel, which opened in Surfers Paradise in 1955. One of Australia’s first motels, El Dorado’s design featured abstract murals in bold primary colours combined with areas of black. (Incidentally, El Dorado was once sold by ResortBrokers’ Chairman Ian Crooks.)

“With a lot of these hotels, particularly the ones on the Gold Coast, they were built by people who had gone overseas and just taken some photos,” says Ross. “So, the proportions are all out of whack because it’s just an interpretation of something they’d seen overseas. Pioneers like Bernie Elsey on the Gold Coast came back from Florida with a bunch of photos taken with a Box Brownie and said to his builders, ‘Make this.’ So, they did.”

Celebrated Australian architect Robin Boyd derided our adoption of American design as “Austerica.” Boyd added his own spin to the roadside motel by placing the bathroom at the front of the unit thereby muffling the sound and lights of parking cars for other guests. One of Boyd’s roadside creations, the Black Dolphin Motel in

“Today’s appeal of cuts across generations.”

retro motels

Tim Ross

Ross’ roadshow Reception this way: motels – a sentimental journey with Tim Ross is touring nationally for the next two years.

Ross’ live show MOTEL plays at the Mitchelton Winery in Nagambie, Victoria, on 26 August.

Merimbula on NSW’s Sapphire Coast, was recently sold by ResortBrokers’ Russell Rogers to ASX-listed Aspen Group.

“Robin was a bit of a snob,” says Ross. “But he was right to consider that it was important for us to have buildings that reflect our landscape and who we are.”

Ross says today’s appeal of retro hotels cuts across generations. “You can be seduced by the romance of something without it being of your time,” he says. “It can be of your parents’ or your grandparents’ time and still have an appeal. I’m interested in images from the ‘50s and ‘60s, and it wasn’t my time.”

For those with personal memories of staying in these hotels, they hold a special appeal.

“People just love them,” says Ross. “It’s this wonderful walk down memory lane. Our memories of our trips, our family holidays are so evocative, so formative, so burnt into our minds, that we can’t get enough of these memories of holidays of the past.

“They took us away from the everyday. And there was the magic of those small moments, whether it’s the breakfast magically appearing through a little hatch or being able to watch TV in bed.

“There was a luxury to them but also a simplicity to the way we lived back then. There was an austerity to the way we lived in the past, so these motels represented moments of glamour. Even the shitty ones had a touch of glamour.” END

Motel. Images of Australia on holidays is published by Modernister.

On The Beach Bribie Island, QLD

High-netting management rights on absolute beachfront

ResortBrokers is proud to present this absolute beachside resort situated on tranquil Bribie Island with bridge access to the mainland and less than one hour’s drive from Brisbane and Sunshine Coast airports.

The complex comprises two uniquely designed buildings. A five-level mid-rise hosts 21 apartments and offers residents easy access with a direct lift service to the various one- and two-bedroom apartments and six luxury penthouses. On the beachfront, the villa complex comprises 10 apartments in total with a mix of three-bedroom ground-floor units with beachfront views and another six penthouses with a tri-level design. The three-bedroom beachfront apartments are very popular with families as each has a private, gated courtyard and is literally seconds from the beach.

Incoming operators will enjoy the only four-bedroom apartment in the complex which is set over two levels and has been fully renovated.

Offering a net profit of $505,093 and a return on investment of 15 per cent, this is a smart asset acquisition for a savvy buyer looking for an idyllic island lifestyle.

• Long tenure of 24 years on agreements

• Upside to grow the letting pool

• Supportive body corporate committee

• Strong consistent net profit with growth potential

• Large fully renovated private four-bedroom, two-bathroom manager’s residence

• Strong return on investment of 15%

• Genuine beachfront location with top amenities in the vicinity

• No set office hours (rare for a short-term resort of this calibre)

• Premier short-term asset with limited quality room stock in the vicinity for competition

$505,093 Net Profit $ $3,395,000

Price

Grantham Farmworkers Lodge Grantham, QLD

Large scale & secure cash cow run completely under management

Grantham Farmworkers Lodge is an excellent investment opportunity to acquire a freehold interest in a near new workers’ accommodation facility. The facility is presently operating with 272 beds, which include single and twin share rooms as well as dormitory-style accommodations. There is a range of high-quality amenities, including two swimming pools, a volleyball court, a commercial hotel and food business licenses, a bar, two communal kitchens, common areas, and two laundries.

Currently, Grantham Farmworkers Lodge is 100% occupied and holds two accommodation service agreements, which guarantee minimum rentals and provide a secure, passive income. Grantham Farmworkers Lodge has a current Development Approval (DA) for a total of 548 bed worker accommodation facilities and a 54 site Residential Land Lease Community (RLLC) development over surplus land to meet the rising housing demand in the region.

Due to the high demand for worker accommodation in the area and the lack of availability, a new accommodation service agreement has been signed with Stanbroke for their exclusive use of the facility.

• Circa $1.15M net profit for FY23

• DA approved for large expansion

• Currently 272 bed with approval for 548 beds with considerable demand

• Fully occupied on a contract with Stanbroke

• Fully staffed with management and 12 casual staff

• Infrastructure already onsite to begin expansion

• 36.52ha landholding - flexible urban zoning

Approx $1.4m FY24 Proj. Net Profit

Turnover $ $ Expressions of Interest

Approx $1.75m

Jason Vogler Broker, South East & South West QLD jasonv@resortbrokers.com.au

Nathan Eades Broker, Brisbane nathan@resortbrokers.com.au

Sussex Palms Holiday Park

Sussex Inlet, NSW

Boutique-style freehold cabin park on NSW’s South Coast

Nestled on a large 6,728 sqm block of low maintenance landscaped grounds and consisting of a range of accommodation options, from a three-bedroom cabin with 2 bathrooms ideal for a family getaway through to the one-bedroom Bungalow cabin for cosy couples retreats. Also on site are 28 privately owned vans that provide the owners with a steady income.

This friendly and well-maintained park has so much to offer, including an outdoor swimming pool (the only one in town), a large undercover BBQ area, a clean and modern amenities block with coin operated washing machines and a dryer for guests to use.

The owner’s residence is a modern spacious two-storey 4-bedroom, 2-bathroom home on a separate 917 sqm block.

Currently run by a husband-and-wife team, this easy-to-run caravan park prides itself on its high standards and is one of the tidiest caravan parks in the area. With annuals providing a steady income, this is a fantastic opportunity for someone looking for a lifestyle change.

• Easy-to-run park perfect for first time entrants

• Outstanding location with close proximity to Sydney and Canberra

• Steady income from annuals

• Large manicured 6,728 sqm block

• Large modern owner’s residence on separate 917 sqm block

• Consistent trading results $ $3,000,000

Eton Lighthouse Resort Vanuatu

Own a piece of paradise in Vanuatu

Located on the island of Efate in the Pacific nation of Vanuatu, Eton Lighthouse Resort is a golden opportunity to own a boutique property in one of the world’s most sublime tropical settings. There are no restrictions on foreigners buying property in Vanuatu, which means you can own outright a piece of this beautiful country whose name means “Our land forever.”

While other Pacific nations such as Hawaii, Fiji or Tahiti are now highly commercialised, Vanuatu retains its idyllic island charm. Eton Lighthouse Resort comprises 7 premium villas, all with spectacular ocean views, which have been immaculately built to the highest standard.

The resort is being sold in one line, allowing the purchaser to operate the property as they see fit going forward. The resort could be easily positioned either as a boutique resort or as a private holiday residence for a family or corporate business.

Efate is the third largest island in Vanuatu, and its capital, Port Vila, is the seat of government. The city is an important tourism hub attracting more than 82,000 visitors a year in an industry that generates around AU$100 million annually. There is simply no other development like this in Vanuatu.

• Sublime island setting

• Uninterrupted ocean views from all villas

• 60 metre exclusive water frontage, legal access to 2.5 kilometres of water frontage

• Secluded, quiet and peaceful location away from the city

• Only 30 minutes’ drive to Port Vila

• Close to local attractions: Blue Lagoon, Eton Beach and Eton Village

• Beautifully landscaped grounds complete with the largest private pool on the island

• Eco-friendly resort fully powered by on-premises solar system $ $3,500,000 Price

ControlRemote

place of Burke and Wills, is 1,050 km northeast of Adelaide; Marla

Travellers’ Rest is 1,100 km northwest of Adelaide; and The Elliott Store is halfway between Alice Springs and Darwin in the Territory. A Northern Interests side company also owns and operates the Puma Port Augusta Truckstop about 320 km north of Adelaide.

For most companies “remote work” means their staff work from home when the office is an easy commute away. But for Northern Interests, “remote work” takes on a whole new meaning. The company’s 130 employees work in some of the most remote parts of the country, several hundreds of kilometres away from a capital city.

Roadhouses are the Adelaidebased company’s stock in trade, and Northern Interests has become an expert at running them for the last 25 years. In 1998, Northern Interests acquired its first property, Spud’s Roadhouse, in Pimba about 480 kilometres north of the state

capital. Pimba is as small and remote as it gets. It has a resident population of about 15 and lies at the junction of the Stuart Highway to Alice Springs. For truckers and tourists travelling through, Spud’s is Pimba. The roadhouse is the settlement’s one defining feature.

“If you’re travelling through the outback, you can’t do without roadhouses,” says Northern Interests CEO Ben Seekamp.

Today, Northern Interests has seven roadhouses spread across remote towns in SA and NT. Glendambo Ampol Roadhouse is 592 km north of Adelaide; Innamincka Trading Post, the famous resting

In February 2023, Northern Interests purchased Timber Creek Hotel through Resort Brokers’ Kelli Crouch, which lies 285 km west of Katherine in the Territory and approximately 193 km east of the NT/WA state border. Timber Creek is Northern Interests’ second largest site by geographical size and has motel rooms, cabins, and caravan sites, as well as a restaurant and bar. Marla is the company’s largest roadhouse with 48 motel rooms, a caravan park, a supermarket, as well as a restaurant, bar and pool.

Northern Interests’ motto is “servicing the outback,” a guiding philosophy Seekamp says the company lives by.

“We are there to service people,” says the 48-year-old. “You need somewhere to stop to get fuel, get a bite to eat or just take a break from the long drive. If you’ve broken down, you need help. We get frustrated with the unmanned fuel facilities that get placed in the vicinity instead of a full-service business. They’re good at providing fuel but if you get a flat tyre, an unmanned fuel bowser can’t help you.

Northern Interests CEO Ben Seekamp discusses how vital the humble roadhouse is to the bush, and on giving back to the outback.

“We can sell you a tyre or repair your tyre to get you going again. Unmanned fuel tanks are very one dimensional. If that’s all that existed, people would struggle to travel in the outback.”

Seekamp says roadhouses not only provide vital services but also down-to-earth country hospitality that gives travellers reassurance and adds to their outback experience.

“If you’re 60 years old and have just bought a caravan and are about to do your first road trip, it can be pretty daunting,” he says. “On your first trip, you want somewhere that’s safe to park, somewhere to plug in your caravan, and somewhere you can enjoy a nice meal and get fuel.

“We’re also a reliable source of information for tourists, who have questions such as ‘Are the roads OK?’

‘Is it going to rain?’ ‘How fast should I go?’ It can be overwhelming doing a thousand-kilometre trip with a new car and caravan on a road you’ve never been on. And then there’s a few movies about the outback that put some fear into the equation!”

Seekamp has worked for Northern Interests since 2005. A chartered accountant by training, he worked for a commercial property firm before transitioning into managing roadhouses. In 2012, he bought in as a partner.

So, what makes a good roadhouse?

Seekamp says Northern Interests has several criteria when looking to acquire one.

“There are many key aspects to consider,” he says. “Being in a good structural condition is important as getting construction or maintenance work done in the outback is very difficult. It’s difficult in capital cities but throw in five hundred kilometres to the job and see who wants to do it! We’ve passed on opportunities because of the maintenance needed upfront. A lot of outback places can be in poor shape.

“Good staff accommodation is vital, reliable power supply, quality of water, waste systems are all important and not often a concern when buying city-based businesses.

“We like to see upside potential and we think our size and experience is likely to help with finding better ways to do things. Timber Creek, for instance, was run very well by its previous owners, however fresh eyes and knowing what has worked elsewhere has opened up opportunities to further improve the site.

“We also look for remote locations that are safe, having police in the town or at the very least mobile phone coverage is important to us.

“Location and distance from other businesses is also another critical factor. You don’t want to be too close to a major city because travellers will just push on to get

there. In terms of competition, we look to see who’s nearby. You really want to be at least 100 km away from your competition if the business case is to stack up.

“Having a local community nearby is also advantageous. You can’t only rely on tourists because that trade will peak and trough. Having a community or residents nearby is a definite bonus, like Timber Creek does. The locals give you a good base for business.”

Seekamp says staff accommodation is critical, particularly for backpackers. Northern Interests recently sold its Ord River Roadhouse in Kununurra in the Kimberley region of Western

Australia due to, in part, its lack of staff accommodation which made finding employees difficult.

“Backpackers are there to save money,” says Seekamp. “They want basic cheap accommodation. Accommodation is expensive in Kununurra and to pay $400 a week in rent doesn’t stack up for them.”

Seekamp says Northern Interests employees are typically people who like living in quiet, remote towns away from the hustle and bustle of big cities.

“We employ a diverse range of people, some who love the outback way, some looking for a change and a lot of travellers and backpackers,” says Seekamp. “You need to be

able to cope with living in a remote area, you can’t pop into the local shopping centre for something to do. Getting a haircut may be an 800 km drive away! It’s rare we get someone who wants a big lifestyle change. It’s likely our staff know the outback, they are travellers or have been travellers, and it’s the lifestyle they want. We recently employed some managers for Spud’s Roadhouse who are currently in remote WA and had previously been working in Nullarbor and Uluru. It’s what they enjoy doing, and the lifestyle they want.”

Seekamp says Northern Interests is always on the lookout for quality people to join our team. “We do

have excellent retention with our managers and senior staff members but given the number of backpackers we employ, staff turnover is high,” he says.

“We have staff that have been with the company for a long time. Spud’s Roadhouse has a group that have been there for three to ten years. It has very low staff turnover.

“At Marla, our management team has been there between five and ten years. About ten staff at Marla have been with the company for many years, the balance of staff may turn over four times a year.”

Another aspect to Northern Interests is giving back to the community. The company

sponsors several local sports teams including the Elliott Football Team, Oodnadatta Netball Team, Marla Gymkhana, Olympic Dam Sporting Club, Glendambo Gymkhana, Innamincka Races as well as supporting the Royal Flying Doctors.

“We like to support emergency services where we can,” says Seekamp. “We often help with recovery work for accidents.

“Sometimes we provide critical help, but it can also be something as simple as supplying food and drinks for them. Again, we’re there to service people.” END

MacArthur Chambers

Brisbane City, QLD

Prime Brisbane CBD short-term management rights + high net profit $620K

ResortBrokers is delighted to exclusively offer to the market a once in a lifetime opportunity to acquire Brisbane’s most iconic and unique management rights business in the heart of Brisbane’s CBD. MacArthur Chambers offers predominantly short-term accommodation with only 3 permanent lets in the letting pool.

This heritage-listed mid-rise building has undergone full renovation and become an incomparable management rights accommodation since 2003 boasting a striking sandstone facade that exudes elegance and character. With a total of 72 apartments over 9 levels, this property is presented to an exceptionally high standard and is continually achieving the best reviews of any short-stay accommodation in Brisbane.

The incoming manager of this landmark property will inherit a beautifully presented and wellmanaged business generating a high net profit of $620K with potential for further expansion.

With Brisbane set to take its place on the world stage with the 2032 Olympic Games, and the city’s short-stay market continuing to grow, there has never been a better time to acquire this iconic boutique short-term MR business.

• No requirement to live onsite

• No set office hours in the agreement

• Growth business with a high net profit $620K

• P&L prepared by industry specialist accountant

• Long agreement terms- successfully topped up in 2022

• Strong and consistent letting pool

• Prime centralised location in Brisbane’s CBD

• Close proximity to everything - leisure or business

• Renovated luxury manager’s residence2 bedroom, 2.5 bathroom, 1 study and 1 carpark

• Very supportive body corporate committee

• Experience Brisbane’s booming short-term market heading towards the 2032 Olympics

• Inspection strictly by appointment only $619,756 Net Profit $ $1,000,000

Real Estate Price $ $4,904,463

Total Price

South Hamptons Southport, QLD

South Hamptons management rights — prime Gold Coast investment opportunity

South Hamptons’ management rights is the ultimate investment opportunity on the Gold Coast. This exclusive offering by ResortBrokers presents a prime chance to own a highly sought-after piece of real estate in Southport.

Situated in a modern midrise complex, South Hamptons boasts 51 luxurious apartments, including 49 two-bedroom, two-bathroom units and 2 exquisite three-bedroom penthouses. Built to impeccable standards, this eight-year-old development offers a sophisticated living experience.

One of the standout features of this management rights opportunity is the minimal caretaking workload. With no pool maintenance required and only a small number of selfmaintaining planter beds, you’ll have more time to enjoy the renowned Gold Coast lifestyle. The rooftop and barbecue facilities provide ample space for both tenants and the incoming manager to entertain and unwind. The manager’s residence is a spacious two-bedroom, two-bathroom unit located on the first floor, designed to offer comfort and convenience.

South Hamptons presents a solid investment option, with 27 units in the letting pool, 17 owner occupiers, and a well-established track record.

• Exclusive Gold Coast investment

• Luxury living in Southport: 51 apartments of unparalleled elegance

• Minimal caretaking workload, more time for the Gold Coast lifestyle

• Rooftop and barbecue facilities for entertaining and relaxation

• Solid investment opportunity with 27 units in the letting pool

• Prime location in Southport, a hub of leisure and employment

• Strong and stable Gold Coast property market with high demand

• Own a piece of paradise

$145,168 Net Profit $ $1,430,000 Price

Paul Mueller

Broker, Northern Gold Coast paul@resortbrokers.com.au

Settlers Arms Inn St Albans, NSW

Incredible opportunity to own one of Australia’s oldest public taverns

Settlers Arms Inn presents a once in generation opportunity to acquire a truly exceptional historic property with a highly profitable future.

Established in 1836, the inn comprises a full-service restaurant which seats 280 and four guestrooms, accommodating up to three guests per room, in detached lodgings. More guest accommodation comprising 4 double bedrooms inside the main hotel building with access to a secluded in-ground pool. Settlers Arms Inn enjoys a solid trade, especially on weekends when its guestrooms and restaurant run at near full capacity.

The inn sits on a generous land parcel of almost 7,000 sqm on which additional guest lodgings could be built, subject to development approval. This prestige asset is ideally primed for an upgrade to the high-end boutique hotel segment of the accommodation market.

The large land parcel suggests a number of possibilities for an incoming owner. The site could be repositioned as a premium wedding venue offering a truly unique ceremony/ reception venue with the abundant photo opportunities the beautiful Macdonald Valley provides. Alternatively, the site could be repositioned as a boutique distillery/brewery.

With close proximity to Sydney and the Central Coast, this magnificent three-storey Georgian tavern is a truly exceptional asset.

• One of Australia’s oldest public taverns

• Considerable potential to expand accommodation capacity both inside and outside the inn

• Gorgeous St Albans location, two hours’ drive from Sydney and Central Coast

• Sprawling 6,879 sqm land parcel with parklike setting

• Asset is perfectly primed for upgrade

• Full-service restaurant seating up to 280 people

• Four beautifully appointed guest rooms

• Secluded in-ground pool

• Exceptional year-round trade

Huge Brisbane MR - 2.2M NOP

circa. 300 Apartment Permanent & Short Stay, Prime City Fringe Location

Coming to market July 2023 is one of first large short-stay Management Rights to be offered in Brisbane since before the pandemic.

Located in a prime city-fringe suburb, boasting a net profit in excess of $2M and leaving plenty of upside on the table for the next owner, this will be a highly sought after asset

As final arrangements are not yet in place, this will remain a confidential opportunity until its official launch in July. Under confidentiality agreements, a full suite of information, including detailed IM, Holmans P&L, caretaking / letting agreements etc. will be made available to qualified buyers.

Comprising nearly 300 apartments, with circa 150 currently managed in the onsite letting pool, this a significant business of sufficient scale to attract corporates, syndicators and large-scale private operators.

As well as offering a very sizeable short-term letting pool to Brisbane’s tourism and corporate market, the current managers also manage a large amount of permanent residential apartments. This provides security and diversity to the business, as well as a huge upside to the next operator.

Underpinned by secure long-term agreements, a strong relationship with a supportive committee and sizeable sinking fund with beneficial upgrades in the pipeline, this is an exceptional asset that would be a proud addition to any operators portfolio.

$2,200,000+ (TBC) Net Profit $ Guide Price $12,000,000+ (TBC)

Alex Cook Director

Bali is Back!

Discover a private Balinese holiday haven where 5-star hotel-style luxury is only the beginning. From the moment you’re met by a personal driver at the airport, you’ll experience the ultimate Balinese getaway.

Recently refurbished, Villa Sandari is thoughtfully designed and equipped to provide all the creature comforts in impeccable style.

Traditional Balinese design is paired with modern features including poolside pavilions and lush tropical gardens along with functionality such as security, airconditioning, gas BBQ and personal electronic safes.

The villa consists of three luxury king ensuited bedrooms, a private pool and modern kitchen. It is fully staffed with a full time house attendant.

Though tucked away in a private luxury villa enclave, Villa Sandari sits at the heart of the vibrant LegianSeminyak leisure and lifestyle precinct. The nearby ocean sands are lined with inviting beach bars and restaurants where you can watch the sunset from one of Indonesia’s most iconic locations.

Book today! US$270 per day for 2 bedroom, US$320 per day for 3 bedroom (minimum stay 5 days).

Rivers on the Park & Regatta Riverside Terraces & Towers

management rights in Toowong

ResortBrokers is proud to offer to market the established, permanent management rights and associated real estate to two complexes - Rivers on the Park and Regatta Riverside and Terraces. They can be purchased on an individual business basis or, for high level corporate / syndicate buyers, you have the option to secure both properties in one line. Both complexes have strong tenant demand being so close to the city and amenity and present incoming operators with a substantial net income circa. $300k and $450k respectively.

Fully operational and well-maintained, both businesses have attractive grounds with great facilities for residents and provide operators with strong security of a solid Body Corporate salary. Situated in the desirable and popular city-fringe suburb of Towoong, they are ideally located under 5km from Brisbane CBD and enjoy access to the extensive amenity, transport, employment hubs and recreation and river activity found in this neighbourhood.

Highly recommended for an immediate inspection by experience operators looking to expand their MR portfolio in the thriving city of Brisbane.

• Rivers on the Park hosts 122 apartments over two towers

• BC salary of $208k and estimated net profit of $300k

• Permanent letting pool of 42 units and upside scope to convert outside agents

• Separate managers office under OA with full furnishing ready for operators to utilise

• Managers 3 bedroom unit is rented out providing additional income stream

• Facilities include swimming pool, spa, hydro pool, gym and tennis court

• Regatta Riverside is home to 188 quality 1, 2 and 3 bedroom apartments

• BC salary of $322k and estimated net profit of $450k

• Has a permanent letting pool of 42 units with 18 managed by external agents

• On title office and 2 bedroom manager’s apartment with 137sqm on podium level

• Four storage spaces, 22m lap pool, spa, gym and BBQ area.

• No set office hours stipulated in Agreements.

Over $750K combined Net Profit $ Expressions of Interest

Jeff Keast Broker, Brisbane jeff@resortbrokers.com.au

Broome Beach Resort

Cable Beach, WA

Prime Management Rights business with high returns in Broome, WA

Comprising 35 air-conditioned one-, two- and three-bedroom units, this property provides an excellent range of self-catering apartment options for families, groups or couples wanting to relax, as well as the busy corporate traveller on the go. Set among lush, tropical gardens, each room features a fully equipped kitchen, laundry facilities, a spacious open plan dining and living area, and a private veranda. Off-street parking is also available for in-house guest vehicles.

The business is ideally located in the prime Cable Beach area next to great amenities and is a short 500m walk to beautiful Cable Beach.

• Long-term agreements

• Close to everything Broome has to offer

• Set among tropical landscaping

• Body Corporate salary of over $140k

• Business price of $975,000, with lease on reception and manager’s unit

• Option to Buy - Well-appointed two-bed, one-bath unit with large office and storeroom on the one title at market value of $560,000 in lieu of lease

• Located in one of Western Australia’s most sought-after destinations

• Property inspections are by appointment only $381,153 Net Profit $ $560,000

Real Estate Price $ $975,000

Business Price

Aquarius on The Beach North Ward, QLD

in Tropical North Queensland

ResortBrokers is excited to exclusively bring to market an exceptional management rights opportunity to Townsville’s sole high-rise accommodation on The Strand, Aquarius on the Beach.

On offer is a high net profit of $1,184,122 backed by a body corporate salary of $123,967 per annum that rises automatically in line with CPI. The business is based on a 25-year Caretaking and Letting Agreement with 18 years remaining.

For a holiday letting business, Aquarius on the Beach’s premier location could not be better. Prominently situated on The Strand, Townsville’s most desirable beachfront promenade, Aquarius on the Beach enjoys gorgeous ocean views from every room.

• Prime Strand location minutes from cafes, restaurants and pub precinct

• Supportive body corporate

• Opportunity for revenue growth with extra rooms and F&B

• Building recently refurbished and painted

• Large consistent net profit

• Established staff to help with transition

• Inspections by appointment only

True Blue Caravan Park in Northampton is an easy-to-run freehold caravan park situated a short 40-minute drive (50 km) north of Geraldton, and five hours drive north of Perth. Comprising 40 powered sites and 12 unpowered sites the park is ideally located on the northwest coastal highway, which is a key arterial road linking Perth with Northern Australia.

This property would be ideally suited for first-time caravan park owners, due to its simplicity of operation and excellent residence on site. The current owners are at retirement age and are looking to sell since they are wanting to slow down and travel. With very little to do in the way of new improvements, a new owner can step straight in to reap the benefits of the current owners’ hard work.

• High-quality large 5-bedroom 2-bathroom manager’s residence

• Easy 40-minute drive from major regional city

• Ideal stopover point for travellers heading north from Perth

• Extensive refurbishments recently undertaken

• Caravan park only – no cabins, meaning reduced cleaning requirements

• Excellent 5-star Tripadvisor rating

• Inspections by appointment only

Harvey CaravanRainbow Park Harvey, WA

Monopoly freehold going concern caravan park in Harvey, WA

Comprising almost 12,500sqm in the heart of Harvey, Western Australia, the Harvey Rainbow Caravan Park is an excellent freehold going concern caravan park opportunity for astute investors and operators. The future land banking potential of the site is excellent, and as the only caravan park within Harvey the business has a monopoly position.

The park is located an easy 2 hours (140km) drive south of the Perth CBD. Harvey and its surrounds have an abundance of agricultural industry requiring the need for worker accommodation which the park caters for. There are also numerous tourist attractions such as the Harvey Dam, forest walking trails and world-class wineries in the immediate surrounds which cater for tourists.

The park has an abundance of shady trees making it a relaxing and sheltered camping experience. The business is easily run by a husband-and-wife team and has been well maintained.

• Monopoly caravan park in Harvey

• Prime central location within Harvey

• Good mix of permanent and short-term residents

• Excellent profits and consistent revenues

• Spacious manager’s residence on-site

• Future land-banking opportunity

• Inspections by appointment only

$273,145 Net Profit $ $1,550,000 Price $ $376,850 Turnover

Blair Macdonald Broker, Western Australia blair@resortbrokers.com.au

Riverfront

Albany Creek, QLD

Off-the-plan opportunity in North Brisbane hotspot with circa $447K projected net profit

Brand new and currently under construction, this premium off-the-plan business-only management rights complex offers a fantastic income with no set hours, no real estate and new 25-year agreements. Located in a picturesque setting of Albany Creek, Stage 1 (39 lots) of this masterplanned townhouse estate is forecast to be delivered mid 2023 with Stage 2 in early construction and due in Q4 2024.

Developed by Lucindale, Riverfront has strong sales to date with a solid investor profile securing a decent letting pool for the incoming manager.

Albany Creek is one of the most sought-after residential areas in SE Queensland due to its anticipated capital growth driven by its robust year-on-year population increase and rapidly developing infrastructure.

• Brand new 25-year Accommodation module agreements

• Unique masterplanned community of 164 townhouses

• Projected letting pool of 58 townhouses

• Stage 1 under construction due to settle in late 2023

• No requirement to live on-site or own real estate

• No set office hours in caretaking and letting agreements

• Combined BC salary of $221,000 p.a.

• Projected net profit circa. $447,669 p.a. when all stages fully complete

• Top location for rental appeal offering lifestyle and proximity to amenities

• Fantastic location 30 minutes from Brisbane CBD with river frontages

• Great community facilities including 20m pool, BBQ and recreational areas

$447,669 Projected Net Profit $ $2,148,811 Business Price $ $221,000 BC Salary

Tim Crooks Director of New Developments tim@resortbrokers.com.au

& EnglishmenMad Dogs

Investment banker Les Bone turned a dilapidated Charters Towers mental asylum into one of North Queensland’s most unique accommodation offerings … and he’s not finished yet.

In the early 2000s, Hong Kong-based financier Les Bone was travelling the world looking for investments. His explorations took him to Charters Towers where, in 2003, he purchased a drilling company.

On one of his many trips to the North Queensland town, Bone learned the town’s old mental hospital, Mosman Hall, was up for sale. Opened in 1954, the asylum had laid idle since 2001 when Queensland Health closed it. The abandoned property sat on a sprawling 220-acre site just five minutes’ drive west of the city centre. “No one knew what to do with the place when it closed, so no one gave a toss about it,” says Bone. “The idea was just to knock it down, strip out all the assets of any value and just leave it as a bare site.”

Bone and his partner Vanessa Stanley-Johns had a better idea. In 2006, they purchased Mosman Hall for $1,050,000 and have been working on realising their vision ever since. In 2012, they began work on the site and in 2016 reopened stage one — a suite of 15 luxury apartments for short-term guests. Mosman Hall became Kernow, the Cornish name for Cornwall where Bone hails from.

“I wanted to give this place a name in keeping with all the Cornish miners who came out to this part of Australia in the gold rush era of the 1870s, and who are buried in the local graveyard here,” says the 61-yearold. “It ties in with the fact that I’m a Cornishman too.”

Bone and Stanley-Johns spent $4.5m on the renovations of Kernow to refashion one of the asylum’s annexes into the 15 apartments. They renamed that part of the property the Porkellis Wing, again in keeping with Bone’s roots — the Cornish village of Porkellis is Bone’s birthplace. The West Wing, another

annexe of the property, offers hotel-style rooms and smaller selfcontained apartments.

Bone says Kernow’s short-term accommodation comprises only 10 per cent of the overall project. The masterplan envisages a residential community of over 400 dwellings, as well as several large lagoons. The main feature will be a 2.5-hectare crystal lagoon, the first phase of which is the holding dam for the works water supply. This in itself will also be a major attraction, with beaches, Monetstyle bridge and waterfalls.

“We don’t call it a hotel. We just called it Kernow,” says Bone. “The reason is it’s such a diverse project so we’re always trying not to be pigeonholed. Our product here is very different from a normal hotel product.”

Kernow has proved a massive hit. The property has won several coveted travel awards, including a 2020 TripAdvisor Travellers’ Choice Best of the Best award.

In the 2002 North Queensland Tourism and Events Awards, Kernow was runner up in the accommodation category to Townsville’s The Ville ResortCasino, and runner up to Orpheus Island Lodge in the Highest Review Score – Accommodation category.

“Our reviews are very important to us,” says Bone. “On Booking.com we’re at 9.6, and we’re five stars on Tripadvisor.”

Bone says Kernow’s occupancy runs at a solid 70 per cent, which he’s aiming to raise to 85 to 90 per cent. Over two thirds of Kernow’s clientele is corporate

and the rest a mix of grey nomads who have given up caravans and international travellers.

“We have several groups of international travellers who come here every year,” he says.

“We have two parties, one from Switzerland, the other from Germany, who come every year for a couple of weeks and just love the place. We also have a small conference centre accommodating up to 50 people.

“We had four events in November last year ranging from corporate board meetings to health and safety meetings, to a lady’s sewing convention ... which was crazy.

“The irony is our busiest times is weekdays, our quiet time is weekends.

“That’s a major problem for Charters Towers itself because the town has been a bit slow in understanding that you’ve got to provide things for people to do on the weekend if you’re going to get them out here.

“Casino rivals Adelson and Wynn had this famous phrase, ‘Let’s not fight over people before they get here, let’s get them here and then fight over them.’

“What we’re trying to do is produce something different, an experience, as opposed to just another Conrad or Shangri-La.”

“The real challenge is getting Charters Towers’ name out there and producing the inflow. To drag people away from the coast in Australia is still quite difficult.”

Bone did not have a cold start in the accommodation industry. His father was a hotelier in Falmouth, so he learned the hospitality business at his knee.

As an investment banker, who continues to run a private equity fund in Hong Kong to this day, he oversaw a couple of hotel projects in Port Douglas, which he used as a model for Kernow.

“We still had no idea whether Kernow would work,” he says. “The way we built it is that if it didn’t work, we could just sell the units.”

As for the renovations, Bone salvaged as much as possible from the old hospital. “We tried to keep as much as we could, which was the original ceilings, floors and walls.

“That said, taking an old building to new standards, which is what we did, is pretty tough. There’s practically nothing from the 1950s that is acceptable by today’s building standards. We had to do a material change of use for the entire scheme. That’s the reason it took six years to start construction work in 2012. We had to jump through all the hoops, all the planning rules and regulations.

“The carbon investment in the buildings itself, the embedded carbon value is huge. So, we’re very much trying to recycle everything, trying to use everything we can, trying to keep our carbon footprint to a minimum. We’ve got plans here for large scale solar, which I’m working on now.”

Bone says guests like the quietude Kernow provides. The property has a strict “no kids, no pets” policy so as not to disturb the serenity guests come to Kernow for.

“The unit quality is very important to us,” says Bone. “When you’ve spent vast amounts of money on five-star apartments the last thing you want is pets and kids running around.

“Our pool area is quite close to the units so to have a couple of two-year-olds running around when you’re trying to have a quiet weekend isn’t ideal.”

Family-friendly and wheelchairaccessible accommodation and facilities are planned for later stages of the development.

As for the building’s history as a mental asylum, Bone says it still captures his guest’s imagination.

“A few wings haven’t been touched yet,” he says. “A few guests like to wander through the old wings. It’s quite a big attraction. We’re still not sure whether to make it more of an attraction.”

Kernow’s guests are not the only ones drawn in by the building’s past.

“We’ve had various staff from the property’s days as a mental asylum turn up for a look,” Bone says.

“We’ve also had a couple of former inmates turn up. There were a couple who were moved to other places but kept wandering back in the early days. They weren’t compos mentis but were lovely guys.”

“When we weren’t developing Kernow, it wasn’t a problem. But when we started the building work it became a health and safety issue.

“What happened here is still top-secret stuff, I can’t get a lot of information about it, even photos of when it opened.

“They must be somewhere. Whether they’re sealed records because of what the place was, I don’t know. But I’ve been told the clientele was anywhere from 300 to 600.

“What I’d like people to know is what an interesting place this is to visit. What we’re trying to do here is produce something that’s different, an experience, as opposed to just another Conrad or Shangri-La.” END

“What we’ve got to do as a town is get people here and then we can compete for their business.

New Kids On The Block

ResortBrokers welcomes two new brokers this quarter. Twee Nguyen will look after Victoria’s southwest, covering Geelong, along the Great Ocean Road to the border, and up to Bendigo and Ballarat. Syd Douglas joins our Gold Coast team and will work Main Beach and south through to Mermaid.

the Gold Coast. It was a career changing decision. I was after a line of work that was steady to support my young family. Management rights provided that. It was great for our family at that time.”

Some nine years on from attending ResortBrokers’ seminar, Twee now joins the ResortBrokers’ team looking after Victoria’s southwest, including Melbourne which she has called home for the last 34 years.

Twee hopes to use her experience as a management rights operator to benefit her vendors and buyers.

The threads of Twee Nguyen’s life began in Ho Chi Minh City and found their way to her adopted hometown of Melbourne. Twee was among some 800,000 boat people who fled Vietnam between the end of the Vietnam War in 1975 until the early 1990s.

In 1989, she arrived in Melbourne with her family and very little else. Through tenacity, hard work and education she established a life for herself in the Victorian capital and has been working for the last seven years as a successful management rights operator.

Twee’s interest in property was piqued when she attended a ResortBrokers’ management rights seminar on the Gold Coast in 2014. Thinking she was ready for a new challenge, Twee acquired her estate agent license in 2015 and established her own management rights company, which now operates two properties in Melbourne’s inner north and inner west.

“I’m an investor myself, I love property and I guess a career in property always beckoned for me,” she says.

“That’s when I attended ResortBrokers’ seminar on

“Being a management rights operator helps me understand the industry from the inside, both the challenges of being a management rights operator and the benefits of the industry” says Twee. “I’ll be working across a range of asset types that includes caravan parks and motels, but if I have a strength in any particular area it’s management rights. As an operator, I’ve bought and sold management rights and I understand the demands of the industry.”

“My management rights and property experience has connected me with builders and developers, helped me understand planning requirements, recognise the growth potential of various locations, and to understand supplyand-demand property economics.”

Outside work, Twee loves travelling, being part of her faith community and raising her two teenage daughters aged 10 and 15, all of which keeps her hands full, she says. “I genuinely love connecting with people,” she says. “I love getting out and meeting new people and building relationships that last a lifetime. I also love travelling both internationally and here in Australia so I hope that will help me as a motel and caravan park broker.”

Twee’s lifetime connections include her family back in Vietnam. She has returned three times since leaving in 1989, both to Ho Chi Minh City and her mother’s hometown of V ng Tàu, a port city about two hours southeast of Ho Chi Minh City.

“I still feel very connected to the culture still, that’s still in me,” she says. “I still have family there, my grandma is turning 90 soon. The culture, the heritage is still very strong with me. I love going back.” END

BROKER, SOUTH WEST VICTORIA TWEE NGUYEN

Syd Douglas joined ResortBrokers in April off the back of seven successful years as a property manager, most recently of Boardwalk Burleigh Beach for four years and an earlier three years with Azure Living in Brisbane’s Fortitude Valley.

With Azure Living, Syd oversaw property management and caretaking from inception, working with council, developers and off-the-plan investors alike, and was able to secure 150 of the site’s 165 properties under management. For Boardwalk Burleigh Beach, Syd managed all operations of the resort, including budgeting and improving overall profitability.

Working with owners’ groups and body corporate, Syd also had extensive experience in defect and trade management. Pairing his knowledge and know-how of a hands-on building manager with his passion and drive for property sales, Syd produced record after record in property sales.

The Gold Coast local has been a licensed letting agent since 2016 and a licensed real estate agent since 2018. He holds a Diploma of Financial Planning from Deakin University and before entering the real estate industry was the state account manager for Capital Transport and prior to that a senior finance manager for Westpac.

“Knowing how to talk to owners and potential buyers about how a property is tracking and what its potential is by understanding its financial statements is really important,” he says. “That’s something I’ve done day in day out for the last seven years.”

Syd was set for a career in elite level rugby before a back injury put him out of action. The 41-year-old was rugby captain of his alma mater The Southport School when he was scouted by the Queensland Reds Academy. He went on to wear the green and gold for Australia in the Under 19s and Under 20s, before representing the Reds between 2003 and 2005.

“Sport has taught me a lot of great lessons about myself and teamwork,” says Syd. “Being able to work toward a common goal, but also being able to set yourself goals and understanding your own abilities and inabilities is key to any endeavour in life.”

As for property sales, Syd says he likes to work from an understanding of what’s important to both sides of the transaction.

“I like to know what makes both buyer and seller tick to understand their expectations,” he says. “My approach has always been you’ve got to be upfront, you’ve got to be standing by the information you provide and being transparent. I like to talk sense. I like to talk facts. Your reputation is everything.

“Your name travels very quickly in this industry, so being a person of integrity and honesty, and delivering — doing everything you say you’re going to do — is really important. Earning trust is half the battle. After all, the ultimate compliment is having a seller return as a buyer.”

A father of two young boys, Syd spends most weekends on the sporting fields with his sons or on the beach as a volunteer coach and lifeguard. END

SYD DOUGLAS BROKER, CENTRAL GOLD COAST

Let’s Get Social!

CARAVAN ASSOCIATION

INDUSTRY CONFERENCE

GOLD COAST

AHICE ADELAIDE

On 3-4 May, a ResortBrokers’ contingent of Chairman Ian Crooks, Managing Director Trudy Crooks, Director of New Developments & Hotels Tim Crooks and Property Economist Josh Mangleson represented the company at the 2023 Asia Pacific Hotel Industry Conference and Exhibition (AHICE) in Adelaide. AHICE is the Asia Pacific’s largest and most influential hotel conference, widely known as “the hotel event where deals get done.”

On the conference’s first day, MD Trudy Crooks (pictured third from right) joined a high-level panel of experts for an industry discussion moderated by Tim Sherlock, Managing Director of Pro-invest Developments. Trudy’s co-panellists included Jenny Seeto, Chairperson, Investment Fiji; Karen Wales, Head of Hotels – Australia, Colliers; Mark Durran, Managing Director — Hotel Capital Markets, Savills Australia and New Zealand; Michael Simpson, Managing Director — Hotels, Pacific, CBRE Hotels; and Peter Harper, Managing Director –Head of Investment Sales Australasia, JLL.

PRET MANAGEMENT RIGHTS FORUM

BRISBANE

ResortBrokers’ Director Alex Cook and brokers Jessie Shi, Nathan Eades, Jeff Keast and Frank Matus represented ResortBrokers at the PRET Management Rights Forum on 3 May.

Alex joined an ARAMA panel discussion on the state government’s proposed changes to rental laws and reduction in terms for management rights, while Jessie joined a panel discussion on preparing a management rights business for sale. Held at the SunPAC Performing Art Centre, the full-day event was attended by a crowd of 230.

South Coast NSW broker Russell Rogers and Sunshine Coast & North Fraser broker David Faiers represented ResortBrokers at the Caravan Industry National Conference 2023 held at the RACV Royal Pines Resort, Gold Coast, on 10-12 May. Russell and David reported a hugely successful conference attended by the great and the good in the caravan park space, including industry suppliers, private park owners, franchise networks like BIG4 and G’Day, and industry giants like NRMA and Ingenia. Turnout hit a record at over 1,000 delegates, representing a 25 per cent increase on last year’s attendance. Russell and David said ResortBrokers’ booth saw an exceptional level of enquiry and positive feedback from operators.

MANAGEMENT RIGHTS MADE EASY

GOLD COAST & BRISBANE

On 27 May and 3 June, eager learners attended ResortBrokers’ regular management rights information sessions on the Gold Coast (pictured) and Brisbane respectively. Attendees enjoyed presentations from industry professionals Victor James (Validum Group), Trent Pevy (Pevy Lawyers), Paul Grant and Mike Phipps (Mike Phipps Finance) and Tony Rossiter (Holmans Accountants), as well as ResortBrokers’ agents.

As industry leader, we’re always looking to host events to help educate everyone in our network. We also give presentations at Australia’s major conferences.

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.

Blue Chip Noosa Management Rights

Prime Noosa Heads management rights

Inspired by the region’s pristine beaches, cosmopolitan cafes and world-class boutiques, this stunning complex encapsulates the effortless glamour and sophistication of Noosa’s coastal lifestyle – the epitome of boutique, tropical luxe. This opportunity boasts an irreplaceable asset and location, and a consistent letting pool with year-on-year growth in a high demand location, renowned for being robust whatever market we are in.

Located adjacent to the Noosa National Park in a stunning rainforest setting with stunning ocean views over Noosa Main Beach, Laguna Bay and the Noosa River. This offering consists of 20 self-contained three-bedroom apartments, all individually furnished to exceptionally high standards.

19 of the 20 apartments are in the letting pool showing stability over the years, hence there are no owner-occupiers or permanent residents. The business is further complimented by a stunning 165sqm three-bedroom, two-bathroom manager’s residence and reception.

• Bullet proof prime Noosa location

• Huge repeat and return clientele

• No owner occupiers

• Long agreements

• Exceptional 3-bedroom high-end manager’s residence and office on title valued at $1,675M

• Stable letting pool over many years $498,749 Net Profit $ $4,368,244 including residence Price

MORE INCOME HIGHER VALUE

E ASY TO R E TROFI T EXI ST IN G BUIL D I N G S

If you outsource internet service provision in your permanent building, you are missing out on valuable income With gigafy’s simple WiFi network system, you become the preferred ISP. Residents enjoy better service. We take care of billing and support. You collect the $$$.

VA L U E F O R Y O U

New on-going revenue stream

Proven 300-500% 5yr ROI

Faster, more reliable connections

High tenant satisfaction and retention

Increased management rights resale value

Easy switch between permanent and short-term uses

VA LUE F OR TENANTS

Speeds equal to or better than fibre

Instant connectivity

Full coverage, including common areas

No contracts, flexible plans

No set-up fees, no equipment needed

No dealing with telcos/ISPs

It’s why gigafy’s WiFi solutions are found in more than 30,000 apartments and 450 venues across Australia.

Holmans have been our accountants for nearly a decade and have always been wonderful to work with.

Glen Tarrant

Villa

Krista

Canggu, Bali

Escape to your own private oasis at Bali’s Villa Krista

Situated in Bali’s hippest hotspot, Canggu, Villa Krista is a complex of eight fully furnished luxury villas that take beach living to a new level.

Set over three floors, each villa boasts beautifully appointed interiors with natural earthy tones. Each villa has three spacious bedrooms, each with its own balcony and bathroom, as well as a gorgeous private pool, a separate dining area seating up to 8, an inviting sunken loungeroom and contemporary kitchen. The rooftop floor will have glorious ocean views.

Villa Krista is only a short stroll from the world-famous Echo Beach, a stunning stretch of black volcanic sand, which is widely regarded as one of Bali’s best surfing beaches.

Over the last decade, Canggu has transformed from a sleepy fishing village into Bali’s trendiest village. Many are calling it “the new Seminyak.”

The area is known for its vibrant expat community, with plenty of yoga studios, organic cafes and trendy boutiques. Canggu’s nightlife scene is equally impressive, with a plethora of chic restaurants, bars and clubs.

Despite its increased popularity, Canggu maintains its rustic charm and offers a tranquil retreat. Villa Krista enjoys the best of both worlds: the perfect quietude of Canggu’s famous rice paddies but also easy access to Bali’s most happening venues.

• Super convenient Jl. Pantai Batu Mejan location

• 5 minutes’ drive to Echo Beach

• 20 minutes’ drive to Seminyak

• 45 minutes’ drive to Denpasar International Airport

• Construction commencing July 2023, expected completion April/May 2024

• Ready for owners to take up residence in May 2024

$ $390,000 (USD) each Price

Ian Crooks Chairman ian@resortbrokers.com.au

Treetops at Kenmore Kenmore, QLD

Attention — Incredible off-the-plan business-only management rights — $400K net!

ResortBrokers welcomes the opportunity to present to market a remarkable, off-the-plan townhouse development situated in an elevated position in popular Kenmore one of Brisbane’s most desirable western suburbs.

Projected net over $400K, the business-only management rights to Treetops at Kenmore has serious appeal for experienced operators looking to expand their MR portfolio.

Backed by a strong $1,500 per lot (ex GST) body corporate salary and coupled with a high sales investor profile securing a solid letting pool, this is a winning combination not to be missed.

• High quality permanent complex

• Comprises 95 luxurious, 4 bedroom townhouses over 3 stages

• Stage One under construction with delivery in November 2023

• Strong 60% investor profile of with 57 in projected letting pool

• Brand new 25-year accommodation agreements

• No office hours and no requirement to live on-site

• Solid BC salary of $144,000 per annum

• Beautiful common facilities including lap pool with cabanas and BBQ area

• Developers has reserved a 4-bedroom townhouse in Stage 1 for manager

• Stage 2 & 3 are anticipated for delivery in February and March 2024

• Very little development in Kenmore creating tenant demand & continual rental growth

• Very close to major amenities in this popular western suburb

• All inspections by appointment $403,104

Projected Net Profit $ $2,176,762

Business Price

Assigning a Leasehold Motel Interest

As suggested in the name, a critical step in the sale of a leasehold motel business is the assignment of the lease from the vendor to the purchaser.

Most motel leases contain a right of first refusal for a landlord on the sale of the motel business by the tenant.

Presuming the landlord does not wish to exercise this option, or there is no right of first refusal, the vendor will be responsible for seeking the consent of the landlord to the assignment of lease. Some consideration should be given to when the formal request for consent should be given to the landlord.

Once the request is made the landlord will engage a solicitor to prepare a list of requirements for the landlord to first consider granting consent, and then if consent is granted the requirements to formalise the assignment of the lease.

As the vendor will be liable under the lease and the terms of the contract for the landlord’s legal costs, this request would ideally be made after pre-conditions in the contract such as due diligence and finance have been approved.

However, sometimes there is insufficient time from when these conditions will be satisfied to the completion date (a minimum of two weeks would be required) and the request has to be made earlier with the vendor accepting the risk that they may be liable for the costs thrown away in the event the contract is terminated or rescinded under a condition.

The landlord’s requirements for considering the grant of consent usually involves:

1. A copy of the contract if one has not been provided during the right of first refusal stage.

2. A curriculum vitae (CV) or resume for the directors of the purchaser/assignee entity showing some experience operating an accommodation business or some other relevant experience. If the purchaser/ assignee entity or its participants have previously or are currently operating another accommodation business, it is very helpful if good online reviews are included (or any bad reviews are explained).

3. A statement of assets and liabilities of the purchaser/assignee entity. Usually, this entity will have been set up for this transaction so will not have a previous trading history so there will not be any profit and loss statements.

The landlord will often be particularly interested in the borrowing and indebtedness of the purchaser/assignee entity to determine their risks in any enforcement proceedings under the terms of the lease.

The landlord may also require statements of assets and liabilities from guarantors. For any land assets provided, the purchaser/assignee entity should be providing title searches and details of any borrowing arrangement under any mortgages listed on title.

This importance of full transparency in the disclosure from the purchaser/assignee entity at this stage cannot be overstated. Most issues with landlord consent, and increased costs to the parties, can usually be traced to a failure to provide sufficient disclosure which raises concerns for the landlord that then need to be overcome.

Words_David Adolphe, Special Counsel, Enyo Lawyers

If the landlord is satisfied with the initial request for information, the landlord will usually grant consent subject to or conditional on the satisfaction of further things such as:

1. The purchaser/assignee and vendor/assignor agreeing to and signing a Deed of Consent (or Covenant) on Assignment of Lease prepared by the landlord’s solicitors. This document will legally bind the purchaser/assignee to the terms of the lease from the assignment date (the completion date).

2. The purchaser/assignee entity providing any security required being either a bond/bank guarantee (unusual with motel leases) or personal guarantees (more usual). The personal guarantees are usually included in the deed referred to above.

3. The purchaser/assignee entity providing a certificate of currency for the tenant’s insurance requirements under the lease.

4. All monies requiring to be paid (or any breaches remedied) under the lease up to the assignment date as well as the landlord’s legal fees. This is usually handled by way of any adjustments (for apportionment of any rent or outgoings between

the vendor and purchaser) and a cheque payable at settlement to the landlord’s solicitor trust account.

5. The purchaser/assignee entity receiving a signed transfer capable or registration with the land registry and attending to the registration as soon as reasonably practicable after completion.

Of course, these are general requirements for the assignment of a lease and each individual case may have particular requirements of the parties that will need to be considered and all parties should ensure they receive specialised legal advice on this process. Some tips, however, to assist in this part of the business sale are:

1. Ensure you have allocated sufficient time to request the landlord consent taking into account the landlord’s availability.

2. Provide full disclosure of all reasonably required information to the landlord to grant consent at one time to avoid “drip feeding” information that can delay the matter and increase costs.

3. Move quickly to settle and sign the necessary documents so there are no delays with completion. END

Acc. Spec. (Bus.) - Qld

Special Counsel, Enyo Lawyers M. 0410 644 246 E. david@enyolawyers.com.au

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.

26 Market Street, Brisbane, QLD 07 3180 0510 Level 13, 50 Cavill Avenue, Surfers Paradise, QLD 07 3180 0510 Level 50, 120 Collins Street, Melbourne, VIC 03 9935 5256 www.enyolawyers.com.au

Breaking Up Is Hard To Do

Words_Mike Phipps, Mike Phipps Finance

The managing director and I recently celebrated our 40th wedding anniversary. Yes, I know. How the hell could she have tolerated me for so long?

Surely, a mystery for the ages and not one I am keen to shine a light upon. In any event this significant life milestone was cause for both joy and reflection. How do relationships stand the test of time? In our case it’s very simple, I agree with everything she says and when that fails I correct her, seek medical attention for that nasty bump on my head and buy jewellery and fizzy drinks.

She, on the other hand, puts up with my many many flaws, turns a blind eye to my eternal money wasting on push bikes and occasionally agrees reluctantly to ride in one of my old, smelly, unreliable and uncomfortable cars. An arrangement grounded on compromise, but more on that later.

As it turns out, relationships are interesting. Unless you are a hermit (an appealing prospect to be sure) relationships inform every aspect of our modern lives and yet, as a society, we seem ill equipped to navigate the myriad pressures and agendas of relationship management. That is, we seem unable to maintain a sense of mutual respect when views differ, the compulsion to anger too great to resist.

Of course, back in the day getting mad involved some commitment. Find your neighbours boots under your bed, saddle a horse, get cracking the 100 miles to his ranch, forget your gun, go back, find gun, reach neighbours place hours later, realise you’ve settled down, punch him in nose rather than shoot between eyes, discover they are not his boots, ride home. All this giving the real offender plenty of time for whoopy.

Now, we just get pissed off and hit the keyboard. No time to reflect, no time to simmer down, just an uncensored venting that becomes a part of public record and invites a pile on, both for and against.

Now, we just get pissed off and hit the keyboard. No time to reflect, no time to simmer down, just an uncensored venting that becomes a part of public record and invites a pile on, both for and against. All of this came to mind earlier this week when I took a call from a management rights operator of long standing. He is in partnership with his wife who is not enjoying good health. They want to sell but the manager’s unit value now exceeds the value of the business. This is a not uncommon dilemma when property prices rise as they have these past few years. Unfortunately, capital gains on units are a double-edged sword whereby an increase in the unit value will often erode the total return on investment across the combined business and unit value. As such, the operators have approached the body corporate with a proposal to split the manager’s unit from the business. From what I’m told the approach has been measured and well presented. The reaction of certain owners has been to hit the keyboards.

Here’s where we segue back to the relationships and marriage dynamic. The traditional management rights model of a business joined at the hip to an apartment in which the managers live is inextricably linked to owner/body corporate perceptions of the relationship. Approaches to sever the unit from the agreements need to be seen through the prism of a fundamental change in the relationship. Yes, we are still married, I still love you, but we can’t live together anymore. To add insult to injury once you approve us not living together, I want to put you on Tinder and find you a new partner. I exaggerate for effect, of course,

but the core of the point remains valid. Requests to sever units from management and letting agreements need to be treated more as interpersonal relationship negotiations than business transactions.

Central to the discussion are two points, both of which are the responsibility of the resident manager to argue. The first is to prove, as best as possible, that the experience of the owners will be no different with their new love interest. Maybe even better. This is tough as the new suitor is almost never known at this point.

Best to paint a picture of the process that the manager will go through before presenting a potential replacement. In a perfect world present the proposed new manager very early in the process and don’t wait until the assignment meeting.

Agree to do so if the BC supports the unit sever proposition. You don’t want to turn this into BC speed dating, but I don’t think you or your owners want a blind date either. The second point is to openly discuss with the owners

how miserable you are and how badly you want out of the marriage. The relationship need not be broken for you to want to move on, life throws up plenty of challenges and circumstances change. If you have an unsaleable business because your unit value has risen, you are essentially trapped in the relationship.

Owners need to understand your predicament and be encouraged to take a sympathetic view. I’m not suggesting managers should throw themselves at the mercy of the owners but a cry for empathy is seldom ignored.

A final point. You will notice I talk about owners, not committees. In my experience, making a heartfelt plea to a committee may be akin to asking your parents in law to mediate in your martial dispute. Better to bring everyone in the relationship into the tent.

I’ll leave you with a quote from Rita Rudner: “I love being married. It’s so great to find that one special person you want to annoy for the rest of your life.” END

Separating to Sell

Words_Matthew Manz, Mahoneys

With the changing economic conditions over the past few years it has become increasingly difficult for owners of certain types of management rights businesses to sell their unit and business together.

Problems arise where the caretaking and letting agreements require the manager to own and/or reside in a unit in the complex and:

• the business is netting a relatively low net profit; and/or

• the value of the unit is disproportionately high in comparison to the value of the management rights business.

This has been a problem in small to medium size complexes where the value of the manager’s unit has increased dramatically but the income of the business has barely changed or increased at a much lower rate. In many cases, this has made a combined purchase of the unit and business unviable.

So, what can a manager do in such a circumstance?

So, what can a manager do in such a circumstance?

Inevitably the question is almost always, “Can I separate the business from the unit and sell them both separately?”

The answer?

The answer?

Put simply, the answer is yes, provided that everybody is happy to do so — and that doesn’t just mean the manager. In most cases the owners will need to vote on such an arrangement at a general meeting.

Rather than diving into the mechanics of how that can be achieved the first question that should be asked is whether this is a good or a bad idea. Like most things in life, it depends on a vast array of factors. One that immediately springs to mind is the question of service.

Experts in Management Rights and Motel Law

For over 20 years Mahoneys has been one of Australia’s leading management right and motels law firms.

We are a preferred supplier to the Accommodation Managers Industry and have been recognised by the peak industry body (ARAMA) for our service to the industry.

Our team of industry leading lawyers regularly assist clients with:

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

Can a manager living offsite offer a high standard of service to the building and owners?

Can a manager living offsite offer a high standard of service to the building and owners?

At its core, management rights is a service industry and a manager that resides onsite is thought to be in a unique position from which to offer a far better service than someone who is not.

That is why lot owners will usually have a preference for an onsite manager over a manager who resides offsite.

A big selling point for a resident manager is that as a fellow resident the manager will be very careful about the types of tenants allowed to rent units and that the manager is always around the complex to deal with issues as they arise — at whatever time of night or day.

Is this true?

Is this true?

For bigger buildings, almost certainly. For small buildings, the answer to that question is more nuanced. It will depend on the layout of the building, the length of time the caretaking duties are expected to take, the number of lots in the letting pool (if any) and of course the skill and dedication of the manager.

So, what is the answer?

So, what is the answer?

Well, in my view, in the case of small buildings it comes down to a question of service. If you have a good manager that is providing a high level of service, then it won’t matter whether they’re living onsite or offsite.

The same can be said for a bad manager — if they’re providing poor service then living onsite won’t make them any better.

In the past, we have had considerable success in achieving the above for clients and we are generally able to arm them with a strategy for achieving the outcome sought.

We expect that given the continuation of the current economic conditions there will be many more managers of small to medium size management rights businesses looking closely at this option. END

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

RICHARD TEMPLE

All property types, Australia Wide

0412 567 214 richard@rmtsolutions.com.au

CARMEL MOLONEY

Motels

QLD Coast

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

VICTORIA MCDONOUGH & BRENDAN HUGHES

KARLA HARDING

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

0414 767 499 karla.boutiqueaccomrelief@outlook.com

SABINA WUNSCH

All property types, Australia Wide

0413 155 648 info@swmotelyadvisory.com.au

ROGER ANDREWS & JILLIAN CAIN

Hotels & Motels, VIC & SA

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

LEIGH & GEMMA PETERS

DAVID & SANDRA CAIRNS

Management Rights QLD

0411 335 539 moretonbeachhouse@bigpond.com

FRED BISHOP

Motels Nationwide PETER & MICHELLE JACOBI

0429 444 010 flashb2261@yahoo.com.au

Motels & Caravan Parks Nationwide

0427 183 416 casabargara@gmail.com

All property types Australia Wide

0412 138 642 vickymcdonough@bigpond.com.au

Motels, East Coast GRANT SKINNER

Management Rights Nationwide

0408 996 188 grantandjuliet@bigpond.com

0432 267 751 geleatham@gmail.com

THE GOOD KNIGHTS

All property types Nationwide

0412 005 537 info@thegoodknights.com.au

Motels Nationwide

SUE BARTON 0432 411 900 bartonsue@rocketmail.com

CHRISTINE WILMOTT

All property types QLD

0413 452 263 christine.09@bigpond.com

MARTIN & LOMA BARNARD

Strata Complexes, Resorts & Motels

Australia Wide, with QLD & NSW preference

PAUL & TANYA GREEN

All property types NSW

SCOTT & LIN MCKENZIE

Management Rights

0403 364 008 dixlin1962@gmail.com

0411 874 392 tanyacooper1@msn.com

Brisbane Only JOHN & SUSAN DONE

KAREN & ROBERT NISBET

0451 010 117 scott@mcwu.com.au

GRAEME & DEBORAH FILIPPE

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 KRISTY & LANCE BUTT

0438 527 894 georgi1440@icloud.com

All property types QLD & NSW

0428 902 878 kristymay22@outlook.com

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

Motel & Caravan Parks Nationwide 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

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

SYD DOUGLAS

Broker Central Gold Coast

Broker Gold Coast South & Northern NSW

TODD WARNER 0427 973 537 0438 170 763 syd@resortbrokers.com.au todd@resortbrokers.com.au

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

Broker Gold Coast & Northern NSW

Broker Mid North Coast NSW & New England

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

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

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

Broker Sunshine Coast

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

Broker Sunshine Coast & Fraser Coast

Broker

Townsville and Surrounds

Broker North QLD

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

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

Broker Far North QLD

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

Broker Central QLD

KELLI CROUCH 0410 441 750 kelli@resortbrokers.com.au

Broker South Australia & Northern Territory

Broker South East & South West QLD

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

RUSSELL ROGERS

Broker NSW South Coast

SARAH HUTCHINS

Sales Manager to Russell Rogers, South Coast NSW

DES FAGG 0427 849 119 des@resortbrokers.com.au 0407 020 443 0416 166 909 sarah@resortbrokers.com.au russell@resortbrokers.com.au

CHRIS KELLY

Broker

NSW Central West

0431 055 221 chris@resortbrokers.com.au

JACQUELINE FEATHERBY

Broker

NSW Central Coast, Hunter & Blue Mountains

0424 497 056 jacqueline@resortbrokers.com.au

DEBBIE COOPER

South West NSW

0427 559 545 debbie@resortbrokers.com.au