SPECIALISING IN FURNITURE FOR HOTELS, MOTELS, SERVICED
SPECIALISING IN FURNITURE FOR HOTELS, MOTELS, SERVICED APARTMENTS, RESORTS AND REFURBISHMENTS.
Furniture FF&E design concepts
3D Rendering & Furniture Overlays
Turnkey packages
Project Management
Custom furniture and joinery manufacture
THE QUIRKY THIRTY
Managing Director Trudy Crooks on where the accommodation market is at. We showcase our biggest deals from around the country for Q4.
Take the red pill and join us in Australia’s wonderland of wacky hotels.
Casino magnate Chris Morris on his latest venture, Ardo, Townsville’s first five-star resort.
Brisbane broker Jeff Keast on why management rights sellers need to focus on ROI more than multipliers.
first-time parkies left the Sydney rat race to join the Low Head penguins.
Seabreeze Resorts’ Winston Hall looks to broaden the syndicate’s portfolio beyond the Sunshine Coast.
Our long-time Townsville broker Des Fagg takes us on a spin through Queensland’s second capital.
Nathan Benjamin,
STRANGER THINGS
Words_Ian Crooks, Chairman
Of Australia’s more than 6,000 accommodation businesses there are some that are just … odd. In this issue, our last for FY24, we’re celebrating those wonderfully odd businesses in our main feature, The Quirky Thirty.
We’ve found underwater resorts, cave hotels and rooms contained in gigantic wine barrels. Better to be in a barrel than over one, I suppose! I hope you enjoy our journey through these fabulous hotels and resorts.
Speaking of great resorts, Townsville’s first five-star hotel, Ardo, opened to great acclaim in December last year. We speak to its creator, Chris Morris, in our Faces of the Industry feature. Morris Group has helped put Townsville on the tourist map, first with The Ville Resort-Casino and now with Ardo. While we’re in that part of the country, our long-time Townsville broker, Des Fagg, who’s been with us for over a decade, takes us on a spin through his zone.
Our management rights feature this issue profiles Winston Hall, who heads Seabreeze Resorts. Seabreeze is a syndicate that has acquired, in a relatively short period of time, a portfolio of five premium management rights businesses on the Sunshine Coast. The syndicate is now eyeing off businesses in Brisbane and the Gold Coast. It’s a great read because it emphasises the
For this issue of Informer, join us on our tour through the wonderland of Australia’s most eccentric accommodation properties.
power of syndicates in pooling financial resources — in Seabreeze’s case, of 15 investors — to buy high-end, blue-chip assets in prime tourist or corporate locations that would have been outside the reach of those in the syndicate if they’d acted individually. Strength in numbers.
We’re also delighted this issue to announce a key appointment at ResortBrokers. Our Central Queensland rep Nathan Benjamin is now our new broker for Greater Brisbane taking care of hotels, motels and caravan parks. I’ve spent time on the road with Benji, as we call him, who did a fantastic job representing us for three years in Central Queensland, selling some significant assets, not least of which was the passive freehold of Gladstone Downtown Central, which he sold for an 8.02% yield. I wish Benji all the best for this next stage of his career in Brisbane and I’m sure he’ll do well.
We’re also delighted to have onboard, if only for a short time, Kayla Gaskin-Harris, our new intern this year. The reputation of our industry depends on the high level of professionalism of the individuals who work in it. ResortBrokers is doing its part by helping to train the next generation of accommodation property professionals through our internship program. Our head of research, Josh Mangleson, does a great job overseeing our internship program, now in its second year. Well done, Josh.
There’s a lot of great reading this issue, but I particularly like our Success Story. ResortBrokers loves helping people along the road to success, especially first-time operators who come to our industry with no prior experience. Sydneysiders Craig Chobdzynski and Tracey Davenport-
Catlin fall into that category. The couple bought the lease to Low Head Tourist Park, their first accommodation business, aged in their 50s. Our feature explains how they managed it and how you might be able to do so as well. Shoutout to our National Operations Manager, Marissa von Stieglitz, who also doubles as our Tasmanian broker, on her suberb string of sales in the Apple Isle this financial year, including Low Head Tourist Park. Great job, Marissa.
It’s these success stories that personally keep me invested in this industry after more than 50 years, including nearly 40 in Australia. Being an operator in the accommodation industry comes with a lot of responsibility, but as practically every person ResortBrokers has helped put into business will tell you, nothing compares to working for yourself, especially in this industry.
Enjoy the issue. END
Congratulations to an old mate of mine, John ‘Foxy’ Robinson AO, who’s well known in business circles, particularly in the Northern Territory where he made his name.
I’ve known Foxy for almost 30 years and it’s great to see Charles Darwin University recently acknowledged his entrepreneurship and philanthropy, as well as his contribution to the Territory’s tourism and hospitality sectors, with an honorary doctorate. Well done, Foxy.
What a Year!
FY24 was a belter. So how’s FY25 shaping up?
OCCUPANCY
The data bears this out. Tourism Research Australia (TRA) forecasts through to 2028 show we will continue to enjoy the domestic tourism boom that sprang from Covid.
Not just domestic tourism either. Corporate travellers have said goodbye to Zoom and are spending money again at never-before-seen levels. An ACCC report released in June showed the number of passengers travelling on domestic flights has returned to pre-pandemic levels. I catch planes every other week and I’ve never seen them this full. Every time I get onto a plane, I regret not requesting a seat days earlier.
At the time of going to print, ResortBrokers is on track to post our best ever yearly results both in terms of volume and combined asset worth.
This financial year, we’ve sold, and more importantly settled, 224 transactions to date. That’s a volume increase of 49% and a combined asset worth rise of 59% on FY23.
That’s great news for our clients, obviously. But, more importantly, it tells us a lot about the state of the national accommodation property market.
But crunching numbers on a spreadsheet is one thing. I’ve also been on the road a lot this year, making up for two years locked inside because of Covid. So I’ve been able to see for myself that the spreadsheet data is actually playing out with operators on the ground.
I’ve been to most states this calendar year; most recently, I spent a week in the Territory, which I visit twice a year. This is how all our agents manage their respective patches, getting in front of our clients and staying at their fabulous and diverse properties.
It's one of the big perks for our 30-plus broker team. We weren’t made for sitting in offices. We preference in-person
contact with operators which means we get to meet them face-to-face across the country and have the opportunity to hear from them directly how they run their businesses. The market knowledge and intel they share with us is invaluable in terms of keeping us plugged into what’s happening on the ground.
So where’s the market headed in FY25?
Let’s address the elephant in the room first. There’s no doubt cash rate movement speculation is currently creating uncertainty in markets across the country.
But ResortBrokers has always held to the tried-and-true investment philosophy of looking at fundamentals. And the fact is existing accommodation stock will remain an exceptional investment class.
This is thanks to our love of a holiday, which means that whatever our bank balance or amount of disposable income we’ll still pack up the car or caravan and hit the road. Or we’ll jump on a plane. Barrier of entry due to cost of construction and the housing crisis also means supply is falling far behind demand. These factors underpin the long-term viability of our national accommodation industry.
On the international tourism front, there’s still so much upside to be had. TRA data released in April showed we’re 30% down on pre-Covid 2019 levels. But the important thing is it’s trending up and will continue to grow. The Australian dollar makes us good value.
The lack of residential buildings has also seen properties repositioned to government housing and a lot of Airbnbs leave the short-term market as investors cash out.
All this bodes well for occupancy to grow even further.
AVERAGE DAILY RATES
Demand is further proven by ADRs which have sustained their huge jump post-Covid. Whenever I get the chance to talk to vendors, I’m encouraging them that even if occupancy softens slightly to hold their rates. With operating expenses going up in all industries, your profit is in the rate.
You’re much better to have an accommodation business running at 72% occupancy and holding your rate than having 85% occupancy at a lower rate. For those operating under a dynamic pricing model, ensuring your floor price isn’t too low is important for this reason. The great news is that ADRs are ahead of increasing wages and other costs.
Let’s keep it that way!
“What has traditionally underpinned the Australian accommodation industry has come back into focus: being your own boss, enjoying great returns and having a home to live in.”
BUYER DEMAND
For FY25, we only see buyer demand rising further for existing accommodation stock, consolidating the interest we’ve seen this current financial year. In FY24, ResortBrokers fielded our largest ever number of buyer enquiries. We received over 11,000 enquiries on our listings, an 18% increase on last year.
What has traditionally underpinned the Australian accommodation industry has really come back into focus: being your own boss, enjoying great returns that outpace inflation and interest rates, and having a home to live in, as most accommodation businesses come with an owner’s or manager’s residence.
This is what originally created the success and demand for management rights and leaseholds, and this is where we’ve seen increase in buyer demand this financial year.
Don’t get us wrong, there’s still many buyers looking for going concerns and passive investments. But even more excitingly we’re seeing new investor groups who now appreciate that leased hotels are very secure investments because it is their tenants’ home and business in one.
Tenants have real skin in the game and will ensure the rent is paid and the property maintained. I’m always excited when we convert investors from other industries to accommodation assets. They often come for the higher yields but stay because they realise that long-term tenure means they actually have their asset being looked after like it’s their own. The same can’t always be said for other asset classes!
LONGER SETTLEMENT TIMES
Despite all the good news and activity, it also creates a challenge as it means suppliers such as banks and valuers are busier than ever. This is combined with more supply coming onto the market. This is due to all the operators who came out of Covid enjoying a couple of years of exceptional trade but who are now tired and ready to exit.
For FY24, transactions took 178 days on average to settle, compared to 146 days the previous year. Now, more than ever it's vital that vendors engage brokers who properly qualify buyers and have relationships with associates to enable settlements to proceed smoothy and in a timely fashion.
BRING ON 2025
The good news is that FY25 is shaping up as another belter. ResortBrokers is going into FY25 with over 100 deals and 213 listings and the underpinning drivers of the accommodation industry remain strong.
Considering factors preventing new supply such as the housing crisis, soaring build costs and public sector infrastructure projects diverting construction away from the private sector, securing an accommodation asset, whether it be for the short-, medium-, or long-term, is a safe bet. Even better news for sellers is that our accommodation industry, once a wellkept secret among certain investors, is starting to become better known. This is bringing more and new buyers to the market. This is great news for us all. Bring on FY25. END
49% increase in volume of deals
59% increase in combined worth of deals
11,000+ enquiries on our listings (up 18% on FY23)
Words_Trudy Crooks, Managing Director
Six of the Best:
ResortBrokers’ top FY24 deals across the country
Gabba Central Apartments
Brisbane, QLD
This off-market deal saw the management rights to the 317-key inner-Brisbane apartment complex change hands for more than $10M.
Quest Apartment Hotels
Sydney, NSW
We sold many Quest franchises this year. The ever-increasing value they enjoy highlights the strength of the Quest brand. We were excited to see multiple offers and first-time Quest buyers for our two largest Quest deals: the 88-apartment Quest Liverpool and 59-apartment Quest Cronulla Beach.
Cradle Mountain Highlanders
Cradle Mountain, TAS
ResortBrokers sold the freehold going concern of this 16-cottage boutique resort to a Sydney couple, one of five highly competitive offers we received from buyers right around the country.
Blazing Stump Motel & Suites
Wodonga, VIC
This 66-room motel sold and settled within 11 weeks of listing to a cash buyer for a record per key price and yield for regional Victoria.
The Presidential Accommodation
Mt Gambier, SA
The freehold going concern of this 53-room motel sold quickly through our national network to one of our repeat buyers. The deal highlights our national team and conjunctive culture that creates value for our vendors. The more eyes on your property the more dollars in your pocket!
Harvey Rainbow Caravan Park
Harvey, WA
Interest in WA has never been stronger. Returns are often greater than the eastern seaboard, which made the purchase of the freehold going concern of this 65-key caravan park a savvy purchase.
Fresh Face for Brisbane ResortBrokers’
For the last three years, Nathan Benjamin has more than capably represented ResortBrokers in Central Queensland. He did so well, we offered him a gig in Brisbane.
Nathan Benjamin
nathanb@resortbrokers.com.au 0459 955 649
Nathan Benjamin is our ‘new’ broker for Brisbane, serving the hotel, motel and caravan park market.
While new to Brisbane, Nathan is an old hand for ResortBrokers. As our broker in Central Queensland since 2021, he distinguished himself through his impeccable customer service, total command of the details of his transactions and great expertise is converting sales to settlements, achieving 17 in total.
Nathan’s notable sales include Gladstone Downtown Central, Emerald Inn, Saltbush Retreat (Longreach), Harbour Sails Motor Inn (Gladstone) and Highpoint International (Gladstone).
“Central Queensland has treated me well and I’ve made many strong long-term connections with buyers right across the country during my time there,” says Nathan.
“ResortBrokers’ great strength is our national buyer network, which is second to none. It’s brokers like me establishing great relationships with buyers around Australia."
"I’ll be leveraging that incredible network for my clients in Brisbane, just as I did in Central Queensland, to get results for them. Ultimately, that’s what we’re judged on: our ability to deliver results for our clients.” END
QTR 4
Our Top Sales & Listings
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.
Vantage Benowa
GOLD COAST, QLD
Vintage Benowa is a master-planned community of 328 apartments across four buildings set on 2 ha of parkland near Royal Pines Resort. This businessonly management rights was sold as a going concern for Stages 1-3 and off-the-plan for Stage 4.
Syd Douglas M: 0427 973 537
Todd Warner M: 0438 170 763
Broome Beach Resort
BROOME, WA
This nifty 35-unit resort in one of WA’s most sought-after beach destinations has sold.
Blair Macdonald M: 0433 149 144
Glenn Millar M: 0412 277 804
SETTLED
SETTLED COOMA, NSW
Altair Motel entered the next chapter of its storied life with the sale of the freehold going concern to new owners. A Snowy Mountains institution for 67 years, Altair Motel was built in 1957 by motel tycoon George Frew as the first Commodore motel that grew to a chain of 700 across Australia and New Zealand during the ‘60s and ‘70s.
Russell Rogers M: 0416 166 909
Grand Mercure Apartments
SETTLED MAGNETIC ISLAND, QLD
Airlie Beach luxury accommodation specialist At Hotel Group bought the management rights to the 124-apartment Grand Mercure Apartments Magnetic Island in an off-market deal.
Des Fagg M: 0427 849 119
Sussex Palms Holiday Park
SUSSEX INLET, NSW
The freehold going concern of this colourful, boutique style caravan park in NSW’s picturesque Shoalhaven region has sold.
Russell Rogers M: 0416 166 909
Central Springs Inn LISTING DAYLESFORD, VIC
With a new 30-year lease, this beautifully maintained, 26-room historic hotel in Daylesford is set across two heritage buildings.
Hugh Thomas M: 0420 996 319
Altair Motel
One of Stanthorpe’s prime accommodation offerings, the freehold passive investment of the 19-room Granite Belt Motel has sold. Jason Vogler M: 0427 431 213
Quest Bundoora
ResortBrokers sells more Quest franchises than any other agency. Our latest sale was the 4.5-star, 76-key Quest Bundoora that boasted a net profit of more than $1.4 million and was underpinned by a 30-year lease.
Jacqueline Featherby M: 0424 497 056
VIC
This multi-award-winning independent hotel, which enjoys a dominant position in the corporate guest market in Sale, a major service hub in Gippsland, is being offered to market for the first time since it opened in 2013.
The freehold passive of this 53-key Quest hotel posted an annual net rent of over $862,000 for FY23. Quest owners and franchisees entrust us to sell their assets because no one understands them like ResortBrokers.
Chris Boschetti M: 0428 812 434
This diverse, 170-guest rural accommodation business is one of the Tweed Byron Hinterland’s most in-demand wedding accommodation and reception venues. Miguel Bozina M: 0419 848 444
We sold the leasehold of this 23-key, 4-star motel, achieving a record yield of 20.23% for Noosa's highly competitive accommodation market.
David Faiers M: 0432 766 788
The Quirky
Weird, wacky and whimsical, the oddballs of Australia’s tourism are worth celebrating. Here are Informer’s top 30 quirky accommodation businesses across our wondrous land.
Words_John Miller
Thirty
QUEENSLAND
Alkira Resort House & Rainforest Retreat CAPE TRIBULATION
Nestled in the primordial wonder of the Daintree Rainforest in Far North Queensland is a wonder of its own.
This one is man-made and sits, as if floating, over a lake that is also artificial, though it looks as if it has been there since time began.
Is it the Millennium Falcon landed on the ancient forest moon of Endor? Or is it the lair of a James Bond villain? Or perhaps an expression of brutalist architecture? Or is it reminiscent of the concrete creations of architects Eero Saarinen, John Lautner and Tadao Ando?
Alkira Resort House and Rainforest Retreat is all of these things and none of them. It is, essentially, its own thing. Its mastermind, the architect Charles Wright, says Alkira has a number of subtle influences though no one particularly.
“There’s all sorts of things people read into it,” says Wright. “That’s what potentially captures people’s imagination with Alkira. I think that’s the fun. There’s a lot of different ideas in it. It’s all the things that formulated in my imagination and came together. In a lot of ways I took the opportunity to design Alkira as a piece of land art.”
Alkira is not art for art’s sake. It is a functioning boutique resort, sleeping only 12 guests across six rooms, each of them cantilevered wings as if they were the petals of a lotus flower sitting on a pond.
In 2008, Wright was commissioned by the resort’s original owner, the late philatelist Rod Perry and wife Madel, to design Alkira as a private residence. The Perrys gave Wright a blank canvas to create his land art over 26 hectares of primary rainforest, which is connected via a short walk to a 600-metre private beach across from the Great Barrier Reef.
Alkira sits in almost perfect isolation about an hour and a half’s drive north of Port Douglas. Now connected by road to the rest of the area, the resort also has a helipad for guests arriving via the 25-minute flight from Port Douglas or 40-minute flight from Cairns.
“I wanted to create something really special,” says Wright. “It is such an amazing location with the mountains silhouetted, particularly as the sun goes down. One idea in creating the lake was to reflect the building, the sky, the mountains and the rainforest all in one.”
Wright’s design serves both form and function. The Perrys were concerned about safety given the building’s precarious location. North Queensland’s infamous cyclones, floods and king tides had to be protected against. The Perrys asked Wright to design something they could feel completely safe in and wouldn’t have to evacuate for extreme weather events.
“There’s not that much that can happen to it,” says Wright. “It’s like a bunker. It was designed with raw materials that wouldn’t corrode. It’s the sort of building that will be there for a very, very long time.”
Completed in 2013 followed a build that took three to four years, Alkira earned instant praise, winning the 2014 AIA Robin Dods Award for Residential Architecture and the 2014 AIA FNQ House of the Year Award. Now in its 11th year of operation, Wright says Alkira is holding up extremely well, just as he planned. The building is designed to withstand a Category-5 tropical cyclone.
Two back-to-back cyclones, Category-4 Jasper in December 2023 and Category-3 Kirrily in January 2024, recently put Alkira to the test. The road to Alkira, up to Cape Tribulation north of the Daintree River, has only lately reopened following damage and repair caused by those cyclones.
“Cyclones create flying debris and storm tides can create havoc. Alkira is designed to weather all that,” says Wright. “It’s part of the reason why it’s all sort of elevated. Lifting it up and over the lake, it’s like an elevated living platform. Other than the lake’s beauty there’s also a practical element to it. The lake is almost like a moat, a medieval moat if you like, for security if you want to lock the place down to be secure.”
In designing Alkira, Wright incorporated something of the Perrys as well. From philatelic dealer Rod Perry comes Alkira’s original name, Stamp House. His wife, Madel, is originally from the Philippines which has a long tradition of architecture on stilts, which are quite often close to the water’s edge and even over the water in some instances.
“I like to make our projects about the client,” says Wright. “So that informed the creation of Alkira too.”
The Perry’s also wanted a sustainable estate that would operate as carbon neutral in its off-grid location.
“For its time it was pretty out there,” says Wright. “It would have been one of Australia’s first largest private solar developments with lithium battery stores.”
Now owned by Melbourne entrepreneur David Brandi, with bookings managed by Brisbane-based Luxury Holidays, Alkira is currently on the market.
“We would have liked to keep it, but circumstances require that we let it go to new owners,” says Brandi. “I hope it goes to someone who appreciates the property for the beautiful place that it is.”
QUEENSLAND
Reefsuites WHITSUNDAYS
Fancy sleeping with the fishes? (No, not Luca Brasi Godfather style.) Australia’s first underwater accommodation gives guests a window into the submerged sea life of the Great Barrier Reef. You can literally talk under water in this marine marvel.
cruisewhitsundays.com
Kernow CHARTERS TOWERS
Mental asylum Mosman Hall opened in 1954 to house as many as 600 inpatients. Since 2106, it has operated as Kernow, an award-winning property of 15 luxury apartments set amid a sprawling 90-ha site five minutes’ drive west of downtown Charters Towers. Mad, we know.
kernowcharterstowers.com.au
Discovery Resorts – Undara MOUNT SURPRISE
Three and a half hours’ drive from Cairns, these beautifully restored railway carriages turned deluxe rooms on the fringe of Undara Volcanic National Park in tropical Far North Queensland is a past winner in the unique accommodation category of the Australian Tourism Awards.
discoveryholidayparks.com.au
Barrel View Luxury Lodges
BALLANDEAN
There is no greater tribute to viticulture than a barrel of the stuff. This Ballandean property has three of them, and is perfect for couples who want to drink in the panoramas of the nearby Girraween and Sundown national parks.
barrelview.com.au
The Old Church Bed & Breakfast BOONAH
The Mouses House SPRINGBROOK
This fairy-tale getaway in Springbrook National Park in the Gold Coast hinterland, has named each of its rainforest chalets after a folklore character: Sleeping Beauty, Prince Charming, Cinderella, Wicked Witch, Snow White and her seven dwarves (or little people, if you prefer): Bashful, Grumpy, Sleepy, Doc, Sneezy, Happy and Dopey. Heigh-ho.
mouseshouse.com.au
Built in 1874, this former Methodist Church once served the spiritual needs of German migrants who powered the local timber industry. Today, this delightful heritage B&B serves the temporal needs of guests visiting Queensland’s Scenic Rim.
The Canopy Treehouses ATHERTON TABLELANDS
Think Tarzan but with less creatures and more creature comforts. These two-storey luxury treehouses in the heart of the Atherton Tablelands come with gourmet kitchens, fluffed beds and spa baths to luxuriate in as you listen to the dulcet sounds of warbling Cassowaries.
canopytreehouses.com.au
Twinstar Guesthouse & Observatory
BALLANDEAN
Astro-lovers take note. Twinstar Guesthouse in Ballandean has its own observatory. Guests can explore Orion’s belt from the Granite Belt via a Dobsonian telescope housed in a 4.5-metre dome.
twinstarguesthouse.com
NEW SOUTH WALES
Capsule Hotel SYDNEY
Capsule hotels were pioneered in Japan in the late ‘70s. This hotel, near Town Hall in Sydney’s CBD, became Australia’s first in 2017. Capsule Hotel brings past and future together; this futuristic flophouse is located inside an historic Art Deco building that used to house Century Tavern. Each of the hotel’s 72 pods come complete with a TV, Wi-Fi and a chicken-switch SOS button should you feel entombed.
thecapsulehotel.com.au
Q Station did “iso” long before it was a Covid buzzword. From the early 1830s to 1984, North Head Quarantine Station was Australia’s longest operating isolation facility for boat-arriving migrants suspected of carrying contagious diseases. Now reimagined as a luxury hotel, the only thing you’re likely to catch here is a stiff sea breeze.
Gracelands PARKES
Hotel Gracelands is the spiritual home of Parkes’ world-famous Elvis Festival which draws around 25,000 lovers of the King of Rock and Roll to the Central West town every January. Is it fit for a king? Maybe not, but the hotel has enough Elvis memorabilia splashed about the place that we can’t help falling in love with it.
Roar & Snore
TARONGA ZOO SYDNEY taronga.org.au/accommodation
sleepover like no other. Nestled in the grounds of Taronga Zoo, guests enjoy safari-style tents with harbour views and a chance to commune with the animals by way of a guided night safari followed by a regular zoo tour the next day.
The round front door says Hobbit, but the rock screams Flintstone. At $900 a night, this luxury cave in the Blue Mountains isn’t
Another Blue Mountains marvel. Australia’s oldest resort-style hotel, the 65-room heritagelisted Carrington Hotel is loftily located in Katoomba. Opened in 1883, this venerable lady was restored to her former glory in 2004.
one is fit for a king. An hours’ drive from central Sydney, Marramarra Lodge hosted King Charles on his first trip to Australia in 1966. Accessible only by boat or plane, this regal wilderness escape of 14 luxury lodgings is framed by the pristine Marramarra National Park and the gentle beauty of the Hawkesbury River.
Located two hours’ drive northwest of Sydney in the scenic Macdonald Valley, this exquisite two-storey sandstone tavern was built by an emancipated convict in 1836. Today, the 188-year-old inn, accommodating up to 12 guests, is the centre of life in historic St Albans.
VICTORIA
Hotel No
MELBOURNE
Take six ‘70s-era Airstream trailers, lift them onto a Melbourne CBD carpark rooftop, deck them out in minimalist style awash in white, and what do you have?
“Not a hotel, but an experience,” says owner James Fry. At the end of the day, it’s a trailer park on a roof. But we still love it.
hotelno.melbourne
Mira Mira CROSSOVER miramira.com.au
Assistant Lightkeepers Cottage GABO ISLAND
Ninety minutes’ drive from Melbourne lies this panoply of fantasy accommodation that includes a treehouse, a cave dwelling and a Zen garden. The Magic Faraway Tree takes its inspiration from famed Spanish architect Antoni Gaudi; The Cave House has been carved into a hillside; and Japanese Zen Retreat, which lies on a tranquil pond, was influenced by the design of Kyoto Imperial Palace.
Gabo Island in East Gippsland is one of the most isolated parts of Victoria and you can’t get more isolated than this lighthouse. Accessible only by plane or boat, the 47-metre-high lighthouse was built in the 1850s to warn sailors of the perilous rocks along the island’s coast. Today, the cottage that was once the lightkeeper’s residence is a boutique accommodation property lodging up to eight guests.
parks.vic.gov.au
SOUTH AUSTRALIA
The Old Mount Gambier Gaol MOUNT
This 150-year-old former jail housed prisoners at His/Her Majesty’s pleasure. Now, you can stay at your own pleasure. But pack lightly. These ex-prison cells are much smaller than most hotel rooms: six by four metres.
The Underground Motel COOBER PEDY theundergroundmotel.com.au 22
23
Thorngrove Manor Hotel ADELAIDE
Coober Pedy has a number of subterranean digs, but The Underground Motel set the trend back in 1984. Hewn from sandstone, this dugout accommodation pays tribute to the town’s cave-dwelling opal miners in the Stuart Range, which lies about 10 minutes’ drive southeast.
A pseudo castle in the Adelaide Hills; what’s not to love? The critics certainly do. Thorngrove Manor Hotel has won a swag of awards since opening in 1984. Its baroque architecture features turrets, towers and spiral staircases. Romeo, meet Juliet.
thorngrove.com.au
TASMANIA
Silo
We now live in information silos, so we’re told. But at Peppers Silo Launceston you can live in a real silo. Well, a repurposed one at least. This 108-room hotel opened its doors to guests in 2018, having transformed the old Kings Wharf grain silos that date from 1960.
peppers.com.au/silo
Point
Strikingly set almost 300 metres out on Lake St Clair at the southern end of the World Heritage-listed Cradle MountainLake St Clair National Park, this former hydroelectric pumphouse dating from the 1930s is now a 12-suite boutique hotel.
Located about two hours’ drive north of Hobart, this boutique lodge is a former Antarctic training camp. Reimagined as a nine-guestroom lodge in 2017, this offthe-grid alpine experience has no Wi-Fi, no TV and patchy mobile coverage. In return for this profound 21st century disconnect, you get the timeless beauty of the Central Plateau Conservation Area.
Is the world your oyster? If not, this pearl farm turned glamping guesthouse at the tip of the Dampier Peninsula is the next best thing. The farm dates from 1946 and flung open its doors to guests in 2009. In 2023, it won gold in the unique accommodation category at the Australian Tourism Awards.
TERRITORY
winner in the unique accommodation category at the 2023 Australian Tourism Awards, Jamala Wildlife Lodge lets guests live among the animals Dr Doolittle style. In the Giraffe Treehouse, guests can handfeed these rubbernecks from their balcony, while the Jungle Bungalow overlooks habitats of lions, tigers and sun bears. Lions and tigers and bears? Oh my.
Multi-award-winning luxury corporate hotel showing 10% & growing
This is a true turnkey opportunity to own a highly lucrative, multi-awardwinning hotel that enjoys a dominant position in the corporate market in a major economic centre in Victoria’s thriving Gippsland region.
Sale is a major service hub of Gippsland and the administrative centre of Wellington Shire. The city has long been key to Gippsland’s natural gas industry and is positioned to continue its importance as a major centre for the region’s emerging renewable energy sector.
For FY24, Mansi on Raymond has a projected net profit of $1,309,708. The hotel’s exceptional financial performance is underpinned by its robust corporate trade, which comprises approximately 73% of occupancy. Energy multinationals, RAAF subcontractors and local government make up over 60% of Mansi on Raymond’s corporate base.
There is enormous scope to grow overall occupancy beyond 75% by targeting the leisure market, particularly weddings and corporate retreats.
Astute buyers should be quick to consider this incredible opportunity to own and operate arguably one of Gippsland’s best corporate hotels with a strong and established trading history of over 11 years — and a golden era ahead of it given the importance of the city of Sale to Victoria’s future economic prosperity.
• Multi-award-winning luxury hotel in the strategic city of Sale in Gippsland
• True turnkey opportunity, no CapEx required
• Solid trading history of over 11 years
• First time to market since opening in 2013
• FY24 projected net profit of $1,309,708
• Exceptional occupancy of 75% underpinned by solid 73% corporate trade
• Exceptional guest reviews/ratings on Booking.com, TripAdvisor and other OTAs
• Award-winning hotel of several prestigious industry prizes Chris Boschetti
$1,309,708
Billionaire THE UNLIKELY
Morris Group founder Chris Morris talks to Informer about creating Townsville’s first five-star resort, his extraordinary business career and the passion that continues to drive him into his 77th year.
Words_John Miller
If wealth is the measure of a man, then Chris Morris has more than $1 billion in his ledger to gauge it.
But riches are a poor measure. Money doesn’t define Morris, nor has it ever been his motivation. So, what is? An entrepreneurial spirit, an eye for an opportunity, sound business instincts, a high risk tolerance, recruiting the right people, family, learning from mistakes, a belief in the possible, keeping it simple and a straight-talking frankness that is refreshingly out of place in today’s word-watching, hyper-politically correct culture — all are characteristics of Morris that have contributed to his phenomenal business success. But Morris Group’s eponymous founder says his success would have been unlikely without his signature quality: an endless enthusiasm for everything he does. “Passion. That’s it. If you’re not interested in it, don’t do it,” he says. “Don’t expect to make money. Don’t think about money. Think about doing something you really want to do. If you do that, you’ll be successful. Well, hopefully you will. I wouldn’t advise anyone go into pubs.”
He delivers the last line with a wry laugh. Morris estimates he’s lost $40 to $50 millions on pub investments over the decades.
But those losses pale against the hundreds of millions he has made, initially with Computershare, and, since 2011, in luxury accommodation in North Queensland. First was Orpheus Island Lodge, then The Ville ResortCasino in Townsville and Mt. Mulligan Lodge, an outback retreat southwest of Port Douglas. Recently, Morris Group has added two luxury offerings to its portfolio: Pelorus Private Island and Ardo, Townsville’s first fivestar resort, which opened prior to Christmas. The name Ardo hints to Morris’ prime motivation, deriving from ardour, meaning great enthusiasm.
Talking to Morris about his career, it’s clear he had no grand plan to conquer the world. Did the business cases stack up before he made any of his ventures? “Never,” he replies with characteristic bluntness. So it was with Ardo.
Many told him a luxury resort wouldn’t fly in Townsville, a city nowhere near as touristy as Cairns, its North Queensland rival. “But you don’t know until you try,” says Morris. When he bought The Ville in 2014, he described it as “the worst performing casino in Australia.” Now, it’s one of the best investments he’s ever made, one that helped bankroll Ardo, almost a decade later.
Instead of a grand vision, Morris’ success is a result of him doing nothing more than following his interests and having the inherent nous to make a go of things.
“When I was young, I never thought about being successful,” he says. “I just loved doing what I was doing and always did. I always knew I would run my own business. I’ve always been a little bit entrepreneurial. I started working in orchards at 10 and my first business was growing tomatoes when I was about 17. But really, it’s passion. I was passionate about Computershare. I’m passionate about what I do now.”
Morris made the big time with Computershare. He was well ahead of the curve, seeing the potential of computers much earlier than others. He started Computershare in 1978 in his hometown of Melbourne prior to the personal computer revolution taking off in the 1980s. Computershare was a tech start-up, long before the term gained currency in the dot-com boom of the late 1990s, early 2000s.
Computershare initially provided computer services to businesses before it became a share registry. In 1994, it listed on the ASX (quintessentially with the code CPU) with a market cap of $36 million. Today, Computershare has a
“Passion. That’s it. If you’re not interested in it, don’t do it.”
market cap of over $16 billion and is a global player, active in 28 countries with 18,000 employees, providing financial services for companies to manage their shareholder engagement.
“Computershare is the best investment I ever made,” says Morris. “It’s the proudest thing in my whole life because I started it. Now, we have more shares and assets under management than any other business in the world. We do 20 of the top US companies. Because we have a banking licence in every country, we can handle global deals. None of our competitors can do that. It’s quite phenomenal.”
Morris’ introduction to computing was also not part of any visionary life plan. He has his mother to thank for it. Worried her teenage son wouldn’t find employment, Morris’ mother enrolled him in Australia’s first ever computer course in 1966.
“I could never sit down to study or anything. But computers really clicked with me,” he says. “I loved programming. It got me up in the morning.”
Morris’ passions still make him an eager riser. “I wake up at 5 o’clock every morning and get the results of what happened last night at the casino,” he says. “Whether I won $100,000 or lost $100,000.” Morris bandies around vast sums of money like they are small change, but nonchalance is understandable when money isn’t your motivation.
All of Morris’ business interests in North Queensland can be traced back to a single advertisement in the Australian Financial Review. Reading the paper one morning in 2011, he saw an ad for Orpheus Island, one of the Palm Islands off the coast north of Townsville, and bought it on a whim.
“I’d always wanted an island for some silly reason,” he says. Morris purchased Orpheus for $6.25 million and turned it into arguably the best luxury island resort in Australia, albeit an elite one with only 14 lodgings at a minimum cost of $1,925 a night.
It proved such a hit that Morris decided to replicate the success with a second island retreat directly north
of Orpheus, Pelorus Private Island. Opened earlier this year, Pelorus is even more exclusive than Orpheus with only five lodgings and bookings limited to a single group starting from $20,000 a night.
So many of Morris’ business decisions are instinctual, not given to overthought, and often comprise a chain of events, one thing that leads to another then another then another. He needed to supply Orpheus, so he bought a fleet of helicopters, Nautilus Aviation, for the airlift from Townsville, 30 minutes’ flight away.
Now, he has over 40 of them operating from seven bases across Northern Australia.
Morris needed a place in Townsville to lodge his guests in transit to Orpheus as well as his helicopter crew, so when The Ville came up for sale, he bought it because “I’d always loved casinos,” he says matter-of-factly.
What convinced him Townsville was ready for a five-star resort? Another gut feeling. “If it wasn’t next to a casino and I didn’t own the casino, I wouldn’t have done it,” he says. If Cairns had been his base, Morris says he probably would have bought The Reef Hotel Casino.
How much room does he think there is at the premium end of Townsville’s accommodation market for more hotels of Ardo’s calibre? “None, I hope, other than the one I plan to build next,” he says.
I ask how Morris Group’s guest marketing differentiates Ardo from The Ville. Again, another Morris’ lesson in not overthinking.
“We probably spent too much money worrying about that sort of thing,” he says. “One is a casino. The other is a luxury hotel next to a casino.”
“It’s a lot to do with restaurants too. We definitely have the best restaurants in Townsville. We put in a steak-andseafood restaurant, Marmor. There wasn’t a Japanese restaurant in all of Townsville. There is now. [Terasu.] Many told me, ‘Look, no one will ever come to these places up here.’ But people are loving it.”
Ardo, like Morris, is minimal fuss. Its streamlined exterior is sleek, fresh and modern with echoes of Art Deco.
For the design, Morris brought in his long-time associate, David Dubois of Dubois, after firing two architects who told him what he wanted for Ardo was impossible. Dubois had worked as a design consultant on Morris’ personal residences, as well as refurbishments of Orpheus and Mt. Mulligan. His brief from Morris was simple.
“My only instruction was that Ardo’s shape should take advantage of the views, plus I wanted a top-floor bar, swimming pool and restaurant,” he says. “I’ve been to a lot of hotels in the world and there’s nothing with a view like Ardo where you’ve got 360 degrees, no other building looking at you. Also, it’s beautiful weather up there, so people want to sit outside, which is why Ardo has big balconies. David has done a brilliant job.”
Creating outdoor spaces was key to Morris’ reinvention of The Ville too. The casino was failing when he took it over, partly because it lacked any al fresco venues to enjoy a drink or meal. So, he created an expansive one on the water, naming it Quarterdeck after the old buoy at the marina. Now, it’s a Townsville institution and has played a major part in reviving the casino’s fortunes. Morris says Townsville people are now proud to say they live there, and that he’s happy to have given them something to be proud of with The Ville and now Ardo.
Morris has a thing for water. “Anything with a water view,” he says. “I’ve got a number of places around the world. From all of them I can see the water. Water has a soothing aspect for me.” Morris and his wife now mostly reside on the Gold Coast, having relocated from Melbourne during Covid. They also have a place in Cannes, which they use as a base for “wandering around the Mediterranean” in a boat. The Med, Morris says, is the opposite of North Queensland waters. Many boats and no fish, compared to North Queensland’s lack of boats and many fish.
Morris’ current passion is trying to develop a superyacht marina for Townsville.
“There are so many boats in the Mediterranean, you can’t get a mooring,” he says. “You have to pay to go onto a beach. That’s the beautiful thing about Australia, you can go anywhere and don’t need to pay. We just need more places where yachts can pull in.”
There will be some who tell Morris his marina is impossible. But like so many of his business ventures, Morris is likely to rebuff the naysayers.
That is another contributing factor to his remarkable success: his willingness to seize the gauntlet to prove people wrong by turning the unlikely into the likely by following his own lights and passions.
“My dad was a dentist,” says Morris. “When I was studying computing, he told me, ‘Son, it’s really good you’re doing that, but you have to understand you’ll never make as much money as me.’ That was very motivating for me at a young age. I said, ‘I’ll prove to you that I can.’” END
Morris’ Rules
Recruiting
“My first rule for hiring people is don’t hire anyone with an ego. They destroy businesses. You want people who are thinking more about the business than their own success.”
Teamwork
“I learned from building Computershare that the hardest thing is to get staff globally to work together and help each other.”
“I’ve been to a lot of hotels in the world and there’s nothing with a view like Ardo.”
Straight talking
“Be honest with people. If they’re not right for the job, tell them, and suggest they move on.”
Qualities &
Qualifications
“Practical experience is better than any education.”
Managers
“It has taken a while, but I’ve now got some really good managers at Morris Group, so I can afford to do silly things like buy islands.”
Own and operate one of the Tweed Byron Hinterland’s most in-demand wedding accommodation and reception venues.
Adjoining World Heritage-listed Nightcap National Park, Midginbil Eco Resort is a gorgeous 92.8-hectare rural estate based around an historic homestead built in 1906.
This multi-award-winning resort has established itself as one of the most popular wedding accommodation and reception venues in the Tweed Byron Hinterland. The resort specialises in two-night, three-day wedding packages as well as groups and retreats. Midginbil can accommodate and cater for as many as 170 guests across a diverse range of lodgings. Guests can choose from motel-style accommodation, bunkhouse rooms, elevated glamping accommodations, bell tents or bring their own caravan or camper.
The resort is generally booked out several months in advance and has an excellent, well-earned reputation with wedding planners operating in the Tweed Byron Hinterland’s lucrative destination wedding industry.
• Idyllic lifestyle and highly profitable business
• Opportunity to expand operation
• Well established and booked up several months in advance
• Significant infrastructure already in place
• Demand from guests exceeds supply, opportunity to expand
• Stunning grounds in sought-after Tweed Byron Hinterland
• 10 minutes to town and under 1 hour to Gold Coast International Airport
• Close to Gold Coast and Byron Bay
Bozina
Incredible tightknit group of apartment complexes netting over $1.1M
This is an exclusive business-only permanent management rights investment of high quality and genuine scale that is rarely seen in the industry. Located in a premium growth area of the Sunshine Coast, this exceptional mid-rise apartment complex is nestled in a tranquil setting with amazing access to surrounding amenity. Boasting a verified net profit of $1,152,885 per annum, the business offers superb security for incoming owners with the BC salary portion making up nearly 50% of the net income.
In total, there are 423 apartments offers swimming pools with BBQ areas, a gym, two rooftops and one property with a private boardroom. There are also three onsite offices and multiple storage rooms, all under occupational authority.
The letting pool currently sits at 298. There are no set office hours, with current staffing looking to stay on and current owner happy for them to be kept in place
Staffing includes three full-time and one part-time maintenance employees, two common area staff and contract cleaners.
Without doubt one of the best large-scale management rights opportunities on the market. Perfect for syndication or private management, this big business offers excellent security and a solid structure enabling an easy transition to new owners.
• Total of 423 apartments with 2- and 3-bedroom designs
• A series of six mid-rise buildings linked by a shared road
• Currently 298 units in the onsite letting pool
• Body corporate salary at $553,549 p.a. represents nearly 50% of income
• Business-only structure with no requirement to live onsite or own real estate
• Three onsite offices under occupational authority plus storage areas
• No set office hours
• Swimming pools with BBQ areas, gym and secure parking
• Well-structured business run under management
Tim Crooks Director of New Developments
Metro on Brushwood
Mango Hill, QLD
Best business on the market - Easy takeover, great income and stunning standalone house
An unmissable opportunity awaits both seasoned buyers and newcomers to the industry to capitalise on the groundwork laid by the current owners of Metro on Brushwood. This thriving management rights business and associated real estate, ticks all the boxes for success.
Offered at an enticing 5.38x multiple, the business boasts a verified net profit nearing $310,000, with minimal facilities to maintain, just a small gym and gardens and no pool. With the freedom of no set office hours, this meticulously maintained complex of 79 townhouses is a breeze to manage.
The current owners have streamlined operations, employing one part-time property manager who resides onsite in the fantastic four-bedroom manager’s townhouse, complete with an attached office. Reap the rewards of all the hard work done by current owners with all systems efficiently in place and comprehensive handover support available, offering a turnkey solution for the incoming manager.
Enjoy the flexibility of residing off-site and retaining the existing property manager. Alternatively, move in and take advantage of living in one of the best manager’s residences you will find. The choice is yours.
• Comprises 79 townhouses with 3- and 4-bedroom designs
• Currently 69 townhouses in the letting pool
• Great body corporate salary of $112,451 p.a.
• No set office hours and 22 years remaining on agreements
• 5-star standalone manager’s house with 4 bedrooms and large outdoor area
• Attached manager’s office under same freehold title
• Small committee made up of 3 investor owners living off-site
• Significant growth potential in rental income not reflected in P&L
• Well-structured business, easy to run and takeover with supportive handover
• Option to retain the part-time property manager and live off-site
Jeff Keast Broker, Brisbane
Keep Your EYE on ROI
Focusing on multipliers when selling management rights is missing what’s most important.
Words_Jeff Keast, Brisbane Broker
There’s no doubt the dual effect of rising interest rates and capital growth has impacted the management rights market.
Interest rates are in focus right across the country. At the time of writing, monthly inflation figures for April show inflation has crept up from 3.5% to 3.6%. This is the second month in a row where expectations of slowing inflation have slightly overshot, which may increase the likelihood of another cash rate hike that no one wants to see. For now, the monthly rises we’d grown accustomed to since May 2022 have paused and the cash rate has steadied at 4.35%.
With the interest rates rises we’ve seen in the last couple of years, borrowing costs are significantly higher. This means buyers of management rights businesses are more sensitive around price compared to six to 12 months ago.
Don’t get me wrong, there are buyers out there, and they want to buy, it’s just that no one is paying overs in the current market. They are looking at return much more stringently than when money was cheap. And it was cheap for over a decade, meaning re-adjustment is in the air.
Which brings me to the subject of multipliers.
It’s a real education piece to convince sellers to not overly focus on multipliers, particularly sellers with real estate attached to their management rights, whether it’s a manager’s unit or office.
Traditionally, multipliers have acted as a sound guide of the state of the market for sellers of management rights businesses. But that’s no longer the market we’re in. Sellers have this preconceived idea that multipliers have gone up since they bought in, so they expect multiplier uplift when they sell. While it’s broadly true that multipliers have risen, it’s mostly for business-only management rights, or those with high net profits, and generally not businesses with attached real estate.
At the same time, we’ve also seen huge capital growth, particularly in Brisbane. Queensland's capital is now Australia’s second-most expensive real estate market in the country, displacing Melbourne (Sydney retains top place).
So, the value of real estate attached to management rights has risen greatly. Furthermore, in recent months, apartment growth in Brisbane has also outpaced housing growth, which is
offering even greater capital gains in units and complicating expectations around multipliers even more.
Sellers want both the capital growth on their real estate and a multiplier uplift. But in the current market you can't have your cake and eat it too.
With real estate tied to a management rights agreement, unfortunately you can’t have your cake and eat it too. Not in this market. Say an operator bought a management rights business netting $200,000 with a manager’s unit for $500,000. Now, three years later when they want to sell, the unit is worth $620,000.
But in their mind multipliers have also gone up, so they want a higher multiplier. If a seller says they want a 5.5x multiplier for their business and $120,000 in capital growth on their manager’s unit, when you do the calculations on what they bought in at and what the selling price should be now, the numbers rarely stack up from a returns perspective.
With the current rent crisis, operators have also had strong rental increases so their letting income has gone up.
But many operators have also lost a number of units from their letting pool, which has offset those increases.
Savvy sellers will always consider the other side; that is, from the buyer’s perspective. The buyer will see it as double dipping if the seller is expecting a high multiplier plus capital growth on the real estate.
The buyer thinks: even though it’s a 5.5x times multiplier on the business, when you add the extra $120,000 of capital growth, the multiplier seems significantly higher, which directly affects this return.
Sellers really need to understand their overall return on investment (ROI), looking at the asset in its entirety. For some, that’s hard to hear, but to do your job as a broker well you need to be straight with your clients and tell them honestly where the market is at. What ROI you’ll get will depend on a range of factors influenced by the individual
Jeff Keast
circumstances pertaining to each management rights business as well as the broader market. However, as this new market continues to emerge, the focus on the figures is paramount.
While ResortBrokers doesn’t set the market, we understand it, so we encourage sellers to talk to us early to avoid developing false expectations.
Like I said, there are buyers aplenty, but we’re in the middle of a market change at the moment.
In every market, you have to meet it on its terms. If you do, you’ll sell.
And by focusing on ROI instead of multipliers, you’ll have a firm footing for negotiation when you do sell at a good (or great!) price. END
Since joining ResortBrokers in 2020, Jeff Keast has established himself as one of Brisbane’s most successful management rights specialists.
In his four years with ResortBrokers, Jeff has sold 45 management rights businesses with a total value of more than $68 million. In FY24, Jeff co-brokered the sale of the management rights of the 81-unit Annexe Apartments for $8.3 million, which set a then record as the first large, short-let management rights to settle in Brisbane since Covid. That same year, he was a finalist for ARAMA’s Sales Broker of the Year Award for the second year in a row.
Annexe Apartments, Bowen Hills 81 apartments
Illumina, Toowong 221 apartments
Victoria Cove, Victoria Point 150 apartments
Savoir Faire, Milton 130 apartments
Zest, Kelvin Grove 43 apartments
Evoke & Motif, McDowall & Bridgeman Downs Sold off the plan
Rare Freehold Going Concern Motel with a strong income on the Great Ocean Road
Resort Brokers is delighted to bring to market this highly desirable, low maintenance, freehold motel in the heart of Apollo Bay.
A rare find in such a sought-after Great Ocean Road location, this easy to run motel sits on a substantial 1,714m block, providing the future owners with scope for growth and development subject to various council consent.
Comprising of 16 well presented keys across 9 motel rooms, together with 2 x 2-bedroom apartments and 5 x self-contained 1-bed apartments. The comfortable managers residence consists of 3 bedroom, 1 bathroom, kitchen and living areas.
The business is a highly profitable and secure business, underpinned by over 7-million visitors annually along the Great Ocean Road, couple with an overlay of corporate travelers.
Beachcomber is centrally located, only a short 5-minute walk to the beach, shops, pubs, restaurants, cafes, golf-course and harbour, whilst offering a peaceful and quiet stay for its guests.
Apollo Bay is a great base for guests as they explore the world famous twelve apostles and Cape Otway National Park.
Properties of this quality rarely come to market and an astute investor will be quick to consider this exceptional opportunity along the world famous Great Ocean Road.
• Well-presented, simple operation freehold and business motel in Great Ocean Road location.
• Demonstrated business success with strong and consistent occupancy
• Centrally located close to beach, shops & dining
• Solid single level brick build
• Generous 1,714m block
Quest Sale Freehold Passive Investment
First-rate Quest freehold passive investment in Victoria’s thriving Gippsland region
With a yearly net rent of $862,632, Quest Sale is an outstanding opportunity to own a rock-solid accommodation asset in Victoria’s economically vibrant Gippsland region.
Gippsland plays a key role in the Victorian economy. With a gross regional product of $22.2 billion, Gippsland is the state’s number one energy producer and comprises a quarter of the state’s agricultural land. Another vital Gippsland component is RAAF Base East Sale, which supports up to 700 personnel as a major training base for the Australia’s Air Force.
Quest Sale’s exceptional trade directly benefits from Gippsland’s powerhouse economy which drives occupancy. Consisting of 35 apartments, opening to 53 keys, Quest Sale presents as a highly attractive hotel due to careful maintenance by the current owner and tenant.
The tenant’s five-year lease expires on 21 May 2027 with four further five-year renewal options to extend the lease to 2047, providing the incoming owner with long-term stability.
Quest Sale enjoys the benefit of belonging to Quest Apartment Hotels, Australia’s leading apartment hotel brand. The incoming owner will have the security of a blue-chip tenant in the form of a Quest franchisee, who operates the hotel in line with Quest’s highly successful franchise system.
• High annual rent of over $862,632
• Sale location under 3 hrs to Melbourne and 45 mins from Traralgon
• 53 keys from studios to three-bedroom apartments
• Wide array of room sizes caters to business/leisure, long/short stays
• Quest franchisee tenant in place until 2027 with 4 x 5-year options to renew until 2047
• Strength of Quest brand, Australia’s leading apartment hotel brand
• Strong occupancy with high calibre corporate clientele
• 60-seat conference facility
$862,632
Chris Boschetti
Byron Bay, NSW
Byron Bay absolute beachfront resort + high net profit over $559K
Paradise beckons, this true sea-change resort lifestyle business on Byron’s beachfront is set among an oasis of tropical palms with absolute ocean views.
Everything about this property conjures luxury, from its quality resort-style facilities to its easily maintained gardens. This pure holiday business, with no owner-occupiers, has an incredibly high net profit of $559,780, with no set office hours and a supportive committee. It is a dream to run.
You can experience all this spectacular beach town lifestyle has to offer mere footsteps from your new luxury home, an impeccably renovated ground-floor apartment independently valued at $1,700,000. This 2-bedroom, 2-bathroom, 1-car apartment has an expansive outdoor courtyard that is perfect for entertaining.
Byron Bay’s soaring popularity as a playground for the rich, famous and sea changers has pushed the market to an all-time high. This is an incredible opportunity to buy into Byron’s ever-rising fortunes and secure a high net, premium beachfront lifestyle business.
• High quality + high net profit beachfront resort
• Consistent income growth and high net profit of $559,780
• No set office hours provide a work/life balance
• Very positive and supportive OC committee
• Quality resort-style facilities and gardens are easy to maintain
• Beautifully renovated residence right opposite the beach
• Topped-up agreements
Two highly profitable Quest Apartment Hotels in Bendigo
Purchase separately or buy together and dominate the accommodation market in one of Victoria’s largest regional centres.
• 38 apartments
• 84% occupancy
• Conference centre (30 pax)
• 60 apartments
• 83% occupancy
• Conference centre (80 pax)
Quality Apartments Banksia Albany Albany, WA
Highly profitable fully managed leasehold apartment motel in Albany, WA
ResortBrokers is delighted to bring to market Quality Apartments Banksia Gardens, a remarkable leasehold investment opportunity nestled in the heart of Albany. This asset comprises 40 high-quality leased apartments (Quality Apartments Banksia Gardens), complemented by an additional 42 short-stay property management residences (The BNB Collection) scattered across the greater Albany region.
Currently operating under employee management, this investment opportunity offers a seamless transition for the new owner. With 12 years remaining on the apartment leases, the longevity of this investment is assured.
The financial performance of this asset is robust with revenues exceeding $3.4 million in FY23 and revenue increases projected for the current FY24. This financial stability is underpinned by excellent reviews on Booking.com and TripAdvisor, where the property boasts a commendable 4.5-star rating.
All 40 leased apartments within Quality Apartments Banksia Gardens have undergone a recent refurbishment, ensuring a modern and appealing aesthetic for guests. Furthermore, the leases include modernisation clauses, providing a safeguard for maintaining the property’s contemporary appeal.
This is a unique opportunity to acquire a well-established and highly profitable asset in Albany, offering both immediate returns and long-term growth potential.
• The asset comprises 40 refurbished, high-quality leased apartments, with an additional 42 short-stay residences
• Smooth transition assured with current operation under management
• Long-term income stability with 12 years remaining on leases
• Strong financial performance with revenues exceeding $3.4M in FY23 and projected growth in FY24
• Highly rated on Booking.com and TripAdvisor with a 4.5-star rating
• The benefit of a Choice Hotels franchise in place until March 2026
$922,401
From Sydney Heads to Low Head
They left the Sydney rat race to join the penguins in Tasmania. Here’s how these first-time parkies managed it.
Marissa's Tassie sales
Snug Beach Cabin and Caravan Park
Scamander Sanctuary Holiday Park
Sydneysiders Craig Chobdzynski and Tracey Davenport-Catlin had always enjoyed staying in caravan parks with their kids, but the idea of owning one never occurred to them until they were both well advanced in their careers.
Craig, 53, worked as an engineer for large European multinationals in Sydney. Tracey, 50, was a primary school teacher of 20 years’ standing.
“I suppose I just got tired of banging my head against the corporate wall,” says Craig. “We’ve always enjoyed staying in caravan parks as a family and one day we said, ‘We could do this. This could be our own thing.’”
That brainwave led to the couple’s four-month-long internet search for an accommodation business within their budget. Their accountant said anything under $1 million would enable them to keep their family home in Sydney as well as service the bank loan for an accommodation business.
Craig says the couple looked at everything within the accommodation spectrum: motels, caravan parks and management rights. About a dozen businesses caught their eye of which eight were serious contenders.
“As everyone does when you’re from Sydney, we said we’d go north,” says Craig. “But by the time you find things within your price bracket you are way, way north among the crocodiles, stingrays and cyclones.”
The couple considered a bush camp in St George in Outback Queensland, a remote Northern Territory caravan park on the road to Uluru and a motel in Tully in North Queensland. The couple also eyed some accommodation businesses on NSW’s South Coast. Having grown up at Oak Flats, Craig was familiar with the stretch between Shellharbour and Sussex Inlet.
Then Low Head Tourist Park caught their interest on ResortBrokers’ website. The park was a good size: 83 rooms comprising 18 cabins and cottages, 48 powered sites, six unpowered sites, as well as six permanent residences and five semipermanent residences. In November, the couple settled the sale, brokered by ResortBrokers’ Tasmania agent Marissa von Stieglitz. They have been operating the park since.
“We didn’t realise it at the time, but when we came to inspect the park, we realised we’d been to Low Head before and knew the area,” says Craig. “The park was exactly what we were looking for as first-time owner-operators. We don’t come from the hospitality industry, but this gives us the opportunity to have a really good crack at it.”
Another important consideration for the couple was finding a suitable environment for their 7-year-old daughter, Aubrey, who has an extra chromosome, also known as Down Syndrome. Aubrey is the youngest of the couple’s five children, with the older ones now adults ranging from age 18 to 27.
“The park was exactly what we were looking for as first-time owner-operators.”
“Because of Aubrey we need to be close to reliable medical support,” says Craig. “We see this type of industry and environment as a great learning opportunity for her to interact with the local community and for her to demonstrate the things she can do instead of people focusing on the things she struggles with. We also wanted to home school Aubrey. Low Head lends itself to doing that.”
Located along the River Tamar roughly midway on Tasmania’s rugged north coast, Low Head enjoys some of the best penguin watching in the country.
“The penguins are the same as the Phillip Island ones,” says Craig. “They go across Bass Strait from Low Head to Phillip Island. The ones born on Phillip Island go back there to breed. The ones born in Low Head come back here to breed. They just swim back and forth. There’s a part of Low Head they call The Penguin Superhighway. A penguin walked over Aubrey’s shoe the other day. You can’t get much closer than that!”
Wintersun Gardens Motel, Bicheno
Strahan Beach Tourist Park
SOLD & SETTLED SOLD & SETTLED
Cradle Mountain Highlanders SOLD & SETTLED
“Low Head feels a million miles away from the mainland, but the time and distance are really nothing,” says Craig. “It’s only an hour’s flight to Melbourne, and not even an hour and a half to Sydney. From the time your plane takes off in Sydney, it’s two and a half hours to Low Head. It’s a very doable long weekend.”
“Within a few hours of being in Low Head, the stress of being in a big city just evaporates. Some of my corporate friends have said to me, ‘You’re doing what I’d love to do.” Not that there isn’t work to be done, but they’ve said, ‘You’re basically stepping into an early retirement.’”
‘Within a few hours of being in Low Head, the stress of being in a big city just evaporates.”
Craig says the couple’s plans are open ended, which includes the possibility of them running the caravan park until their retirement.
“We have a 30-year lease,” says Craig. “The initial term is 10 years with options for another two terms. As I look out the reception window over the River Tamar, I could easily do this until those 30 years run out." END
First time on the market in a decade!
ResortBrokers exclusively presents a prestigious inner-city mixed-use management rights in the heart of Brisbane’s CBD. This exceptional investment opportunity is situated in Australia’s fastest-growing capital city. Brisbane is renowned for its great lifestyle, fantastic weather and affordable living. This prime location ensures a steady stream of corporate and leisure travellers seeking luxurious accommodation options.
This is a remarkable investment opportunity with substantial returns. With a net profit of $1.2 million, a growing body corporate salary and 24+ years remaining on agreements, this investment offers immediate returns and long-term stability. The diverse letting portfolio (shortterm and permanent) ensures a strong LVR and consistent occupancy due to the traditional management rights structure that underpins this incredible business.
As Brisbane prepares to host the 2032 Olympic Games, and with the city’s short-stay market continuing to grow, there has never been a better time to acquire this exceptional business.
• Prime CBD location in Brisbane, Australia’s fastest-growing capital city
• Remarkable net profit of $1.2 million and a growing body corporate salary
• Diverse letting portfolio of both holiday and permanent residents ensures a strong LVR and a consistent letting pool/stable occupancy
• Long 24+ years left on agreements promising immediate returns and long-term investment stability
• High-calibre staff and streamlined management systems ensure seamless operations
• Very manageable caretaking duties
• Plenty of upside to grow the bottom line by converting the permanent apartments back to short-term rentals for increased profit
• Modern, renovated and spacious 3-bedroom executive apartmenttotal 350 sqm with expansive private terrace and car park
The Oscar Scarborough, QLD
Off-the-plan caretaking only mid-rise complex overlooking beautiful Moreton Bay
Designed for permanent residency, on offer is the exclusive caretaking rights to The Oscar.
A stunning mid-rise complex comprising 45 high quality, 2- and 3-bedroom apartments with four retail lots to ground level. Due to complete by August 2024, this business will suit a ready-to-act local operator wanting an easy add-on, or would be a great opportunity for a newcomer to the industry.
The single-scheme business is based on 25-year caretaking and letting agreements, and while there is no letting pool included for now, there could be the future option for an active manager to be involved in resales of units and property management of permanent rentals as lot owners sell or move out.
There are no set office hours in the agreements and no requirement for the manager to own a lot or reside onsite, allowing total freedom to undertake the duties to suit your situation. The Oscar has a 10 sqm office along with a 6 sqm cleaning room under occupational authority for exclusive use by the manager.
Situated in the burgeoning beach township of Scarborough, this fantastic bayside location gives you the convenience of local amenities and is under 40 mins to Brisbane CBD.
• The Oscar comprises 45 units with 4 ground level retail lots
• Body corporate salary of $66,788 per annum
• 1 body corporate scheme and 25-year agreements
• No office hours and no real estate to buy
• Manageable duties for one person to conduct
• Minimal onsite common areas and facilities
• 10 sqm office and 6 sqm cleaning storage
• High growth location opposite the beach area
Jeff Keast Broker, Brisbane
Tim Crooks Director of New Developments
ResortBrokers exclusively presents the management rights and associated real estate of two stunning riverfront complexes located adjacent to each other in the prime inner-city Brisbane suburb of Kangaroo Point.
These two luxury complexes comprise a total of 169 units with 61 managed in the onsite letting pool which includes a mix of short-term and permanent rentals. The majority cater to short-term stays and are among the most popular corporate/holiday stay options in Brisbane. The associated real estate consists of a spacious 3-bedroom apartments, a two bedroom river facing apartment, a generous office/reception, a meeting room and gym. A total of 5 manager’s lots are on title.
• Premier riverside setting with amazing views and popular short-stay / corporate accommodation
• Robust 14.3% return on investment
• High net profit of $1.08 million with room to grow the bottom line
• Strong and solid body corporate salary
• Supportive BC committee with newly topped-up agreement in one complex
• Total of 169 apartments across two sites with a mix of short-term and permanent rentals
• Fantastic onsite amenities with pool, spa, gym and BBQ shared by both complexes
• Management operational areas including an office, meeting room, gym and two 3-bedroom apartments on title (5 manager’s lots in total to be purchased)
Jessie Shi
Large-scale business-only permanent management rights
ResortBrokers presents a high-netting permanent MR opportunity in Varsity Lakes. Comprising two desirable apartment complexes, this is a genuine business-only structure, offering the incoming operator the freedom and flexibility to suit their circumstances.
This opportunity offers a solid net profit with a substantial ROI of over 14.7%, supported by a strong body corporate salary. It includes easy-to-manage caretaking duties, with the body corporate covering all expenses for professional contractors to maintain pools and gardens. Additionally, there is potential to increase profit by converting long-term rentals into short-term lets.
• No requirement to live onsite and no office hours
• MR portfolio with a business-only structure, offering freedom and flexibility to the incoming operator, complemented by two spacious onsite offices and a boardroom on title
• Strong combined net profit backed by a solid body corporate salary, promising a robust ROI of over 14.7%
• Two spacious offices and a boardroom on title
• Manageable caretaking duties and 25-year caretaking and letting agreements with over 21 years remaining, ensuring longevity and stability
• Potential to boost profit substantially by converting permanent lets to holiday/short-term lets.
• Strategically located near Bond University and Varsity Lake College, with easy access to essential amenities and the Gold Coast’s renowned beaches
• Supervisory role only - body corporate pays contract to service/maintain pool and garden
Jessie Shi Broker, Brisbane
Quest Tamworth Leasehold
Premium Quest apartment hotel, prime position, proven performance in Tamworth
ResortBrokers is delighted to exclusively present the exceptional business of Quest Tamworth, part of the renowned Quest Apartment Hotel franchise.
Located close to the city centre and airport, this modern 4-star rated establishment was constructed in 2000 and comes with renewed leases offering 35 years’ tenure, providing long-term security for the investor.
This 40-key serviced apartment building, the largest in Tamworth, offers 4 x one, 32 x two, and 4 x three-bedroom apartments. With all apartments nearing completion of kitchen refurbishments, the property will not have to undergo any major renovations over the next five years.
Amenities include 45 parking spaces, reception, outdoor swimming pool and barbecue area along with a conference room for corporate groups.
The owner’s accommodation is a two-bedroom, two-bathroom apartment located above reception. This investment opportunity encapsulates both corporate and leisure appeal, showcasing a prime, versatile location.
• 40-keys, offering one-, two- and three-bedroom apartments
• Strategically positioned near city centre and airport
• Owner’s residence is a two-bedroom, two-bathroom apartment above reception
• Kitchens in all apartments fully refurbished by end of May 2024
• No major renovations required for the next five years
• Renowned Quest Apartment Hotel franchise, strong brand and comprehensive support
• Largest apartment block in Tamworth, catering to both short- and long-term stays
• Renewed leases offering 35 years’ long-term tenure for security
• High demand for accommodation due to scarcity of rental properties in area
Jacqueline Featherby
Alpine Heritage Motel Goulburn, NSW
Regional NSW leasehold providing ample opportunity for growth
Seize the opportunity to acquire a brand new 30-year leasehold opportunity for a 46-unit heritage-listed motel in the heart of historic Goulburn. Situated opposite Goulburn railway station and within walking distance to downtown amenities, this motel offers convenience and charm.
Alpine Heritage Motel is perfectly positioned only two hours’ drive from Sydney, less than an hour from Canberra and just under two hours to the coast. A strong motel town, Goulburn is a vibrant regional hub that offers Australian rural living at its best.
Currently run under management, the motel would benefit an enthusiastic owner-operator looking to elevate its appeal. This is a prime opportunity for an astute investor seeking to refurbish the motel to greater heights and increased occupancy.
This hidden gem, adorned with ornate decorative details, exudes historic charm and offers endless possibilities for refurbishment and restyling. Accommodation options range from budget single rooms to spacious family suites opening onto terrace house balconies.
With its ideal location, heritage allure, architectural grandeur and enormous potential to increase occupancy, this opportunity promises ample room for expansion and business growth in a bustling regional centre.
• Located in a major regional centre and strong accommodation city
• 46-unit heritage hotel located in the heart of Goulburn
• Brand new 30-year lease
• Opportunity for refurbishment
• Enormous upside to increase occupancy and tariffs
• Centrally located in the CBD opposite the railway station
Russell Rogers
Beautiful Luxury Villas Canggu, Bali
Own your slice of paradise with these luxury residences in Bali hotspot Canggu from AUD$299,000.
ResortBrokers is delighted to exclusively bring to market these stunning villas in Canggu, Bali.
Here is your opportunity to own your own piece of paradise. Offered for purchase individually or all seven in one line.
All residences are beautifully furnished to the highest standard, and each villa has its own pool. Their location enjoys the best of both worlds — the perfect serenity of Canggu’s famous rice paddies but within easy reach of Bali’s most happening restaurants, bars and boutiques.
Bali’s property market is one of the hottest in Asia. Property prices continue to grow as buyers clamour for their slice of paradise on the island of the gods. Imagine yourself here, then make it happen with your astute purchase of this stunning property. Spare land and commercial space available.
1-bedroom villa, from AUD$299,000 (two available)
2-bedroom villa, from AUD$460,000 (four available)
Offered to market in one line for AU$2,950,000, this represents outstanding value in Bali’s hot property market.
If purchased in one line, the package includes commercial space suitable for a small restaurant of cafe at the front of the property, manager’s front office and studio apartment as well as spare land which could comfortably accommodate a build for another villa.
Ian Crooks Chairman
Tim Crooks Director
Impeccably renovated retro-style motel with brand new 25-year lease
Refurbished, rebranded as a boutique, retro-style motel, The Shore Motel Milang is an opportunity not to be missed.
The hard work has been done, and the owners are looking for an outstanding operator to purchase a long-term 25-year lease to drive this brand-new business, which is less than one hour’s drive from Adelaide.
Incoming purchasers have the option to either live onsite in the owner’s one-bed unit, or operate it as a passive investment with automated check-in or the existing lock box system currently being used to run the motel remotely.
• Fully renovated to a high standard, requiring no initial capital expenditure.
• Secured by a brand new 25-year lease.
• Could be run as a passive investment with caretaker and cleaner.
• Efficiently managed with remote self-check-in system.
• Extensive and uninterrupted views over Lake Alexandrina
• Less than one hour drive from Adelaide.
• 27kW solar system installed.
Kelli Crouch
Broker, South Australia & Northern Territory kelli@resortbrokers.com.au 0410 441 750
Capitalise on Daylesford’s timeless tourist appeal with this historic motel
Central Springs Inn is a beautifully maintained, historic 26-room motel any operator would be proud to call their own. Daylesford is Australia’s premier spa destination with a pedigree spanning more than 170 years.
Set across two 150-year-old buildings, this welcoming hotel exudes heritage and tradition. The business recorded a net profit for FY23 of $518,690, and at the time of going to print the business was tracking at 86% on last year’s figures at the same point.
Central Springs Inn is a true turnkey opportunity. The existing setup promises a steady income from day one with no capex required.
With 29 years remaining on a 30-year lease that commenced in April 2023, the business is underpinned by excellent security of tenure.
• Beautifully maintained, historic 26-room motel in tourist mainstay of Daylesford
• Located 1.5 hours’ drive from Melbourne in Australia’s premier spa destination
• Long-term lease with 29 years remaining
• Operational flexibility: motel can be run remotely or onsite
• Strong net profit of more than $500K from trading income of over $1M
• 35-person conference room attracts business trade
• Two-bedroom manager’s residence can be rented out or occupied by operator
• Significant growth potential to drive occupancy and boost revenue
Hugh Thomas
Quest Innaloo Leasehold
Exceptional and rare opportunity: Modern Quest apartment hotel in prime location
ResortBrokers is delighted to bring to market Quest Innaloo, a modern six-storey apartment hotel located in an inner-city Perth commercial precinct. This 80-key property offers diverse room configurations catering to a wide range of guest needs and preferences. The hotel is efficiently operating under full management, ensuring a smooth transition for the new owner.
Backed by the highly respected Quest brand and franchise systems, this investment opportunity provides a secure and reliable income stream. Quest Innaloo is a testament to modern design and functionality, with facilities including a gym, laundry, lifts and meeting rooms.
With a long lease tenure, this investment offers stability and excellent potential for growth. The property is located within the Osborne Park business precinct, which is the premier commercial district in Perth.
Quest Innaloo represents a unique opportunity to acquire a high-performing asset in a prime location. With its strong brand backing and efficient management, this property is set to continue delivering exceptional returns.
• Architecturally striking six-storey hotel in contemporary style
• Underpinned by the strength and reliability of the Quest brand and franchise
• Strategically positioned in a bustling commercial hub of Perth
• Versatile 80-key property with a variety of room configurations
• Stable investment opportunity with an extended lease period
Winston Hall left a secure corporate career at Accor to venture out on his own with Seabreeze Resorts, a private equity group with an appetite to grow its management rights portfolio beyond the Sunshine Coast.
Words_John Miller
Since starting Seabreeze Resorts in February 2023, Winston Hall has spearheaded the group’s management rights holdings to an enviable portfolio of five premium businesses on the Sunshine Coast.
The group’s latest acquisition, Allure Mooloolaba, transacted through ResortBrokers’ Sunshine Coast team of Chenoa Daniel and Glenn Millar, settled in May. Allure follows Seabreeze’s earlier purchases of Seaview Resort and Breeze Mooloolaba (whose amalgam gives Seabreeze its name), The Rise Noosa in Noosa Heads and Coco Mooloolaba, which shares an exclusive Mooloolaba Esplanade address with Allure.
Before Seabreeze, Hall enjoyed a solid, three-decade career in hotels, starting with Pan Pacific in 1993 and culminating with global giant Accor, where he was Vice President Operations on the Sunshine Coast
for the last five years. Hall landed at Accor in 2018 via its acquisition of Mantra Group, where he had spent 11 years as Regional General Manager for North Queensland.
It was a good life and highly satisfying, says Hall. But with a second-hatch family in tow, the desire to cut down a frenetic travel schedule to oversee 72 properties in his charge, and a yearning to try something new, Hall decided it was time to go out on his own.
“Because I’d been involved in management rights through Mantra and Accor, I had a good understanding of how it works,” says the 49-year-old. “I’d always thought I might one day venture into having my own investments.”
“I was part of Mantra’s journey from its formation through to its sale to Accor, and it was a really fascinating experience. It showed me that you can control your own destiny, create your own business.”
From his time at Accor/Mantra, Hall learned the importance of diversification in a property portfolio.
“Mantra was extraordinary successful at assembling a roughly 50/50 split of leisure and corporate properties that allowed it to ride through whatever was happening in the economy domestically or internationally and to continue to grow year on year. One market was normally pretty hot somewhere and that would help lift the company for the markets that weren’t performing so well. Obviously, diversification was key to that success. Equally, diversification is incredibly important to Seabreeze as we grow.”
“It showed me that you can control your own destiny, create your own business.”
Hall formed Seabreeze, a syndicate of 15 investors, early in 2023 to buy the management rights for the 51-apartment Seaview in February that year.
The acquisition of the 57-apartment Breeze followed shortly after in March. In September, came the 39-apartment The Rise.
The 47-apartment Coco Mooloolaba and 31-apartment Allure followed in November 2023 and May 2024, respectively.
Except for Seaview, all properties have been bought through ResortBrokers. Hall says Seabreeze is on a growth path and keen to diversify its interests beyond the Sunshine Coast.
“We have a great footprint now on the Sunshine Coast,” he says. “If we’re going to continue to grow, which we have the appetite to do, Brisbane is the obvious location. In the next 10 years, the city will host the Olympics. But even without it, Brisbane’s fundamentals are incredibly strong and will be for some time.”
“The Gold Coast is also on our radar. It’s a highly competitive market but we feel the southern end of the Gold Coast, particularly Coolangatta and Burleigh, has a lot to offer. If the right asset came along, certainly we’d be keen to look at it. Obviously, as we acquire more assets and are successful in those destinations then maybe we’ll look further afield, but for now our focus is South East Queensland.”
Raised in the country just outside Brisbane, Hall gravitated to the Sunshine Coast in 2007 following a seven-year stint as general manager of Outrigger Resorts & Hotels’ properties in Palm Cove and Port Douglas. For the last five years, he has served as board director of Visit Sunshine Coast, the peak tourism body for the region.
Hall says the transition from corporate life to managing his own portfolio has been incredibly rewarding because it puts him in direct contact with guests and owners.
“In a corporate role, you spend a huge amount of your time in meetings,
particularly Zoom meetings, with people all across the country and the globe. It’s extremely interesting and you learn an enormous amount from those interactions, but fundamentally you’re quite removed from guests and owners. Often the time I engaged in any meaningful way with guests or owners was when there was a substantial problem!”
“Now, I’m directly looking after guests. You can see they’re having a great time and that you’re contributing to their enjoyment. It’s the true essence of hospitality and why I joined the industry originally.”
“The other benefit is you’re able to help owners. We have fabulous owners in our portfolio, and I have the ability to influence improvements to their assets and their performance. That’s what gets me out of bed in the morning because it’s challenging but also fun.”
In terms of what Seabreeze looks for in a management rights business, Hall says it comes down to basics.
“A quality asset in a fantastic location in a fantastic destination. That’s the three fundamentals. That, and a reasonably good net profit. We’re not looking at too small a business. We’re looking at bigger businesses
where we think it’s worth our time and energy to get those businesses really humming along. It’s a bit hard at times to find the right businesses and make the numbers stack up, but that’s what we’re chasing.”
Key to Seabreeze’s strategy is having operators who have a personal stake in the group’s properties through the caretaking role. Seaview and Breeze are both operated by a syndicate member. Another syndicate member runs Coco and Allure. Hall is based at The Rise, which he runs as well as using it as Seabreeze’s base of operations.
“As we grow, where it makes sense to do so, we’re bringing in operators who are employees but also investors in the syndicate,” says Hall. “So, they have their own skin in the game
because they’re operating those businesses. That’s the model we’re pursuing, bringing investor-operators in.”
Despite a solid hotel background of more than 30 years, Hall admits to a steep learning curve when it came to buying his own management rights business.
“I’d been part of large corporate transactions before, but we had lawyers, finance people, acquisitions people who did their part before and during due diligence,” says Hall. “I didn’t understand how to go about buying my own management rights. I was part of the team integrating acquisitions into the business, which I did a number of times, but getting to the point of
ResortBrokers Seabreeze Resorts Riding the wave
going, ‘This is a good deal, and this is how we’re going to fund it,’ I never had any direct experience of that.”
An industry acquaintance referred Hall to veteran management rights consultants Mike Phipps and Tony Rossiter of Transaction Management Consultants.
“When I was in the discovery phase of learning how to go about buying my own management rights business, Mike and Tony were fantastic in providing the advice I needed to create a syndicate and also assistance with acquiring the right assets. Their advice and support through that process was invaluable. We still have a close relationship today and are looking at other opportunities to work together.”
Hall says if the transition from corporate life to management rights owner was achievable for him, then it is possible for others.
“Corporate employees in the hotel industry can absolutely make a similar step to mine,” says Hall. “And you never know they might become our next business partner in Seabreeze. There’s an opportunity for our industry to attract more talent from the corporate world. Corporate employees already know how to operate a resort, so they should be able to cross over quite well.”
“What’s the benefit of someone moving across from corporate? Being part of a large corporate business requires a high level of compliance with brand standards and operational processes. Being in a syndicate means they’re getting into their own business, they have their own money invested, however small or large that may be. They have an ability to make decisions quickly, be entrepreneurial and steer the business in the direction that will obtain the best outcome. It’s also a great opportunity to create some really good wealth of their own over the medium to long term.” END
Words_Des Fagg
Broker, Townsville & Surrounds
“The last motel passive investment I sold was one phone call. I called my buyer, ‘Mate, I’ve got a passive.’ He said, ‘Mate, it’s mine.’ It’s now under contract.””
My buyer doesn’t really know the area, but he knows me. About 20% of my clients are return business. Because they know me and trust me, I get deals done. Motel leaseholds are a little more of a challenge to sell. Buyers these days are looking for rent discounts, but with a lease in place that’s the hardest thing to change because the landlord must agree to it. It takes a little educating from me to convince buyers that rent reductions are nigh on impossible. Sometimes, the message gets through; sometimes not. That’s the way it goes.
CARAVAN PARKS
Our biggest problem these days is insurance. Insurance has shot up 20% across the board in Australia in the last year alone. On top of that we have a distinct regional insurance problem because of cyclones.
It’s affected the motel market, but caravan parks particularly. For buyers to get finance, they need insurance. Vendors have insurance, but insurance companies are reluctant to transfer policies over to buyers. In December, I listed a beautiful caravan park in Charters Towers. Great business, strong profit, but I’ve hardly had an enquiry on it. Everyone north of Rockhampton has the same problem.
MANAGEMENT RIGHTS
With management rights, insurance isn’t a problem for buyers because the body corporate covers it. But management rights are always a hard sell in Townsville.
Buggered if I know why. If I sell one, I’ll sell three. Then I won’t have another enquiry for ages.
Management rights in Townsville are no different to management rights in Brisbane or the Gold and Sunshine Coasts. Same legislation. Similar caretaking and letting agreements. Perhaps it’s because accommodation buyers have plenty of other options up here.
We have so many more motels in North Queensland than the Gold Coast where it’s mostly management rights.
PARTING WORD
If you want to get ahead in the accommodation business, Townsville and North Queensland is a place to be. The smart money has known for a while that you get much higher returns in regional powerhouses like Townsville than state capitals.
I’ve seen it plenty of times — Southerners packing up and buying accommodation businesses up here for half of what they sold out of back home.
No regrets, they tell me, except one: they wish they’d made the move sooner. If you haven’t previously given North Queensland a look in, have a think about it the next time you crack open a brew.
Mine’s a Great Northern. END
EBBS FLOWS
40 years of change in the accommodation industry.
Words_Josh Mangelson
Since ResortBrokers’ inception nearly 40 years ago, Australia’s accommodation industry has been predominantly underpinned by private operators, with mum-anddad type businesses serving as the dominant originators of capital. The exception to this has almost always been Sydney and Melbourne, as the nation’s largest capital cities, where more sophisticated capital has more commonly been found. Over the last 20 to 30 years this has steadily expanded to also include other major capitals across the country, as properties of scale have been developed.
For private operators, the appeal of this industry has always been twofold in offering both the security of a dwelling in the form of a manager’s residence and cashflow from the operating business.
The biggest shift in the industry over the last several decades has been its increasing commercialisation, much like several other specialised asset classes such as industrial, childcare and convenience retail, which have undergone similar transformations in recent years.
While the bulk acquisition and roll-up of high yielding individual assets into specialised larger funds for operation or re-sale has been common throughout many other parts of the world for some time, it is an increasingly prolific trend within the accommodation sector in Australia. Never has this practice been as common in this industry as it is now in Australia. Funds such as Salter Brothers, Elanor Investors, Redcape and Mandala Asset Solutions have established themselves as major players in this segment by utilising this approach
across a range of geographical locations nationally.
This trend is not exclusive to just hotels and motels. In fact, it was perhaps more fully explored even earlier within the caravan park space. In a classic example of mum-and-dad operators being bought out by more sophisticated capital, many caravan parks around the country have been bought up by groups such as Ingenia and Tasman, with many then converted into Manufactured Home Estates (MHEs).
MHEs represent a huge proportion of the United States’ affordable housing market, as the model offers a solution of both amenity (via the positioning of
older caravan parks, which were traditionally on a town’s outskirts, now increasingly accessible, if not ideally located, due to urban sprawl) and affordability to residents (as the model enables residents to pay site fees while owning their own home on the site, in many cases leaving the pension on the table for retirees).
For owner-operators, the benefit is threefold: there is both the development and re-sale of privately-owned housing stock, as well as a steady income stream via site rent.
Ingenia’s 2023 annual report positions the group’s value at $2.3 billion across 107 sites. A decade earlier, Ingenia’s real estate assets were valued at $224 million.
commercial operators being greenfield developments.
As funds continue to hunt for value in specialised sectors, there is an emerging trend that regional assets traditionally run by private local operators are now being acquired and rolled up at 12-14%, run under a streamlined operation and stabilised for positioning into funds or resale.
Given this market segment is only just beginning to be tapped by an increasingly sophisticated buyer profile, weighted yields of buying groups remain significantly higher than many other already explored alternative property asset classes.
Meet Our New intern
Following on from the success of our inaugural ResortBrokers’ Internship Program in 2023, we’re delighted Kayla GaskinHarris has joined us for 2024. Kayla has been studying Property Economics at QUT since February 2022 and will graduate at the end of 2025.
At that point, going concern interests in caravan parks could often be acquired at yields of 14-16%, while more recently they have transacted around 9-10% for assets of scale in regional locations.
By adopting this model with a blend of high yields over time, and creating a secure income through what is in many ways governmentsecured site rental fees, many of these assets are now valued at yields of 4-5%, emphasising how commercialisation has given investors both great capital gains and cashflow.
Pre-MHEs, a similar undertaking was seen in the childcare sector. Now, this space is largely nonprivate, with most acquisitions for
This offers both returns to investors as well as creating new value as the sum of the whole becomes greater than the parts purchased.
With a strong long-term positive outlook for operators that sees limited new competition due to high development costs, a constrained construction industry, repositioning of assets and an ever-growing demand-side through returning global tourism and burgeoning population growth, it is clear that regardless of what trends are forecast for the accommodation industry, great opportunity awaits those willing to enter the arena. END
ResortBrokers’ Internship Program is a 100-hour program to give students hands-on experience in the property industry. Student candidates for future intakes are welcome to register their interest with Josh Mangleson at josh@resortbrokers.com.au.
Kayla Gaskin-Harris
Solar Power Business Sales
With the increased uptake of solar power in Australia and within the accommodation industry, sellers should consider how to deal with their solar power arrangements and solar power assets (“the system”) in the sale of their accommodation business. There are a few different options for businesses looking to invest in solar power such as:
1. Purchase a solar system outright; 2. Purchase a solar system with financing;
3. Enter into a Solar Power Purchase Agreement; 4. Enter into a Solar Leasing Agreement
Business owners who also own the land as a freehold going concern are able to install whatever system they like in the premises and choose any option.
However, leasehold business owners will most likely need the landlord’s consent to install a solar system under the terms of the lease (either as a specific obligation or as part of a more general obligation to obtain consent before undertaking any upgrade works on the premises).
As part of the consent process, the tenant will need to disclose what type of arrangement they are considering and who will own and be liable for repair, maintenance and replacement of the system after installation.
Subject to any agreement between landlords and tenants, a solar system will usually be considered a fixture due to the high degree of annexation to the building and land, meaning it will become the landlord’s property. The best practice is for the landlord and tenant to come to an agreement on the type of installation arrangement, ownership of the
system and repair, maintenance and replacement obligations of the parties, which should be documents in an amendment to the lease.
OUTRIGHT PURCHASE
In this option, the solar system would be purchased and become a business asset forming part of the inventory to be sold with the business. This is the most straightforward arrangement for the purposes of a sale of the business.
PURCHASE WITH FINANCE
In this option, the seller would purchase a solar system using financing from a lender under a loan or financing agreement who will likely secure their interest by way of a registered security interest under the Personal Property Security Register. The system would be a business asset which, under the normal terms of a business sale, will
require the seller to sell all assets unencumbered. This means the loan would need to be discharged and a release provided by the financier on or prior to completion of the sale. This is the same process with any financed equipment that is to be included in the sale of a business.
It is not recommended that the parties try to transfer or assign the financing arrangement and it would be unlikely that the financier would agree to this.
SOLAR POWER AGREEMENT
This is a different arrangement to the above two options. Here a solar power provider installs and maintains the system in exchange for the business owner (or landowner) agreeing to purchase the electricity produced for an agreed price and period.
In this case, the solar power provider will retain ownership of the system and enter into an agreement with the business owner for the supply of
Words_ David Adolphe, Principal, DC Adolphe Legal
Adolphe
BA LLB LLM Acc. Spec. (Bus.) - Qld
Principal M: 0410 644 246
E. david@dcadolphe.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 special 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.
DC Adolphe Legal is a specialist business law firm providing legal advice and services to all sectors of the accommodation and hospitality industry with a particular focus on transactions involving hotels, motels, serviced apartments, pubs and caravan parks.
electricity. The system will not form part of the assets of the business (and will likely require agreement from the landowner that the system remained owned by the provider notwithstanding it may legally be considered a fixture as discussed above).
On a sale, the seller will need to consider whether the supplier agreement can be assigned to a buyer and if not, what costs may be incurred by the seller in ending the agreement and what will happen to the system.
SOLAR LEASING AGREEMENT
This arrangement is also different to the first two options where the business owner does not receive ownership of the system but leases the system from a solar power provider.
As the system is leased it will not form part of the business assets to be sold unencumbered and consideration would need to be given to whether the lease may be assigned to a buyer and the requirements for any assignment. However, the lease may provide for a buy-out amount to end the lease to obtain ownership of the system, in which case on completion the encumbered asset could be sold with the business.
LANDLORD/TENANT ARRANGEMENTS
Landlords and tenants may enter into a number of different arrangements where one party pays or provides an incentive to the other for the initial installation costs of a solar system. As mentioned, best practice would be for the landlord and tenants to record such an arrangement in a formal amendment to a lease or side deed which can set out the terms of the arrangement including ownership of the system and terms for any proposed assignment of the lease.
It is very important that sellers consider the nature and terms of any solar system arrangement they have entered into as part of the process in preparing a contract for sale and the how the asset and potential liability will be handled in the transaction.
David
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Increased management rights resale value
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VALUE FOR TENANTS
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Management Rights Law Specialists
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Col Myers, draws on over 30 years experience to get you the best possible outcome.
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Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome.
Although our full suite of services is more comprehensive, particular expertise covers:
Although our full suite of services is more comprehensive, particular expertise covers: - Buying & Selling - Structuring - Variations - Renewals - Establishments - Licences & Letting Appointments - Advice on all Body Corporate Issues
Although our full suite of services is more comprehensive, particular expertise covers:
Although our full suite of services is more comprehensive, particular expertise covers:
Although our full suite of services is more comprehensive, particular expertise covers:
- Buying & Selling
- Buying & Selling
- Buying & Selling
- Buying & Selling
Contact us today to find out how we can assist you; P: +61 (0)7 5552 6666
Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome.
Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome. Although our full suite of services is more comprehensive, particular expertise covers: - Buying &
- Structuring
- Structuring
- Structuring - Variations
- Structuring
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Contact us today to find out how we can assist you; P: +61 (0)7 5552 6666
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Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome. Although our full suite of services is more comprehensive, particular expertise covers:
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- Advice on all Body Corporate Issues
- Advice on all Body Corporate Issues
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Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome. Although our full suite of services is more comprehensive, particular expertise covers: - Buying & Selling - Structuring Renewals
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THEY JUST DON't GIVE UP!
Words_ John Mahoney, Partner, Mahoneys
A few years ago, our industry repelled an attack from certain academics and lawyers with an anti-management rights agenda who had been pushing a disingenuous theory that any management rights agreement can only ever be “topped up” once.
That, of course, is contrary to the long established industry practice for managers to top-up the term of their management rights agreements every five years or so, and even more often in the case of agreements subject to the Standard module’s 10-year term limitation.
Regrettably, the issue has raised its ugly head again in a complex on the Gold Coast where our protagonists, the Unit Owners Association of Queensland (UOAQ) through one of its executives who owns a unit in the complex, has applied to the Body Corporate Commissioners Office seeking an order that a top-up is invalid.
Once again, we find ourselves having to defend against this attack that seeks to cause confusion and disputation. As before, those who are pushing the argument do not seem capable of accepting the will of the owners. After all, any top-up can only ever happen if a majority of voters at a general
meeting vote for it and if that is what the majority want, why not accept it?
The proponents of the theory rely on amisconceived interpretation of a particular section of the Regulation Modules.
The particular wording is:
The body corporate may subsequently amend the engagement to include a right or option of extension or renewal (a subsequent right or option) only if … the subsequent right or option is for not longer than five years …
The argument is that the right to include “a” right or option means that there can only ever be one such right or option, and no more. Part of their argument relies on reference in the previous sub-section of the Regulations which allows for multiple rights or options of extension or renewal in the initial agreement, in contrast to reference to “a” right or option for top-ups. However in the context of statutory interpretation such contrast is inconsequential.
It is a principle of statutory interpretation that the words of a statute ought to be given the meaning that the legislator intended them to have. This requires consideration of the actual wording and its context and purpose – not just the Act and Regulations but any extrinsic material.
In considering the actual wording the Acts Interpretation Act 1954 (Qld) provides that in
any legislation there is a presumption (which may only be displaced by a contrary intention appearing in the legislation) that words in the singular include the plural and vice versa.
The relevant section in the Regulation Modules cannot be interpreted as imposing a singular cap on the number of top-ups, as the substance and tenor of the legislation as a whole is not capable of displacing the presumption that singular includes the plural.
It is reasonable to expect that if there was a legislative intention to cap the number of top-ups permitted, it would appear with reasonable clarity from the terms of the legislation itself. By way of example, section 130 of the Act (which deals with the statutory review regarding the terms and remuneration of a management rights agreement) states:
The contract may be reviewed under this division only once.
If there was a legislative intention to impose a similar cap on “top-ups,” then arguably a similarly phrased provision would have been included in the Regulations. Further, the cap on “top-ups” is inconsistent with the operation of those sections of the Modules which preclude top-up motions from being included
on the agenda of a general meeting more than once in any financial year. If a Manager was only able to “top-up” their management rights agreement once, then only one motion would ever be able to be considered. If that were the case, there would be no need for these provisions.
The one only top-up concept cannot be reconciled with the purposive and extrinsic material related to the BCCM Act and Regulation Modules. Explanatory notes to the 2003 amendments include these words:
However, at any time, the body corporate may grant an extension of the term of the agreement, up to a maximum equivalent to the term limitation.
Explanatory notes to the 2020 Module changes are also consistent with the concept of multiple top-ups.
While the issue has not until now been tested by the Queensland courts and tribunals, comments by adjudicators have recognised without question current industry practice. While I cannot envisage the Commissioner’s Office accepting the argument that there can only ever be one top-up, it is unfortunate that this particular manager has been put to the trauma and expense of having to fend off what I am confident would be a futile and unsuccessful attack. END
Getting to Yes: Body Corporate Consent
Words_Michael Young, Associate, Bugden Allen Graham Lawyers
Ask almost anyone in the industry what’s the most frustrating thing about buying and selling management rights, and often, the answer will be “getting body corporate consent.”
As a lawyer working with management rights operators and bodies corporate, I thought it worthwhile to answer some of the more common questions being asked about “getting body corporate consent” from the point of view of a body corporate committee that has (often out of the blue without prior notice) been asked to grant consent to a transfer.
Q: What is a body corporate entitled to?
A: Ask not what your body corporate committee can do for you but what you can do for your body corporate committee.
Under the applicable regulation module, a body corporate may have regard to several “factors.” These factors include information about the proposed transferee’s:
(a) character — the mental and moral qualities distinctive to an individual;
(b) financial standing — how strong a person or company’s financial situation is, and what resources are available to them;
(c) proposed terms — the nitty-gritty of what is being transferred, what guarantees, warranties or requirements each party wants or needs for the transfer; and
(d) competence — what ability, qualifications and experience does the proposed individual (or their associates) have that are relevant to the requirements of the arrangements between the body corporate and its approved caretaker/letting agent.
There is also a requirement to consider any other matters which are stated in the engagement or authorisation. That is, is there anything else required, not covered by the regulation module?
Q: So, what exactly do I need to provide when asking for consent?
A: There isn’t any one answer to this question but a baseline is to provide (for each proposed transferee and related person) at least:
1. a resume;
2. two (2) character references;
3. two (2) business references;
4. a criminal history report;
5. copies of any relevant licences (e.g., letting agent or full real estate agent licence);
8. a completed set of responses to common questions (ARAMA has an excellent questionnaire available which covers a wide range of standard questions); and
9. evidence of completion of both:
a. the ARAMA Management Rights Industry Training Program (MRITP); and
b. the online training for committee members which is available via the BCCM Commissioner’s website.
If you’re looking to go above and beyond, think about whether any tertiary qualifications are relevant (e.g., Diploma of Facilities Management / Diploma of Business) or whether a competency report by an industry professional should be undertaken to show appropriate levels of competency and capability. Some form of further training or evidence of industry competence can be crucial when asking for consent to transfer larger and/or more complex management rights operations.
Also, consider picking up a copy of the most recent ABMA Building Management Code to get an excellent objective assessment of what might be required of you.
Q: I understand I’m liable for the body corporate’s reasonable costs, but what happens when the body corporate lawyer wants to charge an arm and a leg?
A: Sadly, this is often a symptom of either a failure to communicate or a failure to properly prepare the application package requesting consent.
Most of the time, a body corporate committee isn’t going to know a transferee from a bar of soap, so an application for consent should be treated like a job application on steroids.
As much information as possible ought to be provided to prove from the get-go that the proposed transferee is suitable and appropriate.
If a request for information or some other concession (e.g., further training requirement) is being made, that request should be considered on its merits in most cases.
There’s probably a good reason for it. That reason could be as simple as the body corporate wanting all the information entitled to it, or having had a bad experience previously and wanting to try and make sure that this time around things will be better.
Q: How can I make the whole consent process as stress-free as possible?
A: Keep the communication up, but don’t harass your committee.
If you’re selling, work with your sales agent to make sure that the buyer is not only providing a suitable monetary offer but a suitable skill set.
Consider whether it is worth spending a little extra time training a buyer when you reach that point in the sale.
If you’re buying, make sure you consider what skills are necessary to perform the role and whether a little extra training (via the seller or externally) may serve to make you a better candidate, and if you are successful, a better operator. END
Michael Young
Michael Young has been in practice for over eight years, with almost half that time focused on strata. Based on the Sunshine Coast but with experience across Queensland, Michael works closely with management rights operators, bodies corporate and individual owners to provide services for transactions, disputes and general advice.
Words_Mike Phipps, Mike Phipps Finance
The proliferation of self-help books, trendy fad diets and get-well strategies we witness in this modern age suggest we should all be toned, taunt and terrific, to say nothing of being in a happy and positive mindset. Lord knows there’s enough of this stuff out there to inform and motivate anyone with even a passing interest in abdicating personal outcomes to some self-styled wellness guru or personal coach.
Turns out the whole idea of self-help via a third party is nothing new, with tomes dating back to 1840 suggesting methods of self-discovery and improvement. I suspect if one was to investigate the underpinnings of modern religion and ancient mysticism the concepts would prove much older than that.
Of course, for many, including at times the managing director, the concept
of personal improvement can take many a twist and turn. For example, it has become apparent that the acquisition of a home gym does not, of itself, result in improvements to body shape and physical fitness. One need only consult Gumtree or Marketplace to find any number of examples of the home gym "build it and they will come" philosophy … the thing sat in a garage for six months and I saw no improvement, so it must be sold.
Likewise self-help and motivational volumes, usually written by people who might be better served pointing the analysis more inwardly. I’m not convinced that purchasing How To Be More Self Aware by Donald Trump is going to be of much assistance. Even if it turns out to be wonderful, the reality is that most readers of these sort of publications don’t get past Chapter 3.
Having reflected on the self-help and motivation industry it occurs to me that a major market gap exists. The question, dear readers, is to whom I should turn if I wish to fail?
In this world of equality where every child wins a prize, why should failure not be celebrated and indeed, even encouraged. If it’s good enough for our politicians, then surely the general population should be likewise blessed.
Of course, the multitude of strategies one might employ in order to ensure failure would surely exceed the word count that this esteemed publication allows, so I’ll concentrate on my only area of, shall we say, expertise. In my 45 odd (some might say very odd) years in finance I’ve encountered any number of borrowers who must surely have read an Achieving Business Finance Application Rejection guidebook of some sort. I dedicate this article to them.
Like all self-help prose I shall begin with a gratuitous *motherhood statement:
In order to achieve complete failure, one must free one’s mind of the shackles of societal expectation and embrace the opportunity to fail, when all around you are succeeding.
*motherhood, fatherhood, personhood … whatever.
Now, let us begin.
Step 1
At all costs avoid professional advice. There is simply no point in pursuing your failure goals if you are going to listen to people who know what they are talking about and have your best interests at heart. To ensure your journey to failure starts on solid ground we suggest listening to your footy mates around the BBQ, your aunt who made some money on CBA shares in 1991, or your best friend who is only moments away from monetising that dog grooming app. OK, the grooming app may actually be a good idea given what we pay to keep our beloved hound in pristine condition, but I digress.
Step
2
Do no research into the industry or business you wish to enter. Attend no education courses, join no professional bodies. Most importantly, under no circumstances prepare a business plan outlining your pathway to success. Really defeats the purpose of the exercise.
Step 3
Don’t pay your debts and don’t care about your credit rating. Even better, forget you have creditors at your door and when you get found out, have no explanation. Works every time.
Step 4
Don’t pay your tax. This strategy is almost foolproof, insofar as it will spook the hell out of the banks and have the best resourced debt collectors looking for you. It’s a win-win.
Step 5
Have no understanding of how debt servicing standards work. To achieve this outcome, best to avoid professional finance brokers because they have an obligation to explain this stuff to you. If your finance broker kills your plan before you get to a formal loan application, the opportunity for failure is ripped from your grasp, and we can’t have that.
Step 6
Embellish your asset and liability position. Common strategies include cash you don’t have bank statements for, houses owned by your mother and pending estate settlements of relatives who remain alive and kicking. Forgetting debts or understating the balances are also sure-fire paths to application failure.
Step 7
This one is subtle and best employed by the more sophisticated failure aficionado. It involves being a seemingly qualified borrower, who works diligently to be a nightmare applicant. Common strategies include telling the bank what they need to assess the application, refusing to provide documents, failing to act in a timely manner and being generally rude, abrasive and uncooperative. The beauty of this strategy is that lenders will find reasons to say no, and the applicant can snatch failure from the jaws of success. It takes a special person to execute this plan, albeit they walk among us.
As always, I’ll leave you with a quote. This one courtesy of Peter Sellers playing Inspector Clouseau in the Pink Panther movies:
“No, of course it won’t be easy, but nothing worthwhile ever is. That is why I have always failed where others have succeeded.”
Footnote:
For the record the MD has maintained a fitness program of recent times that puts me to shame. Her ability to pop out of the water on a single slalom ski, while my fat bum fails completely, is testament to my focus on failure! END
Social! Let’s Get
As market leader, ResortBrokers is a familiar presence at major industry conferences, giving presentations and forging the connections our sector thrives on. #weareeverywhere
THE URBAN DEVELOPER HOTEL SUMMIT
SYDNEY
ResortBrokers was a major partner of The Urban Developer’s Hotel Summit on 22 March in Sydney. Representing ResortBrokers at the summit was Managing Director Trudy Crooks, who gave a keynote presentation, Director of New Developments & Hotels Tim Crooks, NSW brokers Jacqueline Featherby and Tim Mayoh, and Victoria brokers Chris Boschetti and Hugh Thomas
CARAVAN ASSOCIATION INDUSTRY CONFERENCE GOLD COAST
National Operations Manager Marissa von Stieglitz, Sunshine Coast & Fraser Coast broker David Faiers and NSW Mid North Coast broker Joshua Roberts represented ResortBrokers at the Caravan Industry National Conference 2024 held at the RACV Royal Pines Resort, Gold Coast, on 15-17 May.
A record 1,086 delegates registered this year, which showed in how busy ResortBrokers’ booth was and the high level of interest in our listings.
YOU CAN STAY GOLF DAY MELBOURNE
ResortBrokers was delighted to sponsor the You Can Stay Golf Day on 18 April at Heidelberg Golf Club in Melbourne to support Team Cancer Kill’s fantastic work in collaboration with Quest Apartment Hotels and Sony Foundation Australia. Team Cancer Kill is the passion project of Mark O’Shea, a long-time friend of ResortBrokers and Quest franchisee. Over the years, Team Cancer Kill has helped countless cancer patients by raising over $1 million and arranged many nights complimentary accommodation through Quest to enable treatment at nearby hospitals.
Managing Director Trudy Crooks was accompanied at this great event by our Victoria broker duo of Christopher Boschetti and Hugh Thomas, who braved the fairway to play against the pros.
MANAGEMENT RIGHTS
MADE EASY
GOLD COAST
A record turnout for ResortBrokers’ Management Rights Made Easy seminar on the Gold Coast on June 8. Over 100 attendees came to listen to our power panel of management rights industry experts, including Tony Rossiter (Holmans Accountants), Trent Pevy (Pevy Lawyers), Paul Grant (Mike Phipps Finance) and Victor James (Validum Group). Thanks, gents, for a great presentation. ResortBrokers’ crew included Director Tim Crooks, Gold Coast brokers Todd Warner, Syd Douglas and Clint Amos, National Operations Manager Marissa von Stieglitz and Brisbane broker Nathan Benjamin.
WOMEN IN … GOLD COAST
Central Gold Coast broker Clint Amos and Brisbane broker Frank Matus represented ResortBrokers (and the male gender) at the “Women in …” Gold Coast lunch on 15 May. The lunch also doubled as the launch of Rigby Property Group, who hosted the event at The Island in Surfers Paradise.
THE DESIGN CONFERENCE
BRISBANE
Always looking to improve our skills, ResortBrokers Senior Designer Ryan Kidd attended this year’s The Design Conference at Brisbane’s Powerhouse on June 4-6. The annual event is one of the premier confabs for Australian creatives, focusing on key trends in the creative industries, business, culture and AI — a hot topic at this year’s event.
AHICE ADELAIDE
On 1-2 May, a ResortBrokers' contingent of Chairman Ian Crooks, Managing Director Trudy Crooks, Director of New Developments & Hotels Tim Crooks and Greater Sydney Broker Tim Mayoh represented the company at the 2024 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.” Ian and Tim attended the inaugural AHICE South East Asia, held earlier this year in Singapore.
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.
Understanding real estate value in management rights
Why the value of a manager’s unit is different to other units in the complex and how that can impact investment returns
Words_Brett McCracken, Director CBRE | Valuation & Advisory Services (Hotels)
The purchase of a management rights business in most cases includes a real estate component of either a residential manager’s unit, a manager’s office or both.
Historically, a premium has been achieved by the residential manager’s unit where the sale price is proportionally above a similar style residential unit within the same complex. This has been due to the manager’s unit being identified under the Caretaking and Letting Agreements and/or Community Management Statement for the exclusive purpose of management within the complex. A manager’s unit premium has also been associated with the additional management areas held either on title or via exclusive use rights. The upside is that a potentially higher price can be achieved over a standard residential unit within the
same complex however the manager’s unit is then encumbered by the business and overall investment returns.
As mentioned, the manager’s unit sale price and associated premium impacts the overall return on investment (ROI) of the management rights purchase. The ROI is calculated by dividing the business’ net operating profit by the total purchase price of the management rights business and real estate. ROI is used by many financiers as a proven benchmarking tool to assess the financial performance of the asset. As the management rights business is the main profit generating component of ownership, a higher valued real estate component decreases the return on investment.
Relating this to the wider management rights market, between 2012 and 2020 the median return on investment from management rights businesses in South East Queensland decreased from 15.2% to 13.0% as the residential
property and manager’s unit markets improved post GFC and the Reserve Bank official cash rate decreased from 4.75% to 0.75% over that time.
From 2021 and up to July 2022, which is considered the peak of the residential market, the median return on investment decreased to 12.0%. During this period, management rights buyers generally became less discerning in relation to investment returns due to decreasing holding and borrowing costs for management rights businesses and real estate. Higher manager’s unit prices which reduce the overall return on investment became less of a priority as management rights operators benefited from increasing residential rental rates and corresponding commission income in addition to body corporate salary reviews linked to an increasing CPI of up to 7%.
Since July 2022, as the Reserve Bank has increased the official cash rate from 0.1% to 4.35%, management rights buyers have become mindful of
the challenging market conditions in the residential real estate market and impact on manager’s unit values.
While a premium generally still holds for manager’s units at lower price points, expectations for a higher return on investment from buyers has impacted manager’s unit prices at higher price points.
Business cash flow and returns/ profitability have become a priority for managers and potential buyers as operational and staff costs increase.
Considering this, manager’s unit values have been under pressure to ensure overall business returns/ profitability is preserved with the biggest impact on managers' unit prices above $800,000.
The median return on investment has increased from 12.0% in 2022 to 12.7% in 2023 and we would expect this increase to continue over 2024 potentially impacting managers' unit values. END
Return On Investment
Median Annual Rate
Brett McCracken
Brett McCracken specialises in the valuation of accommodation businesses and caretaking salaries which include management and letting rights across Australia and market caretaking remuneration assessments under the provisions of a caretaking agreement.
He also values motels, caravan parks and rent rolls across Queensland and New South Wales. Brett is an Associate of the Australian Property Institute and a Certified Practicing Valuer, holding valuer registration in Queensland and Western Australia.
What’s Cool In The Industry
ResortBrokers Director of New Developments & Hotels
Tim Crooks checks out the world’s quirkiest hotels.
Sheraton Huzhou Hot Spring ResorT
Four restaurants, 321 rooms and one giant hole, Sheraton Huzhou Hot Spring Resort rounds out our selection of bonkers hotels. Some think this 27-storey torus looks like a giant donut, other see a horseshoe. Both are wrong. It’s meant to resemble the moon, says its creator, the appropriately named MAD Architects. Located in Huzhou on the majestic Lake Tai about two hours’ drive west of Shanghai, Sheraton Huzhou Hot Spring Resort opened in 2012 and has since become one of China’s top luxury hotels. By day, the hotel offers splendid views of junks with their distinctive battened sails navigating the lake, and by night it lights up in multiple colours. LED horseshoe? Glowing donut? Luminescent moon? You decide. W WW.MARRIOTT.COM
Hang Nga Guesthouse
They don’t get crazier than Hang Nga Guesthouse in Da Lat in Vietnam’s Central Highlands. No wonder this 10-room guesthouse’s English-language name is Crazy House. And crazy it is, so much so it defies description. But we’ll try: Alice in Wonderland meets dystopian Disneyland in a giant cocktail blended by Salvador Dali. Opened in 1990, the guesthouse is the pet project of architect Dang Viet Nga, who unsurprisingly was inspired by the freeform architecture of legendary Spaniard Antoni Gaudi. The guesthouse’s organic forms are designed to mirror natural elements like mushrooms, shells, caves and spiderwebs. The whole thing was designed on mushrooms, if you ask us
CRAZYHOUSE.VN
Crane Hotel Faralda
Trust Amsterdam to find a new way of getting high. The rooms of this luxury hotel are the former cabins of a shipyard crane along the IJ, Amsterdam’s waterfront.
Crane Hotel Faralda opened in 2019 in the former industrial, now funky NDSM neighbourhood about 8 km from central Amsterdam.
Three rooms only, and 35-45 metres off the ground. Prices, too, are lofty: around AU$2,500 during peak season. Outside is designer graffiti; inside, the decor is a melange of steampunk, boho and gothic. The hotel does breakfast and room service (how we do not know) and comes with a ‘rooftop’ spa bath. In terms in crazy, this is up there.
FARALDA.COM
Relief Managers Need A Break?
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
Motels, East Coast
0412 138 642 vickymcdonough@bigpond.com.au
resortbrokers.com.au
KARLA HARDING
Holiday & Serviced Apartments, Resorts, Boutique Hotels, Bed & Breakfasts
