May Informer 2011 by Resort Brokers

INFORMER

No. 61 | May 2011

Australia’s No.1 tourism & business

Where to next? Digging for accommodation gold - Our pick of business and investment ‘hotspots’

resortbrokers.com.au

Hotel Furniture Specialists

1300 500 815 admin@resortinteriors.com.au

www.resortinteriors.com.au

residential market door slam in their face would also do well to step inside the motel industry. I firmly believe we need new motels in selected areas. Read all about it in my article on page 19. Our new look Informer has been tremendously well received. Thank you to everyone who offered such positive feedback. Resort Brokers Australia is excited about the many new opportunities we are pursuing, including introducing more new features to your industry showcase magazine. In our travels, we meet lots of delightful and inspiring characters. We’ll introduce some of them to you through new regular features like Day Trip, which follows a day in their life, and Check In, picking the brains of an industry insider. In this month’s ‘Be my guest’ we talk with Quong Vo, a Vietnamese motelier who was victim of the communist oppression during the 70’s and 80’s. We learn about the trials and tribulations of his eventful life and his subsequent success in the tourism industry.

Where doors are open again

Ian Crooks MANAGING DIRECTOR

“Tourism, at least in the nearterm, is not the industry providing exciting new opportunities in the accommodation sector. In many regions, demand for rooms is being driven by the mining industry. If you are ‘prospecting’ for a motel investment, read our picks of the towns and districts mostly like to perform”.

ou know the old saying, ‘when one door closes ...’. I wouldn’t suggest for a moment that the tourism door has closed. But perhaps ‘ajar’ is a better description right now than ‘open’. All sorts of challenges have been hurled at the tourism industry. Without dwelling on them, we have to acknowledge the impact of natural disasters, shaky consumer confidence, rising living costs, a high Australian dollar and cheap overseas holidays. Recent findings by Roy Morgan Research showed, for the January 2011 quarter, domestic holiday intentions were at their lowest for five years, while more people than ever were planning to take an overseas holiday in the next 12 months. But those of you who know me, know that I’m ever the optimistic. So I decided this edition of the informer would be all about opportunity and where to find it. Believe me, there is plenty out there. One door well and truly wide open is the one leading to the mining and resources sector. And there is a giant welcome mat laid out for accommodation providers. Read our cover story and plan where to stake your claim. Builders and developers who felt the

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We also introduce a new section focused on motel innovations, Deluxe Suite. Guest contributor Total Communications plugs us into the latest on broadband and pay TV services. As well as giving the informer a great make-over, we recently introduced a regular eNewsletter, for fast, up-to-date market bulletins. It too has been a great success. Visits to our website surged on its distribution. Finally, before signing off, I must remark on just how buoyant the accommodation property and business market now is. Activity just keeps building. In the first three months of 2011, Resort Brokers has sold 36 motels and management rights. Please send your feedback to: thetourisminformer@resortbrokers.com.au or PO Box 5004, West End Q 4101

INSIDE RELIEF MANAGERS

NEW MOTELS ARTICLE

FEATURE ARTICLE

RECENTLY SOLD

BE MY GUEST

DELUXE SUITE

INDUSTRY SPECIALISTS

RESORT BROKERS DIRECTORY

he offering includes the management rights and facilities management agreement for Emporio, Maroochydore, via an expressions of interest process. It’s a unique offering in the centre of Maroochydore with five residential buildings and two commercial buildings comprising 241 apartments, prime commercial office space, restaurants, shops, cafes and a fresh food marketplace. Emporio will be the first genuine residential-retail-commercial mixed use project on the Sunshine Coast, it is located at the intersection of Maroochy Boulevard and Plaza Parade, at the gateway of the new Maroochydore CBD, and will be built in five stages. Work on the first stage has already commenced. Stage One will comprise residential apartments, ground floor retail and commercial office space. Also included in stage one will be a resort-style swimming pool, BBQ deck, residents-only theatre, gym, manager’s office and storage facilities.

Largest rights offered on the Sunshine Coast M.R. & FACILITIES MANAGEMENT OFF THE PLAN • 25 yr accommodation module agreements • Facilities management agreement • Choice of 2 bed or 3 bed residence • Projected net Income of $639,000 on completion • A full information memorandum is available to qualified purchasers to enable you to lodge an expression of interest • $241,000 Body Corporate remuneration (On completion of all stages) • Staged payment options • TO BE OFFERED BY EXPRESSIONS OF INTEREST. OFFERS CLOSE 5pm FRIDAY 10th JUNE 2011

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Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 399 Email: glennmillar@resortbrokers.com.au

ref: MR001424 Nett profit: $639,000 (projected) Turnover: $ NA PRICE: Expressions of Interest

Heritage motel lease NEW 30 YEAR LEASE - FANTASTIC LOCATION

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Sydney office: (02) 9904 8224 Email: iandore@resortbrokers.com.au

he Motel is nestled at the foot of Girards Hill, adjoining the CBD in the heritage district of Lismore. Long regarded as the unofficial capital of northern NSW, Lismore and its surrounding hinterland is known as the Rainbow Region. Often referred to as the birthplace of eco-tourism, the Rainbow Region contains nearly a third of NSW forest reserves and has some of the most picturesque scenery in the state.

ref: LH001477 Nett profit: $220,638 Turnover: $638,789 PRICE: $735,000

Lismore City boasts all the culture and convenience of a major regional centre as it plays host to significant theatrical, artistic and musical activities on a regular basis within a busy calendar of festivals

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and events. The City also has the regions major services, shopping and sporting facilities, while only a half hour away from the beautiful and famous beaches of Byron Bay and Ballina. Built in the style of the lovely timber homes of the region, the Motel is surrounded by rainforest trees and flowering shrubs, while the Motel is a peaceful haven for the weary traveller or business guest. The rooms are spacious and accessible without needing to use the stairs; typical heritage style verandas line both sides with on site parking outside rooms and some undercover parking also available. • 27 rooms incl two family suites • Executive suite with separate queen bedroom, spa, living/ dining + cooking • HD digital television, free wireless, Austar and air conditioning in all rooms • Licensed mini bar open from 7am to 9pm • Three bedroom manager’s residence • Great location with an easy walk to CBD restaurants, retail and coffee shops

The Top Pub - Nth Qld

n opportunity not to be missed. The current owner has decided to pass on the reins to an experienced operator. The Top Pub has had consistent trading patterns with a real opportunity for great up-shot. The current vendor oversees the hotel which is under full management. It hosts the only bottle shop in town, resulting in healthy turnover figures all year round. There is accommodation available and the relaxed atmosphere of the outdoor beer garden sets the scene for a great drinking culture. The Bistro offers a variety popular food, seven days a week. There is an opportunity for a new bottle shop on the out skirts of town. A feasibility study is all that separates you from operating with pokies.

LEASEHOLD OFFERING

• 100%+ return on investment • 3 bedroom owners accommodation • Bistro, beer garden and accommodation • Spectacular views of the bay • Lease negotiable • Multi million dollar marina at your front door • An opportunity to purchase freehold and surrounding land

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

ref: LH001481

This lease (negotiable) offers the operator a wonderful opportunity to set themselves up.

Nett profit: $115,000* Turnover: $1,400,000* PRICE: $220,000 + SAV *6 months adjusted December 2010

You must be experienced and you must be willing to put in the hard yards – it’s the Top Pub, it will pay off!

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Rockhampton CBD suites SIMPLY THE BEST

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

ref: N/A Nett profit: $863 to $954,000* Turnover: $1.63m PRICE: $6.5m *Projected accomm.& eatery

his freehold property is situated in Rockhampton, the beef capital of Australia and is located on the Tropic of Capricorn. Rockhampton is also regarded as the capital of central Queensland. This is the newest and best motel in Rocky as the rooms are superior to anything already there. The coffee house/ eatery which is currently being established is expected to be of the same standard. It is situated opposite the Pilbeam Theatre and has a main road position, giving further positive attraction. The suites comprise of executive studio and presidential, a definite aim to the high end of the market.

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The option is available of course to lease the coffee house/ eatery component to a second party which would give you a passive investment and the accommodation section which could easily be run with receptionists and casual cleaners. This property would suit the most astute of buyers with just the right touch of sophistication and elegance unequalled in Central Queensland. • Superior 18 suite property • Perfect position opposite the Fitzroy River • 2660sq meters of building over 7 floors including basement • Large well equipped gymnasium • Linen owned and laundered off the premises • Impressive in door swimming pool on 2nd floor • Brand new quality building • Huge depreciation benefits • Take advantage of the resource boom! • 4.5 star triple A rated

his building was constructed in 1986 as a hotel with 65 rooms plus restaurant on ground floor, pool and car parking to the rear. Sometime later the property went into receivership and was bought by a developer who strata titled the rooms and sold them off individually. In accordance with Qld law the business was now designated as a Management Rights. The business has been run for a number of years in this fashion and as very little was spent on upgrading, the clientèle that stayed at this beach resort looked for better accommodation. The operators of the business had to look at another angle and they successfully turned this property into a pensioners tour hotel. The business has grown significantly and enjoys quite exceptional occupancy. The current vendor c. 3 years has been able to get half of the units into the letting pool upgraded by their owners to a 3.5/ 4 star

Central Qld. waterfront MANAGEMENT RIGHTS

standard. The business has continued to grow not only in tours but is now also enjoying a large upsurge in corporate clientèle.

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 399 Email: iancrooks@resortbrokers.com.au

Ill health forces the sale of this business which is now run under full management. This business shows exceptional nett profit returns and represents an outstanding opportunity for both passive investors and those wishing to run the operation themselves. • Very attractive exterior appearance • 2 minutes to the main shopping area • Tremendous forward bookings

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ref: MR001430 Nett profit: $525,000 (under full mgt.) Turnover: $650,000 (owner operated) PRICE: $2.5m

Absolute waterfront on a 3.83 multiplier! GOLD COAST MANAGEMENT RIGHTS Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

ocated directly on The Broadwater in the tranquil paradise that is Runaway Bay, this well-maintained property consists of 72 units split between a water front high-rise and Mediterranean style villas to the rear. Due to an extremely motivated vendor, this is one of the best priced waterfront properties you are ever likely to find on the Gold Coast - 3.83 multiplier and a heavily reduced unit price.

ref: MR001452 Nett profit: $182,897 Turnover: $248,624 PRICE: $1.299m

The 29 units in the letting pool are split between 18 permanents and 11 holidays, providing an opportunity to benefit from the stability of permanent letting coupled with the high income potential of holiday letting. Holiday letting in particular shows scope to grow through 2011.

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The renovated, contemporary and spacious air-conditioned manager’s unit is literally metres away from the water. If you’ve ever dreamed of fishing from bed, this is you chance! Comprises of 3 bedrooms, 2.5 bathrooms, state of the art kitchen, entrance hall, balcony and large living area. • Lock-up exclusive office, storage cage, storage cupboards, linen cupboard and carpark all on title • Full array of facilities including 2 pools, tennis court, spa / sauna, BBQ area and Foxtel • Full standard term topped up to 10 years as of Nov 2010 • Very manageable workload for a husband and wife team • Fabulous managers unit with one of the most scenic outlooks on the Gold Coast • Low multiplier, potential for growth, stunning managers unit and prime location make this an opportunity not to be missed!

Relief Managers: a few pointers ‘It is an investment in how long you can stay in a 7 day a week business by the amount of time you can get away from your business’. We are constantly asked if we know a ‘good relief manager’ who can look after our business’. A lot of us think that we are the only ones who can run our business. Resort Brokers can assure you that there are many welltrained, experienced relief managers available to assist you who have often owned their own tourism business. Below is a list of some of the dynamic personal who we promote in our bi-monthly Resort Brokers’ Informer. Many of them are known to us through our years together in the industry. However you need to do your own investigation and due diligence before you give them your keys! A few pointers on how to do this:

Questions to ask potential Relief Managers... • About their previous work experience and to see relevant references • Have you ever run your own motel or management rights? • How much do you charge per day? • In the case of motels, are you prepared to cook breakfasts? • Where are you located? You would not want to employ managers in Sydney who need to get to North Queensland to look after your property due to cost and travelling time. • Finally remember when you speak to them on the telephone, do they sound right? If they don’t excite you they won’t excite your guests!

Relief Manager’s Directory Name: Steve & Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel

Name: Lyn & Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motel

Name: Simon Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: N/A

Name: Phillip & Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motel/MR/Caravan Parks

Name: Llew & Trisha Pointon Mobile: 0400 035 359 Email: llewp@tpg.com.au Manager type: Motel

Name: Graeme Filippe & Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Resort

Name: Sam & Linda Adermann Mobile: 0433 233 773 Email: N/A Manager type: N/A

Name: Tony & Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel/Motel/Caravan

Name: Anastasia & Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort

Name: Robyn & William Campbell Mobile: 0409 838 856 Email: rgcampbell@hotmail.com Manager type: N/A

Name: David & Belinda Gustafson Mobile: 0403 219 562 Email: dgustafsondavid@hotmail.com Manager type: N/A

Name: Bob & Judy Sheppard Mobile: 0419 784 215 Email: bj.sheppard8@bigpond.com Manager type: N/A

Name: Paul & Wendy Greenfield Mobile: 0408 717 360 Email: info@hostsontherun.com.au Manager type: N/A

Name: Ray & Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park

Name: Peter & Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Hotel/MR

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Bowen by the sea

running at 70% occupancy for the past 12 months (78.6% for March).

NORTH QUEENSLAND HOTSPOT Nett profit: $517,000 before mgt Turnover: $1.23m PRICE: $ 1.7m ref: LH001468 Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Offered for the first time is this 8 year old 46 x one bedroom unit motel. This property was originally built for the retirement sector. Therefore each unit includes a lounge, a kitchenette, separate bedroom and spacious bedroom. 18 months ago the owners changed the use with council approval to a motel. From the very outset it has been highly successful

Bowen is growing beyond belief due to the expansion of The Abbott Point coal terminal. At a recent business meeting in Bowen it was announced that the major operators in the coal mining industry will require 5,000 workers over the next 3 years! Growth and tariff increase is a certainty at this motel. • New 30 year lease • Fully air conditioned and own kitchenette • 200m from the CBD & 100m from the water

Management Rights - A Victorian Perspective popular in New South Wales and has gained some currency in Victoria since the relaxation of the estate agents’ licensing requirements a few years ago. Peter Crawford Partner - Madgw ick

Properly structured, the management rights model of building management can be beneficial to all involved in the development and operation of an apartment block whether it be solely residential or mixed use. For the developer, the adoption of the model enhances return on the development and assists in the sale process, purchasers of apartments have the comfort that there is an on site caretaker (who is also an apartment owner) taking care of their investments, and the owners corporation need only deal with one entity with regard to the management and caretaking of the development. Those apartment owners who are investors rather than owner-occupiers also have the benefit of an onsite manager looking after letting. The model which had its genesis in Queensland has become extremely

Whilst the model is regulated by specific legislation in Queensland and New South Wales (Body Corporate and Community Management Act 1997 Qld; Community Land Management Act 1989 NSW) there is no specific legislation in Victoria which regulates the relationship between the parties to a management rights scheme. Moreover, developers need to be aware that in most cases a Class Order published by the Australian Securities and Investments Commission exempting management rights schemes from the financial services licensing regime must be complied with. Otherwise the operator will require an Australian Financial Services Licence. Finally, the developer has an obligation at law and under the Owners Corporation Act 2006 to act honestly and reasonably and in the best interest of the Owners Corporation in entering into an agreement to establish a management rights scheme.

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Considering all of this it becomes very clear that, in Victoria especially, the constituent documents which establish the management rights must be very carefully drawn to ensure compliance with the ASIC requirements and to achieve an even balance between the interests of all participants in the management rights scheme including the manager, individual apartment owners and the Owners Corporation. One positive of there being no legislative regime in Victoria is that, unlike Queensland and New South Wales, there is no limit to the length of the term of management rights in Victoria. It is desirable that if management rights are to be implemented that the developer do so at an early stage so that apartments and other titles in the development be marketed from the outset on the basis that management rights will be implemented and full precontract disclosure is made to prospective purchasers. By Peter Crawford Partner at Madgwicks Lawyers

ust renovated 18 months ago, we offer this for the first time having such a strong return this is a fantastic passive investment under full management. This lovely 2.5 - 3 star motel is very popular due to it’s convenient location. Boasting sensational city views that can never be built out because of the brand new Kangaroo Point Cliff, Parklands and Cafe. Zoning up to 5 levels and rear access to large carpark, ideal for future development. With a location this good, capital growth is just a matter of time with sporting arena “The Gabba”, Story Bridge Hotel and the City/New Farm just a short walk away. It possesses a brand new 10 year lease with 3 x 5 year options. With a registered lease over the title showing a 9% return of $180,000 p.a. paid monthly in advance and increasing by CPI.

Passive inner city investment FREEHOLD OFFERING

• Extensive car park for guests and visitors with rear access • Brand new 10 year lease with 3 x 5 year options • $180,000 payed monthly in advance, adjusted by CPI annually • Room attached to Reception for night manager • Great development potential with zoning up to 5 levels • Fabulous location with great river and city views • Consistent walk in and drive by business • An opportunity not to be missed!

• Full coin operated laundry on-site. All other linen out sourced • Occupancy 79.2% and rising quickly due to new management

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Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 399 Email: timcrooks@resortbrokers.com.au

ref: FH001475 Nett profit: $180,000 Turnover: $380,000 PRICE: $2m

Award winning serviced apartments SITUATED IN VIC. LARGEST PROVINCIAL CITY Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

ref: LH001473 Nett profit: $ 232,648 (09/10) Turnover: $ 1,464,776 (09/10) PRICE: $ 900,000 plus S.A.V.

n impressive serviced apartment business situated in the CBD of Geelong. The building was constructed in 2005 and provides 27 x 4 star apartments , 8 of which are dual keyed making a total of 35 apartments. This property has a unique and inviting ambience for the corporate or leisure guest. The area is a regional hub for government, private enterprise, education and leisure facilities. Geelong offers many restaurants, cafes, supermarkets, retail shopping, sporting facilities and has easy access to the Eastern beaches. An adjacent railway station provides a direct rail link to Melbourne and to Western Victoria. A

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freeway extending to Melbourne, enables direct services to Tullamarine International and Avalon Airports. The business enjoys the many benefits and support as a franchisee of an award winning and highly respected franchise brand. Commencing in 2006 the business has steadily matured into a profitable and consistent operation with substantial occupancies, continued growth and excellent incomes from corporate, tourism and leisure guests. • 35 x 4 star executive serviced apartments (8 studio, 12 one bed and 15 two bed) All have fully-equipped kitchens, generous bathroom, lounge/dining, broadband access, foxtel and state of the art facilities • A two bedroom fully self contained apartment is used as the manager’s residence • Current lease 2o years from November 2010 being 5 years with 3 x5 year options. • Limited opposition provides an ideal opportunity for a hands on operator to continue to grow the business

Special Feature

The brand new Mary River Motor Inn A group of four families who live in the area have just completed building a new 38 room motor inn in Gympie. This is the first new motel built in Gympie in 24 years and it is absolutely 4.5 star standard. In this issue is a feature article about the need for new motels. In our opinion this motel is the best anywhere on the Bruce Highway. There are 3 different types of rooms catering for overnight traveller through to families. The reception area is roomy and very welcoming restaurant is an absolute stand out and is booked out most nights of the week with patrons and locals. The managers Reg and Ross Cannon who are part owners of the property are very proud of the standard that has been set already in the market place. Please note this is a promotional article this property is not for sale

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• Fabulous location just 500m to Burleigh Beach and 100m to James Street restaurants, cafes, shopping, medical, etc. • Extremely spacious manager’s unit comprising 3 bedrooms (main is extra large and ideal parents retreat), 2 bathrooms, modern kitchen, separate laundry, huge patio for outdoor living total size 275 sq.m • Separate office on title, no set hours in agreement, and Body Corporate allows extended leave • Unit has recent registered valuation of $615,000.

Realistically priced by motivated vendors GOLD COAST MANAGEMENT RIGHTS

• Only asking $70,000 for the business. • This permanent complex is so easy to run that it would be an ideal extra income for a working single or couple. • Ideal complex for those requiring familysized unit and you can even bring your small pet • Secure underground parking with 2 spaces for the manager

Holiday Resort in Spectacular Rainbow Bay GOLD COAST MANAGEMENT RIGHTS Nett profit: $158,000 PRICE: $1,240,000 ref: MR001435 Gerard Dixon Mobile: 0417 119 284 Brisbane office: (07) 3878 399 Email: gerarddixon@resortbrokers.com.au

• Long term owners retiring. They have done the hard work, now you can reap the rewards • Solid client base with a lot of repeat bookings • Exclusive use of private rear yard garden • All units have ocean views • All units have large balconies • Spacious & comfortable 2 BR manager’s unit with ample storage • Wireless internet available

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Nett profit: $28,065 PRICE: $685,000 ref: MR001395 Gerard Dixon EXCLUSIVE AGENT Mobile: 0417 119 284 Brisbane office: (07) 3878 399 Email: gerarddixon@resortbrokers.com.au

• Great location - only a short stroll to both beach and shops • Bore water is available for use in the garden, hose downs and general cleaning • Web site has been professionally updated and is showing much improved traffic • The building is in excellent condition with no major works left to be done. • Exclusive use of separate office which is attached to the manager’s residence • Only 5-10 minutes to Coolangatta and the Gold Coast airport • A great complex for a couple looking for a secure income in a well maintained building

A rare opportunity to buy a freehold going concern motel solidly built of double brick and located in a busy Victorian rural town. Growth forecasts for the future mean there is going to be a real shortage of motel rooms in this locality making this property potentially more valuable. Showing a return of close to 14.5% means that you cold buy this property and split off a lease which would show 30% return and 9% nett on the freehold investment! • Bed & Breakfast only • Large parcel of land: 4682m2

Highly visible - Western Highway

FREEHOLD & BUSINESS

• The 19 spacious ground floor units offer 3 different configurations (standard, executive & family) meaning the motel can cater for all • All executive and spa units have been upgraded • Built during the mid 1980’s meaning that developers could afford to build more spacious motels than they do today

Corporate motel in Northern Vic. LEASEHOLD MOTEL Nett profit: $200,797 Turnover: $ 566,743 PRICE: $785,000 ref: LH001428 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

Listed in a popular price range that would suit a person wishing to own their business or as a semi retirement situation this motel is a must to put on your list to inspect. • Bed & Breakfast only • Located in a vibrant Northern Victorian Murray River town • The motel is located in the centre of town, with rear access to the town’s best

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Nett profit: $182,323.00 Turnover: $ 325,000.00 (projected 2011) PRICE: $1,280,000.00 ref: FH001436 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

bistro. Walking distance to all the shops, supermarkets and restaurants • 20 spacious units: standard, executive and spa units • Solar heated pool, Spa, BBQ area, Wireless Internet etc. • Consistently high occupancy and strong annual growth • Solid brick motel • This motel ticks all the boxes: a corporate motel in a progressive town and showing good profitability and high occupancy

This is a very easily run complex for guests 55 years and over. It has a fantastic 22% return on overall investment! Permanent letting located on the Southside in the beautiful Meadowbrook which makes it easy to duck off to the beautiful sunny Gold Coast. This complex has a strong rental demand with a very big body corporate salary which gives any purchaser peace of mind. Very little care-taking with low maintenance gardens. Lovely 3 bedroom, 2 bathroom manager’s unit with a registered valuation of $250,000 just completed which is

22% return including unit SOUTHSIDE MANAGEMENT RIGHTS recognised by all the major banks. First to see will buy! • Body Corporate Salary $96,545.40 (adjusted annually to CPI) • Amount in Sinking Fund $76,138.35 as at July 2010 • 38 Units (15 of which are in the letting pool) • Very little care-taking with low maintenance gardens.

Ideal for newcomers to the industry NORTHSIDE MANAGEMENT RIGHTS Nett profit: $65,000 PRICE: $490,000 ref: MR001451 Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

This permanent complex has a very strong rental demand being located on the northside of beautiful Brisbane. Spacious 3 bed, 2 bath unit with registered valuation just completed and recognised by all the major banks. This is ideal for someone who would like to work from home or ideal for a passive investor with full management in place that

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Nett profit: $ 110,823.69 (includes Body Corporate Remuneration) PRICE: $ 500,000 ref: MR001451 Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

are keen to stay on. Strong letting pool of 41 of 54 units and 14 years on term. With shops, cafes, supermarkets all within a close vicinity. Make an offer! • Built circa 2000 • 14 of 25 year terms • Bulding type Brick & Tile • Great Northside location • Registered valuation on unit • Large letting pool • Self maintaining gardens • Spacious managers unit

New motels needed to satisfy demand Demand for accommodation in some areas, particularly in towns and cities servicing the resources sector, far outstrips supply. Developers frustrated with a sluggish residential market might do well to consider building new motels.

assumed for other cities and towns. Lack of accommodation is an economic disadvantage. And it is not only in mining areas where new accommodation development is being encouraged. Earlier this year, the Lismore City Council proudly boasted of a new $5m four-star motel project, an investment by the Gold Coast-based Strand Group. “Business brings business,” council’s business facilitator, Mark Batten, told the local paper. “(This motel) will help meet the need for business beds. There has been a shortage for some time.”

Australia’s first modern American-style motel opened in Bathurst in 1954. Today there are roughly 3,800 motels across the country. But I’d say we would be lucky if 100 of these have been built during the last 15 to 20 years. The time to build more is now. The critical driver, of course, is occupancy. ABS tourist accommodation figures show the national room occupancy rate for motels (15 rooms-plus) for the Dec. Qtr. 2010 was 59.2%. What this figure doesn’t show are the pockets where occupancy consistently tops 80 or 90%, where new beds are desperately needed.

Prospective developers and operators can be confident the motel model, born in the 1950s, is still relevant, viable and indeed very profitable. Proof is seen in the consistent success of properties. In 25 years, Resort Brokers Australia has only ever handled only four mortgagee sales of motels. Pubs, on the other hand, regularly come up as forced sales.

Queensland’s fast-growing central coastal city of Mackay is a prime example. With a population approaching 120,000, it is the gateway to the rich Bowen Basin coal deposits. For the calendar year 2010, Mackay recorded 89% occupancy. On many nights, you simply cannot find a bed. There is an immediate need for another 200-300 rooms.

Motel development costs have reduced substantially of late, thanks to new high tech building materials and specialised construction systems. A quality standard motel can be established today, on a turn-key basis (excluding land), for around $80,000 per unit.

Other centres – Bowen, Townsville, Emerald, Biloela, Dalby, Chinchilla, Miles, Singleton and Muswellbrook in the Hunter Valley, and Perth and Karratha in WA – tells a similar story, shortage = bad for business.

The developer then has several attractive options – retain and operate the property, sell it in one line, sell the lease and retain the freehold as a passive investment, or sell the two components individually.

The mining industry’s powerful, positive economic influence directly benefits the accommodation sector. But mining also relies heavily on room providers.

And there’s no need to wait for project completion. Resort Brokers has recently sold a couple of new motels off-the-plan. Demand for good businesses and strong investments remains very strong. Little wonder, when you consider the financial appeal. An off-the-plan buyer of a new motel lease can expect to make a 30% return on the purchase price after all operating costs and rent are paid. The freehold investment in the same property, depending on location, can be expected to make between 9.0 and 9.5% net return. By Ian Crooks

This was highlighted recently when Tourism Western Australia released an Access Economics study suggesting WA stands to lose almost half a billion dollars by 2020 if its accommodation shortage is not addressed. Perth’s critical shortage of short-stay accommodation is looming as a significant barrier to economic growth. The same can be

resortbrokers.com.au 18

Rockhampton Motel lease PERFECT LOCATION, GREAT RETURNS!

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

ref: LH001490 Nett profit: $250,373 Turnover: $714,879 PRICE: $800,000

e are delighted to have been appointed exclusive agents for this beautifully presented 28 room motel in the heart of Rockhampton. There are 3 different styles of rooms and they are all in excellent order. The fastidious vendor has continuously upgraded this property and the quality and service that is provided means that it has traded well above the average of the area at 72% occupancy. The living accommodation is located on the first level above the office reception area and rarely do a living space of this size. It has 3 large separate bedrooms all with built ins, a large storage area plus lounge dining area and fully equipped kitchen.

resortbrokers.com.au 19

The attractive office reception area is located at the front of the motel and behind the office is a large “back of office” room. This is essentially used as a dayroom for the operators and it also has its own kitchen meaning you could come down in the morning without the need to go back upstairs until close in the evening. Other features include a fully fenced kidney shaped swimming pool, ample storage rooms, outdoor BBQ area, coined operated guest laundry and of course AUSTAR cable television. • New 30 year lease • High nett profit • Bed and breakfast operation • Over 10 restaurants within 5 minutes walking distance • Annual bookings for two months p.a. from the Singaporean Air Force

Unique Freehold Motel HIGHLY PROFITABLE WITH 25YEARS REPEAT BUSINESS

Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Sydney office: (02) 9904 8224 Email: iandore@resortbrokers.com.au

ref: INV001399 Rent: $265,000 PRICE: $2.95m

he Resort is located minutes walk to the famous Coolangatta – Greenmount beaches operates as a tourist accommodation business with a major specialised tour bus operation attached. Approximately 80% of revenue is from package sales including accommodation, meals, bar and coach tours. Their highly profitable tour operation dedicated to seniors travel targets baby bombers through direct advertising into the seniors market across Australia. The business is recession proof demonstrated by consistent 9% pa growth over past five years! The business offers a competitive and unique experience for Seniors from across

resortbrokers.com.au 21

Australia being the only seniors specific tour operation on the Gold Coast The Freehold is offered for sale by the existing Business Owner / Operator who is taking back a new 30 year Lease. The purpose of the sale is to release funds to expand their base in north Queensland and acquire another Motel. • Unique tourist accommodation business with 25 years of successful history • 35 rooms of which 34 are double/ queen motel style and 1 x 3 bedroom/2 bathroom family unit. • 24 units have air-conditioning and all have ceiling fans • Restaurant, Bar and Function facility • Solid brick building with iron roof • Built in 1989 and set on 1518m2 of landscaped grounds • Minute walk to famous Coolangatta – Greenmount beaches • Adjacent RSL Clubs, airport, restaurants, coffee / retail shops • Excellent condition • New 30 year lease

DIGGING FOR ACCOMMODATION GOLD Our pick of the business and investment ‘hotspots’

Traditionally, when considering an investment or business venture in the accommodation sector, your prime targets might be on busy tourist routes and in emerging holiday destinations. These days, however, we need to look beyond the usual tourism indicators to find the accommodation investment ‘hotspots’. Identifying where the best prospects lie is by no means an exact science. But, with 25 years industry experience, Resort Brokers Australia is better qualified than most to engage in some educated crystal ball gazing. Here we nominate our picks of the towns and districts most likely to offer the greatest accommodation business and property returns and growth in the near to medium term. Not by tourism alone Not so long ago, ‘grey nomads’ – hordes of baby boomers hitting the highways for the road trip of a lifetime – were predicted to be the lifeblood of motels and caravan parks for years to come.

But, in the wake of the GFC, with the value of their superannuation tumbling and the cost of living rising alarmingly, many have returned to work to supplement their income. The longedfor life of leisure is on hold. So we don’t see this market driving tourism in regional areas for the next few years.

pain of natural disaster turn into a positive. Business information analysts at IBISWorld predict, after the initial catastrophic consequences, the second quarter of 2011 will see an economic boost through rebuilding of infrastructure and property – roads, railways, bridges, houses, businesses.

The growth of budget airlines also has a lot to do with the drop in domestic holidaymaker numbers. In today’s frugal, tentative economic environment, fewer people are travelling. Those who are want the cheapest option. With our dollar soaring, the less expensive alternative often lies overseas.

All this activity requires a sustained influx of workers, bosses and business travellers, sales and service reps and government overseers. It is estimated there are 70,000 to 90,000 kilometres of damaged council roads, and total new housing construction will number around 15,000.

The strong Aussie dollar and global economic weakness are likely to combine to limit growth in both our domestic and international visitor markets for some time.

In Mission Beach, for example, where occupancy is not usually terribly high at this time of year, accommodation is booked solid. Townsville, increasingly recognised as Queensland’s ‘second capital’ will be the thriving hub for the massive rebuilding effort. Furthermore, IBISWorld believes some tourists will make a special effort to visit affected locations “in a show of support”. In our view, once rebuilding has advanced, these destinations may perversely have stronger destination (brand) recognition and a

Building business prospects So, if tourism can’t be entirely relied upon to provide ‘bodies in beds’, what can? Let’s start in the north – parts of Queensland so badly affected by devastating floods and Cyclone Yasi. The immediate impact for many accommodation owners and operators was dire, of course. But some are now seeing the

resortbrokers.com.au 22

unique platform on which to build innovative marketing campaigns. Mining a mainstay Mining activities inland will also drive prosperity in the north. Major coastal cities, the processing and export hubs for massive mining operations, should be prime targets for accommodation property and business buyers. Coal industry chiefs recently told a business forum more than 5000 jobs were guaranteed to be generated in the Bowen region alone within the next three years. In Mackay, accommodation demand has soared, generating a remarkable 89% occupancy rate for 2010. Mackay-Whitsunday is one of the state’s fastest growing economies with more than $60 billion worth of projects recorded at the end of last year. We estimate an immediate need for 300 more rooms. Lately, one in five enquiries to our office has related to Gladstone. Massive new LNG processing facilities are planned and the Gladstone port is undergoing a $3.5 billion expansion. There is much talk about this city but, so far, no obvious lift in occupancy. We’ll put Gladstone on our ‘watch’ list.

HOT PICKS: MACKAY, BOWEN & TOWNSVILLE In what has been widely acknowledged as our ‘two speed economy’, mining is the sector in top gear. Anyone looking for opportunities must consider how they can jump aboard the resources gravy train. The train actually left the station quite some time ago. A Queensland Government paper compiled back in 2006 to inform policy direction, Sustainable Futures Framework for Mining Towns, identified massive demand for accommodation in the Bowen Basin. What was then the Nebo Shire (before council amalgamations) had 3,140 non-resident workers, outnumbering the 2000 residents by more than 150%. Hotel, motel, caravan park and other rented accommodation occupancy, even then, was running above 90%. Over 2000 people were living in some form of commercial accommodation throughout the Bowen Basin. That number may have reduced temporarily due to the GFC, but has almost certainly increased substantially since. The GFC impact on mining was felt by accommodation owners. In fact, motel incomes fell in direct correlation to the drop in coal tonnage exports. But it was short-lived. Ian Matheson opened his new Swag Motel in Middlemount in November 2008. He said earnings dropped from $50,000 a week to $17,000 a week for about 15 weeks. But, they’ve not only rebounded but risen to well above $60,000. His restaurant turns over

more than some of the country’s finest city establishments.

HOT PICKS: EMERALD, BILOELA & MORANBAH In Queensland south-west, the Surat Basin is set to boom thanks to coal seam gas. It is reported, between now and 2015, some 47 projects worth over $80 billion will come on line … $80 billion!! Typically, such projects have a lifetime of 20 to 50 years. The population of towns like Dalby, Chinchilla and Roma is estimated to double over the next five years. Other Surat Basin communities include Toowoomba (Australia’s second largest inland city and the region’s major service centre), Tara, Miles, Surat, Injune and Mitchell. A brand new 44-unit motel in Chinchilla, within three months of opening, is consistently running at over 80% occupancy while charging room rates you would might only expect to pay in CBD hotels. A similar story is unfolding in the Galilee Basin where two of our richest mining magnates are at work. Gina Rinehart’s Hancock Mining has two enormous projects on the books, totalling 60 million tonnes of coal a year, plus a $1 billion rail line to port. Clive Palmer’s Waratah Coal is behind another 40 million tonnes per annum. The nearest centre is tiny Alpha, population just 350. It has one caravan park with 10 cabins. Resort Brokers has just sold this park to someone who naturally has expansion plans. We understand a 22-unit motel is also planned for the area.

HOT PICKS: DALBY, CHINCHILLA & MILES Think Hunter Valley and thoughts turn to vineyards. The wine industry has been the Hunter’s big tourism draw card for years, supporting many an accommodation property. But the region is also NSW’s mining powerhouse. Before the huge rise in coal exports, the Hunter Valley achieved the standard 60% average occupancy rate, summer much busier than winter. Add a mining boom to the blend, and moteliers enjoy the best of both worlds. Thanks to resource activity, most motels are now full Monday to Friday, year round. The drive market and wine-related events ensure weekend occupancy rates of at least 50%. Muswellbrook and Singleton are key locations. A new Quest property opened in Singleton around 18 months ago and, despite a ‘challenging’ location, it is full most of the time. In Muswellbrook a 24-unit motel sat on the market for about two years without a buyer. Now it is going to contract with a 95%

resortbrokers.com.au 23

occupancy rate Monday to Friday, 50% at weekends, and enough land for a 15-room expansion.

HOT PICKS: SINGLETON, MUSWELLBROOK & MAITLAND Largely this article has focused on mining and its influence in Queensland and NSW. But there are also pockets not directly boosted by mining that are definitely worth investigating. In southeast Queensland, the city of Ipswich just to Brisbane’s west has plenty to offer. Ipswich Mayor, Cr Paul Pisasale, is a real livewire driving his town’s growth. Population is set to double by 2025, the local air force base contributes greatly to economic prosperity and there are major warehousing, transport and distribution projects on the drawing board. Gatton, a little further west, is also worth a look. It is in the midst of rich farmlands, has a major university campus and is home to a new ‘super prison’, the Southern Queensland Correction Precinct Development. Gatton has just one 20-room motel, probably 30 years old, and it is full almost every night of the year.

HOT PICKS: IPSWICH & GATTON Elsewhere in Australia there are other obvious opportunities, particularly in the mining powerhouse of Western Australia. WA is facing a drastic accommodation shortfall, but key locations often pose a challenge. Karartha is a prime target but, with leasehold land regulated by the government, it is almost impossible to get hold of sites. Broome too is worthwhile, particularly as it has the dual benefit of a strong tourist market. Perth is a no-brainer. Finding a decent room in Perth at anytime difficult. So, investment in the motel industry, either freehold or leasehold, holds great promise. The future of the sector, particularly in areas we have highlighted, looks bright indeed. But we caution investors, while mining may underpin that rosy future, it should never be relied upon as the sole income source. The fundamentals of good motel investment remain vitally important. Study occupancy, turnover and profit records, look for prime location with high visibility and good access, and identify potential competition. Consider the age and condition of the property, its potential for growth or expansion and what value-add services you can provide. Make sure you can generate a wider customer base, that suitable staff are available and never neglect the vital holiday market. By Catie Langdon

Recently sold “We have sold 36 Management Rights & Motels since the 15th January 2011”

MANAGEMENT RIGHTS SOUTHPORT

MANAGEMENT RIGHTS CAIRNS

LEASEHOLD MOTEL TASMANIA

MANAGEMENT RIGHTS BURLEIGH HEADS

LEASEHOLD MOTEL BUNDERBURG

MANAGEMENT MANAGEMENTRIGHTS RIGHTS ALEXANDRA HEADLAND GYMPIE

MANAGEMENT RIGHTS SURFERS PARADISE

LEASEHOLD MOTEL BENDIGO

LEASEHOLD MOTEL HOBART

FREEHOLD MOTEL TRAWOOL

resortbrokers.com.au 24

Editorial

Be my guest...

Desperate to make money, he bought some sugar and started a business making sweets. However this was never going to be enough, so drastic action was called for. They decided to leave Vietnam.

The story of the Vo family is a typical immigrant / refugee tale of struggle, separation from family and culture, and often a marginalized existence. Despite this their determination to survive, no... more than that, do well, is always inspiring. The children are invariably well-educated and hard-working. Most of these people have made a meaningful life for themselves and added to the prosperity and richness of Australian society. Australia should be proud of itself for being able to offer this opportunity to these people. It is such a popular destination for so many for many different reasons. Quang was just 30 years old when the communists invaded Vietnam. He was immediately thrown into jail, a labour camp 2000 kms from his home. He did not see his wife or 6 month old daughter for 6 years. Twice a year he was allowed to write a letter, but not always was he allowed the reply. In 1980 he was released from jail and travelled for 4 days to finally get home. Prior to the invasion Quang had been a Bank Manager and a provincial councillor, an elected representative of his province. When he returned he found his house, car and everything he owned had been confiscated by the Communist Government. Needing to find work , he approached the new Bank Manager for a job, any job. “Do you need a cleaner? I can be a cleaner. Do you want a driver? I could be a driver. If you want a bookkeeper I can do it.” They did not want him for any job.

resortbrokers.com.au 25

Quang got together the 3 ounces of gold required for three boat fares, one for himself, his wife Hai and daughter Minh 7 years old. They boarded a 15 metre long and 1.6 metre wide boat with 28 other passengers and set off. After the first day the motor stopped and they drifted for the next 14 days before finally been rescued by an Indonesian ship. They spent the next 3 to 4 months in Indonesia applying for asylum. In March 1982 they were granted refugee status and accepted into Australia and sent to Adelaide. Quang’s first job was as a fruit picker, then he got work with Australia Post where he worked for 18 years before retiring in 2000. Hai set up a business as a clothing factory where she had the contract to make linen products for Sheridan. When this contract was sent offshore it was time to look for a new business. The idea of a motel appealed to them but it had to be in a tourist area and close to the city. They have owned and operated the Oxley Motor Inn in the western suburbs for 5 years. They work seven days a week and close only two days a year. Last year Quang had a serious operation, so his son Chi now helps his parents in the business. Their daughter Minh is a lawyer still living in Adelaide. To our knowledge the Vos’ are the only Vietnamese moteliers in Qld.

• The charm of this Art Deco building with the larger living areas appeals to the repeat clientele of this Brisbane landmark property. • As there is no requirement to live on site in the agreements, the present owners have their two-bedroom unit in the letting pool as a separate business to the management rights. • A full licence is required if the owners choose not to live on site. • There are opportunities to increase the net return on this business, easily managed by one, to even greater levels than the present 26% return on the business and

No requirement to live on site MANAGEMENT RIGHTS IN CLAYFIELD, BRISBANE the 12.9% return overall. • Price includes a 2 bed, ground floor unit with a large exclusive use north east aspect grassed and fenced area + one studio apartment/office and 1 SLUG, selling at valuation. • 27 units, 3 perm, 19 high return Corp/ holiday letting with minimum of two nights stay. • Large off street visitor / client parking. Agreements term of 15+5 years.

Nett profit: $100,000 PRICE: $ 775,000 ref: MR001478 Neville Littleton EXCLUSIVE AGENT Mobile: 0407 727 194 Brisbane office: (07) 3878 399 Email: nevillelittleton@resortbrokers.com.au

Editorial

The Motel Lease - Assignment capable of paying the rent and outgoings, and performing all other obligations under the Lease, and paying for the tenant’s business; and David Burroughs • the proposed assignee has a good Partner reputation and business skills which, in Generally, a motel Lease will be for a the opinion of the landlord, will enable the maximum term of twenty-five years or proposed assignee to conduct the tenant’s thirty years, however a motel operator business competently; and will, on average, only own the business for • any default has been remedied by the approximately three years. It is therefore tenant or waived by the landlord; and important for all tenants and landlords to • the proposed assignee executes an understand how the Lease can be assigned. instrument agreeing with the landlord to be bound by the Lease as if the proposed Usually the Lease will provide that the assignee were the tenant; and tenant must not, without the written consent • if the proposed assignee is a corporation, of the landlord: any guarantee required by the landlord • sublet; or licence; or franchise; or part is provided by the directors of the with possession of the motel; or assign the corporation; and Lease. • the proposed assignee provide evidence The Lease should require the landlord to that all insurances required by the Lease consent to the assignment if: have been taken out; and • the proposed assignee is a respectable • the tenant has transferred to the proposed and financially sound person who is assignee the business name.

resortbrokers.com.au 26

Generally there is also a requirement that the tenant and the proposed assignee comply with all reasonable requirements of the landlord. This may include delivering to the landlord a copy of all documents which evidence the amount being paid for the motel business and the level and terms of the proposed assignee’s borrowings. A landlord will generally request: • two personal references (i.e. someone who knows the purchaser on a social basis should provide a short written letter saying what a fine, outstanding member of the community they are); • two business references (i.e. from people who have known the purchaser on a business basis who are able to confirm that the purchaser’s dealings with them have been professional); • a statement of assets and liabilities; and • details of the purchasers borrowings to complete the purchase. By David Burroughs Partner at Hillhouse Burroughs

Are you buying or selling Caravan Parks, Motels, Management Rights or Hotels?

MOTELS

CARAVAN PARKS

MANAGEMENT RIGHTS

David Burrough is the most respected legal advisor for those about to buy or sell an accommodation business Before you go ahead & talk with David and his team learn everything you need to know: • What really is and isn’t included • The language the experts use • How to minimise risk • What your agent, banker & accountant need to know • Critical differences between new & established businesses

Limited copies of David’s booklets are still available. Call: (07) 3220 1144 Fax: (07) 3220 3434 Email: email@hillhouse.com.au www.hillhouse.com.au

his superb Motel sits just off a busy highway but maintains enormous visual exposure and consists of 18 beautifully presented rooms with all mod cons, a small Restaurant caters mainly for the in-house guests. The business side of the Motel has been run successfully by a couple , with one of the partners cooking for the restaurant, maintaining a simple menu, but supplying good wholesome country fare. The Motel sits on a large block allowing plenty of room for oversized vehicles and buses to be parked off the road in the Motel grounds, this service is used extensively by the patrons of the motel.

Strong motel town one hour west of Brisbane

LONG LEASE & EXTENSIVE REFURBISHMENT • Highway frontage high exposure • Great forward bookings • Strong tariffs • Increasing trade • Can be run by a couple as is now • Busy proven Motel town • Beautifully presented extensive refurbishment • Room to park all sized vehicles

A large four bedroom two bathroom owners accommodation compliments the Motel, utilising the restaurants kitchen as a dual facility.

Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

ref: LH001450 Nett profit: $175,000 Turnover: $478,000 PRICE: $595,000

A fantastic feature of this Motel is a new four bay door storage shed to the rear of the Motel allows plenty of storage space. This is a must inspect property.

resortbrokers.com.au 28

Hunter Valley goldmine RARE LEASEHOLD OPPORTUNITY

Tim Leahy EXCLUSIVE AGENT Mobile: 0414 813 400 Sydney office: (02) 9904 8223 Email: timleahy@resortbrokers.com.au

ref: LH001474 Nett profit: $192,000 Turnover: $555,600 (forecast) PRICE: $645,000

he prosperous diversity of the Upper Hunter Region has provided Moteliers in the area with excellent and consistent returns. The requirements of the mining industry and power industry in the area guarantee ongoing high occupancy rates on weekdays with weekend trade supported by the growing tourist industry. Muswellbrook Shire is the ideal place to work, live and play with a friendly community that is full of exciting developments. The excellent community services and social activities make for an ideal place to relax and enjoy the country lifestyle.

resortbrokers.com.au 29

Currently this motel consists of 24 studio units built in two stages. However all units are a good 3.5 star standard. The occupancy in this motel Monday to Friday often achieves 90% and most weekends run at least 50%. The vendor intends to construct 8 new one bedroom apartment motel units which will be located at the rear of the property and will open onto verandahs that look across the picturesque Muswellbrook golf course. The upside for a buyer of this property is phenomenal and the current sale price shows a massive 30% nett profit. THIS IS CLEARLY ONE OF THE GREAT BUYS! • 24 unit Motel with room for expansion • Solid brick construction • Long established track record • Spacious 2 bedroom owners unit • Golden Chain member rated 3.5 star • Ample on site parking • In ground swimming pool

How and why provide a guest Internet service In today’s online world, many people who are away either for vacation or for work rely on the Internet. When people travel they are always interested in the accommodation and services that hotels offer. Technology today, is leading the way in providing state-of-the-art internet services by offering properties High Speed Internet Access that enables guests to make the most of their valuable time. Providing high-speed Internet access for guests of hotels has always been an expensive proposition. Historically, hotel owners had to make significant capital outlays for in-room cabling and network hardware. The hotel then had to pay the high cost of monthly service from an ISP. Recently, developments in the world of wireless networking have made high-speed Internet access easy and inexpensive. Internet Technology has now made it easier for hotels to offer high-speed Internet in each guest’s hotel room. With the option to

install a fixed or wireless Internet service, we are able to provide outstanding service with very little construction and cabling that would have been required with a wired Internet network. Now, guests travelling with their PC, Smart Phone, or any Wi-Fi capable device can connect to the Internet at up to 50 times the standard modem access speed. Besides sending and receiving e-mail at high speed, they may enjoy accelerated data transfer, access to their company’s Intranet or Extranet, and access to the World Wide Web at the same high speed that guests may have at home or in their offices without tying up the phone lines or leaving the privacy of their rooms. Hotspots can be provided and supported by a range of hospitality-ready Internet delivery platforms Australia wide. It’s a great way to differentiate your property from competitors and add an essential service to both business and

resortbrokers.com.au 30

Deluxe

SUITE MOTEL INNOVAT IONS

leisure travellers. We offer a variety of free, pay-for or hybrid Internet access models for your hotel or resort’s guest rooms, conference facilities, business centres, lobbies and common areas. By Michael Leahy Sales Director of Total Com

Wonderful Whitsundays NORTH QUEENSLAND FREEHOLD MOTEL

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

ref: FH001467 Nett profit(estimated): $450,000 Turnover: $900,000 PRICE: $ 3.15m

uilt over two levels is this impressive 30 unit motel. Located just 1km from Arlie Beach CBD. This property was developed approximately 25 years ago. The motel has sensational views over the ocean and the Whitsunday Marina and new shopping development. Most of the accommodation in the Whitsundays are serviced apartments so this motel enjoys trade from business travellers and people generally working in the area on a short term. This motel is absolutely unique in the fact that it has 2 in ground swimming pools set amongst the lush tropical grounds. In the centre of the motel which is built

resortbrokers.com.au 31

in a slight boomerang style is the spacious reception area (with 2 bedroom managers unit above). It opens onto a restaurant and bar with internal seating for 44 plus alfresco cafe style dining. This area is perfect for relaxing and enjoying a cocktail before dinner. 14 of the 30 rooms have been completely refurbished and upgraded to 4 star standard. The balance of the rooms are in good order are rated 3.5 star and this property is affiliated to worldwide BEST WESTERN chain. • 30 units including 8 x one bedroom apartments • A rare opportunity to buy a freehold going concern • Owner/ operators will enjoy a massive upswing in nett profit • Great water views • Resort style living • First to see will buy!

• Fantastic refurbished 3 bedroom, 2.5 bathroom, stand alone residence with a large under cover patio leading to a spacious, private grassed area. There is a large attached office, DLUG, workshop & storage • Melaleuca Chase is a well presented centrally located complex. The property has always enjoyed exceptional tenant enquiries due to the location close to rail, shops, and beautiful Moreton Bay. Also the close proximity to the new Bayside College – completed in 2010- has further consolidated the continued 100% occupancy rate

Inspect Now! PERMANENT MANAGEMENT RIGHTS • 57 free standing houses and duplexes, 40 permanent letting. 100% occupancy. There are no set office hours in the agreements. Garden Care 16 hrs per week. • Absolutely no weekend work. Body Corp supplied and serviced equipment. • Body Corp Salary $70,664 increased annually by the greater of CPI or 3%. L`] n]f\gjk Yj] c]]f lg k]dd AFKH=;L FGO

EARN UP TO $100,000 P.A.

awesome Don’t even apply unless you are a truly to succeed, salesperson. You have a burning desire You are highly motivated and never say die. your with ort rapp develop deep and meaningful clients and communicate with piercing the best at persuasiveness. You believe you can be e it. almost everything you do, and you can prov

DON’T APPLY UNLESS YOU FIT THE

BILL!

ide Come and succeed with us in a nationw sales park company. We require motel/ caravan , Central/ people in Brisbane/ Nth NSW, North QLD We will West NSW. Male or female, young or old. know if you have the goods!

Send applications in writing to: carlacook@resortbrokers.com.au

Nett profit: $155,000 PRICE: $ 1,230,000 ref: MR001417 Neville Littleton Mobile: 0407 727 194 Brisbane office: (07) 3878 399 Email: nevillelittleton@resortbrokers.com.au

Quote g^ l`] Egfl` “It’s who you know, not what, that is responsible for the big things in your professional life” ADAM RIFKIN - ENTREPRENEUR

resortbrokers.com.au 32

Industry Specialists

RESORT MANAGEMENT ADVISORS $ $ $ $

Review of Operations Pre-Opening Planning Owner Representation Operations Management

You will see a range of industry specialists are advertising in our widely read Informer. Circulation 5,000 - mailed hard copies 15,000 - sent digitally

Buying or selling management rights, motels, caravan parks or hotels?

Tel: 07 3223 1144 | Fax: 07 3220 3434

We believe 50,000 people in the industry across Australia and New Zealand will read this publication (it is widely regarded that at least 4 people four people read one copy of a magazine). If you would like a company advert on this page please contact: Garry Palmer: 0418 745 227 Office: 07 3878 3999 advertising@resortbrokers.com.au

resortbrokers.com.au 33

C C C C C

Management & Letting Rights Franchise businesses Property Investment Equipment Finance Business acquisition and divestment

28 years finance experience with access to a preferred range of financiers

For professional assistance contact tjshort@attglobal.net or phone 0413 752 717

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Comprehensive upfront & ongoing personalised consulting service Danny Adams 0408 772 295 danny@nqlending.com.au

â&#x20AC;&#x153;Begin With the End in Mindâ&#x20AC;? nqlending.com.au

Our team

‘We cover the country’

Ian Crooks

Ian Dore

MANAGING DIRECTOR

MANAGER & NATIONAL NEG

Glenn Millar

Tim Crooks

SALES CONSULTANT

Stuart Charles

Tim Leahy

SALES CONSULTANT

Deborah Tilley

Ken Stronach

SALES CONSULTANT

Carla Cook MARKETING MANAGER

Lindsay Cooper SALES CONSULTANT

Neville Littleton

Jim Chapman

SALES CONSULTANT

Len Booth

John Kenworthy

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Gerard Dixon

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TEAM SECRETARY

resortbrokers.com.au 34

Shane Mullins SALES CONSULTANT

Directory North Queensland

Brisbane - Head Office Telephone: Facsimile: Email: sales@resortbrokers.com.au

Email: shanemullins@resortbrokers.com.au

07 3878 3999 07 3878 1199

Egl]dk ' @gl]dk ' ;YjYnYf HYjck ' EYfY_]e]fl Ja_`lk Shane Mullins 0447 185 001

2/77 Hope Street, South Brisbane Qld 4101

New South Wales

PO Box 5004, West End Qld 4101 Ian Crooks - Managing Director 0411 171 648 Ian Dore - Gold Coast & Nth NSW Manager 0412 752 238

Telephone: Facsimile: Email: nsw@resortbrokers.com.au PO Box 522, Chatswood NSW 2057

EYfY_]e]fl Ja_`lk <anakagf Tim Crooks Neville Littleton

0422 208 450 0407 727 194

Motels Ian Dore - Northern NSW Tim Leahy - Greater Sydney

0412 752 238 0414 813 400

Egl]d <anakagf Ian Crooks Lindsay Cooper Ian Dore

0411 171 648 0418 711 047 0412 752 238

Hotels Ian Dore - Northern NSW

0412 752 238

;YjYnYf HYjck Lindsay Cooper - Northern NSW

0418 711 047

EYfY_]e]fl Ja_`lk Ian Crooks Jim Chapman

0411 171 648 0413 444 782

@gl]dk ';YjYnYf HYjck ' HmZk Lindsay Cooper

0418 711 047

Gold Coast Telephone: 07 5510 3900 Facsimile: 07 5510 3111 Email: goldcoastsales@resortbrokers.com.au EYfY_]e]fl Ja_`lk <anakagf Ian Dore Deborah Tilley Gerard Dixon Alex Cook Egl]d <anakagf Ian Dore

Victoria Telephone: Facsimile: Email: vic@resortbrokers.com.au

0412 752 238 0424 428 489 0417 119 284 0467 600 610 0412 752 238

Email: sales@resortbrokers.com.au

:mf\YZ]j_';]fljYd ;gYkl'O`alkmf\Yqk A/h: Facsimile: Email: lenbooth@resortbrokers.com.au

03 9347 3100 03 9347 3111

Suite 1, 746 Swanston Street, Carlton Vic 3053 PO Box 1100, Carlton Vic 3053

Sunshine Coast EYfY_]e]fl Ja_`lk <anakagf Glenn Millar Lindsay Cooper

02 9904 8224 02 9904 8867

0412 277 804 0418 711 047

EYfY_]e]fl Ja_`lk John Kenworthy Jim Chapman

0427 799 804 0413 444 782

Egl]dk ' @gl]dk ' ;YjYnYf HYjck Jim Chapman John Kenworthy Stuart Charles

0413 444 782 0427 799 804 0458 588 472

Tasmania Email: reception@resortbrokers.com.au

07 4155 6330 07 4155 6440

Egl]d <anakagf Len Booth

0438 139 422

EYfY_]e]fl Ja_`lk <anakagf Shane Mullins Glenn Millar

0447 185 001 0412 277 804

Egl]dk ' @gl]dk ' ;YjYnYf HYjck ' EYfY_]e]fl Ja_`lk Ken Stronach 0419 374 138

resortbrokers.com.au 35

QUEENSLAND OFFICE PO Box 5004, West End, QLD 4101 (07) 3878 3999 NEW SOUTH WALES OFFICE PO Box 522, Chatswood, NSW 2057 (02) 9904 8224 VICTORIA OFFICE PO Box 1100, Carlton, VIC 3053 (03) 9347 3100 resortbrokers.com.au

The original and still No. 1