INFORMER
No. 64 | November 2011
Australia’s No.1 tourism & business
Investing in Bali
Legal advice, cultural subtleties and personal experiences
resortbrokers.com.au
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Build a 30sqm motel room around these pods for only $55,000 The most expensive part of any motel room is the bathroom. PodFirst have developed a new professional way to build a 30sqm motel room around a Study bathroom#1. pod for only $55,000.
Case Single Residential: Doonella Noosa
Built in a controlled environment the pods 03 come completely finished with tiles, shower, roject Details: 3 Bedroom Dwelling with double lock-up Garage, Pool and 3 x Podfirst Pods 7,744.0 vanity and WC700m all in2 place ready to connect and Size: 115.0 1,602.0 115.0 1,965.0 150.0 1,965.0 115.0 1,602.0 and use. 2 02
885.0
Total Internal = 189m2 + 45m2 (3 x Pods)
1,080.0
Total ExternalShower = 90m2
ENTRY
IH9.21
Benefits of Using Pods 800/ 1600 high
BATHROOM Tiles
mixer Bag drop
BATHROOM Tiles
s
s
Reduction of on-site trades and theirtowel rail associated travel and downtime; Robe / Store
115.0
rose
WC
900 high vanity
Ensuite and Study
602.0
ENTRY 800/ 1600 high towel rail
“In my 35 years of selling motels I have never come across such an outstanding idea, this will revolutionise motel construction ” 900
WC
900 high vanity
od 3
trh
fall
fall
trh
115.0
EH9.21
Shower
Kitchenroseand Powder Room mixer Bathroom & Laundry
Bag drop
1,115.0
115.0 602.0
S18.4
EH9.21
od 1 od 2
1,202.0
IH9.21
reas:
1,802.0
115.0
ouse Size: 602.0 234m 115.0 1,202.0 1,802.0 302.0 are required as the pods150.0 sit ite Cover: No foundations 33.5% 115.0 602.0 1,000.0 115.0 1,080.0 885.0 on a flat compressedS18.4 site. nticipated directly Build Time: 6 Weeks
04
Robe / Store
Faster Construction Time Ian Crooks The Pods are connection ready and are simply ‘plugged in’ to plumbing and electrical services. After the Pods are BROKERS AUSTRALIA RESORT
[BEDROOM]
Unit 4 / 12 [BEDROOM]
The Pods are sustainable: - All fittings and fixtures obtain high energy efficiency and water efficiency labeling standards; Desk / Bench
5,969.9
Unit 3 / 12
Bed head / clock radio / drawers, etc
skilled trades people on-site;
Bed head / clock radio / drawers, etc
installed, the rest of the dwelling is relatively simple consisting of erection of Ritek® XL Walls, pre fabricated structural elements and Ritek® Roof Panels allowing faster completion of the remainder of the dwelling with less dependency on
- Fluorescent and LED lighting implemented; - Cross ventilation is achieved through the strategic positioning of windows and doors;
Desk / Bench
Fold out bed
Fold out bed
TV / DVD
- The pods are termite, rust and rot resistant; - The pods are reusable
TV / DVD
- Strength, structural Fridgethermal mass and durability is achieved through reinforced concrete structure providing Fridge integrity to the finished dwelling; Mini Bar Mini Bar
l Floor Plan
e 2 Units Module with 2 Pods
o Scale
SL24.21
AC
AC
SL24.21
115.0
The Pods provide flexibility of design and sizing and can be oriented to optimise site conditions.
we warn how simplistic approaches, like discounting, can be a big mistake. Of course, if you are contemplating selling your property, the new year might just be the time for an exciting lifestyle change. Also in this issue, we look at the opportunities available in beautiful Bali. Our experienced correspondent offers some great insights on investing in Bali and we speak to a local villa complex manager. I referred earlier to the resilient nature of our business, and to the fact that there are always buyers for good accommodation properties and businesses. My confidence is borne out by the achievements of Resort Brokers Australia in 2011. Our company has successfully handled 75 tourism-related property sales this year representing a turnover increase of approximately 20 per cent on the previous year.
What will you do to improve in 2012? A
s 2011 draws to a close and we contemplate a new year ticking over amid continued global economic uncertainty, we have intentionally adopted a positive, optimistic theme for this edition of The Informer.
Ian Crooks MANAGING DIRECTOR
COVER STORY: “On page 29 read about investing in the colourful kaleidoscope that is Bali. Gain insights into the legal side of investing and the cultural subtleties as well as some real life experiences”.
After all, you could descend into a commentator-induced torpor listening to all the so-called experts endlessly slicing, dicing and analysing the volatile market signals. Or, you could just get on with it! We reckon we’ll just get on with it. In the accommodation sector, we are fortunate to operate in a business that keeps its doors open. Unlike many small businesses, retail in particular, motels and resorts generally don’t just shut their doors. Businesses may change hands. One operator may need to sell, but there is always an eager buyer ready to step in. They bring new resources, new ideas and fresh enthusiasm. The operation continues, often bigger and better than before.
During that time, Resort Brokers’ team of consultants has doubled in number. And we have implemented many successful new marketing initiatives, both online and in traditional print media. This esteemed publication is a case in point, with a bright new format providing a tremendous showcase for properties and drawing a great deal of positive feedback. Before closing, I want to thank all our valued vendors and purchasers for entrusting Resort Brokers Australia with your business during 2011. Many of you are repeat customers, which we greatly appreciate. And to those we assisted for the first time this year, we hope we can offer you our specialist tourism and hospitality industry knowhow and service you again in the future. To all our industry friends, associates and colleagues, we wish you a successful summer holiday season, a very happy Christmas and a healthy and prosperous New Year. See you in 2012! Please send your feedback to: carlacook@resortbrokers.com.au or PO Box 5004, West End Q4101.
INSIDE BE MY GUEST
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DISCOUNT TRAP
23
INVESTING IN BALI
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The key to successful accommodation operation always lies in effective business management. So, in this issue, we encourage you to review your management practices and consider what you can do to improve your business in 2012.
TUCKER BAG
30
BUSINESS BOOSTERS
34
RELIEF MANAGERS
43
INDUSTRY SPECIALISTS
45
Our articles look at some strategies that can help to boost your bottom line and
RESORT BROKERS DIRECTORY
47
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e are delighted to have been appointed agents for this beautifully presented 28 room motel in the heart of Rockhampton. There are 3 different styles of room in this motel and they are all in excellent order. It has traded well above the occupancy average of the area at 72%. Being located in central Queensland means this property is enjoying increased business that is being generated by the Gladstone mining boom. We recently sold a new 30 year lease on the property and the vendors (made up of a partnership) have decided to dispense with the freehold investment. Other features of this property include a freestanding cafe operated by experienced restauranteurs.
Central QLD motel investment A WONDERFUL PASSIVE INCOME!
Motel investments are very difficult to come by and are very popular! • Built over two levels • Fully fenced kidney shaped swimming pool • Lease for 30 years • Rent $231,200 • Tenants pay all outgoings • 9% nett return on investment
Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au
The first to see will buy this one!
ref: N/A
The property has a very attractive appearance from the street and is well maintained both internally and externally by the current leasee.
Rent: $231,200 PRICE: $2.5mil
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Management Rights in Lennox Heads
Fifteen minutes drive south of world renowned Byron Bay, only an hour from the famous Gold Coast and ten minutes north of Ballina/ Byron Airport.
4 STAR COMPLEX WITH GREAT FACILITIES Ian Dore Mobile: 0412 752 238 Brisbane office: (07) 3878 3999 Email: iandore@resortbrokers.com.au
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his 4 star resort is located in the quiet seaside village of Lennox Head and is just 100 metres to Seven Mile Beach. This renowned surfing beach boasts the best right hand surfing break on the east coast of Australia. The resort is ideally located in the centre of Lennox village and is only minutes’ walk to an array of cafes, restaurants, shops, a supermarket and a hotel.
ref: MR001602 Nett profit: $336,736 PRICE: $2,040,000
The main street of Lennox Head is lined with a host of great shops and some of the finest (award winning) restaurants around. Lennox Head is a laid back seaside village in the Northern Rivers area of New South Wales.
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Perhaps one of the town’s greatest assets is Seven Mile Beach, a beautiful pristine line of white sand, along a stretch of water that is renowned internationally for great waves and good fishing. At the southern end of the beach is Lennox Headland, a magnificent backdrop to a picture postcard setting and a popular destination for hang gliders. • 1,2 & 3 bedroom self-contained, air conditioned apartments • Tour desk • IWok Asian licensed restaurant and bar open for lunch and dinner • 16m heated lap pool & spa • Resort pool • Steam room • Half court tennis • Barbecue and entertainment area • Undercover security parking
AS M AROAFEEN C OP NOW
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his magnificent 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 apartments are superior to anything already there. The Aromas Cafe which is currently being established is of the same high standard. It is situated opposite the Pilbeam Theatre and has a main road position, giving further positive attraction. The apartments comprise of self contained executive studios to presidential penthouses with a definite aim at the high end of the market. The option is available, of course, to lease the Aromas Cafe to a third party which would give you a passive investment. The accommodation business could easily be run with receptionists and casual cleaners.
Alexandra Executive Apartments SIMPLY THE BEST FREEHOLD AVAILABLE
This property would suit the most astute of buyers with just the right touch of sophistication and elegance unequalled in Central Queensland. • Superior 18 apartment property • Perfect position opposite the Fitzroy River • 2660sq metres of building over 7 floors including basement • Large well equipped gymnasium • Linen owned and laundered off the premises • Impressive indoor swimming pool on 2nd floor • Brand new quality building • Huge depreciation benefits • 4.5 star triple A rated • Take advantage of the resources boom!
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Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au
ref: N/A Nett profit: $1,028,000-$1,125,000* *Projected accomm.& Aromas Cafe PRICE: $7,000,000 (freehold going concern) Flexible vendor may sell leasehold and/ or entertain some vendor finance
Consistently high profit
BUY AS EITHER GOING CONCERN, INVESTMENT OR LEASEHOLD Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au
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his well established and heavily patronised motel is offered for sale on either one of the following basis: a) FREEHOLD GOING CONCERN b) INVESTMENT ONLY c) LEASEHOLD BUSINESS ONLY As the premier motel accommodation in the heart of Lismore, the Centrepoint is conveniently located within the CBD of this major commercial city which is fast becoming recognised as the capital of Northern NSW.
ref: FH001656 Nett profit: $648,909 Freehold going concern: $4,400,000 Investment only: $3,100,000 (based on Rent of $280K) New 30 year lease: $1,250,000 (based on nett profit after rent of $368,909)
This business provides excellence in Lismore for accommodation, services and facilities for both corporate and leisure travellers. It has convenient access to shops, clubs, entertainment, business facilities,and much more.
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The motel boasts a fantastic Italian & Steak styled restaurant and bar with outstanding service, great atmosphere and charge back facilities. This very well presented, highly profitable and recently refurbished motel has operated under the one family ownership for over twenty years meaning proven systems are in place to support the strong repeat corporate clientele. • 42 rooms (single, twin, family, 2 bedroom self-contained and spa suites) • Occupancy 64% (not below 61% in last three years) • 3.5 star AAA, large brick and tile motel • Conference facility and separate licensed restaurant • Two bedroom manager’s apartment • Entire motel refurbished in 2007 • Nett profit $648,909
The Motel Lease
Editorial
repairs and maintenance reason it is essential that the clauses be as clear as possible as the clearer the lease the easier it is for both parties to understand their obligations.
David Burrough Partner
A motel lease should clearly set out the obligations of the tenant and the landlord, particularly when it comes to the repair and maintenance of the motel. It is a feature of most well drawn leases that responsibility for maintenance and upkeep of the motel is very much left to the tenant. The rationale behind this is that the motelier does not want his business suffering whilst he waits for a tardy landlord to effect repairs to the property. It is far more desirable that the motelier be in control of the maintenance of his own building so that his business is not adversely affected. The clauses relating to repairs and maintenance are often disputed when negotiating a lease and are often disputed during the term of the lease. For this
The most difficult part of the repairs and maintenance clause is determining who owns what in the motel and who is responsible for the replacement of an item if it comes to the end of its life. The general rule should be that the each party replaces their own property. However it is always maintained by the tenant. The starting point when it comes to repairs and maintenance is the AAA Report which is prepared annually. The lease should require the tenant to comply with all requirements and recommendations contained in the AAA Report within a reasonable time (except for those requirements of a structural nature). More specifically, the Tenant will generally be required to:
Resort living in Brisbane’s western suburbs PERMANENT MANAGEMENT RIGHTS Nett profit: $130,000 PRICE: $1,120,000 ref: MR001652 Steve Campbell Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au
This resort style property in one of Brisbane’s most sought after Western suburbs consists of 62 well appointed residences. The well presented managers residence is a large four bedroom family home with outdoor entertaining area and attached office. An outstanding lifestyle complex with facilities including gym, pool, tennis court, BBQ area, sauna and club house for entertaining.
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(a) keep the motel and the landlord’s property clean and in good repair and repair any damage to the motel and the landlord’s property caused by the tenant or the tenant’s agents; and (b) keep the tenant’s property clean and in good repair; and (c) replace damaged plate glass and other glass in the motel; and (d) maintain and repair the services. The tenant should not be responsible for any structural repairs, latent defects or, as mentioned above, the replacement of the landlord’s property. To remove any doubt as to what is the landlord’s property and what is the tenant’s property, our plain english motel lease lists the types of items that the landlord and the tenant will be respectively obliged to replace when the item comes to the end of its life. This is an important aspect of the negotiations prior to settling the terms of the lease. By David Burrough - Partner Hillhouse Burrough McKewon
Brand new 25 year agreements in place. Body corp remuneration of $67K + GST and adjusted net profit is $130K. Fantastic complex for the large family. An inspection will impress. • Brand new 25 year agreements as of August 2010 • 32 of 62 units in the letting pool • Fantastic facilities including gym, pool, sauna, tennis court and club house • Average rates $425 • Great relationship with committee • Net $130K • Body Corp remuneration $67K + GST
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
Call: (07) 3220 1144 Fax: (07) 3220 3434 Email: email@hillhouse.com.au www.hillhouse.com.au
KP! 0 4 $ DRO CE
PRI
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his building is located at the northern end of Surfers Paradise and was one of the original mega high rise complexes on the Gold Coast. It is situated on 2 acres of lush tropical gardens with water creek and fountain. In 2003 the resort won a Queensland Architecture award for design excellence. Over the last couple of years the resort has undertaken major refurbishment including upgrade of the 4 lifts, complete external and internal repaint, a new Bali style BBQ hut, landscaping and fencing, and commencement of an air-conditioning upgrade. Excellent location right on the V8 Super Car Racing Track, with shopping, restaurants, entertainment and transport just minutes away and only 120 metres to a patrolled beach. Apartments are larger than normal, fully self-contained, one and two bedroom, with ocean views and in some cases, hinterland views as well, spacious living areas and sunny north-facing balconies.
Surfers Paradise Special HI-RISE WITH HUGE POTENTIAL
• Substantially renovated 2 bedroom ground floor managers unit • Extremely spacious office and reception on separate title with comprehensive inventory • Superb facilities including heated swimming pool, wading pool, two half tennis courts, and Bali-style BBQ hut • Letting pool of 50 with scope to increase this number • Very easily managed by a couple as currently no caretaking is involved • A great building in a great location! • Motivated Vendor will consider all reasonable offers!
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Deborah Tilley EXCLUSIVE AGENT Mobile: 0424 428 489 Brisbane office: (07) 3878 399 Email: deborahtilley@resortbrokers.com.au
ref: MR001575 Nett profit: $230,235 PRICE: $1,655,000
Joint Venture Total Purchase Opportunity HERVEY BAY RESORT
Glenn Millar Mobile: 0412 277 804 Brisbane office: (07) 3878 399 Email: glennmillar@resortbrokers.com.au
ref: N/A PRICE: EXPRESSIONS OF INTEREST Call now for the prospective JV arrangement terms!
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UR CLIENT HAS A VERY ATTRACTIVE JOINT VENTURE ENTRY PRICE THAT ESSENTIALLY UNDERWRITES YOUR SECURITY AND RETURN – TARGET TO AT LEAST DOUBLE THE ASSET VALUE IN 5 YEARS. The world class Ramada Hervey Bay comprises 44 dual key apartments, a triple key apartment and a manager’s lot totalling 91 keys (45 suites and 46 studios). The facility has an onsite restaurant, two meeting rooms and all the amenities to effectively and efficiently operate a hotel. Stage two will be increased by a 26 dual keys and 2 triple keys (DA approved). Upon completion it will be a 150 key resort. Our client, is looking for a strategic joint venture partner on the existing assets and the development assets. Of the 46 apartments, 24 dual key apartments have been sold to individual owners. The residual assets are operated under a Ramada Franchise to be considered as part of the Joint venture or total sale are as follows:
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• 20 dual key apartments along with 20 furniture packs – all facilities • 1 Triple key apartment and the managers apartment and 2 furniture packs • Management rights – 100% of apartments are in the letting pool • Smokey Joe’s Café – Bar and Grill – seating for 120 patrons in 3 ‘classy’ areas • 2 meeting rooms – and the longest resort pool in Hervey Bay • Stage 2 development land, DA approved for 26 dual and 2 triple key apartments Offers for the purchase of all or part assets will also be considered. A detailed information memorandum and full financial projections are available for interested parties The region has over $1 billion of projects in the pipeline – Hervey Bay is part of southern Qld mining expansion and boom – AND ONE OF THE FASTEST GROWING AREAS IN AUSTRALIA - this includes the new Centro shopping centre at $130 million and the new private hospital at $120 million. The report ‘Australia on the Move’, by KPMG partner Bernard Salt, predicted that Hervey Bay, with forecast growth of 194% (over 30 years to 2031) would outstrip the Sunshine Coast, the Gold Coast and Cairns. Herron Todd White Research shows Hervey Bay at the bottom of the property clock going to uprise.PIAA (Property Investors Association of Australia) gave Ramada Hervey Bay a 4 star investment rating – the highest available.
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Opportunity knocks
his 90 unit complex is located in the North Gold Coast suburb of Oxenford. One of the most convenient locations on the coast, it is within minutes of the theme parks and the highway. There are several schools and shopping centres in the vicinity. The current body corporate remuneration is $75,000 (plus GST). Situated on a slope overlooking Pacific Pines, there is one small lawn to tend to and general gardening is minimal. The overall workload can be managed by one person. Due to difficulties with previous management, all 55 rental units in the complex are managed by outside agents. Therefore there is an opportunity for an experienced manager to build and grow the letting pool. There is also potential up-side in maintenance work. There is no maintenance shown in the net profit, so this again represents an opportunity to increase profit levels.
MANAGEMENT RIGHTS, GOLD COAST
•3 bed/ 2 bath manager’s unit with open plan living/ dining/ kitchen area, attached office and SLUG - views over Pacific Pines •Unit requires work – will be sold in current state providing scope to increase value. •Body corporate remuneration = $75,000 per annum (plus GST) •Potential to increase profit and value through new lettings and maintenance •Chance to buy an affordable management rights and increase its value. •Receivers and managers appointed
Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999
Expressions of interest closes Dec 8th ‘11
ref: MR001646
Email: alexcook@resortbrokers.com.au
Nett profit: $75,000 PRICE: EXPRESSIONS OF INTEREST
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Pristine beachside location OWNER RETIRING & MOTIVATED TO SELL
Tony Payne EXCLUSIVE AGENT Mobile: 0418 329 421 Melbourne office: (03) 9347 3100 Email: tonypayne@resortbrokers.com.au
ref: LH001636 Nett profit: $ 276,454 Turnover: $1,268,169 PRICE: $690,000 plus SAV
A
n opportunity to acquire a fantastic lifestyle and great income, situated overlooking Lake Tyers in East Gippsland Victoria. Only 10 kilometres from Lakes Entrance, considered Victoria’s premier lakes and ocean holiday destination, the Waterwheel attracts a substantial tourism trade for beach holidays and fishing pursuits . It also attracts great trade all year round with no competition in Lake Tyers Beach and great support from the growing local community. This substantial hotel features a single bar operation to public bar and large bistro area (seating 150) , together with external alfresco dining decking area (seating 95) with a beautiful view overlooking the Ocean.
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The owner’s accommodation is a two bedroom fully self-contained apartment above the hotel. A real opportunity. First to see will buy! • Single bar operation to public bar & internal bistro • Long lease, nothing to spend, suit owner operator • Absolute water frontage with beautiful ocean views • No nearby competition • Large external deck providing alfresco dining • Superbly presented and maintained with nothing to spend • Vendor operates the business with full staffing. Obvious opportunity for “hands on operator” to make substantial savings in wages
Editorial
MANAGING THE BANK MANAGER Mike Phipps Finance
Never is the expression ‘first impressions are important’ more true than when we present a credit proposal to the banks. This is particularly relevant for new business purchases in specialised sectors such as motels and management rights. The level of information we present when requesting finance will depend on the complexity of the proposal, the amount of money involved and on how well the bank we use understands the rights or motel industry.
The report should also be changed on an ongoing basis as various factors impact on cash flows. The cash flow report will never be perfect but it will give both you, me and the bank a basis on which to work in terms of planning expected cash flow and hence, funding requirements. I recommend discussing cash flow planning with your accountant on a regular basis.
Business Resume
The following basic documents should form part of any business loan request:
A history of your business experience and qualifications should always be provided when seeking new business finance. This is particularly important when seeking funding for a new purchase. If you are already in business a history of that venture should be included. Most banks will place enormous importance on your previous business and industry experience when assessing a credit application. Sell yourself !
Business Plan This is a bit of a buzz word at the moment and has been for a few years. While some people see the business plan as a waste of time, most who go through the exercise find considerable value in it. More importantly, my observation is that most successful accommodation industry operators do business plans. Essentially the plan sets out your strategies for the ongoing success of your business. It’s a road map of where you want to go and how you are going to get there. Most effective business plans will include an analysis of the strengths, weaknesses, opportunities and threats effecting the business, together with strategies to maximise opportunities and minimise the impact of negative factors. If you are daunted by the task, there are a number of highly competent consulting and accounting firms who can assist you. We are happy to make recommendations.
Proposal Last, but by no means least, you should present your proposal or even better have us do it for you. The finance request should spell out your preferences for how the funding is to be set up and over what term, security available, borrowing entity and repayment plans. Most importantly you should spell out the use of funds and the likely impact on the business. The single most common pitfall in this process is to request a finance structure that you think the bank can accommodate. Never forget that you are the customer and the bank is the service provider. We always request a finance package that best suits our client’s needs and challenge the bank to deliver. You will be pleasantly surprised by the flexibility of most business products provided by the banking industry. Don’t ever assume that a particular structure can’t be provided. The times have changed!
Cash Flows Of all the management tools available to accommodation managers the cash flow projection is probably the most under-utilised. While not particularly relevant to permanent management rights, the seasonal nature of holiday based buildings and some motels really demands some form of cash flow management. The projections are simply a basic estimate of inward and outward cash flows over a particular period. The flows are generally divided into monthly increments with the report typically covering a 12 month period, more often than not a financial year.
In summary, be prepared. You will create an extremely positive image for your business and finance turnaround times will be greatly reduced. Most importantly the process of working with us to put a credit request together will make you a better manager of your business.
The cash flow should always be accompanied by a set of assumptions which tell the reader how the figures were arrived at.
By Mike Phipps Mike Phipps Finance
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No.1 In hotel fitout and refurbishments 1300 500 815 admin@resortinteriors.com.au
www.resortinteriors.com.au
AUSTRALIA | USA | NZ | SINGAPORE | CHINA | UK | FIJI | INDONESIA
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Caravan Park, first time offered
ere is an outstanding opportunity to enter the caravan park industry in the very tightly held Alice Springs market. The current owners have spent 15 years developing this park to the standard that it now enjoys. They have completed new boundary fencing and installed boom gates and a main security gate. There has been a constant upgrade of cabins with 2 new ones being added each year. This property is now ready for the next owners to reap the benefits. This 86 site park also has 25 ensuited tourist cabins, 2 park owned cabins leased to permanents and 2 amenities blocks. There is a large laundry and also a well equipped BBQ area. The park is complimented by a salt water swimming pool. All sites are grassed and have large shade trees. Some have concrete slabs. The lease on this business is being offered for the first time and will show new owners a return of over 34% on their investment. This is a very easily run family business that could suit being run under management.
LEASEHOLD OFFERING
Very rarely does a property like this one come to the market. • Attractive caravan park on the Northern approach to Alice Springs • 25 tourist cabins, all with ensuites • 2 park owned cabins with permanent tenants • 86 powered sites, all grassed and shaded, and some with concrete slabs • 2 amenities blocks with very large well equipped laundry • Swimming pool and boom gates • 2-3 bedroom owners residence • Free standing fully computerised office (no kiosk) • Excellent opportunity for new and motivated owners • All infrastructure is in excellent condition • A brand new lease is offered at settlement
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Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au
ref: N/A Nett profit: $373,000 Turnover: $1,053,000 PRICE: $1,100,000
Resource rich W.A. Shark Bay, Monkey Mia MANAGEMENT RIGHTS - MIN 30 YR AGREEMENTS Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 399 Email: glennmillar@resortbrokers.com.au
ref: MR001627 Nett profit: $307,000 PRICE: $1,140,000
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his outstanding complex is a 3 1/2 star villa style resort, right on the ocean shore in the heart of the Shark Bay world heritage region, and is a short drive to the Monkey Mia Dolphin Beach. The complex has 23 units, 22 in the rental pool; the 23rd unit on site is the 3 bedroom manager’s residence. Adjacent to the residence there is an office, 2 double carports and a storage unit included in the freehold. Most units have ocean views. The complex is very well maintained, the strata company is financially healthy and has a solid sinking fund. The managers’ net income is derived from taking 55% commission from owners to run both the caretaking and letting agreements. There is no additional salary from the strata company.
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All material expenses are cross charged to either the strata or individual owners. council rates approximately $1000 per year. Shark Bay world heritage area covers 2.2 million hectares on the coast of Western Australia. As of May 2007, Shark Bay was one of just 20 places on earth to satisfy all four of the natural criteria for world heritage listing. Other properties that satisfy all the criteria are the Great Barrier Reef, the Galápagos Islands, and the Grand Canyon. • Foxtel TV including Fox Sports + Free to Air channels + DVD players • Guest laundry facilities, games room • Well equipped guest BBQ area. • Managers 3 bedroom apartment offered at $400,000 included double carport • Solar heated pool, and separate storage shed approx. 3 metres x 12 metres. • Separate office and reception- Wi-Fi throughout complex • Offered on a 2.4 multiplier • Outstanding beach front location • No end to agreements - min. is 30 years • 83-85% occupancy in last two years
Editorial
Be my guest
Made Adnyana MANAGER OF ANDARI VILLAS, SEMINYAK, BALI Who would not like to own a beautiful villa in Bali, with your own pool, a mosquito net, surrounded Balinese architecture, tended to by gentle staff who cook you breakfast, drape your four poster bed every morning, clean the pool and at the end of the day return your washing ironed perfectly by hand… can you smell the frangipani? But wait a minute… who would look after your property when you’re not there? Who would collect the rent and ensure your return on investment? If you don’t know anyone in Bali and can’t speak the language these concerns can be daunting. Well more and more Australians are doing just that and due to the excellent staff available, they are enjoying all the benefits of owning their own villa with none of the drawbacks, Made (pronounced mar-day) Adnyana is typical of the modern Balinese villa manager. He speaks good English, is computer savvy and is fully trained in front of office. He is always very neatly presented, smiling, attentive and approachable. Made manages Andari Villas in Seminyak , Bali. A complex of six privately owned luxury villas, 3X3 bedroom and 3x2 bedroom, 15 rooms in total.
The staff consists of one house girl for each villa (plus one spare girl to cover the other’s days off), two full time gardeners and a pool attendant who checks the pool every day. There are also two security guards doing eight hour shifts from 4 o’clock to 8 o’clock in the morning…you’ve never felt safer. I sat with Made around the pool of the beautiful Andari Villa and asked him a few questions about his position as a villa complex manager. What previous experience did you have in the Tourism industry? I have been in the hospitality industry since 1989 where I started as a bellboy for the Santrian Beach Resort . I was the first employee to receive their “Best Employee” award. Two of my friends are still bellboys but I knew that although the tips were good I would soon find those suitcases getting heavier, so I worked my way through the ranks to reservation manager. However after 12 years at Santrian, with increasing family commitments (Komang his wife is a government auditor who travels a lot) a change was necessary. How did you get your current position? Hospitality vacancies are advertised in the local newspaper, so when my eye fell on the advertisement for a villa manager, I applied and got the job.
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What does your job entail? I manage the day to day operations of the villa; I supervise the staff to maintain high standards; I ensure the villa equipment is maintained; I act pro actively in all areas of operation; I make and manage work schedules; I assist the team in their daily work; I deal with any problems and complaints; I ensure the villa is ready and meet quests on arrival; I work with the accountant and the owners to safeguard the income and pay the bills. Each owner receives a monthly report on bookings and earnings which is cross referenced with the Government letting agency. Since I have been at Andari Villas no staff member has left, three house girls have had babies and all have returned after maternity leave. As an overseas owner it is easy to feel that distance is your enemy but this is not the case. People like Made are available, Bali’s economy rides on tourism and the local people are the essential component. The Balinese are mostly Hindu and they believe in karma, the afterlife, and in the importance of the banjar ( their local community). They all think of themselves as your host when you are in their country and your enjoyment is their first concern. A philosophy that you don’t find everywhere.
This immaculate complex is located on Oxley Drive, Runaway Bay. Perhaps one of the most convenient locations on the Gold Coast, it is within minutes of several shopping centres, schools and theme parks and has easy access to The Broadwater, highway and beaches. The 48 unit (14 in pool) complex is spacious and peaceful, set amongst lovingly maintained gardens. Facilities include 100,000 litre pool, tennis court, BBQ area and abundant visitor’s parking. Despite a healthy body corporate salary, the workload is easily maintained by one person (c. 10 hours per week). There are no set office hours and the office work is minimal.
Perfect 1st time management rights GOLD COAST PERMANENT
• Body Corporate salary is $58,000 (CPI linked). • 3 bed / 2 bath manager’s unit, patio, open plan living / dining / kitchen. • Solar panels installed – minimal electricity costs. • 16 years on caretaking / letting agreements. • Large attached office on title.
Truly unique management rights LUXURY LIVING WITH MARINA BERTH Nett profit: $86,500 (+ $15,000 BONUS) PRICE: $995,000 ref: MR001626
Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au
This luxury mini-rise is located in the boat lovers paradise that is Runaway Bay. Built to the highest of standards, it is one of the Gold Coast’s premier addresses. Consisting of 34 units, the building sits right on Runaway Bay Marina and boasts stunning views over the Broadwater. The body corporate remuneration is an extremely healthy $86,500 (over $2,500 per unit).
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Nett: $86,000 PRICE: $695,000 ref: MR001629 Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au
Unusually, there is an additional $15,000 annual bonus granted simply for carrying out the required duties – the current management have never failed to receive this. • Income derived entirely from body corporate salary, providing complete security • Stunning 1 bed open-plan manager’s unit, right on the Broadwater • 40ft marina berth, right on you door step. • First class facilities – pool, spa, games room, BBQ area, tennis court gym. • Perfect for semi-retirees – combines ultimate luxury with great security.
Brisbane permanent M.R. complex
This large complex comprising of 2, 3 and 4 bedroom residences lies in one of Brisbane’s most sought after suburbs, just 15 kms from the CBD.
EASILY RUN UNDER MANAGEMENT • 4 bedroom 2 bathroom managers residence • Range of 2, 3 & 4 bedroom residences in complex • 23 years on term • 52 of 88 in letting pool • Friendly and cooperative committee • Long list of inclusions • $106,500 Body Corp remuneration
The complex has been run under management, and has extremely comprehensive procedure manuals in place. The list of inclusions to come with the purchase is large and comprehensive. Final stage of complex was completed in 2005. The managers residence is a large 4 bedroom 2 bathroom home split over three levels. Ensuite to master with large spa bath, walk in robe & enclosed deck with substantial views. Inspection will impress!
Resort style complex BRISBANE PERMANENT MANAGEMENT RIGHTS Nett profit: $146,000 House price: $560,000 Business price: $690,000 PRICE: $1,250,000 ref: MR001660 Steve Campbell Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au
Situated in the growth corridor of SE QLD, this 11 year young permanent complex is ripe for the picking. The manager’s stand alone residence boasts four large bedrooms, large attached office, master with ensuite, 2 lock up garages, 2 undercover garages, exterior bar / entertaining area, enclosed yards with vegetable gardens and much more. Amenities include pool, spa, sauna, tennis court, basket ball court and gym.
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Nett profit: $226,000 PRICE: $1,545,140 ref: MR001630 Steve Campbell EXCLUSIVE AGENCY Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au
The current managers are ready to move on. With a net profit of $146K, and 19 years left on term, there is a real opportunity here for the astute purchaser looking for the quality of life that this large freestanding home and picture perfect business can offer. • 34 of 56 in the letting pool • 19 years left on term • Large and very comfortable freestanding managers residence • Body Corporate remuneration of $60K • Excellent lifestyle opportunity • Shopping complex next door • Public transport at end of street • Current rents 2 bed $335 and 3 bed $355
The vendors of the Spanish Lace Motor Inn have recently spent in excess of $90,000 upgrading the property. With a new 25 year lease on offer at settlement, this motel is ready for the new owners to take it to the next level. Will not last! Arrange an inspection now. • 25 unit B&B motel on the Bowen Rd strip • Restaurant closed, currently the sports bar remains open • Swimming pool and BBQ area, large outdoor entertaining area • New floor tiling to some units
Great returns & lifestyle in Townsville LEASEHOLD MOTEL
• New bathroom fit out in all units (tap ware, tiling, cisterns and toilet suites) • New curtains in rooms • Good mix of room types including self contained family rooms • Strong repeat trade • Catering to government, mining, education and hospital sectors, as well as tourism
Rare offering 1 hour from Brisbane CBD LEASEHOLD OFFERING Nett profit: $146,486 Turnover: $458,745 PRICE: $515,000 plus SAV ref: LH001647 Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au
This a golden opportunity in the heart of the largest provincial city in Southern Queensland, capital of the Darling Downs (hence the name Downs Motel). The leasehold interest of a 23 room, 3.5 Star AAA rated. No restaurant. The motel is within walking distance of the CBD of Toowoomba and the hospital. The motel comes with a near new manager’s residence consisting of two bedrooms / one bathroom upstairs,
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Nett: $195,000 (12 months ended from Sept ‘11) PRICE: $645,000 ref: LH001564 Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 399 Email: chrisrowe@resortbrokers.com.au
attached to the downstairs reception with a small dining / lounge area and toilet off the reception that adjoins the commercial dual kitchen. Currently excellent properties are scarce in Toowoomba, so be quick, this is your chance to have a motel in the very busy motel city of Toowoomba, capital of the Darling Downs and gate way to the booming Surat Basin. • AAA 3.5 star accommodation • 23 standard, deluxe, family rooms • CBD position walk to city centre • 24 years remaining on lease term • In QLD’s largest provincial city • 2 bedroom manager’s residence
Corporate motel in Ararat
A fantastic modern motel with 19 rooms, built in circa 1980. Situated in the progressive town of Ararat, this is the best motel in town. It has a long lease with 28 years remaining and boasts a mainly corporate clientele. • Increasing returns with outstanding potential • Recent refurbishments include: new washing machine, new carpet, curtains, drapes in all rooms, new linen, new heating (13 rooms), new mattresses (10 rooms), new flat screen TV’s and new vanity basins (8 rooms)
LONG LEASE - 28 YEARS • All motel rooms have been painted as well as the external façade of the motel • Large restaurant currently being used for conferences/ functions • Low maintenance property • Large 3 bedroom owner’s accommodation, with two bathrooms, two living areas and large courtyard suitable for a family
Merimbula NSW South Coast 25 UNIT BUDGET MOTEL - LONG LEASE Nett profit: $ 106,925 Turnover: $313,663 PRICE: $ 320,000 ref: LH001654 Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au
Located in beautiful Merimbula with panoramic views over the Merimbula water ways. This spacious landscaped property is ideal for bus groups and has a large dining room. All units have flat screen TV’s and are well maintained. The motel is an easy stroll to town. There are still 23 years remaining on the lease of this great property.
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Turnover: $488,799 Nett Profit: $153,812 PRICE: $575,000 ref: LH001606 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au
• Ideal for bus groups • Great opportunity to increase turnover through higher occupancy •Spacious 2 Bedroom residence with ensuite • Large entertaining BBQ area • Well priced with a long lease • Motivated vendor, wanting to retire • Good commercial laundry • Well designed motel for easy operation
Editorial
25 UNIT MOTEL
STANDARD TARIFF
DISCOUNTED CAUSE & TARIFF EFFECT
$100
$91
Disc. $10 per night
Gross revenue @ 63% occupancy:
$572,875
$523,136
- $51,739
Less operating costs:
$229,150
$229,150
-
2IXX TVS¿X
$343,725
$293,986
$49,725 14.5%
$1,145,000
$980,000
$165,000 14.5%
Average room rate:
Selling price
Don’t fall into the discount trap BY IAN CROOKS, MANAGING DIRECTOR - RESORT BROKERS AUSTRALIA The temptation in times of lower demand is to try to boost occupancy by discounting room rates. Don’t do it! Discounting spells disaster for your bottom line and, ultimately, for the value of your motel.
Discounting is a simplistic approach to revenue management that just doesn’t work. It damages your bottom line. It devalues your business. And it cheapens the wider tourism sector in your region by sending out a negative message.
In some areas, it has become almost standard practice for motels to put out sandwich boards advertising discounted prices. It seems a simple enough strategy. Consumers are always looking for a bargain. So a discount might help sell more rooms or, at the very least, maintain occupancy levels.
The primary goal of revenue management is to lift your bottom line – not necessarily to lift occupancy. Remember, increased occupancy has its own associated increases in costs – linen, disposables, housekeeping payroll, etc. The key to increasing net profit is to find ways to increase the average room rate. Just as discounted rates come off your bottom line, most of every dollar added to your tariff goes on to your bottom line. So, don’t sell down … sell up!
After all, it’s only $10 a night. Not much, right? WRONG! A seemingly small discount of $10 per night will have far reaching negative consequences. To illustrate the impact, consider the following example, based on a 25-unit motel operating at 63% occupancy.
Many motels are quick to discount if reservations are down. Yet they do nothing when reservations are stronger than anticipated. Instead of discounting in times of low demand, why not lift rates in times of high demand?
A discount of $10 per room night ($9 nett of GST), if occupancy remains the same, would make a difference of $51,740 per annum to the bottom line. That’s a fall in nett profit of $51,740 – more than 25% – in just 12 months.
Think about the last time you flew somewhere. If you purchased your airline tickets in advance, before the seats began to fill, you probably got a good deal. But if you left it until the last minute, when the flight was nearing capacity, you would have paid the highest rate.
The discounting strategy would need to boost occupancy dramatically to 69% in order to just maintain the nett profit the motel was already generating before it started discounting.
The airline concept is simple: as occupancy increases, the rates available for sale also increase. Motels should operate on the same principal. Yet, strangely, many tend to do the opposite, discounting rates to fill those last few rooms.
The motelier’s income would be no better. In fact, it may still be lower, as their workload and variable costs would rise along with occupancy.
Adopting an ‘advance purchase rate’ tariff structure has several benefits. It will encourage advance bookings, helping to fill rooms earlier. This assists with many management issues, including ordering, catering, staff rostering, etc.
And that’s not the end of the bad news. Should this motel owner then consider selling the business, they would be in for another rude shock. Most motel leases sell at a yield of approximately 30%. So, in this case, if occupancy remained at 63%, the selling price of the business would be reduced by a very significant $170,000. And all because of a lousy $10 per night discount.
In times of higher demand, you are then able to charge a premium for sought-after accommodation. The higher tariffs paid for last minute reservations and walk-ins help to balance any periods of lower occupancy, with most of the increased revenue adding directly to your bottom line.
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Buying property and businesses in Bali The island of Bali, located between Lombok and Java, is Indonesia’s top tourist destination. As of 2010 the population of this exotic island stood at over 3 million inhabitants. Many of these are foreign investors and expatriates who have established themselves in businesses and/or bought property in Bali. Bali has become well known around the world as a glamorous retirement and lifestyle destination, many feel they are living the dream. The very friendly, always smiling Balinese people, are very tolerant of expats living in Bali. The climate is wonderful with sunshine throughout the year and pleasant day temperatures ranging between 20 and 33 degrees. It is not only the lifestyle but the many great business opportunities that are bringing increasing numbers of foreign nationals to live in Bali. The very low cost of living, abundance of local labour and low rates of pay for local workers offers a viable business strategy. Very low rates of pay exist for personal assistants and staff, like private drivers and nannies for children (live in nannies can be hired from as little as US$40.00 per month). Accommodation is also affordable, a good quality villa can be rented from just US$5,000.00 a year fully furnished.
How do I start a business in Bali?
Company ownership requirements
To purchase commercial property a foreign investment company is set up with the share holding in your name. Your lawyer will help you organize the necessary documents and permits on your behalf, these are standard Indonesian Government issue. HE9 o`a[` ak l`] klYf\Yj\ d]_Yd YZZj]naYlagf ^gj Penanaman Modal Asing) is classified as a foreign investment company and enables 100% foreign ownership with limited liability under Indonesian company law. A PMA affords maximum protection of interest for the foreign investor. However some business activities may now require an Indonesian national partner. This will require a legal-name only partner to ensure compliance. L`] [gkl g^ k]llaf_ mh qgm HE9 [gehYfq ak af l`] j]_agf ak .-(( MK< Yf\ eYq lYc] Yk dgf_ Yk ), \Yqk
Before you start, spend time in Bali and research in advance the type of business that has the most chance of success. Be aware that no matter how unique your business is, the local commercial community will replicate without hesitation. Here are a few things you will required to have in place before you can set up your business.
Ensure you only use qualified lawyers to apply for the legal papers required for business applications, work permits and visas and always obtain a quotation for legal services first. Advice is case specific as there are different rules for different areas.
Visas
Peter Johnson – Austrindo Law Office
To obtain 100% legitimate legal status, profit from investments, full work rights in Indonesia and residence rights in Bali, you require an Immigration Working Visa (KITAS). 9 lgmjakl nakY akkm]\ gf ]fljq ak nYda\ ^gj +( \Yqk 9 Zmkaf]kk nakal nakY ak nYda\ ^gj mh lg .( \Yqk o`a[` oadd _an] kge] lae] lg start your application
Prior to establishing his legal practice in Bali, Peter Johnson was a partner in a law firm in Western Australia and worked as a legal advisor to the liberal government on small business.
Bank account Qgm oadd f]]\ lg gh]f Y ZYfc Y[[gmfl oal` Y dg[Yd Af\gf]kaYf ZYfc& Af\gf]kaY ak Y ^Yngmjal] oal` ^gj]a_f afn]klgjk Z][Ymk] g^ alk klja[l [mklge]j privacy policy Dac] Ydd ZYfck j]_mdYj ljYfkY[lagfk Yj] ]kk]flaYd$ l`ak \]egfkljYl]k l`Yl qgm are investing in Bali from day one
His legal office, Austrindo, is the biggest and most reputable legal office in Bali. It is a quiet haven of calm efficiency amongst the noise and chaos of Depensar. He and his staff of 22 lawyers advise clients, almost exclusively expats, on a wide array of legal matters including criminal, civil, property, visas, company formation, work permits and divorce. Poor understanding of the language, culture and legal system are the key obstacles for expats wanting to do
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KALEIDOSCOPE business in Bali – legal matters challenge most of us anywhere, but in a developing country with less than rigorous legal protection, a translator with legal knowledge is a god send. Austrindo has identified this and now employs three translators who speak several languages and can act as an English interpreter of the legal system. In Indonesia legal affairs are usually conducted through a notary (notaris) who is a qualified lawyer that acts as the agent for the government in land matters representing both parties. He is qualified to draw up legal documentation and collect taxes on behalf of the government. Therefore there is potential for conflict of interest as they are not able to give legal advice about your legal rights or the dangers and pitfalls you may encounter. Austrindo are qualified to give you this service and the subsequent peace of mind. Austrindo will ensure that your property; @Yk Yml`]fla[alq g^ lald] Ak ^j]] g^ gl`]j [dYaeYflk Ak ^j]] g^ naddY_] \akhml]k @Yk fg akkm]k Yjgmf\ Y[[]kk @Yk [gjj][l rgfaf_ @Yk [gjj][l Zmad\af_ Yf\ j]fgnYlagf permits Fees are a little higher than at home because the lawyer’s role is bigger. There is also less protection in the system so more work is involved in protecting your interests. To ensure accuracy Austrindo sends their lawyers out into the field to view the property, measure the land and
speak to the local people and the banjar (local community council) about the land, in order to become aware of any issues affecting it. This on-the-ground investigation is vital if costly misunderstandings are to be avoided.
Buying a residential property; villa or land Firstly, you can not borrow money in Bali for the same reasons you cannot borrow in Australia as a foreigner. You must have residency, a credit history in Indonesia, and be able to provide security via an asset. Only Indonesian citizens have hakmilik (freehold title). However an Indonesian citizen can hold property on your behalf – documents are executed between you and an Indonesian to protect your interests. Leaseholds are held in your name, usually for a term of 25 years with 25 year extensions, which are generally easily obtained. Any other types of title are not recommended due to complexity and cost.
Real estate agents “Buyer beware”, agents are not scrutinized in Bali as they are in Australia, there is no prudential supervision. Real estate qualifications are not required. Exclusivity of listings is rare and fees are not a fixed rate but negotiable. As Peter Johnson has unequalled experience in the property industry, his primary objective is to see that foreigners have a good Bali experience. I asked him what general advise he had for people looking to invest in Bali; he
made the following suggestions. “Don’t do what you wouldn’t do at home, for example give someone control of your cheque book, or leave your business to jmf alk]d^ ^gj . egfl`k oal`gml Y Zgkk present”… Seems pretty obvious doesn’t it. If you are careful and thorough you can indeed create a wonderful life for yourself in Bali by investing in a local business venture.
The future of tourism In fact international tourism recovered strongly in 2010, according to the advance release of the UNWTO World Tourism Barometer. International tourist arrivals were up by almost 7% to 935 million, following the 4% decline in 2009 – the year hardest hit by the global crisis. While all regions posted growth in international tourist arrivals, emerging economies remain the main drivers of this recovery. Bali is changing into a modern society at a rapid rate, it is far from the hippie hangout of the 70’s. There is a high level of sophistication in most things - the food, the shopping , the resorts as well as the visitors and residents. All of this is because of the professionalism in business and legal dealings that are now an expectation and an obligation. By Susie McEwon
Editorial
Life in beautiful Bali STEVE DAWSON - PRIME RESORT SERVICES Indonesia, much like most of Asia, is experiencing boom times. There is little consumer protection for investors buying into managed schemes. Investors often rely on the integrity of the developer or managing company. In days gone by when property was cheap many were happy to take a punt. Now with million dollar villas being sold its a different ball game. PRS has found a niche in the market where developers looking to conduct world best practices can use to Steve structure a management rights style set up. This not only protects the investors, but increases the capital value of the business. Once properly structured, there are international management companies lining up for their share of the action.
Steve Dawson enjoyed a 15 year career in the real estate industry working throughout Australia from his base in Noosa Queensland. This included many trips to Bali. He set up the first management rights in Indonesia called, O-ce-n Outrigger Apartments and Hotel, followed by Bali Sentosa which we believe is the first property in Asia to sell shares in management rights based on the Australian model. Having done business in Bali he could see that opportunities existed there. Steve felt the pull of Bali; he had fallen in love with the place over the years - he loved the cultural differences, the life balance and spirituality. He was ready for a lifestyle change. However at only 40 years of age, and with a young family (his twins were only 3 months old) he needed to find a business that offered the opportunity to utilize his strong sales and marketing skills and at the same time offered a challenge. Having always been very goal driven and ambitious he wasnâ&#x20AC;&#x2122;t another lotus eater looking to escape the hurley - burley of western business life.
Indonesia is going through a period of rapid development. Many new international hotels are being built, especially in Bali and Jakarta. Recently The Mantra Group, Australiaâ&#x20AC;&#x2122;s largest operator of resort accommodation businesses, appointed Steve as their representative for Indonesia. They see a great opportunity to expand their business into Bali. Their portfolio now has around 16,000 rooms under management and their core brands of Breakfree, Mantra and Pepperâ&#x20AC;&#x2122;s are set to expand.
After considerable research he set up a PMA company, which is the name given to a foreign owned company. Prime Resort Services (PRS) is the name of the company and it has a close working relationship with Resort Brokers Australia. The company has different arms and has had an alliance with Gold Coast based Resort Interiors International. The core business is the structure and sale of resort businesses.
Steve and his family have made the transition to Asian living well. They have a better life balance and more family time, which is very important to them. Their business investment looks as if it is going to be a wonderful success. Their adventurous spirit has paid of for them. By Susie McEwon
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Quest serviced apartments INVESTMENT HOTEL FOR SALE
Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au
ref: N/A Nett rental: $845,000
This iconic building, constructed over 3 levels and built from tilt up concrete walls, zinc alume roof and concrete floors, is right opposite Singletons Council Chambers and the city’s indoor sporting facility centre.
L
Quest Australia is an award winning hotel group which revolutionised the Australian accommodation industry. It has been operating for almost 25 years and has over 120 properties throughout Australia, New Zealand and Fiji.
A total building area consisting of 3,213sqm is divided into 35 x 2 & 3 bedroom apartments.
• Lease term - 10 years plus 4 x 5 year options from June 2009 • Annual rental $845,000 per annum • Rent adjusted annually • Substantial building depreciation
ocated in the popular Hunter Valley of NSW on 4,525sqm is the rare opportunity to buy a magnificent serviced apartment / boutique hotel investment.
The complex is located in Singlestons central business district and is within walking distance of urban amenities including public transport, supermarkets, speciality shops, government offices, car parking, financial institutions, hotels and restaurants.
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L
ocated in an established area in the Western suburbs of Brisbane, this outstanding motel is situated in Queensland’s busiest corridor. The property consists of 35 rooms, 19 being in the original section as well as 15 x 4 star rooms and a one bedroom freestanding villa that was added to the motel in 2007. Also in 2007 the owners constructed a magnificent fully self contained and licensed freestanding convention space. The motel also has a new office / reception that includes it’s own internet cafe. There is approval in principal for a further 14 units, offering a fantastic opportunity for expansion. Restaurant Café style – opens for breakfast 6:30am – 8:00am and dinner 5:00pm – 9:00pm. This is very easily operated with 1 chef and 1 kitchen hand/waitress and is only open Monday to Friday. It only accounts for a small portion of the income and is a service offered only to guests and there is a profit made from this area.
Scarce as hen’s teeth
A BRISBANE FREEHOLD MOTEL
• Situated 14km SW of Brisbane’s CBD • Area of land 7,047 Sqm • Beautifully landscaped grounds • New NEC phone system • WI FI throughout • 10 x security cameras • 2 bedroom manager’s unit plus a large 2 bedroom owner’s unit on the first floor
Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au
Rarely does the opportunity arise to purchase a freehold property in the greater Brisbane area. With an occupancy of over 70% and rising - this motel in this location is quite phenomenal!
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ref: FH001625 Nett profit: $1,004,225 (first 3 months of this financial year are up 28.6% on the same period of last year!) Turnover: $1,596,296 PRICE: $7.4mil
E L PR A I C SPE OFFER! S XMA
Iconic Rockhampton Motel
IN THE HEARTLAND OF THE BOOMING CENTRAL QUEENSLAND GROWTH REGION Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au
ref: LH001648 Nett profit: over $400,000 Turnover: $2,017,000* *12 months to 31st Oct‘11
PRICE: $1.3mil
A
unique waterfront motel and magnificent restaurant. The motel consists of 28 x 4 star units, all extensively renovated to a brand new standard as well as a licensed bistro. The motel is located on Victoria Parade overlooking the picturesque Fitzroy River. The Victoria Parade precinct boasts some of the most desirable and modern short term accommodation, as well as a selection of popular cafes and restaurants - business creates business! The motel is built over two levels with car parking directly outside the units. Each room overlooks a large pool and BBQ area which is attractively landscaped, creating a relaxing oasis-like feel.
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• The motel would make a wonderful passive investment • Under full management • Shows nett 30% ex. management • A brand new 30 year lease • Rental only $350,000 + gst per year • Highly recommended by all return guests • Great location • Extensively renovated with new carpet throughout • Austar in all rooms • Attractive cocktail bar • Large private 3 bedroom manager’s unit • High yield corporate clientele The restaurant has been operating for over 3 decades and has always been extremely popular with corporate company representatives as well as the local population of this booming city.
Exclusively for you!
Editorial
Every month Resort Brokers Australia looks at innovations in the accommodation industry. In November we investigate...
THE EASE OF A TANCREDI TUCKER BAG
How often have you arrived at your Motel in an unknown town to find you donâ&#x20AC;&#x2122;t know where to find something decent to eat. This is a difficulty experienced by many travellers who are frequently on the road and do not want to eat rubbish every night. Glen Findley and his partner Ben Shanley identified this opportunity when they worked together at Moorepark Inn in Armidale as head chef and manager and decided to start up this small business together. Tancredi Foods have been supplying motels and serviced apartments for the last 7 years, servicing over 100 properties from Newcastle, Hobart and Adelaide through to Rockhampton and Townsville. They provide over 2500 meals per week, thatâ&#x20AC;&#x2122;s 300 per night. These go to motels who operate without chefs; want to provide room service meals or have a small restaurant and want to offer good quality home cooked, portion controlled meals alongside the rest of their menu. The meals are prepared from fresh ingredients in their purpose built commercial kitchen. The range of meals consists largely of standard pub fare; lasagna, soup, steak, chicken breast, barramundi, assorted accompaniments and desserts. Most meals are gluten free, with no artificial taste. This is not fine dining but food you want to eat at the end of a long day, just like your mother cooked. The meals are kept in a sealed pouch that has a shelf life of up to a month refrigerated, just boil in the pouch for 12 minutes and serve. These meals are twice the size of most packaged meals and have an average retail price of between $11 and $25, allowing for a 30% mark up. The operator just faxes through their order to Tancredi Foods and it is delivered by refrigerated courier on a weekly basis. If these meals fill a gap in the services you can offer your guests contact them on their website www.tancredifoods.com.au for more information.
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The best motel lease in NSW
NEW 30 YEAR LEASE SHOWING 30% NETT RETURN
Ian Crooks Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au
Tim Leahy Mobile: 0414 813 400 Sydney office: (02) 9904 8224 ref: LH001637 Nett profit: $725,000 (projected for calendar 2011 after all operating costs and rents) Turnover: $2,389,979 (2010/12) PRICE: $2.5mil
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e have just listed this outstanding 63 room 4 star motel and licensed convention space. This property is built next door to a tavern (constructed at the same time) which means there is no need for a restaurant as it has two dinning areas with a charge back arrangement for the motel guests. The property is located in the Hunter Valley and during the week it enjoys full occupancy by executives from the mining industry. During the weekends the Hunter Valley is popular for concerts and wine tours which drives further business. Rarely do we get a motel such as this to take to the market!
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The property is branded under the Accor franchise arrangement which ensures flexibility and patronage from those who like to stay in international branded hotels and motels. However it has the ‘hands on’ advantage of being run by an owner operator. The motel is currently run under full management and included in the property is a large one bedroom unit built above the office reception area. • Only 4 years built, finished in October 2007 • Large in ground pool plus conference room which doubles as breakfast room • Fully equipped conference facilities for between 150-200 pax • Very popular for weddings • Only 20 mins from the Newcastle airport • Brand new 30 year lease Available exclusively through Resort Brokers Australia. A must see!
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his leasehold offering of one of the finest outback Queensland motels consists of 26 four star AAA rated rooms and a pool. It has a massive three bedroom residence with a parent’s retreat off the main bedroom, bathroom, separate toilet, built-ins in bedrooms, laundry, huge lounge, kitchen, dining and separate formal dining room. The residence is attached to the reception for the ease of service. Complimenting this area is a 50 seat restaurant set for 40 seats with a fully stocked bar and a commercial kitchen. The restaurant caters in the main for the in-house guests but is open to the public as well and is fully staffed.
Outstanding outback oasis LEASEHOLD OFFERING IN QUEENSLAND
• Best accommodation in the outback • Only 15 years young • 2 hour flight from Brisbane • 71% occupancy and constant • 40 seat restaurant fully staffed • Beautiful presentation, long list of improvements • New tariffs in place • Steady annual growth • Long 24 year lease
To sum up, the property presents extremely well and is a credit to the current lessees care and attention.
Lindsay Cooper SOLE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au
ref: LH001632 Nett profit: 2010/11 - $318,000 (expected 2011/12 $342,647) Turnover: : 2010/11 - $978,540 (expected 2011/12 $1,007,000) PRICE: $1,060,000 plus SAV firm
An inspection will not disappoint!
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Editorial
What to look for when you are buying management rights - past disputes John Mahoney Partner
In this the fifth and final series of articles about what to look for when buying management rights, I look at what is fortunately not a common problem and that is complexes with a history of disputes with resident managers. Disputes with the Body Corporate or the individual/s that represent it can be stressful and debilitating for the resident manager. They can also be expensive to resolve. On the other hand, complexes with past disputes may represent an opportunity for a buyer to turn the situation to the buyerâ&#x20AC;&#x2122;s advantage. As a general rule, if there has been conflict in a complex with the previous manager, there is likely to be conflict with the new manager. So if a buyer is at all suspicious about conflict between management and the Body Corporate the buyer should make enquiries to ascertain the state of harmony in the complex. It is important for buyers to ascertain the most likely reason/s for past disputes. Sometimes they arise out of a personality conflict or poor performance by the manager, other times they arise out of unreasonable expectations on the part of some owners. There are various ways that a buyer can, before going to contract to purchase a business, investigate the state of harmony in a complex. Because of our extensive exposure to the industry over many years we are often aware of the existence of, and reasons for, past disputes. That experience and knowledge can greatly assist buyers in dealing with actual or perceived problems in a complex.
In an earlier article in this series I wrote of the importance of potential new managers having the personality to successfully operate a management rights business. Conversely those with the wrong personality are likely to find themselves in conflict with owners and committee members. It is not surprising then that many of the disputes we see can be traced back to the performance or attitude of the manager. Where this is the case, these problematic complexes represent an opportunity for experienced mangers (and even some not so experienced ones) who are able to use their shills to turn a poor relationship into a good one. A hard working new manager will be able to turn the situation around to his or her advantage. If on the other hand a buyerâ&#x20AC;&#x2122;s investigations show that the managerâ&#x20AC;&#x2122;s performance/personality have not been the real cause of past disputes or current disharmony, then a buyer would need to be confident that he or she could deal with the disruptive owners in a way that will not damage the business. Whilst a capable manger with the right people skills is generally able to convince enough owners to oppose the election to the committee or position of chairperson of someone who is dictatorial or unreasonable, a complex with a poor history of disputes should be properly researched and considered before purchase. By John Mahoney - Partner MAHONEY LAWYERS
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BUSINESS BOOSTERS FOR 2012
Editorial
The term ‘two-speed economy’ is bandied about a lot, but it is definitely a concern in the accommodation market. While business booms for those catering to mining and resources industries (and all who service them), tourism-reliant properties in many areas still struggle. As 2011 winds down, many hope the new year will deliver improved business conditions and a return to growth. So, what are you doing to do to introduce better management practices that will improve your business in 2012? Here are a few ideas.
1.
GET OUT THERE FOR OWNERS
Management rights operators’ ability to earn income relies on property entrusted to them by unit owners. So building managers should do their utmost to work with and for the owners in their letting pool, offering strategies to maximise occupancy.
2.
Asking 30 owners to contribute $100, once or twice a year, would fund the manager to undertake regular sales trips, say to New Zealand. Imagine how impressed travel agents there would be to receive a personal visit from an Australian resort building manager. Where do you think they’ll send their clients next time they’re booking an Aussie holiday?!
3.
ONLINE IMPERATIVE
4.
Travel bookings continue their steady migration from offline to online. A little over a year ago, Roy Morgan Research announced “the Internet has become the most popular method used by Australians to book a holiday.”
UNEXPECTED KINDNESS
Much has been said about the power of ‘random acts of kindness’. It is true, there is no simpler way to make people happy. Give kindness when it is not expected. The surprise value is incredible and memorable.
In the 12 months to June 2011, 3.3 million Australians visited travel agent websites. Every property, from tiny B&Bs to major motels and resorts, needs to make optimum use of popular sites such as wotif.com, webjet.com.au and tripadvisor.com.
5.
DOTE ON YOUR DATABASE
Motel and management rights operators who don’t already have a database of clientele should make this an absolute priority. Much more effort is required to get a new customer than a repeat customer! Contact customers to tell them about new features or offers. Give them a reason to return, perhaps a free breakfast or invite them for a long weekend – pay for Friday and Saturday, stay Sunday night free. Regular business and sales rep patrons are valuable. Send them a personal note thanking them for their patronage and suggest “next time you stay with us, bring your spouse or partner to stay free as our guest.”
How about this? After your guests have turned in for the night, go out and wash their car windscreens. Pop a little note under the wiper saying ‘We’ve washed your windscreen to make your day a little brighter. Safe travelling and come back soon. John and Mary at the Wayfarers Inn.
GOTTA GET TOGETHER
We all know the benefits of joining marketing networks like accommodation chains and regional tourism organisations. But why not start your own local strategic alliance with complementary businesses in your area? You supply quality accommodation. The couple down the road operates an award-winning boutique restaurant or winery. Nearby is a great adventure park or wildlife sanctuary. Get together with the others and pool your resources to come up with tempting package deals, weekend escapes or special occasion short breaks. Make it easy for guests to book and pay at each others’ venues and offer each other benefits for referrals. Each of you has a great attraction. Together you are a destination. It’s marketing to the power of three!
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FOR R DE TEN
Bali beckons
The developer is selling the property on a walk-in-walk-out basis however we have an expression of interest from The Mantra Group Australia’s largest resort property operator, to manage the property as a Pepper’s Resort if a buyer wants a passive investment managed.
LUXURY RESORT AND SPA
Steve Dawson INTERNATIONAL EXCLUSIVE AGENT Mobile: +62 81 337 689 000 Email: prsbali@yahoo.com
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n offer is the rare opportunity to own a freehold resort which is near new and already highly profitable. The resort was developed by a leading Australian resort developer using the highest construction standards and the best of Balinese influences. If you are sick of the rat race this may be your chance to make the move many only dream of. Full details are online: www.primeresortservices.com
Ian Crooks Mobile:0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au PRICE: FOR TENDER
The property is near new and experts believe a net of over $1m will be achieved in the upcoming years. Every luxury villa experiences never to be built out ocean views which encompass 3 top surf breaks as well as Bali’s mount Agung. Diving, snorkelling, fishing and more are on the doorstep. Set in a peaceful Hindu Island setting of Nusa Lembongan just 30 minutes from Bali’s Sanur Beach.
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Asia is set to boom as analysts predict solid growth for the region. Airfares have dropped and there are daily flights from almost all of Australia. It’s so close and cheap to travel to, many come for a long weekend every month much like going to Hamilton Island but with more benefits and choices. The property is for sale by informal tender and may suit a company looking for a trophy property, investors looking for a real lifestyle investment with real returns, or perhaps someone who would like a share of ownership and spend part of the time in Australia and part time in paradise. Whatever your situation call today, this could be for you.
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uilt on just over 2 acres of land, the Mareeba Motor Inn is located on the Kennedy Highway on the Southern entrance to Mareeba. Mareeba is approximately 1 hours drive, through the Kuranda range, from Cairns. This property is just over 10 years old, with continual up-grade from the current vendors, who originally developed the property. The motel is a 4-star resort style property, comprising of 19 units in total – a mixture of queens, singles and family options, four of which are completely self-contained cabins (couple of years old). It is set in lush tropical gardens, including an in-ground salt water swimming pool, with extra land for further development (highly sought after cabins). The manager’s residence is located at the front of the property and consists of three healthy sized bedrooms with an open plan living. It consists of a front balcony with access through to the laundry, restaurant and reception areas. The motel hosts an in-house restaurant/bar which is popular with the corporate clients
This is the one! TABLELANDS OPPORTUNITY
The motel is surrounded by gardens with guest services including picnic tables, free gas BBQ, covered outdoor areas, a large inground pool and a guest laundry. • AAA 4 Star rated • Spacious 3 bedroom managers residence • 19 rooms – 6 x queen, 6 x twin, 3 x family and 4 x self-contained cabins (2 x double and 2 x family) • A rare opportunity to buy a freehold going concern • Mareeba is the largest town on the Atherton Tablelands, known as the epicentre for a number of agricultural activities • This is a great opportunity to own a freehold business with room to improve – enquire now!
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Shane Mullins Mobile: 0447 185 001 Brisbane office: (07) 3878 3999 Email: shanemullins@resortbrokers.com.au
ref: FH001649 Nett profit: $302,000 (adjusted) PRICE: $2,300,000
BC Salary over $175,000 LARGE PERMANENT MANAGEMENT RIGHTS
Shane Mullins Mobile: 0447 185 001 Brisbane office: (07) 3878 3999 Email: shanemullins@resortbrokers.com.au
ref: N/A Nett profit: $230,000 PRICE: $ 1.5m (including unit)
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his property presents to the market with one consistent theme – THE BC SALARY. The BC salary covers all of the debt (and some). It takes the risk out of having to cover a monthly mortgage – it is always covered. Even if you were able to borrow the entire amount – your interest would be covered by BC salary. The property is within a gated community, has bitumen and cement roads/driveways through-out, manicured gardens/lawns and two in-ground swimming pools. Each apartment has a lock-up garage, with extra spaces for visitors and guests. The manager’s residence consists of a large 3 bedroom house. The residence has two bathrooms and three toilets, with an open planned living area and well appointed kitchen.
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The rear of the apartment leads through to a very comfortable outside patio, which is covered for all seasons. This patio hosts a BBQ area and outdoor setting for comfort. From the patio area is a fenced in yard, with manicured gardens for privacy. Spectacular views looking onto the Great Dividing Range. This is a solid business every month, every year, allowing you to concentrate on business rather than debt levels. This is the one you have been looking for! • BC salary over $175,000 (inc GST) • 3 Bedroom residence, fully secured and air-conditioned • Stand-alone office building, with a lock-up garage (currently used as storage) – exclusive use • REI Master • 2 in-ground swimming pools • Gated community
Advertorial
WE’RE DIGGING FOR MINERS! As time goes by, we have come across several ex-miners working as resident owner / managers – in motels, management operations and even caravan parks. It’s not hard to see why. Years of hard work in the mines tends to have a few effects. Hopefully, one effect is a healthy amount of equity longing for a worthy place to invest itself. Another frequent effect is a desire for a complete change of lifestyle – of course miners want to keep on earning, but in slightly more exotic surroundings! Accommodation investments such as management rights and motels often provide the perfect ‘next move’ for a worker leaving the mining sector. They are able to set themselves up with a secured income, in a job that requires few qualifications and in surroundings that support a good quality of life for their families. We rarely speak to miners who regret the change they have made. On the contrary, we regularly hear stories about how it has been one of the most positive decisions they have made.
Contact Alex Cook alexcook@resortbrokers.com.au M: 0467 600 610
When position counts
MELBOURNE LEASEHOLD OPPORTUNITY Nett profit: $396,004 Turnover: $745,758 Price: $1,500,000 ref: LH001591 Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au
Ideally positioned just 10 kms from Melbourne CBD on the approach side of the Hume Highway, the main arterial for Melbourne and Sydney. It is close to the Western Ring Road which provides freeway access to Tullamarine airport and Geelong. There are many manufacturing, technology and service companies within the local area. • The leasehold interest of a B&B motel situated in a Melbourne Northern suburb.
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There is one missing part of the puzzle here….not enough miners are made aware about the opportunities available to them through our sector. The few that do find out consider themselves lucky – often a friend of a friend has suggested it to them. Resort Brokers has made it one of our objectives in 2012 to rectify this situation. We aim to spread to the word direct to mining communities and open up opportunities previously unthought of. To do this, however, we need your help. We want to speak to ex-miners who have made this transition and learn of their experiences. We want to be able to recount as many case studies as possible so we can provide newcomers with a genuine idea of the pros and cons to joining the sector. Do you know any ex-miners who own motels? Are you an ex-miner operating a management rights operation? If you are, please get in touch. It will be brief and casual chat, and we’d love to hear from you!
• 18 x 3.5 star motel units (ALL of the units have kitchenettes some have cooking facilities), 2 villa units and 2 houses • 23 year lease on motel and villas, with short term leases on the houses • Enjoying substantial corporate and leisure trade • Manager’s unit is a fully self contained 3 bedroom apartment with direct access to reception • Enjoying excellent income and occupancy • Member of a nationally recognised motel chain
T FIRS E TIM ED! ER OFF
Out of all the caravan or tourist parks in this NSW country town, this park has the highest accommodation rating (4 stars). The park cabins, caravan sites and tent sites have pleasant surroundings with many shade trees and well kept lawns. Quality ensuite cabins provide air conditioning, kitchen facilities, television and shaded balconies. Caravan sites are mains-powered and ensuite units make convenience a step away. Lawncovered tent sites provide a comfortable resting place for campers as well as a solar heated swimming pool. This park has room to expand as well. It is complimented by a two bedroom residence with lounge, kitchen, dining, and bathroom separate wc.
Rare caravan park leasehold SITUATED IN RESOURCE AREA OF NSW
• New 25 year lease of 4 star tourist caravan park (60 sites on approx. 10 acres) • Riverside camp and powered sites for vans • New amenities block with a new laundry as well • Concrete drive throughout sites • Solar heated swimming pool and children’s play ground • Wireless internet hot spot • Many choices of different cabins from luxury to standard
8 Acres of absolute waterfront
LEASEHOLD OFFERING JUST 90MINS FROM HOBART Nett profit: $300,000 PRICE: $1,050m ref: N/A
Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Ph: (07) 4155 6330 Email: lenbooth@resortbrokers.com.au
Truly a unique opportunity to lease this stunning 39 unit waterfront motel in Port Arthur the most visited site in Tasmania. The property consists of 28 fully refurbished motel units (all with flat screen TVs) and 11 x 2 bedroom self -contained and refurbished villas. This property has been run under management for the past six years with a consistent turnover of $1.7m. This is the first time the lease on this extraordinary property has been offered for sale.
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Turnover: $475,000 Nett Profit: $190,000 (2010/11 expected) PRICE: $650,000 ref: N/A
Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au
• The most amazing restaurant on the peninsula, including a blue stone open fireplace, two conference rooms with self -contained kitchen • The owner’s residence has three bedrooms, main with en suite, built ins, as well as a large lounge and separate kitchen • A bottle shop is a convenience for locals and tourists and is the only one for 15 kms, • Full size tennis court, children’s playground, guest laundry, BBQ area and a private jetty • New 30 year lease
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his beautifully presented complex of sixty-six, one bedroom units is only 7km from the city. Located in Southside Brisbane with a great range of shops, cafes, bakery and Coles within 750m. Ideal for converting to short term accommodation as there are four major hospitals within 4km (PA, Mater and Greenslopes Private). Currently being run by one person, this complex really is a breeze. Caretaking is mostly trimming and blowing as the gardens are small self-maintaining beds. There is a pool out the back and a gym that is rarely used. Rental demand in the area is very strong with rents ranging from $260-300 per week. Good relationship with Body Corporate committee. Lovely 2 bedroom manager’s residence with two balconies. Large freestanding office including a meeting room and pool table. Coin operated laundry which has been a good earner for years. Long terms remain on caretaking & letting agreement (20 years to run). This business would be perfect for a stay home parent or someone semi-retired looking for a exceptional income.
14% return including Unit 7KM FROM BRISBANE CBD
• 14% return on investment including unit • Fantastic opportunity for growth in income with a conversion to short term letting • Fairfield Gardens Shopping Centre, petrol station, bakery, Coles & restaurants within a short walk • With slow capital growth have your money tied up in the business making good returns • An easily run complex with majority of self maintaining garden beds • Long terms of 20 years to run on the accommodation module • Good occupancy & strong rental demand being with 7km of the city • Would be very suitable someone who is semi-retired or a stay at home parent
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Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au
ref: MR001624 Nett profit: $106,000 PRICE: $745,000
A grand opportunity 33% return on investment
LEASEHOLD MOTEL IN MAJOR N.S.W. CITY Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au
ref: LH001593 Nett profit: $367,296 Turnover: $897,128 PRICE: $ 1,100,000
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n opportunity to secure the leasehold business of a 4 star motel in a major city in the Murray irrigation area of New South Wales. A vibrant, multicultural city with diverse agricultural and farming with the production of rice, grapes, citrus and cereal crops. With a regional population of over 25,000, Griffith provides all the educational, medical, retail and entertainment facilities of a vibrant rural city. 42 x 4 star motel suites providing a unique and inviting ambience for corporate and leisure guests. Conveniently situated in the centre of the city, the motel facilities include an internal swimming pool, gymnasium, secure basement car parking and a licensed restaurant (separately leased). The motel is situated in a three storey
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brick building completely renovated in 2oo8 and will provide significant depreciation benefits to a successful purchaser. • 42 x 4 star motel suites. All suites provide quality facilities, generous bathrooms, broadband access and Austar • 28 year lease • Rental 17% • Manager’s residence is a fully self contained two bedroom ground floor apartment. • On-site facilities include indoor pool, gym and secure basement • On site parking • Substantial depreciation benefits to leasehold purchaser
Hiring a broker I think it is a fair assumption that many (if not most) resident managers, moteliers and other accommodation operators would have once worked in another business where they would have hired staff, from senior managers through to line staff. In many cases they would have advertised vacancies, used a professional recruitment firm or simply had the benefit of candidates dropping in looking for employment. Prior to meeting with prospective employees face-to-face, they would have requested they send in a resume of some type. This would have detailed their experience, outlined their strong points and explained why they felt they met the criteria required to fill the vacancy. If the skills, expertise, and abilities (and the presentation of the application) appeared to meet the required criteria, they would generally then ask them in for a formal face-to-face interview. After all, it’s far too important for the success of a business, often valued in the millions, not to ensure you are getting the best applicants available in today’s market. Naturally if the interview went well and they were satisfied with the candidate, the next stage would commence - the all-important reference checking. They would contact
previous employers and ask…. ‘Can they perform the task?’ ‘Are they reliable and honest?’ ‘Did they complete the role to your satisfaction?’ ‘Why do they stand out from the crowd?’ Only at this final stage, if they were satisfied that the person had the track record, knowledge, skills, and experience, all verified via their references, would they consider employing them to carry out the designated role. This is the very least they can do to protect their asset. So, this begs the question ‘Why, when many owners go to list often what is a multimillion dollar business, do they do so with the first broker that walks in the door?’ Don’t laugh, it’s a fact. We regularly come across operators who will entrust the marketing of their major asset to a broker/brokerage firm who lack the skills, knowledge, market penetration and most importantly negotiating skills to do the job properly. These same operators often wouldn’t even consider hiring staff to carry out minor tasks without going through the full process discussed above. Go figure! It’s a story we hear too often. A property is incorrectly priced and presented to the market badly. Interest level is minimal. It quickly acquires the stigma of stale listing. The property is devalued in the market place and ultimately ends up being undersold. The
Editorial
easiest and quickest way for this to happen to you is to give your listing to a nonexpert. It’s safe to say most level-headed operators wouldn’t hire staff this way, so we urge you….don’t list your property without going through the same procedures as employing staff. After all that’s what you are effectively doing; hiring the services of the best broker you can find yourself. We recommend asking the broker to prepare the equivalent of a resume, detailing experience, recent sales activity and company history. Also ask for a marketing program detailing how they would market and sell your property if appointed. Remember this doesn’t cost you anything as brokers are paid only a success fee, conditional upon settlement of the sale of the property. If they won’t or can’t produce this, move on and interview the next one. So in summary, when deciding who to entrust handling your sale process, simply follow the same guidelines as you would when you hire a member of staff. Interview recommended brokers to ensure they have the skills, knowledge, company exposure and support. Don’t be shy to ask for references and then feel free to check them. You owe it to yourself to take these measures to safeguard the sale of you main asset. By Glenn Millar Resort Brokers Australia
RESORT BROKERS AUSTRALIA GO TO SYDNEY We are delighted to announce that we have arrived in the CBD of Sydney! Our new representative Shane Wynhoven joins us after a long selling career in the liquor industry. He has spent the last 5 years as a sales rep in London. He will be specialising in motels, hotels as well as back-packers and private hotels. For the very best personal service contact Shane on 0424 174 592 or email: shanewynhoven@resortbrokers.com.au resortbrokers.com.au 42
RELIEF MANAGERS
Name: Steve & Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel
Name: Llew & Trisha Pointon Mobile: 0400 035 359 Email: llewp@tpg.com.au Manager type: Motel
Name: Peter & Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Hotel/MR
Name: Phillip & Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motel/MR/Caravan Parks
Name: Tony & Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel/Motel/Caravan
Name: Paige Renshaw Mobile: 0438 847 941 Email: paigeandrea@hotmail.com Manager type: Management Rights
Name: Sam & Linda Adermann Mobile: 0433 233 773 Email: N/A Manager type: N/A
Name: David & Belinda Gustafson Mobile: 0403 219 562 Email: dgustafsondavid@hotmail.com Manager type: N/A
Name: Sue & Hubert Rietberg Mobile: 0418 883 233 Email: sueandhugh@iinet.net.au Manager type: All properties
Name: Robyn & William Campbell Mobile: 0409 838 856 Email: rgcampbell@hotmail.com Manager type: N/A
Name: Ray & Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park
Name: Garry & Robyn Loakes Mobile: 0408 798 352 Email: grl21@bigpond.com Manager type: All properties
Name: Paul & Wendy Greenfield Mobile: 0408 717 360 Email: info@hostsontherun.com.au Manager type: N/A
Name: Simon and Anne Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: Motels - permanent
Name: Anastasia & Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort
Name: Lyn & Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motel
Name: Graeme Filippe & Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Motel
Name: Michael Logan & Natasha Miller Mobile: 0402 283 651 Email: dnlmanager@live.com.au Manager type: All properties
Name: Carol & Harry Turnbull Mobile: 0428 399 733 Email: N/A Manager type: N/A
Name: Scott Walters Mobile: 0488 726 888 Email: dougie.71@hotmail.com Manager type: Management Rights QLD
Name: Paul & Arlene Moore Mobile: 0404 855 711 Email: pfandammoore@live.com Manager type: Hotel/Motel/MR
Name: Louise & Siggy Dannell Mobile: 0408 901 927 Email: lsdannell@bigpond.com Manager type: All properties
Name: Colin & Kay Taylor Mobile: 0403 579 077 Email: cppaint@westnet.com.au Manager type: Caravan Park & Motels
Name: Karla Harding Mobile: 0414 767 499 Email: karla@bnbangel.com.au Manager type: B&B & Guest Houses
Name: Bob & Judy Sheppard Mobile: 0419 784 215 Email: bj.sheppard8@bigpond.com Manager type: N/A
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If you would like to be included in this directory please get in contact with: Greta Kerstens - Office Manager gretakerstens@resortbrokers.com.au or call: 07 3878 3999
Recently sold “We have sold 75 Management Rights & Motels since the 15th January 2011”
LEASEHOLD MOTEL MOREE, NSW
LEASEHOLD MOTEL SWAN HILL, VIC
MANAGEMENT RIGHTS COOMERA, QLD
LEASEHOLD MOTEL NORTH ROCKHAMPTON, QLD
MANAGEMENT RIGHTS CAIRNS, QLD
LEASEHOLD MOTEL MANAGEMENT RIGHTS KATHERINE, GYMPIE NT
LEASEHOLD MOTEL ROCKHAMPTON, QLD
MANAGEMENT RIGHTS WOORIM, QLD - REPLACEMENT
LEASEHOLD MOTEL CAIRNS, QLD
LEASEHOLD MOTEL QUEENSTOWN, TAS
MANAGEMENT RIGHTS CANNONVALE, QLD
MANAGEMENT RIGHTS NORTHWARD, QLD
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Industry Specialists Would you like to promote your company here? You will see a range of industry specialists are advertising in our widely read Informer. Circulation 6,750 - mailed hard copies 15,200 - sent digitally
Buying or selling management rights, motels, caravan parks or hotels?
?
Tel: 07 3220 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: Carla Cook: 0467 600 611 carlacook@resortbrokers.com.au
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Our team
‘We cover the country’
Ian Crooks
MANAGING DIRECTOR NATIONWIDE
Glenn Millar
SALES CONSULTANT SUNSHINE COAST
Lynn Booth
SALES CONSULTANT CENTRAL QLD
Shane Wynhoven SALES CONSULTANT SYDNEY CBD, NSW
Marissa Maslen
FINANCIAL CONTROLLER
Ian Dore
Tim Crooks
MANAGER & NATIONAL NEG NTH. NSW & GOLD COAST
SALES CONSULTANT CBD & SOUTH BRISBANE
Lindsay Cooper
Deborah Tilley
SALES CONSULTANT WEST QLD & NTH NSW
SALES CONSULTANT SURFERS PARADISE
Len Booth
Chris Rowe
SALES CONSULTANT CENTRAL QLD
SALES CONSULTANT FAR NORTH QLD
John Burgess
Jim Chapman
SALES CONSULTANT NORTH WEST, VIC
SALES CONSULTANT NORTH EAST, VIC
Emma Krause
Carla Cook
ACCOUNTS MANAGER
MARKETING MANAGER
resortbrokers.com.au 46
Steve Campbell
SALES CONSULTANT BRISBANE SOUTH WEST
Alex Cook
SALES CONSULTANT NORTH GOLD COAST
Tim Leahy
SALES CONSULTANT CENTRAL COAST, NSW
Stuart Charles
SALES CONSULTANT WEST, VIC
Greta Kerstens
PA AND BRIS. TEAM MANAGER
Neville Littleton SALES CONSULTANT BRISBANE NORTH
Shane Mullins
SALES CONSULTANT NORTH QLD
Russell Rogers
SALES CONSULTANT SOUTH COAST, NSW
Tony Payne
SALES CONSULTANT GIPPSLAND, VIC
Kym McLauchlan
NATIONAL TEAM MANAGER
Directory QUEENSLAND
NEW SOUTH WALES
BRISBANE - HEAD OFFICE Telephone: Facsimile: Email: sales@resortbrokers.com.au
Telephone: >Y[kaead]2 PO Box 522, Chatswood NSW 2057
07 3878 3999 07 3878 1199
02 9904 8224 (* 11(, 00./
NORTHERN NSW Motels/ Management Rights/ Hotels Division Ian Dore - Northern NSW 0412 752 238
2/77 Hope Street, South Brisbane Qld 4101
CENTRAL/ NORTH WEST NSW Caravan Parks / Pubs/ Motels Division Lindsay Cooper
PO Box 5004, West End Qld 4101 Ian Crooks - Managing Director
0411 171 648
Management Rights Division Tim Crooks Neville Littleton Kl]n] ;YehZ]dd
0422 208 450 0407 727 194 (,(/ **( ..0
Motel Division AYf ;jggck
0418 711 047
SYDNEY CBD & GREATER SYDNEY Motels/ Backpackers/ Private Hotels Division Shane Wynhoven 0424 174 592
(,)) )/) .,0
CENTRAL NSW Motels/ Caravan Parks Division Tim Leahy
0414 813 400
CENTRAL WEST/ SOUTH WEST/ SOUTH EAST QLD Caravan Parks / Pubs/ Motels Division Lindsay Cooper 0418 711 047
CENTRAL WEST NSW Motels/ Caravan Parks Division Jim McDonald
0433 143 308
GOLD COAST Telephone: Facsimile:
07 5510 3900 07 5510 3111
SOUTH COAST, NSW Motels/ Caravan Parks Division Jmkk]dd Jg_]jk
Management Rights Division Ian Dore Deborah Tilley 9d]p ;ggc
0412 752 238 0424 428 489 (,./ .(( .)(
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VICTORIA Telephone: Facsimile: PO Box 1100, Carlton Vic 3053
03 9347 3100 03 9347 3111
Motel Division Ian Dore
0412 752 238
SUNSHINE COAST Management Rights Division Glenn Millar
NORTH EAST VIC Motels/ Caravan Parks/ Management Rights Division Jim Chapman 0413 444 782
0412 277 804
WEST VIC Motels/ Caravan Parks Division Stuart Charles
0458 588 472
NORTH WEST VIC Motels/ Caravan Parks/ Pubs Division Bg`f :mj_]kk
(,). ))- ))+
FAR NORTH QUEENSLAND Motels / Hotels / Caravan Parks / Management Rights Shane Mullins 0447 185 001
GIPPSLAND VIC Motels/ Caravan Parks Division Lgfq HYqf]
(,). ))- ))+
NORTH QUEENSLAND Motels / Hotels / Caravan Parks / Management Rights Chris Rowe 0408 225 220
TASMANIA
CENTRAL QUEENSLAND 9'`2 >Y[kaead]2
Motel Division Len Booth
(/ ,)-- .++( (/ ,)-- .,,( 0438 139 422
Motels/ Hotels/ Caravan Parks Division Jim Chapman
NORTHERN TERRITORY Motels / Hotels / Caravan Parks / Management Rights Chris Rowe 0408 225 220
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0413 444 782
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