September informer 2017 low res singles by Resort Brokers

ISSUE NO 87

September 2017 AUSTRALIAâ&#x20AC;&#x2122;S NUMBER 1 | TOURISM & BUSINESS

INFORMER Taking on OTAs

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WHAT’S INSIDE

HOTEL WE SAY, OPPORTUNITIES THEY SAY

New Hotel Division serves high performance sector

18 INTERNET ADDS VALUE Easy strategy to build revenue and value

BRISBANE RENTAL UPTAKE

WHO INFLUENCES YOU? How a little help and encouragement goes a long way

Feature

TAKING ON THE OTAS We look at strategies across the sector to regain control

TRENT FRASER

Positive data shows market exceeding expectations

58 IS IT TIME TO EMBRACE AIRBnB? Exploring managers’ sentiment about Airbnb

63 GALLERY VIE: TWO YEARS ON

Meet a good sport whose leadership choice is team-focused

Managing the issue in the face of government inaction

Regular Features 06 09

ON THE MARKET

MARKET ACTION

Trudy Crooks discusses interesting developments in the accommodation market

Significant sales and listings grabbing the headlines

Meet Jane Fang, the broker behind our ‘Chinese Desk'

See some of the properties Resort Brokers Australia has sold recently

Taking a holiday? Need a manager? Find them here

Resort Brokers Australia’s national directory

SOLD PROPERTIES

RELIEF MANAGERS

AGENT PROFILE

MEET OUR TEAM

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Preface

WELCOME TO ‘WE SAY, THEY SAY’ A REGULAR FORUM FOR THE EXCHANGE OF VIEWS, NEWS & IDEAS.

WE SAY

issues

HOT BUTTON

Ian Crooks MANAGING DIRECTOR

onference season for the accommodation sector has been in full swing since our last edition. We’ve attended meetings and forums across the full industry spectrum, from the Victorian Caravan Parks Association (VicParks) gathering and those of top operators like Quest Apartment Hotels, to the major annual event for industry leaders, HotelsWorld. It’s always terrific to catch up with people we’ve worked with over the years, make vital new contacts, and keep our finger on the pulse of this dynamic market. A big hot button issue continues to be OTAs and their predatory behaviour. We touched on this in our last edition, when reporting on the new Gorez online initiative calling for operators to collaborate to claw back direct bookings. Feedback, and the extent of discussion at HotelsWorld 2017 about measures to combat OTAs, encouraged us to look at this issue in greater depth. See our cover story. We get a sense the fight has only begun. Generally though, the atmosphere at HotelsWorld was very upbeat, as Australia’s visitor economy flourishes and accommodation houses in most major cities and tourist destinations 4

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enjoy the strongest demand for many years. More broadly too, the economic news is encouraging. In June, Australia took the record for the longest run of uninterrupted growth in the developed world. And last month, the NAB monthly business survey found conditions had risen to their highest level since 2008. Confidence is certainly running hot here at Resort Brokers. Our dedicated Hotels Division is now in full swing. In this edition, we outline the exciting opportunities presenting in the hotels market and report on some big deals already under the belt for our new division, most notably the Art Series Hotels sale. Without revealing too much, I can say our hotels team already has a

couple of serious new listings lined up, in Australia and offshore. So, exciting times ahead. Another theme that emerged when we were putting this issue together was how important it is to find people who inspire you. In our regular ‘faces’ of the tourism industry feature, we catch up with Choice Hotels Asia-Pac CEO, Trent Fraser, who is definitely an all-round ‘good sport’. Trent speaks passionately on his beliefs around leadership and mentoring. It certainly struck a chord with me, because I recently ran into the man who set me on my road to success in accommodation broking more than 40 years ago. You can meet him too on P. 29 As always, this issue is filled with loads of news and views from across

They Say “In February 2016, the Hilton Hotels Corporation decided to challenge aggregators with a bold plan: guaranteeing the lowest possible rate if you went right to the source, its own website. The push came with a marketing slogan, “Stop Clicking Around,” and a series of TV ads featuring the Rolling Stones’ “Satisfaction.”

80% ESTIMATED ONLINE BOOKING MARKET SHARE CONTROLLED BY THE EXPEDIA AND PRICELINE DUOPOLY IN AUSTRALIA.

It was the largest, most expensive marketing push in the chain’s 97-year history. Hilton is a perfect test case: If Expedia is the elephant in the aggregator space, Hilton is the elephant in the hospitality industry. Its subsidiaries have 775,000 rooms in 4,700 hotels in 550 locations on six continents.

Source: AAoA

221,821

The plan was to get first-time guests to sign up for the Hilton’s honours rewards program. Membership over the last year has doubled, from three million to six million.

INTERNATIONAL VISITOR ARRIVALS IN 1967

You can pat yourself on the back clicking around, looking for a cheap hotel room or a great airfare. But it might be better to resort to an old technology: Just pick up the phone and call the front desk.”

Source:STR

DOUG GARR,

8.5

DIGITAL TECHNOLOGY MAGAZINE, 30 march 2017

the industry. Of particular note are some regulatory changes that will affect many operators. So be sure to read informative commentary from our regular expert contributors. Trusted numbers man Tony Rossiter looks the GST law changes relating to foreign-owned OTAs. Find out if you are impacted. If you are, it just further builds the case for lifting your direct bookings. David Burrough covers new foreign resident capital gains withholding payments rules likely to apply from July 1, impacting all freehold property sales at $750,000 and above. And fellow legal eagle John Mahoney has an important reminder for management rights operators about making sure your agreements are what is now known in industry parlance as ‘Gallery

Vie compliant’. Also on the management rights front, read some very topical observations from one of specialists, Gareth Closter (we reckon he makes a pretty good columnist too!). And meet our two new brokers. Their appointments, highlighted on P.41, give us a full complement on the Gold Coast, and really boost our Sunshine Coast resources. Before I sign off, I want to congratulate Mantra chief Bob East, who has been confirmed as the new chair of the Tourism Australia Board of Directors, and thank retiring chair Tony South for his superb leadership. Both are great mates of Resort Brokers, and titans of the industry. As always, if you are looking for exciting accommodation opportunities, or just keeping a watchful eye on the market, this Informer is packed with all the latest listings of motels, hotels, management rights and caravan parks across Australia. You won’t find more or better anywhere else. Cheers until next time. END

MILLION

INTERNATIONAL VISITOR ARRIVALS YE JUNE 2017

Source: ABS

OCC 75%

+0.6% ADR $185

+1.5% AUSTRALIAN HOTELS, YTD YOY JUNE 2017

Source: STR

WE’D LOVE TO HEAR FROM YOU: CARLACOOK@ RESORTBROKERS.COM.AU

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by TRUDY CROOKS NATIONAL SALES MANAGER

Whether a long-time accommodation owner, a recent investor, or simply an interested bystander, everyone is always keen to know what the market is doing. It’s the question I’m most frequently asked, as I crisscross the country supporting our growing national team of brokers.

HOTELS

IN THE SPOTLIGHT

- ON THE -

MARKET

HOTELS, IN BOTH CITY AND RESORT LOCATIONS, ARE BACK IN THE MARKET SPOTLIGHT. AND THAT SPELLS OPPORTUNITY – FOR OPERATORS, INVESTORS AND DEVELOPERS – OPPORTUNITIES TO BE SEIZED AS DEMAND PUSHES AUSTRALIA’S HOTELS SECTOR TO NEW HEIGHTS.

he hotel property sector is outperforming all other property classes thanks to our tourism industry growing at more than double the rate of the Australian economy.

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The Deloitte Tourism-Hotel Outlook 2017 reported national hotel room revenue hit $27 million a night in 2016, raking in $9.8 billion over the year. That figure is expected to rise to $10.2 billion spent on hotel rooms this

Editorial

new rooms by 2020, so for investors and developers, the high-performing hotel sector looks very attractive. We are seeing a significant amount of offshore and local capital chasing opportunities, with inflation and interest rates low and the Australian dollar comfortable below US80 cents. DRIVING DEMAND

AUSTRALIAN TOURISM IS CAPTURING THE ATTENTION OF NEW SOURCES OF INVESTMENT CAPITAL AS OFFSHORE INVESTORS, PRIVATE EQUITY FIRMS AND DOMESTIC PRIVATES LOOK TO SECURE A FIRST MOVER ADVANTAGE AND CAPITALISE ON THE SECTOR’S RECENT AND PROJECTED GROWTH. KAREN WALES SENIOR INVESTMENT SPECIALIST (TOURISM), AUSTRADE

year (2017), then increase by 5.3% per annum over the next three years. But, while the visitor economy is thriving, new hotel supply has been at historically low levels. Reports suggest the number of major hotel deals so far in 2017 is at the lowest level it’s been in three years. With hotel room revenue rising, owners are holding on to their prized assets, causing significant supply constraints. At the same time, investment conditions are strong in terms of hotel earnings, tourism market outlook and the low cost of debt. New developments are being comfortably absorbed, and significant new supply opportunities exist. Accommodation demand forecasts suggest we need 20,000

International visitor numbers to Australia grew by 11.5% in 2016, and the domestic market by 5%, increasing on a scale the hotel sector hasn’t enjoyed since the Sydney 2000 Olympics. Tourism Research Australia’s 10-year forecast is for international visitors nights to grow by 5.8% a year, while domestic nights are expected to grow by a healthy 1.9% p.a. That means, by 2026/27, Australia will welcome 15 million international visitors, representing growth of 75% on 2016/17, and benefit from a domestic spend of $97.5 billion, up 21% on 2016/17. China is set to become our largest international market this year, overtaking New Zealand as our biggest source of both inbound arrivals and inbound spend for the first time. Asia will continue to outperform other overseas markets, due to its increasing prosperity and transition of millions of people into consumer-oriented, middle-class populations. NEW DEVELOPMENT OPPORTUNITIES All this makes for an interesting focus shift for many developers. This is particularly so in view of high supply levels of new residential apartment stock in the east coast capital cities. With straight residential development looking less appealing, many are considering options for adding short-term accommodation. Of late, major hotel companies have been chasing large-scale management rights in apartment towers as a means of satisfying their appetite for additional room supply. This trend was a response to earlier property market dynamics that had made it difficult for straight hotel developments to stack up in INFORMER SEPTEMBER 2017 |

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prime CBD locations. But mixed-use developments are proving an ideal solution for both developers and hotel operators. Including both a strata-titled residential component and a proportion of lucrative short-term accommodation units is becoming a more common strategy. Developers and investors then have the flexibility to choose from a number of operational models for the short-term component, including leasehold, management rights and hotel management agreements.

GROWTH MARKETS Amid current growth and the positive longer-term outlook for the hotel sector, the nature of the market is also changing, creating specific niche opportunities for investors and developers. Two big market segments are shaping the future of hotels in Australia, and will therefore have the greatest influence on where opportunities lie – the inbound Asian market, typically demanding highend luxury product, and the massive

‘millennials’ market (born 1980 – 2000), in the upper mid-scale category. Interestingly, latest STR data presented at the recent 2017 HotelsWorld conference showed these were the two hotel classes recording the greatest RevPAR growth in Sydney, Australia’s hottest hotel market. While Sydney and Melbourne continue to hold the mantle of Australia’s highest occupancies and ADR performance, the Gold Coast and Far North Queensland have been singled out as two of the nation’s most exciting growth markets. END

Dedicated hotels division to the fore RESORT BROKERS HOTELS ALWAYS EVOLVING AND EXPANDING TO MEET THE DEMANDS OF AUSTRALIA’S DYNAMIC ACCOMMODATION LANDSCAPE, RESORT BROKERS AUSTRALIA HAS FORMALLY LAUNCHED A DEDICATED HOTELS DIVISION.

eaded by National Sales Manager and hotels specialist, Trudy Crooks, the Hotels Division boasts resources and expertise gained over more than three decades working with every operational model implemented across the accommodation industry. “This is a natural progression for Resort Brokers,” Trudy said. “While motels and management rights remain vital at the core of our business, our expertise in these accommodation models has equipped us to pursue opportunities on a larger scale. “The nature of the accommodation industry now is such that, whereas hotels were once predominantly run under management agreements, operators are now looking at the full spectrum

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of operational models to build room inventory. “This includes leaseholds, freeholds, management rights and franchise operations, so Resort Brokers is uniquely placed because of our precise knowledge and experience across every one of these models. “Not only that, we have proven experience in handling new-build properties, selling hotel assets off the plan.” Ms Crooks said Resort Brokers had previously handled many significant hotel sales, including the Sebel Launceston, the $57 million sale of Darwin’s Elan Soho Suites to Minor Hotel Group, and numerous major Quest Apartment Hotels properties. “We have already made inroads in the hotel space, but we are now delighted to officially launch our new Hotels Division with two high profile sales just announced – the Art Series Hotels portfolio sale to Mantra Group for $52.5 million, and the $12.5 million sale of a Perth CBD boutique property. “Stay tuned for some exciting new listings, including new-builds,” she said. END

Editorial

MARKET ACTION Diverse accommodation properties from 5-star hotels to permanent management rights and a regional motel feature in this round-up of recent significant Resort Brokers sales. In the Art Series Hotel portfolio just sold: (above) The Blackman foyer, St Kilda Road, Melbourne (top left) room inspired by the studio of artist David Larwill (bottom left) The Johnson, Spring Hill, Brisbane, features a 50-metre pool and sundeck

MASTERING THE ‘ART’ OF THE DEAL Resort Brokers Australia was recently at the centre of a history-making deal in the evolution of Australia’s hotel industry – the sale of the inspired Art Series Hotel Group to Mantra Group for $52.5 million. Founders of the Art Series Hotels, the Deague Group, engaged Resort Brokers exclusively to negotiate the offmarket deal because of the agency’s specialist expertise across all facets of hotel operations, including leasehold businesses and management rights. Handled by agents Trudy Crooks and Tim Crooks, the sale sees seven luxury hotels (1,000+ guest rooms and a number of conference and event facilities, restaurants and luxury hotel amenities) added to ASX-listed Mantra Group’s existing 128-property portfolio. INFORMER SEPTEMBER 2017 |

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Editorial

Above: Seven Art Series Hotel properties sold to Mantra Group, (clockwise from top left) The Blackman, The Olsen, The Chen, and The Cullen in Melbourne, The Johnson in Brisbane, and The Watson in Adelaide.

“It has been gratifying to play a key role in what is an historic event in Australia’s changing and growing accommodation landscape – the passing of one premium hotel brand to another home-grown hotels titan,” Tim Crooks said. Tim Crooks hailed the innovative success story the Deague Group began when they opened their first Art Series Hotel, The Cullen, in 2009. “Art Series Hotels, thanks to the drive and creativity of the Deague family, has grown into a very influential, high profile brand showcasing Australia’s finest contemporary artists. “That revered brand will be retained by Mantra Group which, now with 135 properties, is our largest Australian-owned and locally-based hotel operator,” he said. The seven hotels are: The Cullen, Prahran, The Larwill Studio, North Melbourne, The Olsen, South Yarra, The Blackman, and The Chen, Box Hill, (set to open in Nov 2017), all in Melbourne, The Johnson, Spring Hill, Brisbane, and The Watson, Walkerville, Adelaide. The Art Series acquisition by Mantra is expected to settle late this year. 10

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Right: Artist impressions depict the serviced apartment hotel in Aire West Perth, sold offthe-plan

PERTH APARTMENT HOTEL SOLD OFF-THE-PLAN In another high profile sale for Resort Brokers Australia’s Hotels Division, a 64-unit serviced apartment hotel in West Perth has been bought off-the-plan for $12.5 million. Western Australia’s leading apartment developer, Finbar Group Limited, has sold the 64studio apartments in its Aire West Perth development to a fund managed by Singapore-based ZACD Group. The deal was negotiated by Resort Brokers’ senior broker Glenn Millar

in conjunction with Steve Dawson of Prime Resort Sales. The apartments will operate as serviced apartments with a separate lobby, lift core, 65 car parks and dedicated, as well as shared amenities. ZACD is now in talks with potential operators and expects to short-list one by the end of the year. The Aire apartment development, located on Murray Street in West Perth, is under construction and due to be completed in mid-2018.

Above: An aerial view of East Quays, part of a ’super league’ management rights sale on the Gold Coast

QUAYS IN MANAGEMENT RIGHTS ‘SUPER LEAGUE’ Biggera Waters apartment complexes Harbour Quays and East Quays have joined the super league of Gold Coast management rights, with their caretaking and letting businesses and associated real estate selling in one line for close to $13 million. A syndicate of 10 local investors has bought the 363-unit Harbour Quays and 300-unit East Quays management rights portfolio in an off-market deal secured by Resort Brokers Australia agent Alex Cook for developer Emandar Group. “With 663 units in 10 buildings across two adjacent projects, and 450 in the letting pool, this is one of the biggest permanent management rights sales ever on the Coast,” Mr Cook said. The deal is the Coast’s second largest permanent rights transaction in terms of unit numbers. But, with its larger real estate component, the sale price easily eclipses the $10.5 million reported to have been paid by Mantra Group for the 788-unit Southport

Central buildings. “Each of the six buildings in Harbour Quays is a separate scheme, so the sale included a manager’s unit and office on title in each,” Mr Cook said. “East Quays, although four buildings, is covered by a single scheme, with the buyers taking one unit and two offices.” The investment syndicate is led by James and Sandra Stapelberg, who will be onsite managers, with Garry McKenzie in an administrative role. The Stapelbergs are long-time Gold Coast resident managers, while Mr McKenzie has been involved in the industry since the mid-1980s. “Struck at a multiplier in the six-plus range, it shows the ongoing strength of the Gold Coast management rights market, especially for large-scale, highnetting properties,” Mr Cook said. “It also highlights how mum-anddad investors are able to pool their resources to buy substantial assets such as these.”

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Editorial

Left: Pool with a view, Mantra Quayside, Port Macquarie.

‘HYBRID’ PARCEL SOLD IN PORT MACQUARIE HOTSPOT A prime Port Macquarie CBD riverfront accommodation holding has exchanged in a landmark deal underlining the rising investment appetite for NSW’s Mid North Coast. Local developers Lloyd Coastal

Property and Bannister Constructions have sold the Palm Court Motor Inn along with the management rights and 21 units in their adjacent 2007 development, Mantra Quayside, to a single buyer.

Negotiated by Resort Brokers’ James Carrick, the sale sees control of the key gateway precinct pass to an undisclosed private buyer also from the Mid North Coast region. Mr Carrick said, while he was unable to disclose the sale price, the three components had been listed separately for a total of $13.73 million. “The deal is unprecedented on the Mid North Coast, and it has certainly created a new price benchmark for the region,” he said. “Centrally located accommodation properties have drawn increasing demand over the last 12 to 24 months, tightening both yields and multipliers, particularly in Port Macquarie, which is now a real commercial and tourism hot spot.” The parcel includes the adjoining 24-room Palm Court Motor Inn and squash courts on a 2,422sq m site, 21 studio, one and two-bedroom units, the Mantra Quayside caretaking and letting business and associated manager’s unit, reception, office and meeting room. END

Management Rights Law Specialists Australia Wide Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome. Although our full suite of services is more comprehensive, particular expertise covers: - Buying & Selling - Structuring - Variations - Renewals - Establishments - Licences & Letting Appointments - Advice on all Body Corporate Issues - GST, Stamp Duty and Tax - Exit strategies - Dispute resolution - Legal due diligence reports

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Contact us today to find out how we can assist you; P: +61 (0)7 5552 6666 M: +61 (0)417 620 516 E: cmyers@smh.net.au W: smhmanagementrightslawyers.net.au

› Leasehold REF: LH004906

Brand New Serviced Apartment Hotel Leasehold Business An exciting new franchise has hit the market in Melbourne and Sydney, specialising in serviced apartment hotels. With enormous industry experience behind them and as managers of the existing operations, the Adara Hotel and Apartments Group are offers an exciting opportunity to join them. New sites have been earmarked, and a tight operating model has been put in place to ensure operational success and profitability. Infrastructure has been designed for operators to walk into a seamless turnkey operation, supported by industry leading technology.

›› Strong demand for accommodation due to limited supply with a projected ADR of $166 ›› Strong corporate and leisure guests due to corporate head office locations ›› State of the art technology with iPads, apple TV and PBX system ›› Brand new custom designed furniture packs ›› Pool and gym facilities

This franchisor is on an exponential journey and will deliver up to 10 new sites over the next 18 months, the first available being Adara Kubix, the next site rolling out in three months and thereafter.

›› Combination of one, two and three bedroom serviced apartments

Adara Kubix is opening in October of this year, with 55 serviced apartments and potential for up to an additional 80. Located in the outer eastern suburbs of Melbourne, it is in walking distance to Knox Shopping Centre and has a prominent position on the corner of the main highway. The only 4 star serviced apartment hotel in the area, with agreements in place with Knox Hospital as the preferred accommodation provider.

›› Corporate and sponsorship agreements

›› Back office support

Financials Nett Profit: $439,290 projected Price: $20,000 per key

Exclusive

Michelle Matthews

Damien Loorham

M. +61 400 474 861 E. michellematthews@resortbrokers.com.au

M. +61 409 399 932 E. damienloorham@resortbrokers.com.au

Broker

INFORMER SEPTEMBER 2017 |

Wantirna South resortbrokers.com.au

› Management Rights REF: MR004877

The Heart of Port Douglas

Units

Letting Pool Year Tenure

Le Cher Du Monde is the perfect property for new to industry or experienced couple wishing to manage a well-established business and further increase revenue to an already profitable opportunity. Within the Port Douglas landscape not too many properties boast a stellar reputation like Le Cher Du Monde, proven by its year round strong occupancy and daily rate.

›› Prestigious property famed in Port Douglas

This 28 room adults only property offers just the right combination of tranquility and convenience for couples wishing to explore Port Douglas. The business is driven by a strong mix of domestic and international travellers as the North Queensland market continues to increase year upon year. Le Cher Du Monde would benefit from a new operator to take the business to the next level. Showing a high ROI, comfortable body corporate remuneration and strong net - this property is an absolute dream to operate. Port Douglas is back in the market. Enquire now!

Bed

Bath

›› Highly profitable short term management rights ›› Long tenure on agreements ›› Strong occupancy and repeat clientele year upon year ›› Large two bedroom, two bathroom manager’s residence ›› Reception with street frontage on trendy Macrossan Street ›› Loads of potential to increase profit through various income streams ›› Ability to create upshot by further renovating

Financials Nett Profit: $303,000 Unit Price: $395,000 Business Price: $1,245,000 Price: $1,640,000

Exclusive

Chenoa Daniel Broker

M. +61 403 143 151 E. chenoadaniel@resortbrokers.com.au 14

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Port Douglas

› Freehold Passive Investment REF: INV004892

High Yielding Freehold Investment Property

Presenting an outstanding opportunity to purchase a high-yielding freehold investment property with a long-term lease to Quest Apartment Hotels, located in Whyalla, South Australia.

›› High-yielding, fully leased investment opportunity

This quality property presents an estimated net income of $766,522 per annum delivering a return on investment of 9% and the security of a long-term lease to Quest Apartments (10 year term to 2022 plus three further 5-year options). A very strong leasee in place. It affords an excellent opportunity for both private investors and syndicates. Quest Whyalla occupies a large, centrally located 6,731 squaremetre site, close to major shopping and leisure attractions, the airport and town centre. It boasts 56 modern self-contained studio, one, two and three-bedroom apartments, all styled to the highest standards. Rare opportunity certain to attract a high level of buyer interest so be quick!

Units

›› Expected to deliver a net income of $766,522 pa ›› Showing a 9% return on investment ›› Secure long-term lease to Quest Apartments ›› 56 quality studio, one, two and three-bedroom self contained apartments ›› Very large 6,731 sqm land area ›› Whyalla set to benefit from massive investment injection following recent Arrium Steelworks Sale

Financials Price: Offers over $8,500,000

Exclusive

Kelli Crouch

Jim Chapman

M. +61 410 441 750 E. kellicrouch@resortbrokers.com.au

M. +61 413 444 782 E. jimchapman@resortbrokers.com.au

Broker

INFORMER SEPTEMBER 2017 |

South Australia resortbrokers.com.au

› Leasehold / Freehold REF: FH004898 (Freehold) / LH004897 (Leasehold)

Freehold or Leasehold Hotel Tourist Complex

Units

Hotel Rooms Year Tenure

Augathella Palms Motel, Ellangowan Hotel Tourist Complex and Smiley’s Cafe can be purchased as freehold, leasehold or going concern. The property is located in Augathella in Western Queensland, approximately halfway between Brisbane and Mt Isa.

›› Tourism and hospitality complex

The hard work has already been done, bringing the property up to a high standard, expanding the number of accommodation units, establishing the cafe, bottle shop and gift shop. The bar and dining room have also been modernised to create the perfect atmosphere for both local and tourist traffic. On offer are 21 self-contained ensuite accommodation units, 7 hotel rooms with shared facilities, parking for RV’s (on-site and across the road) and two managers units (three bedroom stand alone and two bedroom in hotel). The property also boasts a café, gift shop, bar, bottle shop and reception; all in one location. Figures have increased dramatically over the past two years. Since the opening of Smiley’s Cafe, the café now makes more money than the bar does. Turnover this financial year will exceed $1m, that’s almost a 50% increase year on year. Huge upside for a smart operator.

›› Currently run under management ›› 22% ROI (freehold) | 62% ROI (leasehold) ›› Café, gift shop, bar, bottle shop and reception all in one location ›› Great lifestyle – fully staffed ›› Spare land ›› Potential for caravan park or additional units (SCA) ›› Tourism and events statistics show 20-25% growth in outback tourism

Financials Freehold

Nett Profit: $389,493

Price: $1,750,000 + SAV

Leasehold Nett Profit: $269,493 Price: $435,000 + SAV

Exclusive

Lindsay Cooper Broker

M. +61 418 711 047 E. lindsaycooper@resortbrokers.com.au 16

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Augathella

› Management Rights REF: MR004888

Cairns Cbd Location Strong Corporate Business

Units

Letting Pool Year Tenure

Inn Cairns Boutique Apartments is located in the heart of Cairns CBD. This location allows for increased exposure to walk-in guests and is ideal for corporate clients needing to be close to the city centre. The property has a great reputation and is known for its excellent service. The vendors have been strategically working with the landlord on a range of apartment and building improvements designed to keep ‘Inn Cairns’ competitive in the market. They have specifically focused on developing the marketing to ensure it produces measurable results.

›› Well established business

The apartments in the letting pool are operated under a pooled income system. Of note, a percentage of the total gross monthly income is paid into an advertising and a refurbishment fund. The BC salary is healthy at $83,190 pa. The complex has a pool, ample secure undercover car-parking and BBQ area plus two rooftop levels for guests to relax. The Cairns landscape is being transformed with major projects such as the new Cairns Aquarium (near completion), a multimillion dollar upgrade of the Cairns Performing Arts Centre, an upgrade of the Cairns Convention Centre and dredging of the Cairns Inlet. The economic future of Cairns looks bright.

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Bath

›› Strong position within the Cairns market ›› Constant trading throughout the year ›› Current vendors have served their time well ›› Tourist market is showing strong growth ›› 34 rooms in the letting pool ›› Pooled income with refurbishment and marketing fund ›› Recent upgrade to branding, website and social media specifically designed to increase direct bookings

Financials Nett Profit: $300,000 Price: $1,625,000

Exclusive

Shane Mullins Broker

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au

North Queensland INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

by GARETH CLOSTER MANAGEMENT RIGHTS BROKER

Recent permanent management rights resales have underlined just how important it is for building managers to seize every opportunity to add revenue steams. Providing internet services is a lucrative case in point.

INTERNET SERVICE PROVIDES VALUE-ADDING income stream for permanent managers Down to

BUSINESS

THE LATEST FROM OUR TEAM ON THE GROUND

anagers might easily overlook the potential for internet service to generate income. Or they may think itâ&#x20AC;&#x2122;s too difficult, preferring to outsource it to a reputable ISP. But that decision can have a huge opportunity cost, on two fronts. Firstly, you are letting a significant recurring revenue stream flow straight past your bottom line and into the pockets of outside ISPs. And secondly, when it comes time to sell,

resortbrokers.com.au | INFORMER SEPTEMBER 2017

your sale price will be significantly less than it might have been if the multiplier were also applied to all that (missed) extra income. ON-SELL FOR PROFIT Letâ&#x20AC;&#x2122;s first look at the income potential. Industry leader Myport offers an internet system that can either be installed during construction (when you are buying management

Editorial

than $211,000. I can certainly confirm, for the first time, Resort Brokers can show you settlements that support our ability to get the full multiplier on internet income in permanent buildings. So, if you to decide not to chase internet income, you have to consider the significant potential opportunity cost. Myport tells me their data shows users are online for an average of 38.5 hours per week. “So there is ample opportunity for managers to offer a premium service to their residents and cash in on their connectivity,” said Myport general manager, Chris Hawke. “A lot of managers think there is a lot of work involved in trying to offer an internet service. But, with the right setup, that couldn’t be further from the truth. With Myport, the internet can be turned on for residents in less than a minute, and we handle the rest. All the manager needs to do is sit back and collect the revenue each month.” Providing a quality internet service for your residents also offers worthwhile advantages to building managers, beyond the hip pocket. In the case of Myport’s system, for example, you gain full control over internet pricing in your building. And it’s flexible, so you can easily switch from permanent to short-term mode (hotel-style), if you have some shortstay units in your pool.

rights off-the-plan) or easily retrofitted to existing buildings after you buy in. They simply install a fibre internet connection, say in the basement, and cabling to distribute it to wireless routers throughout the building, covering units and common areas. The manager can then generate significant recurring income by onselling the wholesale or bulk internet connection to individual residents/ tenants at a retail price that is competitive with ISPs. Typically, the average complex can make $30 to $40 profit per unit per month, depending on the size of the building. If we assume the service is taken up by 80 users in a 100-unit building, that equates to potential additional profit of more than $38,000 per year. Of course, there is the upfront

capital cost of installing the infrastructure, which typically runs out at $450 - $500 per unit. But this is quickly paid back. Using the same example of a 100-unit building at 80% take-up, Myport’s estimated installation cost of $45,000 would be covered in a little more than 14 months. Over five years, the expected net result is an additional profit of $184,800, showing a return on investment of 411%! BOOST RESALE VALUE And that doesn’t take into account my second point about how much more your business would be worth when it came time to sell. Again, using the same example of a profit lift of $38,400 p.a., at a multiplier of 5.5x, the value would be boosted by more

EVERYBODY’S HERO You’ll also have happier tenants. In today’s fast-paced, alwaysconnected word, you’ll be everybody’s hero if you can instantly supply faster, more reliable internet connections. The Myport option has been shown to deliver speeds a certain national network now rolling out would love to reliably achieve. Tenants have the ability to connect instantly, no dealing with Telcos and external ISPs, no waiting for connection, no annoying contracts, no equipment required. Just log on and go – without upfront set-up or connection fees. Who wouldn’t want that? So the positive implications for your building’s reputation, rental demand, tenant loyalty and reduced vacancy rates are obvious. I think there are other pluses

INFORMER SEPTEMBER 2017 |

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too. It might help retain units in your letting pool, because you have the ability to offer incentives, such as a period of free internet, to attract tenants. No outside letting agent can do that. Your investment in the building also underpins resident and lot owner relationships, binding you to the building. You offer a system that can provide benefits for owner-occupiers – better value, better quality internet.

And they will regard you highly for your commitment to their building. So, when a building manager becomes their building’s preferred ISP, it’s a win for everyone. Most importantly, for the manager’s bottom line and business value. INDICATIVE GUIDE The following table from Myport, indicates typical income across all their residential sites for properties

of 100 to 250 units. Larger complexes achieve a higher return but, they tell me, properties with 40 units or more generally gain a substantial return. This table doesn’t consider the time it takes to fill a new building, or to switch tenants across to the service in existing buildings. But it’s a great guide. And remember, the ROI doesn’t include the added value on resale. END

MYPORT INTERNET NETWORK MANAGEMENT SYSTEM: INDICATIVE FIGURES Total Units

100

150

200

250

Installation Cost

$45,000

$67,500

$90,000

$112,500

Predicted Users (80% take-up)

120

160

200

Monthly Income ($68.50 / active user)

$5,480

$8,220

$10,960

$13,700

Monthly Costs (internet + mgmt fee)

$2,400

$3,000

$3,600

$4,200

Monthly Profit

$3,080.00

$5,220.00

$7,360.00

$9,500

Profit over 5 Years

$184,800

$313,200

$441,600

$570,000

ROI over 5 Years

411%

464%

491%

507%

Net Position after Installation Costs

$139,800

$245,700

$351,600

$457,500

› Freehold Going Concern

REF: FH004519

Opportunity Knocks But Once in Tasmania!

This motel is situated to take advantage of Tasmania’s growing tourism and domestic market. Within easy walking distance of an urban renewal city centre project, the motel will flourish and build on an already attractive bottom line profit.

›› Well established 25 room motel ›› Underutilised breakfast and meeting room, leaving room for business expansion ›› Heated indoor pool and ½ size tennis court ›› One of the best maintained and profitable motels in Tasmania

This attractive motel has had over $350,000 spent on upgrades over the past two years and is a credit to the vendor. During his tenure of over 10 years, the vendor has concentrated on providing quality accommodation on the North-West Coast of Tasmania, but leaves a great opportunity for the next owner to grow a seminar, meeting, coach or conference business.

Units

Financials Nett Profit: $527,741 Price: $3,690,000

Exclusive

Ray Ironside Broker

M. +61 418 130 364 E. rayironside@resortbrokers.com.au 20

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Tasmania

MORE INCOME HIGHER VALUE

EASY TO RETROFIT EXISTING BUILDINGS

VALUE FOR TENANTS Speeds equal to or better than fibre Instant connectivity

If you outsource internet service provision in your

Full coverage, including common areas

permanent building, you are missing out on valuable income. With Myport’s simple WiFi network system,

No contracts, flexible plans

you become the preferred ISP. Residents enjoy better service. We take care of billing and support. You collect the $$$.

No dealing with telcos/ISPs

No set-up fees, no equipment needed

It’s why Myport’s WiFi solutions are found in more than 12,000 apartments (including 8,500 residential units) and 300 hotels and resorts across Australia.

VALUE FOR YOU New on-going revenue stream Proven 300-500% 5yr ROI

YOUR BUILDING COULD BE MAKING YOU MORE!

Faster, more reliable connections High tenant satisfaction and retention Increased management rights resale value Easy switch between permanent and short-term uses

myport.com.au

resortbrokers.com.au 1300 733 629

INFORMER SEPTEMBER 2017 |

› Freehold Going Concern REF: FH004919

Perricoota Vines Retreat NSW State Finalists

3/4

Villas

Bathrooms

Bed

M ain R esidence

M anager ’ s R esidence

Perricoota Vines is an award winning, landmark hospitality asset in the Murray River Tourist Region; beautifully designed and purpose built with detail, precision and use of premium hardwood timber. Hosting 22 villas of one, two and three bedrooms on an oasis of manicured and designed gardens, two large communal BBQ areas and fire pit, man-made lake with two outdoor pools, games room and large function/reception centre.

›› Architecturally designed and purpose built retreat in Moama, NSW

Family owned and operated, apart from three villas with a management agreement in place. Plenty of opportunity to develop additional villas, to market further in the corporate, wedding and wellness sectors, to introduce food and beverage operations and to develop spa facilities.

›› Opportunity to develop additional villas onsite

Includes a beautifully appointed main residence with three / four bedrooms with separate office and reception. This home can be a lifestyle haven to enjoy the facilities or an opportunity for additional accommodation as a luxury guest house. Perricoota Vines is simply one of the most prestigious properties to own in the Echuca Moama region.

›› Main residence, 22 villas, pools, function room, reception and separate office ›› Single-line purchase of the management rights, freehold and business income ›› Increased revenue potential with corporate, wedding and wellness segment ›› Food and beverage opportunities ›› Offered for sale by Expressions of Interest – closing 4pm Thursday 5th October 2017

Financials Nett Profit: $378,360 Price GUIDE: $3,600,000 – $3,900,000

Exclusive

Michelle Matthews Broker

M. +61 400 474 861 E. michellematthews@resortbrokers.com.au 22

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Moama

› Leasehold REF: LH004902

Units

Year Tenure

This premium Canberra property presents exceptional potential to reap big rewards in Australia’s federal capital. For the experienced operator this beautiful and stylish apartment complex offers a rare leasehold business opportunity in the north of the busy city. Located close to the heart of Canberra CBD and a quick drive from all the major tourist attraction, sport centres, and university.

›› Huge 4470m2 block in Dickson, five minutes drive from the CBD

The modern complex sits on 4470m2 of enclosed courtyard style landscaped grounds; 66 units ranging from queen studio to three bedroom apartments and king spa suites are all immaculately appointed. Two business and function venues provide an additional income stream for the conference and convention market as well as the lucrative wedding and functions stream. The conference rooms feature state-of-the-art technology and A/V systems and can be hired separately or combined with accommodation packages. The gym, indoor swimming pool and dining room make this apartment complex first choice for both the business and leisure traveler. Parklands Hotel and Apartments is uniquely placed to achieve great return on investment in the tightly held Canberra market.

R esidence

Deluxe Apartment Hotel Leasehold in Canberra Parklands

Bed

Bath

›› Premium property with nothing to do ›› 66 apartments ranging from studio queen to 3 bedroom apartments ›› Two fully appointed function and conference venues ›› Owner/manager onsite accommodation – two bedroom, one bathroom residence ›› Lift access to all floors ›› Internal gym, indoor swimming pool, and outdoor BBQ area ›› Popular complex generating high returns

Financials Price: $840,000 – $920,000

Exclusive

Russell Rogers Broker

M. 0416 166 909 E. russellrogers@resortbrokers.com.au

ACT INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

› Management Rights REF: OTP004834

Amazing Off The Plan Opportunity with Very Low Multiplier Eastpark Bulimba is a brand new, low-rise management rights development in the much desired riverside suburb of Bulimba. This premium apartment complex, constructed by reputable developer DeLuca, consists of 80 lots, comprising 79 beautiful, contemporary apartments plus one manager’s residence, and exclusive use manager’s office. Eastpark has an exceptional design with stunning communal pool facilities that have been executed to perfection. It provides for an enviable lifestyle that offers privacy, security and style. With a perfect park front position, it is likely to attract an eclectic mix of both young professionals and aspirational couples seeking a home in this premier location. The architectural concept was to create a sublime lifestyle sanctuary for residents to flourish in and enjoy the peaceful park setting. The modern façade is the gateway to an exciting collection of one, two and three bedroom apartments, featuring free-flow layouts that are both intimate and highly functional for the modern urban dweller. Each apartment has been designed with king-size balconies for entertaining in all seasons and secured basement parking.

Units

Office

Letting Pool Year Tenure

›› Low multiplier management rights opportunity ›› Brand new complex located in a desirable riverside suburb ›› Brand new 25 year agreement in place (accommodation module) ›› Spacious and modern managers unit (choice of one or two bedroom unit) ›› Very easy and manageable caretaking duties ›› Built by well known developer DeLuca ›› Walking distance to the vibrant Oxford Street restaurant scene ›› Managers are required to live on-site. No set hours. Exclusive use office.

Financials Nett Profit: $185,469 Price: $1,118,140

Exclusive

Brent Staker

Tim Crooks

M. +61 410 344 344 E. brentstaker@resortbrokers.com.au

M. +61 422 208 450 E. timcrooks@resortbrokers.com.au

Broker

resortbrokers.com.au | INFORMER SEPTEMBER 2017

National Off the Plan Specialist

Bulimba

› Freehold Going Concern REF: FH004901

Freehold Hotel, Motel & Caravan Park on 22,000 sqm Forrest Beach Hotel complex is an integrated business that offers a boutique caravan park, beachfront motel and newly renovated hotel.

›› Absolute beachfront location

The 22,000 sqm parcel of land forms part of the real value. It is very rare that a large section of land on the coastline exists in almost untouched parallel with 200 metres of absolute beachfront exposure. This beachfront land provides an array of future development potentials.

›› Variety of income drivers, catering for an array of guests

The current operation has been under management since ownership and represents a very attractive upside opportunity for an incoming owner-operator. The hotel caters to a variety of travellers with a collection of accommodation options that include six ensuited motel rooms, 52 powered caravan sites and camping for approximately 200 guests. There is also an excellent mix of onsite food and beverage facilities including a public bar, ocean view sports bar, gaming room, bottleshop and extensive alfresco areas.

›› Up-shot – venue has been run under management throughout current ownership

›› Recent approvals and on-going support for the proposed bio-energy plant ›› Catering for up to 200 guests ›› Commercial hotel license

Financials Nett Profit: $367,000 Price: Offers above $3,500,000 + SAV

Exclusive

Des Fagg

Shane Mullins

M. +61 427 849 119 E. desfagg@resortbrokers.com.au

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au

Broker

INFORMER SEPTEMBER 2017 |

North Queensland resortbrokers.com.au

Editorial

THE MANY FACES OF THE ACCOMMODATION INDUSTRY CONTINUING OUR SERIES PROFILING THE MANY FACES OF AUSTRALIAN TOURISM AND ACCOMMODATION SECTORS, WE INTRODUCE YOU TO THE LEADERS AND INNOVATORS, CHARACTERS AND CANNY OPERATORS OF OUR INDUSTRY. THESE ARE THEIR STORIES.

TRENT FRASER

LEADERSHIP IS A TEAM PURSUIT Choice Hotels Asia-Pac CEO, Trent Fraser, is a keen sportsman. Mostly, his personal pursuits have related to individual sports, once as a junior tennis champion, these days as an A-grade golfer. But, when the discussion turns to his working life, itâ&#x20AC;&#x2122;s all about the team.

resortbrokers.com.au | INFORMER SEPTEMBER 2017

ad you asked a young Trent Fraser what he wanted to be when he grew up, the answer would more likely have been ‘elite sportsman’ than ‘hotelier’. And, for a time, such ambitions seemed within reach. Tennis was his game as a schoolboy in Canberra, and he was good. Good enough to be an accredited coach at just 15, and a nationally ranked player for some years. A special memory is competing as a junior in the 1988 Australian Open, the first to be played at Melbourne Park. “It was the first men’s singles final played at the new Rod Laver Arena, and Mats Wilander beat Pat Cash (in an epic four and a half hour battle),” he recalls. It was wonderful being part of that, being there with the greats, seeing them in the locker rooms. “I guess, at that stage, that’s what I wanted to do. But there came a time when I realised my ability probably didn’t match up with my ambitions,” he admits. So how did Trent’s career path turn to tourism and hospitality? A love of travel was engendered at a very early age. Though born in Sydney, because his father worked with the Immigration Department, Trent spent six of his primary school years in West Germany and Austria. “I went to a school where there were probably 35 different nationalities,” he says. “I think that was a really valuable experience for a kid under 10 years old.” Then, back in Australia, he found himself fascinated by accommodation properties. “My Aunt and Uncle were in the business. They owned motels in regional New South Wales.” So when, at the end of high school, a friend said he was going to enroll in a business course at the Canberra Institute of Technology, Trent tagged along. “We lined up overnight and I was one of the first 35 through the door the next morning to enroll. So for the next two years I studied for an Advanced Diploma of Business with a focus on hospitality. “I mightn’t have tried too hard at school, more interested in sport, but I did here. It showed me that if you apply yourself to something you are passionate about, you’ll do well.” And well he did, receiving the Catering

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Editorial

Institute of Australia Award as the Most Outstanding Student in the Pursuit of Excellence. It marked the beginning of an impressive career that has seen Trent advance through hotel industry ranks, initially with Southern Pacific Hotel Corporation (SPHC) until 2002, and then with Choice Hotels Asia-Pac. During the past 25 years, he has worked in 14 different hotels in 10 different locations, including a few overseas destinations, and risen from corporate trainee to duty manager and various F&B management positions, to end up at executive level in both operations and business development. Now he finds himself at the helm of Choice Hotels Asia-Pac, the largest hotel franchisor in the region, with more than 250 properties open or under development. The business is a subsidiary of giant US-based Choice Hotels International (6,500 hotels across 40 countries). “I guess you could say I’ve had two careers in the hotel industry, the first in the dayto-day operations and management of hotels, and the second in the franchising side of the business,” Trent reflects. “I first learned the operational aspect, so I’ve been in similar situations to many of our franchisees. It gave me important insight and understanding.” The fact he’s been able rise to such a senior level while sticking with just two companies, Trent says, highlights the opportunities the industry offers. “I’ve been fortunate to be able to have a lot of jobs, without necessarily changing employers. “With SPHC, I was at 10 different properties, so you move on every couple of years, to a different environment, with different

people and new challenges. It keeps it fresh and exciting.” With Choice Hotels, Trent has focused on business development and franchise services. He credits his success to having great mentors. “My predecessor as CEO, David Bayes, was a wonderful mentor. He involved me in succession planning. His move into

what he loves most about his work, without hesitation he answers “making a difference for our franchisees.” “Being a support, coach, guide, communicating with them, helping to make them successful. That’s what makes me feel satisfied,” he says. His enthusiasm for the franchise model is compelling. “The best part is we have such an amazing mix of individuals and entrepreneurial types, and not all from hotel backgrounds. Our mix of owners comes probably 25 to 30 per cent from within the hotel industry and the rest from everywhere else. “They challenge us, question us. It is great to have fresh minds, fresh eyes on the way we do things. We learn from their experiences and when you get them together, it is a really dynamic environment. “Franchising is also a very efficient way to grow. The capital light model allows us to expand quicker than we’d otherwise be able to.” Even when Trent is asked to nominate a career highlight, the team theme dominates. “We work with a company called Leading Teams (expert facilitators who deliver performance improvement programmes) to develop and improve,” he reveals. “We are creating a team of leaders, moving away from the autocratic leadership model. We all have a say. Some of the best ideas come from within. We focus on people’s strengths. It’s a work-in-progress, but I consider implementing this approach to be a terrific achievement. “Most CEOs focus solely on outcomes. But I’m more about the dynamics of the group. Successful outcomes are a by-product.” Of course the achievements under his tenure that Trent lightly refers to as “successful outcomes” are significant – continued growth of the Choice Hotels Asia-Pac portfolio, doubling the company’s business delivery into its

“Most CEOs focus solely on outcomes. But I’m more about the dynamics of the group. Successful outcomes are a by-product.”

resortbrokers.com.au | INFORMER SEPTEMBER 2017

semi-retirement was a considered journey, and he took me along with him, so I was ready.” It is a leadership approach Trent too has embraced. “My style is typically to work with and develop the people around me, to foster a team of leaders, not just lead from the top down,” he explains. “It’s very rare that I’ll jump in and make a decision over the top of someone. I prefer to be a coach, and guide the process.” Trent’s focus on team strength and well-being suffuses every aspect of his business life. When Informer asks

properties, significantly growing the Choice Privileges loyalty programme to now have over 350,00 members, and successfully implementing a new strategic marketing direction with the launch of short break-inspired travel hub, NeedaBreak.com. Choice Hotels Asia-Pac offers five distinct brands ranging from the Econo Lodge economy brand to the mid-scale Comfort and Quality brands, and upscale Clarion and Ascend Hotel Collection. “Our five well-loved brands offer franchisees flexibility to partner with Choice in a way that suits their business model whilst also providing aspiration and incentive to continue to improve their business,” Trent says.

After two and a half decades in the hotel industry, there appears to be no sign of Trent Fraser’s interest waning. “As long as I believe I can contribute, make a difference, I’ll stay,” he said. And he’s not the slightest bit jaded with the frequent travel his role entails. “I still love it, mostly because my travel is related largely to meeting with our franchisees, both existing and potential. I love that. “We are so lucky there are so many amazing things to see in this part of the world. And I get to go to some quite remote and far-flung destinations. Just recently I’ve been five hours west of Brisbane, down to Esperance and Albany in WA, and over to the southern tip of New Zealand’s

South Island.” Trent lives in Melbourne with his wife Michelle and their three daughters (aged 19, 13 and 8). When he’s not in the office or travelling, he loves to get out and watch the St Kilda Football Club in action, and to take to the golf course. The avid Yarra Yarra Golf Club member tries to play at least once a week, time permitting, and the fact his middle daughter now shares his golfing passion gives him great pleasure. “I think golf teaches you a lot of things that are valuable in life and business – to handle pressure, develop resilience, to understand your strengths, to call the shots and be accountable, and that you can always improve if you put in the work.” END

IAN CROOKS MANAGING DIRECTOR

MENTORS

MEAN A LOT

Where it all started: Ian Crooks with his mentor and first employer, Doug Hitchcock.

MENTORSHIP IS BEST DESCRIBED AS A LEARNING AND DEVELOPMENT RELATIONSHIP OR PARTNERSHIP BETWEEN SOMEONE WITH GREAT EXPERIENCE AND SOMEONE WHO WANTS TO LEARN.

ecently I met up with the man who gave me my first job in real estate. It reminded me just how important mentors are to your career and business life. On June 6, 1974, I started work for New Zealand realtor, Doug Hitchcock, at Bay of Plenty Real Estate, a substantial agency with three branches and more than 35 sales people. I only stayed with that firm for three years. But I am reminded of that time frequently because I still apply things today that Doug Hitchcock taught me more than 40 years ago. Such is the value of great mentorship. We rarely accomplish things alone. Success very often hinges of getting good advice, and gaining support from the right people. We can benefit a great deal by learning from someone who has already reached the point where we want to go. And that was certainly the

case for me. I remember one lesson in particular. I had become friendly with a developer, and decided to partner with him in a duplex project. I spent a huge amount of time mucking around on it, mostly doing things like seeding lawns. Doug called me into his office. “Sit down Crooks,” he says. “So you’ve had a go at developing. Now think about this: while you were doing it, how many sales and opportunities have you missed?” I learned a big lesson – stick to your knitting. Plenty of water has passed under the bridge since then. Doug went on to head the residential construction and sales division of Fletcher, a major New Zealand construction company. Then he launched his own commercial property agency, Realty Brokers. I established Chevron Real Estate

in New Zealand in partnership with another early mentor, Ian Moffatt, before moving to Australia in the mid1980s and launching Resort Brokers Australia. My advice to anyone making his or her way in business is to find yourself a mentor. Sometimes mentor relationships form naturally, which is terrific if it happens. But you might need to be proactive, and go out and find yourself a mentor. Think about someone you admire, whose values you share, and approach them. And, when you are able, pay it forward. I like to think many of our team at Resort Brokers over the years have considered me a worthwhile mentor. If you’ve been fortunate enough to find success, share your insight and experiences. I can assure you, it will always be remembered and valued. END

INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

› Freehold Going Concern REF: FH004863

Incredible Caravan Park Opportunity - 90 Mins From Sydney The Colo Riverside Caravan Park is set on over 9 hectares (23 acres) of riverfront real estate and has undergone a full make over within the last two years with upgrades across the site.

›› 90 minutes drive from Sydney CBD

The development opportunity for this site is enormous with DA approval for 115 sites of which 50% are permitted for permanent residence. The rarity of a caravan park of this magnitude and proximity to Sydney is its most exciting feature. The main building has been refurbished to include a licensed café and function centre, full commercial kitchen, general store, off premises liquor store and onsite office.

›› Fully refurbished buildings

For onsite management there are currently two fully selfcontained two bedroom apartments available which can be converted into a four bedroom apartment as required. Located only 20 minutes drive from Windsor in Sydney’s North West and 90 minutes from Sydney’s CBD, this property is perfectly positioned for a mixed use caravan park with both MHE and tourism clientele. This location is ideal to take advantage of the through traffic coming from the Hunter to Sydney and the Blue Mountains, with potential to be the perfect stop over for caravan and camping enthusiasts.

›› Riverside location – 500m of Colo River Frontage ›› DA approval for 115 sites - 50% permanent ›› Over 9 hectares of land (23 acres) ›› Spacious manager’s quarters ›› Function centre and cafe with commercial kitchen ›› Additional income from general store and onsite bottle shop

Financials Nett Profit: On Application Price: Expressions of Interest

Exclusive

Shane Wynhoven

James Carrick

M. +61 424 174 592 E. shanewynhoven@resortbrokers.com.au

M. +61 400 644 065 E. jamescarrick@resortbrokers.com.au

Broker

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Broker

Colo NSW

› Management Rights REF: MR004905

Sunshine Coast Holiday Complex

Units

Letting Pool Year Tenure

The 3.5-star Nautilus Mooloolaba was opened in 1996. It is well located across from the road from beach, shopping precinct and the wharf complex which includes Underwater World. This facility is under a $100m redevelopment which will include new restaurants, cafes and other entertainment facilities.

›› $117,300 body corporate salary

This business is unique as it operates under a hotel license which prohibits any owner permanently residing in their units or renting them out on a permanent basis. The maximum available stay is 90 days. Hence all units are in the letting pool

›› The manager’s residence is a two bedroom, two bathroom fully air-conditioned unit with a private courtyard.

The Sunshine Coast recorded its highest domestic visitor numbers last year, attracting 3.394 million arrivals, 15.2% more than in 2015, braking the previous record set in 2005. Mooloolaba has seen strong growth over the last three years and is continuing to be a standout location. The caretaking agreement is in the accommodation module and has 21 years remaining on the term. Currently run under management who may stay on if required. This would suit either an investor or owner operator.

Bed

Bath

›› Prime Mooloolaba location ›› 100% of units in letting pool ›› Strong growth potential

›› Two car parks are allocated to the manager in the secure undercover carpark ›› Back office is attached and is on-title

Financials Nett Profit: $625,000 Price: $4,257,000

Exclusive

Glenn Millar

Alex Cook

M. +61 412 277 804 E. glennmillar@resortbrokers.com.au

M. +61 467 600 610 E. alexcook@resortbrokers.com.au

Broker

INFORMER SEPTEMBER 2017 |

Mooloolaba resortbrokers.com.au

› Leasehold

REF: LH004494

Mud Hut Motel Hotel The Mud Hut Hotel Motel is located on the Flinders Highway between Townsville and Mt Isa. The hotel-motel has multiple income streams - F&B, gaming, bottleshop and accommodation. The property provides excellent budget accommodation offering 12 studio-style rooms with ensuites. The hotel has a recently refurbished commercial kitchen and an in-ground swimming pool. This is a great opportunity to capitalise on the strengths of a rural community with a profitable integrated hotel with long lease.

Units

Year Tenure

›› New 30 year lease started in 2015 ›› Multiple income streams – F & B, Gaming, TAB, Keno, take-away and accommodation ›› Strong rural community ›› Three bedroom residence with ample space and storage ›› Great return on investment

Financials Nett Profit: $120,000 Price: $275,000 + SAV

Exclusive

Des Fagg

Shane Mullins

M. +61 427 849 119 E. desfagg@resortbrokers.com.au

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au

Broker

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Broker

North Queensland

Large Retail Hotel With Great Potential The East Ingham Hotel presents as a very attractive upside opportunity for an incoming owner-operator. Simple strategy – drive the business. The hotel is located in the regional township of Ingham. It is the largest retail hotel in the district and has a prominent highway location. The hotel comprises of a public bar, kitchen (currently not operating), back restaurant (closed), large drive-thru, front bar and accommodation.

›› ›› ›› ›› ››

This operations’ focus has been with the retail, which has worked well as this is the biggest drive-thru in the region. The growth comes with more attention to on premise operations, where there is plenty of room to move.

Financials

Highway location for ease of access Only drive thru bottle shop in rural town No chain store liquor competition in town Economic forecast looks positive for region growth Possibility to lease the hotel back on a rent of $120,000 per year, opportunity for investment at 9%

Nett Profit: $303,814 Price: $1,350,000 + SAV

› Freehold Going Concern

REF: FH004915

Exclusive

Shane Mullins

Des Fagg

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au

M. +61 427 849 119 E. desfagg@resortbrokers.com.au

Broker

Ingham

› Leasehold

REF: LH004865

Country Caravan Park – High Return With Super Low Rent Ratio! This property offers a range of cabin, caravan and site accommodation and is set amongst 3.75 acres of spectacular rural land and located in picturesque New South Wales. A new 30 year lease with rent set for absolute ease of entry and operation. Motivated vendors along with upside galore.

›› ›› ›› ›› ››

All 13 self-contained cabins are air conditioned and include spacious showers with several offering ensuites and lounge areas. Facilities include Wi-Fi, a covered in-ground pool, shaded outdoor areas, two BBQs and two guest laundries all within easy walking distance to shops, clubs and restaurants.

Financials

13 air-conditioned, self-contained cabins Opportunity to develop Set on approximately 3.75 acres Three bedroom residence In-ground swimming pool and 2 BBQ areas

Nett Profit: $160,780 Price: $535,000

Exclusive

James Carrick Broker

M. +61 400 664 065 E. jamescarrick@resortbrokers.com.au

Gunnedah INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

› Leasehold REF: LH004914

Long Lease on Beautiful Boutique 4 Star Hotel

Units

Year Tenure

A unique opportunity to purchase a genuine 4 star leasehold motel for a great price. The business provides both short and long-term options catering primarily to corporate clients drawn to the local mining and agricultural industries and interstate travellers visiting the town.

›› Ease of operation and presentation are the highlight of this 4 star property

Parkes itself is set to become one of the biggest benefactors of the $8.4BN Inland Rail project. The construction of the Inland Rail is set to provide up to 16,000 jobs and boost the nations GDP by $16BN over the next 50 years (infrastructure.gov.au/rail/inland). Strategically situated at the nations highway and railway cross roads; Parkes is at the logistical centre of Australia.

›› DA Approved for further expansion ›› Long lease of 31 years ›› Diverse customer base ›› Corporate travellers and trade contractors provide a consistent revenue stream ›› Repeat business is a highlight ›› Inland rail project will provide 10 years of growth

Hotel Graceland also boasts a highly regarded restaurant (IKON), which provides further cashflow and amenity. Being only recently extensively refurbished, all areas are tastefully renovated and fitted with modern appliances. The property also provides a sizable function room frequently used by local clubs and industry conferences.

Financials

The hard work has already been done on the property and the highlight has to be the overall presentation and ease of operation. Hotel Graceland would suit absentee owners running under management or a couple looking to enjoy the fruits of their labour.

Nett Profit: $239,373 Turnover: $965,058 Price: $525,000

Exclusive

Andrew Rendall Broker

M. +61 412 635 344 E. andrewrendall@resortbrokers.com.au 34

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Parkes

› Management Rights REF: MR004895

Resort Style Property in a Permanent Complex

Units

Letting Pool Year Tenure

This magnificent gated resort style property is a pleasure to bring to the market. Boasting a large stand alone four bedroom home, renovated to the highest quality with separate on-title office and spacious private outdoor entertaining area. The double garage also opens to a large man cave. Consuming practically have of the size of the home, this basement has more storage than anyone could need.

›› Permanent quiet gated complex

A great body corporate salary, only two hours a week in the office and established operating procedures makes this easy for a newcomer to step in.

›› Resort style facilities

Castles in the Sky is 4.5 star rated by its tenants. This can be attributed to the resort style facilities (solar/gas heated indoor pool, outdoor pool, full size tennis court, well equipped gymnasium, recreation room, large BBQ area), the peacefulness of the environment or perhaps the accessibility to public transport, Harbour Town, Westfield and the local Arundel Hills Country Club. This complex has it all and is a true resort style townhouse complex. Total of 19 in the rental pool with three outside agents, there is still room for growth.

Bed

Bath

›› High rental demand area ›› Stand alone, large bedroom home with private courtyard ›› Two hours a week office hours ›› Good body corp salary ›› Low maintenance gardens ›› Gallery Vie Compliant

Financials Nett Profit: $140,000 Price: $1,270,000

Exclusive

Jenny Sorenson

Paul Mueller

M. +61 475 089 468 E. jennysorenson@resortbrokers.com.au

M. +61 439 255 507 E. paulmueller@resortbrokers.com.au

Broker

INFORMER SEPTEMBER 2017 |

Parkwood

resortbrokers.com.au

Feature

Taking on

OTAs

… INDUSTRY IN EPIC STRUGGLE TO REGAIN POWER IN LESS THAN 20 YEARS, ONLINE BOOKING AGENTS (OTAS) HAVE MORPHED FROM FRIEND TO FOE FOR MANY ACCOMMODATION OPERATORS. NOW SADDLED WITH ONEROUS CONTRACTS AND CLIMBING COMMISSION RATES THAT WEIGH HEAVILY ON PROFIT MARGINS, THE INDUSTRY IS FIGHTING BACK. THE BATTLE IS ON TO REGAIN SOME CONTROL.

resortbrokers.com.au | INFORMER SEPTEMBER 2017

emember when OTAs were seen as a useful new tool to deal with excess room inventory? Great idea, a win for everyone: improved occupancy for accommodation providers, a good deal for consumers, a commission on supply for the OTA. Now, providers have little or no control over their inventory, they and consumers are being screwed, and the OTAs are faceless foreign behemoths worth billions. Microsoft launched Expedia Travel Services in the US in 1996, closely followed in 1997 by a European counterpart, Priceline. Australia’s Wotif started in a Brisbane garage

in 2000 with just 60 properties. By 2003, it was thriving across Australia and NZ. In 2006, it listed on the ASX, before expanding into Asia in 2008. By 2013, travel sales generated by OTAs accounted for around 45% of all European travel sales revenue (Euromonitor 2013). And 76% of that was generated by the two giants, as they swallowing up virtually all competitors in their path. The Priceline Group gobbled up Booking.com, Agoda, Kayak and Cheapflights. Expedia subsumed Travelocity, Orbitz, Hotels.com, Lastminute, Hotwire, Trivago, CheapTickets and eBookers. Our own Wotif was acquired by Expedia in 2014

High commission rates, while squeezing profit margins for operators, are ultimately driving up the cost of accommodation for consumers. So much for the widespread belief that online booking gets you the best deal. “Consumers will ultimately be the losers through higher prices, or worse still, less choice because smaller operators in regional areas could be forced out of business,” Munro said. Generally, accommodation owners are reluctant to speak out publicly for fear of reprisals. One operator told us the story of a motelier reduced to tears when discussing the issue. PARTNER OF ADVERSARY? “The OTA had been discounting his prices without his permission. With the OTAs massive growth, Guests were turning up expecting the dynamic shifted. They became to pay $95 a night, less than it cost such a pervasive main-stream him to provide that room. He and his distribution channel, no operator could wife were working horrendous hours afford to forego their marketing might. doing their own cleaning and laundry Every hotel and motel, regardless because they couldn’t afford to pay of size or brand affiliation, is faced cleaners. He was utterly distraught.” with this imperative. OTAs give them Control is a vastly wider wrested from audience operators in other than they ways too. The can access inability to be themselves. selective about But it comes what bookings at a cost. you accept. Being OTAs are a compelled to necessary, and AAOA SUBMISSION TO THE ACCC, OCT 2015 sell through OTA increasingly channels even at expensive, evil. peak times when While you could easily fill all vacancies they’re supposed to be ‘agents’ for without paying commissions. OTAs accommodation providers, many COST OF LOSING CONTROL are even implementing their own now question who is actually working customer loyalty programmes, That fight is ongoing. Meanwhile, for whom. The relationship is both competing with accommodation operators also confront the twin symbiotic and adversarial. Critical providers for the ‘customer problems of increasing commissions complaints about OTAs relate to relationship’. and diminishing control. competition, control, cost and taxBack in 2011, Wotif boasted avoidance. RECLAIM RELATIONSHIPS it didn’t force operators to “pay Such were the concerns about commissions at levels dictated by anti-competitive behaviour, the So how is the industry fighting international behemoths.” Within Australian Competition & Consumer back? Aside from the sterling a fortnight of Wotif’s acquisition by Commission (ACCC) investigated the advocacy war being waged by Expedia, their commissions increased online agency market, particularly industry bodies like AAoA and from 11% to at least 15%. in relation to the imposition of price Tourism Accommodation Australia Operators naturally fear parity conditions on operators. (TAA), operators large and small are commission rates might follow the But the outcome (Sept 2016) taking matters into their own hands. overseas trend to levels as high as was a huge disappointment – a Among the larger providers, 25%. Many say fees can already be negotiated ‘arrangement’ with Expedia loyalty programmes (offering that high if you want premium position and Booking.com that would allow benefits the OTAs cannot) have been on an OTA website. Buck the system, operators to offer lower rates to their the chief strategy. The drive to build and you might find your property customers but, and it’s a big ‘but’, only room inventory, marketing resources bumped into online oblivion. on the phone or face-to-face, not on for $703 million. Today, they form a virtual duopoly, two all-powerful global conglomerates the Accommodation Association of Australia (AAoA) says control around 80% of the online travel agency market in Australia. Moreover, they’ve usurped billions in economic activity that used to contribute to Australia’s tax base. The AAoA says, based on them commanding roughly $5 billion p.a. in gross spending here, at an average 15% commission, that’s $750 million the vast bulk of which is funnelled overseas so it doesn’t register as Australian income.

their own websites. How can you not be permitted to offer your own rooms on your own website whenever and at whatever price you see fit? The AAoA, on behalf of members, was outraged, calling it a “back room deal” that ignored the fact more than 60% of accommodation bookings are made online. They immediately called for the ACCC to re-examine the issue, and stepped up the campaign in December when the High Court ruled against Flight Centre for price-fixing. The court found Flight Centre had breached competition law when it asked airlines to stop issuing cheaper tickets directly to customers. So, it’s price gouging when Flight Centre does it, but not when the giant global OTAs do it? “If the High Court has the view that competition laws apply to relationships between operators and their agents in the aviation industry, then the same must apply in the accommodation industry,” insists AAoA CEO, Richard Munro.

“OTAs do not drive demand. OTAs benefit from prevailing market conditions by reason of their contractually imposed terms.”

INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

Feature

PROMOTE CARE AND SECURITY simply cannot be neglected is the and market share to levels that property’s own website. While the can take on the OTAs at their own ACCC might still preclude operators This supports the assertion by game has fuelled a record period of from undercutting the OTAs online, some analysts that the battle need not mergers, acquisitions and alliances. operators can use their sites to be fought on price. In fact, research The ultimate objective is to build ‘capture’ potential guests. by J.D. Power suggests travellers who direct bookings. And you don’t A classic hotel booking path begins book through OTAs are more likely have to be a major branded hotel with the guest searching on an OTA. to experience problems and be less company to join that push. It simply Then frequently, once prospective satisfied with their stays than those takes persistence, training for front properties have been short-listed, the who book directly. of house staff, and a little ingenuity guest will check out each property’s Maybe the messages should to encourage direct reservations website. be less about discounts and more without jeopardising your OTA There is significant evidence that about booking security, guest care, agreements. upwards of 20% of direct bookings preferred treatment, and the ability On Queensland’s Sunshine Coast, occur after the Aqua Vista guest has found Resort operators the property Eric and Tanya through an Sealey, have well OTA. The and truly turned crucial factor the tide. When will be having they bought their an engaging, management user-friendly rights in 2013, website that direct bookings facilitates easy accounted for direct booking. only about 27% If your of their trade. would-be “Now direct guest can’t bookings are find good room closer to 80 descriptions, per cent of our great pictures, business, with easy-to-read OTA-generated policies, and sales down a convenient to about 20 booking path, per cent,” Eric they’ll leave revealed. He your site and still begrudges PROF. MICHAEL WEST, UNIVERSITY OF SYDNEY, IN THE CONVERSATION, MAY 30 2017 head back to every bit of the OTA. that 20%, but acknowledges BUDGET DECISIONS to communicate directly with the OTAs are useful for some customer operator if the guest needs to make segments, such as overseas bookings. There are many ways of looking a change or raise a concern. (Just “OTAs do have their place, but at the whole OTA argument. Some try and get to an OTA complaint their place is at 20 per cent, not 80 properties simply see the fees paid department through the many hidden per cent,” he insists. The key to Aqua to OTAs as ‘the cost of acquisition’, a layers guarding it!) Vista’s success has been relationshipde facto ‘marketing budget’, a way to Travellers must know that hotels building. That, and working hard to build exposure. can see if a booking has come through change entrenched booking habits. But when that budget approaches an OTA, so it will probably be allocated “Not a single guest who has booked 20% (in commissions), plus it requires an inferior room, retaining better through an OTA leaves our building you to hand over all your inventory, rooms and views for direct bookers. without knowing they could have done that’s a lot of money to be leaving Another strategy may be to better if they’d booked direct. We on the table. Trent Fraser, Choice develop business in areas where have a flyer that makes the case for Hotels Asia-Pac CEO and AAoA board the OTAs are not effective – group direct booking.” member, says joining a brand is worth business, for example, although that Eric stresses that front office staff considering. does require dedicated direct sales must be well trained to seize every “It is very difficult for and marketing efforts. opportunity to educate guests about independents. They should look at the Regardless of which guest the advantages. “Guests also really cost of joining a brand versus the cost category you target, and whether appreciate that we get to know them, of not. I’ve known of examples where you rely heavily on OTAs for business remember them, build a rapport and it used to be 30 per cent coming or not, one marketing tool that take an interest.”

"Over the past three years, Booking.com has paid a mere $2.46 million in tax in Australia, despite its offshore associates raking in $1 billion or so in revenue.”

resortbrokers.com.au | INFORMER SEPTEMBER 2017

through OTAs and now it can be 70 per cent. That’s a heavy reliance and a huge cost.” The fight-back is also now inspiring more inventive and collaborative strategies to take on the OTAs. Gorez, first profiled in the last edition of Informer (‘Collective movement to claw back OTA share’, Issue #86) is still in its pre-launch phase but is gathering strength. The concept is for a commission-free website that allows independent and chain operators to band together to reinstate direct bookings as their primary source of reservations. Organisers say preview events have drawn very positive feedback. As well as enquiry from Tasmanian B&Bs to barramundi fishing lodges in the far north, Gorez has attracted the interest of major operators like Oaks Hotels & Resorts and Spicers Retreats. Even regional tourism organisations have called, concerned that bookings made through some government websites actually direct guests via OTAs, incurring commissions.

In particular, it has resonated with regional motel properties who are among the most vulnerable. The trick now will be getting all these properties to register with Gorez for its formal launch later this year. MOMENTUM IS BUILDING In the meantime, there are other reasons for optimism. The ATO has moved on Google and Facebook, forcing them to bring their Australian income onshore. They must be pushed to do the same with OTAs. As Sydney University Adjunct Associate Professor Michael West concluded in a piece for The Conversation earlier this year, “Australian authorities have allowed predatory, secretive overseas businesses to plunder their tax base while penalising thousands of Australian accommodation operators.” This is not just Australia’s fight. France, Germany and other European countries have outlawed the practice of OTAs being able to dictate what

hotels can and can’t do with their own room rates. (take note ACCC!) The hotel industry in the US is going after the OTAs too. The powerful American Hotel & Lodging Association, which counts Starwood/Marriott and Hyatt groups as members, is also lobbying against the OTAs for price gouging. Financial analysts acknowledge the greatest threat to these listed giants is from the very people who own and provide the product they need to survive. Hotel room bookings are a big driver of OTA revenue, and increasingly they are facing competition from the providers. They have themselves to blame. The OTAs modus operandi a disgrace, Richard Munro says. They push the limits of competition law, hijack the intellectual property of hotels and motels on major search engines, and generally have poor, impersonal relationships with operators of accommodation businesses. “It’s time for this sort of behaviour to stop.” END

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Hillhouse Burrough McKeown 40

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Lawyers

New kids

ON THE BLOCK RESORT BROKERS AUSTRALIA HAS AGAIN STEPPED UP TO MEET CONTINUED ACCOMMODATION BUSINESS AND INVESTMENT DEMAND GROWTH BY FURTHER EXPANDING OUR TALENTED BROKING TEAM.

wo of the most exciting growth markets currently are Queensland’s Gold Coast and Sunshine Coast,” said National Sales Manager, Trudy Crooks. “So we are pleased to announce two new appointments that have significantly expanded our resources and service levels in these two critical markets.” Both new coastal recruits have been headhunted from the senior sales ranks of Bacardi Limited, the largest privately held, family-owned spirits company in the world.

TODD WARNER BROKER, GOLD COAST

Todd has joined Resort Brokers as an experienced sales professional with a proven track record of leadership in the liquor and construction industries over some 25 years. His focus has always been on providing excellent customer service and innovative, results-driven solutions by building great rapport with his clients and colleagues alike.

INFORMER SEPTEMBER 2017 |

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Editorial

For 11 years, Todd was a sales leader with Bacardi Martini Australia. His most recent role was as State Business Manager NSW/ACT, at the helm of the company’s top-performing sales team, based in Sydney. He grew market share for Bacardi’s portfolio and added value to his customers’ businesses by becoming a trusted advisor and business partner. In his last year at Bacardi, 2016/17, he delivered a record year of growth for his business unit. With a passion for property and development always bubbling away, Todd jumped at the chance to challenge himself in a new industry, applying his wealth of sales experience at Resort Brokers Australias Back in his much-loved home on the Gold Coast, he relishes providing great customer service and delivering results for management rights sellers and buyers. His skills add another valuable dimension to an already strong, experienced and professional Gold Coast team.

roven sales expertise and an exhaustive knowledge of the liquor and hospitality industries also combined to perfectly equip Arron for his role as a specialist tourism and accommodation property and business broker. Arron was born in New Zealand, but has spent more than 30 years on this side of the Tasman, building his highly successful sales career based in Western Australia. Initially, he gained first hand experience in the business, managing hotels and liquor stores for a decade. Then he found his true calling in sales. After six years as a rep with Strongbow Cider, Arron joined Bacardi Martini Australia. His sales success saw him progress quickly through the ranks to senior management. For close to 10 years before joining Resort Brokers, Arron held the position of WA State Manager, leading his staff to three ‘Team of the Year’ awards during his tenure. Arron’s path to Resort Brokers must have been ‘written’. To join a company that was founded by a Kiwi who will never relinquish his allegiance

ARRON BAILEY BROKER, SUNSHINE COAST

to the All Blacks, was the perfect destiny for a man who shares a similar passion. As well as being a mad keen rugby fan, he follows rugby league and baseball, and enjoys weekend rides on his motorbike. Arron is loving life with his wife and daughter on the magnificent Sunshine Coast, where vendors and buyers alike benefit from his wealth of sales expertise, business acumen and professionalism. The seachange has also allowed him add fishing to his list of sporting and recreational pursuits.

› Leasehold

REF: LH004379

Tree Change Motel You’ve Been Dreaming About 39% return leasehold in the quaintest town in Queensland; that’s after rent and all expenses of course. Close to schools, hospital, all the day-to-day amenities needed and only a 30 minute drive to a large regional town with theatres, art galleries, private hospitals and schools. Due to the fact that the town is a stopover, not a destination for the majority of guests, the owners are afforded a fair bit of free time during the day. All the rooms have recently been refurbished and present beautifully. Also to be considered is the large residence with three bedrooms, main with ensuite, and large living room with fireplace.

›› Excellent highway position halfway to the Whitsundays from Brisbane ›› Consistent performer for 16 years with one lessee ›› Beautifully presented with great street appeal ›› 39% return ›› Member of major chain

Financials Nett Profit: $177,643 Price: $450,000

Exclusive

Len Booth Broker

M. +61 438 139 422 E. lenbooth@resortbrokers.com.au 42

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Springfield Central Queensland

› Management Rights REF: MR004924

Fully Tenanted, 22 Year Agreements, Live Off-Site!

Units

Letting Pool Year Tenure

Mowbray East Apartments consists of 56 units with 47 in the letting pool. Opened in February 2015, these are near-new agreements with minimal maintenance issues.

›› Business only management rights agreements

This is a business only management rights with a spacious office for your exclusive use and no set office hours. There is no requirement to live on-site, however a one bedroom unit is included as part of the sale and could be an excellent commercial investment or will give you the option live on-site and soak up the wonderful suburb of East Brisbane.

›› New building - launched February 2015

The building has minimal caretaking or common areas to manage but with the drawcard of a roof top terrace with river and city views and recreational barbeque area. The stunning collection of residences comprises of 1 and 2 bedroom units with a mix of furnished and unfurnished rooms. This combination will ensure the continued success of the property, creating strong demand from the rental market.

* Nett Profit includes rent from manager’s unit.

22.5

Bed

Bath

›› Spacious onsite office and no set office hours ›› 22.5 years as of August 2017 ›› One bedroom manager’s unit is earning annual income of $20,280 until March 2018 ›› No requirement to live onsite ›› 83% of units in the letting pool ›› Growth area only 1 km to CBD, close to Woolongabba and the Bulimba precinct

Financials Nett Profit: $193,634* Unit Price: $420,000 Business Price: $936,112 Price: $1,356,112

Exclusive

Jessica Wilkie Broker

M. +61 401 003 023 E. jessicawilkie@resortbrokers.com.au

East Brisbane INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

RENTAL UPTAKE OF NEW INNER-BRISBANE

exceeding expectations

by GARETH CLOSTER MANAGERS WHO HAVE RECENTLY LAUNCHED NEW INNER-BRISBANE APARTMENT BUILDINGS ARE REPORTING RENTAL TAKE-UP RATES THAT HAVE EXCEEDED INDUSTRY EXPECTATIONS AND DEFIED NEGATIVE CONJECTURE ABOUT SUPPLY LEVELS.

resortbrokers.com.au | INFORMER SEPTEMBER 2017

n fact, the latest REIQ quarterly rental vacancy rate data for the June quarter revealed a tightening in inner Brisbane, a market overwhelmingly dominated by apartments. Inner Brisbane’s vacancy rate fell from a high of 4.4% in Q1 2017 to 3.5% in the June quarter. “Brisbane’s inner city is showing resilience, with the balance of landlords and tenants relatively equal for the June quarter,” REIQ CEO Antonia Mercorella said. “At 3.5%, the REIQ classifies this

Editorial

POSITIVE ABSORPTION

market as healthy. We know that the population growth and jobs in the southeast corner are, so far, sufficient to absorb the level of apartment supply coming onto the rental market.” Resort Brokers’ own direct research, gathered from off-the-plan (OTP) management rights buyers, supports that assessment. So does primary research by market analysts Urbis, who publish the quarterly Urbis Brisbane Apartment Market Rental Review.

Resort Brokers surveyed more than 25 managers who’ve launched OTP buildings in inner Brisbane the past 18 months, complexes ranging in size from 31 to 424 apartments. Feedback clearly showed new units are in demand and renting surprisingly quickly. Despite frequent negative press about the Brisbane unit supply situation, well-located units with high amenity are in strong demand. Interestingly, we found larger buildings (100+ units) are renting at roughly double the rate of smaller, boutique properties. This is due to both the marketing might of the major buildings and their generally superior location and amenities. More about that later. Urbis director Paul Riga pointed to Residential Tenancies Authority (RTA) figures that confirmed the strong takeup of new apartment rentals. New bond lodgements rose by 17% (2,500 units) from 2015 to 2016. “This demonstrates the pent-up demand that was present within the Brisbane market for this type of rental product,” he said. The number of new bond lodgements for 2017 is already well on track to exceed the 2016 figures, with an increase of almost 650 additional bonds in the June quarter 2017 compared to that recorded in the June quarter 2016. “This growth in bond lodgements is one example of the positive absorption of new apartment rentals within inner Brisbane.” Urbis also confirmed our anecdotal feedback that inner city locations like South Brisbane and Newstead have been successful in enticing tenants that traditionally rent in middle ring suburbs like Chermside and Mt Gravatt. “Data highlights that, in the March quarter 2017, 50 per cent of residents moving into new apartments within the inner Brisbane area were coming from middle and outer precincts, with almost another 25 per cent being pulled from existing product in the inner ring,” Riga said. AMENITY ABOVE AND BEYOND This brings me back to my earlier point about the pulling power of location and amenity. Having

personally been involved in launching two OTP management rights in the last 18 months, I can confirm that new units and townhouses are what the rental market wants. In a market where a pool and gym had become the norm, competiveness pushed developers to invest in internal amenity. As Urbis observed, “new developments have increased the attractiveness by not only offering state-of-the-art pool and gym facilities, but going above and beyond with

“THE QUALITY OF LOCATION AND BUILTFORM IS KEY, WITH WELL-LOCATED, HIGH-QUALITY BUILDINGS WITH PREMIUM AMENITIES TAKING THE SHORTEST PERIOD TO REACH FULL OCCUPANCY. THESE HIGHER QUALITY PROJECTS ARE ALSO EXPERIENCING MINIMAL RENTAL PRICE DECREASES AND LIMITED RENTAL JOHN RIGAS

URBIS DIRECTOR

formal dining spaces with chef kitchens, cinema rooms, yoga lawns, resort-style facilities, concierge, executive lounges, karaoke rooms and skyline bars. “The quality of location and built-form is key, with well-located, high-quality buildings with premium amenities taking the shortest period to reach full occupancy,” Riga said. “These higher quality projects are also experiencing minimal rental price decreases and limited rental turnover.” Our responses from managers suggested buildings with 100+ units are letting up at around two units per day, compared to sub-50 unit buildings

Alert!

achieving a one per day take-up rate. The premium market is doing exceptionally well. The better the apartments, the lower the vacancy rate and the more market competition for them. Our other key findings include: > Quickest to rent are 1brm units (least expensive) and 3brm apartments (in lowest supply); > While 2brm, 1 bathroom units have historically been the most difficult to rent, a small downward adjustment in rent has put them in high demand. Key markets for this unit type are work-fromhome tenants (office in the second bedroom) and separated couples whose shared parenting responsibilities call for costeffective accommodation. FUTURE SUPPLY All this evidence seems to support the old adage, ‘if you build it, they will come.’ At the same time, given the apartment market’s unswerving ability to self-correct, the forward supply of new apartments is drastically decreasing. Urbis points to Australian Bureau of Statistics (ABS) New Dwelling Approval data that shows, within inner Brisbane, new approvals have fallen from 11,161 in 2015 to 7,461 in 2016, to only 1,901 recorded to May this year. It is also assumed, not all of these will proceed. “Since the peak, the number of project launches each quarter has drastically declined, with the June quarter 2017 recording only five project launches (down 80%),” Riga said. “Looking forward, launches are expected to slow even further, with only two projects set to launch in the December quarter 2017.” For management rights buyers, that means a contraction in supply, which indicates all new OTP opportunities will be very keenly sought. My family and I have launched over eight OTP buildings during the past 20 years, and I firmly believe that the Brisbane market has exceptionally strong fundaments, which will continue in the long-term. END 46

FOREIGN RESIDENT

PAYMENTS

CAPITAL GAINS WITHHOLDING

resortbrokers.com.au | INFORMER SEPTEMBER 2017

FURTHER CHANGES ON THE WAY

Editorial

On 1 June 2017 the Treasury Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Bill 2017 was introduced in the Federal Parliament. The Bill proposes a number of changes to the foreign resident capital gains withholding payments regime through increasing rates and decreasing thresholds. WHAT ARE THE PROPOSED AMENDMENTS? The Government is proposing an amendment to the Taxation Administration Act 1953 to modify the foreign resident capital gains withholding payments regime by: – increasing the withholding rate to 12.5 per cent; and

WHAT ARE THE CONSEQUENCES OF THESE AMENDMENTS?

"ALL PROPERTY TRANSACTIONS WHERE THE CONSIDERATION IS $750,000 OR MORE WILL BE AFFECTED BY THESE AMENDMENTS REGARDLESS OF WHETHER THE SELLER IS A FOREIGN RESIDENT OR NOT. IT WILL BE NECESSARY FOR CLEARANCE CERTIFICATES TO BE OBTAINED IN THESE TRANSACTIONS.”

DAVID BURROUGH

& GEOFF NEILSON

udget night on 9 May 2017 saw Federal Parliament announce significant potential changes. Some of the proposed changes may never be legislated. However, one change is currently being considered by Federal Parliament.

relevant indirect taxable Australian real property interest, a foreign resident capital gains withholding payments obligation will arise, if the market value of the CGT asset is $750,000.00 or more. It is important to note that foreign resident capital gains withholding payments obligations do not arise in relation to a CGT asset if, so far as is relevant, the market value of the CGT asset is less than $750,000.00 and the CGT asset is: – taxable Australian real property; or – an indirect taxable Australian real property interest, the holding of which causes a company title interest to arise.

– reducing the withholding threshold to $750,000 These amendments are expected to apply in relation to acquisitions of property that occur on or after 1 July 2017. Under the current taxation law, if a foreign resident capital gains withholding payments obligation arises, the purchaser is required to pay 10 percent of the first element of the cost base of the Capital Gains Tax ("CGT") asset to the Commissioner. The first element of the cost base is usually the purchase price of the asset. As a consequence of the amendments, if the CGT asset is taxable Australian real property or a

All property transactions where the consideration is $750,000 or more will be affected by these amendments regardless of whether the seller is a foreign resident or not. It will be necessary for clearance certificates to be obtained in these transactions. A clearance certificate, to be provided by the seller, will provide that the property is not subject to any CGT liability and will remove the obligation for the purchaser to withhold purchase monies. If a clearance certificate is not provided, then the purchaser would be obliged to withhold 10 per cent of the purchase price and remit it to the ATO. Currently the obligation applies to transactions where the consideration is $2 million or more. The reduction in the threshold to $750,000 will mean that the obligation to obtain and supply a clearance certificate will become more frequent. SUMMARY When entering into future contracts we recommend considering the potential tax implications and obligations that may arise. You should always seek our advice for how best to protect yourself in further dealings. END Please do not hesitate to contact David Burrough by phone on (07) 3220 1144 or by email at davidburrough@hillhouse.com.au if you would like further information on this article or for any other assistance.

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STUNNING LARGE SCALE PERMANENT OTP RUN UNDER A SINGLE SCHEME

Expected to be one of the last off-the-plan projects to be offered during the current development cycle, Chester & Ella is a truly exceptional OTP management rights opportunity in one of Brisbane’s most soughtafter lifestyle precincts. Two striking towers of 18 storeys each, Chester & Ella hosts 319 apartments. This residential oasis with upscale hotel-style amenity is the first development in Brisbane by awardwinning Kokoda Property who for the last 20 years have created luxury landmarks in Melbourne’s most desired suburbs. Situated just two blocks from the city’s hottest food, fashion and lifestyle strip, James Street, this is sophisticated inner-city living at its finest and is less than 2km from the Brisbane CBD.

Chester & Ella delivers a unique level of glamour, quality finish and upmarket facilities from individual designer lobbies, residents bar, media room, chef-style private dining, fitness facilities, putting green and outdoor cinema to soaring rooftop pools and spa terrace.

OFFERING HIGHLIGHTS INCLUDE: • New 25 year agreements established to operate all 319 units under a single scheme. • Unique concierge service fully funded through the Body Corporate. • Construction scheduled to commence in Q4 2017. • Pre-sales have reached over 90% in Chester & 80% in Ella. • Projected net income $892,390 p.a. prepared by industry specialist McAdam Siemens.

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•C omprehensive rental analysis researched by Urbis. •E xceptional large-scale OTP project in a market with diminishing new residential development occurring • To be delivered near the end of the development cycle ensuring a strong position in the letting market •F irst class amenity for residents and guests positioning the manager for successful letting. Even in a crowded market, premium product always commands premium rental rates. In a maturing market flush with choice, investors’ attention has turned to a product of distinction and well-informed tenants, demanding high design values, are forever chasing the next, the newest. A compelling proposition of rare scale and calibre.

Fo r sal e by

EX PR ESSION S OF IN TER EST

TIM CROOKS OFF THE PLAN SPECIALIST M. 0422 208 450 E. TIMCROOKS@RESORTBROKERS.COM.AU

GARETH CLOSTER BROKER M. 0423 182 766 E. GARETHCLOSTER@RESORTBROKERS.COM.AU INFORMER SEPTEMBER 2017 |

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› Management Rights REF: MR004826

Profitable Holiday Rent Roll Top End Short Stays offers quality self-contained short-term rental properties, overlooking Darwin city and the Darwin Waterfront Precinct. On offer are 26 apartments that are unparalleled in the Northern Territory. Located within three main locations in Darwin CBD, they include one, two and three bedroom and penthouse apartments. All the properties have been selected for their expansive unobstructed views over the water or city, and their high-quality fit outs (including original artworks and top end finishes). The business has been well positioned to suit the market, accommodating for events and various guest requirements. On offer is a complete integrated business that will ensure on-going success. Currently operated with a waterfront showroom, a dedicated call centre, guest and operational vehicles, experienced staff and exceptional local knowledge from the founder. What are you buying? An exceptionally well thought-out business portfolio, with proven trading history and high annual profit.

Units

Letting Pool

›› Successful business model established over seven years ›› Experienced staff to assist in sale and ongoing operational business ›› Adaptive business model to suit changing traveller requirements ›› Magnificent apartments in the best locations ›› All processes and training have been perfected to support business ›› An exciting dynamic business offering a different

Financials Nett Profit: $557,000 Price: $1,100,000 + SAV

Exclusive

Shane Mullins Broker

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au 50

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Northern Territory

› Leasehold REF: LH004911

National Franchise Offering Profit, Performance and Position Quest Werribee comprises of 50 studio, one, two and three bedroom fully equipped apartments with kitchens (kitchenettes in studios), laundry facilities (not in studios), bathrooms and comfortable dining/living areas. Since its opening in February 2012, Quest Werribee achieved excellent results in the first three years. Further strong growth was achieved in years four and five, with 18.15% in year four and 7.78% in year five. ARR in year 5 increased by over 5.7% with Rev Par increasing by 8% from $133.93 to $144.74. The property is located centrally to a number of leisure, sporting and cultural venues. These include the National Equestrian Centre, Werribee Football Ground, Eagle Stadium, Werribee Mansion, Werribee Open Range Zoo, Shadowfax Winery, Werribee Golf Club, Wyndham Cultural Centre, public and private hospitals and the local race track containing the state of the art International Horse Centre.

›› Constructed and operational from February 2012 ›› Member of Quest Apartment Hotel Franchise Group ›› Rail services and freeway access to Melbourne CBD, Geelong, Tullamarine and Avalon Airports ›› Occupancy in excess of 80% ›› Substantial growth expected as business matures

Financials Nett Profit: $578,121 Price: $2,430,000

Exclusive

Jim Chapman

Victorian State Manager

M. +61 413 444 782 E. jimchapman@resortbrokers.com.au

Werribee INFORMER SEPTEMBER 2017 |

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Editorial

GST ON FOREIGN ONLINE TRAVEL AGENTS Accommodation business operators will by now be aware that there have been changes to the GST laws (effective 1 July 2017) which apply to NonResident Online Service Providers. The rules apply to Foreign Online Travel Agents (OTA’s), predominantly booking.com and Expedia.

TONY ROSSITER

he law change has generated significant uncertainty within the industry and for that reason we wish to respond to some of the questions we have recently received.

HOW ARE HOTELS AND MOTELS IMPACTED? The new laws provide an exemption if the Accommodation property is registered for GST (i.e. charges GST on the tariff to guests). In short, the government will not make the Foreign OTA collect GST (and pay it to the ATO) if their customer will simply claim back the GST charge in its BAS. This will mean for both freehold 52

and leasehold Hotels, Motels and Serviced Apartment operators etc. who are registered for GST there will be no change to the position prior to 1 July once you have notified your OTA’s that you are registered for GST. Invoices received from Foreign OTA’s will remain GST Free and there is nothing more for you to do. HOW ARE MANAGEMENT RIGHTS IMPACTED? Management Right Operators who have correctly notified their OTA’s will start to receive invoices which include a 10% mark-up for the GST charged, if the Foreign OTA charge is $100, then the invoice you receive after 1 July will total $110 ($100 + $10 GST). HOW IS IT ADMINISTERED? To work out which customers are ‘exempt’, booking.com and Expedia sent an email to their customers to ask the question…“Is your property registered for GST?” This is a 'Yes' or 'No' Question. HOLMANS VIEW…

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We maintain a view that for most

Management Rights Operators “Yes” is the wrong answer to give. We contacted the National Tax Association of Australia (NTAA) prior to 1 July to ask how they think our clients should respond to the questions… “Is your property registered for GST?” The NTAA consider that our clients should be answering the question as though they were the unit owner (i.e. the owner of the property) and in most cases the unit owner is not registered for GST. In any event, GST is not charged on the accommodation supplied to guests. Hence, we are advising our clients to answer “No” to the question. WHAT IS THE CONSEQUENCE OF ANSWERING “NO”? The “No” answer supports the general position that the Management Rights operator is acting as an agent for the owners and this helps maintain the position that there should be ‘No GST’ on the tariff charged to guests. The “No” answer does however mean that the Management Rights Operator needs to on-charge the additional GST from the Foreign OTA to the unit owners and this will reduce

the net return for the unit owner on their investment properties. There will be no net change to the profit position of the Management Rights Operator.

WE SAY THAT THE “YES” ANSWER IS INCORRECT AND THAT IT CREATES EXPOSURE FOR THE MANAGEMENT RIGHTS OPERATOR AND THE INDUSTRY GENERALLY. WHAT IS THE CONSEQUENCE OF ANSWERING “YES?” We say that the “Yes” answer is incorrect and that it creates exposure for the Management Rights Operator and the industry generally.

We detail our concerns with a “YES” answer as follows: 1. The “Yes” answer is, in our view, incorrect as the “property” is not registered for GST. Booking.com has separately advised some clients that the question is just “Is your business registered for GST?” This is a subtle but important change to the question and we consider that its purpose is to remove booking.com from the obligation to charge the GST. Management Rights Operators need to be aware that the Government has anticipated that consumers may be tempted to provide the “Yes” answer so that they avoid the imposition of additional GST. The laws have specifically extended the penalty provisions in cases where incorrect information is supplied to the Foreign OTA. 2. The “Yes” answer reduces the GST revenue collected by government. The Government may scrutinise the “Yes” exemptions claimed by the foreign OTA’s and may seek to recover the underpayment of GST if the Foreign OTA has not collected GST in line with the legislation. Where a Management Rights Operator has incorrectly answered “Yes” the new GST rules place the

responsibility for collecting and remitting the GST back on you as the Management Rights Operator. These will be known as the “Reverse charge rules”. You will appreciate that by answering “Yes” all responsibility is removed from the Foreign OTA and placed on you as the Management Rights Operator to make sure that the initial “Yes” answer was correct! 3. The “Yes” answer suggests that the property owner is entitled to claim GST on costs associated with the supply of guest accommodation. We have consistently argued at an industry level that the accommodation supplied by Management Rights Operators is ‘input taxed’ which means: a. Owners don’t apply GST to the tariff charged to the guest; and b. Owners absorb the GST on the inputs such as Management Rights operator commissions and other costs. The “Yes” answer indicates that the Management Rights Operator is not acting as agent for the property but as principal or manager. We are concerned that the ATO may use this disclosure as evidence that the Management Rights Operator is operating a commercial residential premises in its own right (not as agent) and this would support the argument that GST should be charged to the guests tariffs. We understand that for Management Rights operators correctly answering “No” to the question creates additional compliance associated with the new rules however our advice ensures that you will not be exposed to future liability. Remember that the additional GST will be borne by the Owner but the penalty for incorrectly answering the Foreign OTA questionnaire may cost you as Management Rights Operator directly. If you operate Management Rights and have previously answered “YES” to the Foreign OTA question we recommend you consider amending you disclosure after seeking advice from your Accountant. The information, opinions or conclusions provided above are generic in nature and do not express individual advice or recommendations. You should always consult a suitably qualified professional before taking any course of action outlined above. Holmans welcome any queries you may have in relation to the above matters. END

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› Management Rights REF: MR004837

Be Your Own Boss For a Change

Units

Letting Pool Year Tenure

A wonderful opportunity presents itself at Surfers Beach Resort II, a fantastic place to start your move into the industry, but also a popular holiday destination on one of the Gold Coasts best beaches!

›› New 10 year agreement

This management rights would suit a couple looking at getting into the industry or a single person who can manage it on their own (the complex is currently run by one). The property comprises 18 apartments, with 14 in the on-site letting pool (8 long term, 6 short term). Many of the apartments in the letting pool have had partial or full renovations, meaning they present to a high standard. The apartments income is climbing monthly due to many factors, including the high occupancies the Gold Coast is currently enjoying. Broadbeach and Surfers Paradise are only a 25-minute drive to the Gold Coast airport and a little over an hour to the Brisbane’s International Airport. Local tram services operate along the Gold Coast highway approximately 100 metres west of the property.

Bed

Bath

›› Low maintenance complex ›› No office hours ›› Great nett profit of $74,000 ›› Office on title ›› Great for people looking to enter the MR industry ›› Currently run by one ›› $3.3 million upgrade set to transform Broadbeach Bowls Club into a world-class facility is less than a five minute stroll away

Financials Nett Profit: $74,000 Price: $685,000

Exclusive

Jenny Sorenson

Paul Mueller

M. +61 475 089 468 E. jennysorenson@resortbrokers.com.au

M. +61 439 255 507 E. paulmueller@resortbrokers.com.au

Broker

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Broker

Surfers Paradise

› Leasehold REF: LH004880

4.5 Star Apartment Hotel Business, North Brisbane

Units

Letting Pool Year Tenure

On offer is a dual opportunity - firstly to become a part of Quest Apartment Hotels, Australia’s leading franchise operator in the accommodation sector; secondly to acquire the leasehold to a high quality, corporate driven apartment hotel located in a prime city location.

›› Modern 4.5 star serviced apartment hotel comprising 28 apartments (54 keys)

The property consists of a total of 28 x two bedroom apartments, all but two of which are dual-keyed. Each of the dual-keyed apartments consist of a studio and a one bedroom apartment. When sold individually, there are a total of 54 keys, providing great flexibility to accommodate guest requirements.

›› Prime location next to Westfield Chermside and Gympie Road

Located directly next door to Westfield Chermside with easy access from Gympie Road, the hotel is perfectly positioned to leverage from the strong and growing demand for corporate accommodation in the immediate vicinity and the North Brisbane growth corridor. As part of the 150+ group of Quest franchises located across Australia, the new owner will benefit from thorough industry training, systems developed over several decades and extensive ongoing support. A real opportunity for the new owner to realise the identifiable growth potential of this business.

21.5

›› Very well maintained property - all rooms recently re-carpeted and repainted

›› Easy access to Brisbane CBD, airports, North Brisbane growth corridor ›› Solid lease with lengthy tenure - 21.5 years ›› Varied client base - health, corporate HQs, airports, industrial, projects

Financials Nett Profit: $428,132 Price: $1,900,000

Exclusive

Alex Cook Broker

M. +61 467 600 610 E. alexcook@resortbrokers.com.au

Chermside INFORMER SEPTEMBER 2017 |

resortbrokers.com.au

› Management Rights REF: MR004917

27 Freehold Lots & Management Rights

Units

Letting Pool

Bed

Bath

Once only opportunity! 27 apartments plus management rights!

›› Solid performance year on year

Right in the center of Williams Esplanade in the heart of Palm Cove, Paradise on the Beach is perfectly located in the heart of this thriving tourist destination. Palm Cove is one of Australia’s premier tourist hot-spots, north of Cairns.

›› Experienced staff to assist with transaction and ongoing operation

This bargain priced offering comprises 27 strata titled apartments (17 x studios and 10 x one bedroom apartments) plus caretaking and letting rights, one bedroom manager’s apartment, office/reception and storage.

›› Long agreements ›› Opportunity to purchase a further seven lots and retain as freehold ›› Cracking seaside location ›› Fully refurbished

This sale includes a very successful business model with strong management in place, ensuring the future success of the property. Future bookings are strong, while ample scope remains to grow the business via room rates and occupancy. A very rare and unique opportunity to capitalise on a strong performing business offered at a bargain basement price due to a partnership split up.

Financials Nett Profit: $403,000 Price: $3,600,000

Exclusive

Shane Mullins Broker

M. +61 447 185 001 E. shanemullins@resortbrokers.com.au 56

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Cairns

› Freehold REF: FH004885

Highly Profitable Operation in Regional Hotspot

120

Ayr Backpackers caters as a working hostel servicing the large quantity of farms within the Burdekin area. The property is especially popular with international backpackers that come to the area to work and then travel further around the country.

›› Opportunity for further expansion

This is a large purpose-modified accommodation for working backpackers in the area. The hostel consists of two Queenslander style and one brick dormitory, built individually on three titles with a owner’s residence on the 4th title. It is licensed for 120 beds and a short walk to the local supermarket. Operational owners with long term knowledge and relationships within the region will help facilitate the transition period, assuring a smooth and successful handover. The property has ample street parking as well as an onsite swimming pool, together with a range of recreational activities including pool table, volley ball court, table tennis and TV room. A great opportunity for a successful business with a strong trading history in a high economic growth region.

Beds

›› Strong cash flow ›› Excellent trading history ›› All buildings in excellent condition ›› Ample parking ›› No accounts receivable ›› Massive return on investment ›› Short and easy walk to large supermarket ›› Add-on opportunities are available if needed

Financials Nett Profit: $550,877 Price: $2,500,000

Exclusive

Des Fagg Broker

M. +61 427 849 119 E. desfagg@resortbrokers.com.au

Ayr INFORMER SEPTEMBER 2017 |

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Editorial

IS IT TIME FOR ONSITE MANAGERS TO EMBRACE

NICK BUICK

AirBnB ?

t’s been nearly ten years since the launch of AirBnB, and five years since it arrived in Australia. Much like Uber before it, the home-sharing platform’s grand promise to democratise the hotel and holiday rental market has brought with it a lot of problems - especially for hosts’ neighbours, bodies corporate, real estate agents, and of course onsite managers. 58

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We decided to explore onsite managers’ sentiment around AirBnB, so we reached out to our members and asked them to share their thoughts and concerns. This article is the first we will bring you in the series. To kick things off, we looked at the pro-AirBnB side: those who have found themselves accepting - or embracing - the sharing economy.

Editorial

THE BOTTOM LINE There’s no delicate way to say it, so let’s be frank: this whole thing is mostly about money. Consider for a moment that there are twice as many AirBnB listings in Bondi and Kirribilli than normal rental listings. This isn’t homesharing any more than Uber is carpooling. Managers live under the constant threat of losing tenants off their rental roll, and this means they have to innovate if they want to stay above water. AirBnB is a readily available revenue stream, and there’s nothing wrong with managers acknowledging that. Property investing and management are, after all, profitbased endeavours. Let’s explore how exactly AirBnB helps managers’ bottom line. IT’S WHAT OWNERS WANT

SOME BACKGROUND The case for AirBnB varies as much as onsite managers’ letting pools. They may operate in residential complexes, mixed-use properties or dedicated short-term accommodation. And they may be in a tourism hotspot (e.g. inner-city or other high-demand destinations) or somewhere with a mainly residential profile. Adding to the mix, it’s sometimes the owner who pushes for AirBnB, but it’s sometimes the manager, or it’s a mutual decision. There’s no one-size-fits-all definition, but for the purposes of this article, we’ll focus on the common factors influencing onsite managers to use AirBnB. With the above disclaimer in mind, let’s look at what our respondents told us.

Owner churn is a common thread in almost all the responses we received. Jonathan, who manages a large residential complex in the Newstead area in Brisbane’s inner east, wrote, “The risk of losing business makes us hustle to find a way to keep it. In my situation AirBnB was the answer, and it worked out well.” Another manager (let’s call her “Beth) who runs a mixed pool (short term, with some rental) near the Brisbane CBD said she had already lost a number of owners, who moved to dedicated AirBnB-only agents. In her own words, she “hates the idea of AirBnB”, but recognises that she needs to get any booking she can if she wants her pool to deliver a return. A third respondent, from Port Douglas, told us that they do AirBnB because unit owners wanted to get on the bandwagon, so they had little choice but to comply – or lose the account. But beyond the feeling of having to do AirBnB to placate owners, there is a silver lining in that it seems to end up bringing more guests in. IT FILLS VACANCIES Beth uses AirBnB on a needs basis as a supplementary source of revenue, and it appears to work for her.

“As a trial, I have placed three listings up for units in my short-term pool. I have made $8662 from 21 bookings across 69 nights, averaging $125 per night. But as soon as I have about 10 rooms left, I close the listings and also block out peak periods in the future in advance,” she said. Similarly, Jonathan told us he started using AirBnB in December 2016 when he had a furnished unit that was vacant. The unit was hard to rent as the owner was not willing to meet the market, and the fact that it was furnished was also limiting its appeal. Although not a fan of AirBnB, Jonathan suggested it to the owner, who agreed as he was highly leveraged and relying on the income to cover his debts. The revenue covered the expenses of the unit (council levies, rates, utilities) with a little left over for the owner. But it wasn’t all plain sailing. “The management of this was a killer. Dealing with keys, letting guests in, guests being locked out and cleaning the unit after guests vacated really added to my workload,” he said. “I did not enjoy using it as a platform to rent units as it was more work than I am used to, running a permanent management rights business. But it helped me keep the business.” Another manager, this time in Maroochydore, painted a positive picture, referring to frequent bookings, generally clean, tidy and friendly guests, and immediate payment. She also found AirBnB’s daily pricing tips helped her better understand and meet the market. IT OFFERS MANAGERS SOME CONTROL Speaking of the market, it’s clear that consumer demands are changing. The demand for AirBnB-style rentals is there, and it’s up to managers to address it. In the minds of our managers, the only way to stay on top of what’s happening in their letting pools is to be part of it, whether they like it or not. For example, if owners to decide to start letting their units on AirBnB, there’s nothing an onsite manager can really do about it – and rightfully so. There’s no existing law in Australia

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that can stop them, but managers may find some success in adding special clauses in new leases to disallow subletting via AirBnB without owners’ consent. As the representatives of owners and working arm of bodies corporate, managers are uniquely placed to oversee what’s happening in their complexes, and to ensure by-laws are adhered to. It’s just another platform, so why not? Brisbane manager Beth thinks that AirBnB is just another tool in an onsite manager’s advertising toolbox – and a more affordable one at that. In her view, other third-party booking engines can charge upwards of 15% commission, while competing with the very accommodation

SHE “HATES THE IDEA OF AIRBNB”, BUT RECOGNISES THAT SHE NEEDS TO GET ANY BOOKING SHE CAN IF SHE WANTS HER POOL TO DELIVER A RETURN. providers they promote. This leaves managers in a tough spot, as they’re forced to accept whatever they can get from the big travel sites. The logic is sound; if you’re already doing short-term rentals through a different platform, it makes sense to add another string to your bow. THE BAD PRESS IS OVERSTATED On the surface, AirBnB guests have a less-than-rosy reputation with onsite managers, but this appears to be confined to the mainly residential locations with high owner-occupier numbers; short-term properties don’t tend to notice the difference. For example, Jonathan, who we mentioned earlier, told us that the majority guests of were considerate, although there were a few parties, which drew the attention of the body corporate. However a manager on the Gold 60

Coast’s glitter strip wrote, “I don’t think it’s an issue as they don’t cause any problems. I feel they just want a bed and a roof over their head.” Beth in Brisbane said that all her AirBnB clients have been great, except one – and she noted that she also gets very few cancellations. MANAGERS USE AIRBNB THEMSELVES Onsite managers travel too – and many of our respondents noted that they enjoy using the service as guests. The AirBnB sales pitch seems to ring true; the personal touch, local knowledge, user-friendly website and homely service are very much real, although as increasing numbers of complete-property listings grows, this image may well decline. The fact that onsite managers, who you’d imagine would be the last people to endorse AirBnB, are in fact using the service themselves, speaks volumes. IT’S THE FUTURE It might sound like a cliché, but it’s true. AirBnB and other platform-based booking engines are here to stay. This writer doesn’t necessarily agree with the way that AirBnB, Uber and their ilk seem to operate by steamrolling into markets with little concern for existing legislation, but that’s not the point of the article. The economy is only going to get more digitised and on-demand, and short of lobbying local governments (as suggested here) and asking them to foot the bill for enforcement and regulation, perhaps the best option is to take the path of least resistance: if you can't beat them, join them. Laws may eventually catch up (the NSW government’s Options Paper is one example of them at least trying), but that’s what the taxi industry tried, and... well, we all know how that turned out. Author’s Note: Before commenting below, please note that this piece purposely only looked at the positives of AirBnB, as reported by the managers who wanted to share their thoughts with us. The next article will look at the other side of the argument. END

resortbrokers.com.au | INFORMER SEPTEMBER 2017

M IK E PH IPPS

Editorial

INTEREST ONLY - if only

AS BANK LENDING PRACTICES ARE MORE HEAVILY SCRUTINISED BY REGULATORS, DEBT SERVICE GUIDELINES ARE BECOMING MORE CONSERVATIVE AND ONEROUS FOR BORROWERS. WHAT WILL IT MEAN FOR BORROWERS SEEKING INTEREST ONLY FINANCE, AND HOW DO YOU NEGOTIATE THIS MORE CHALLENGING CREDIT ENVIRONMENT?

n August last year we published an article contemplating credit challenges ahead. I point this out with no great delight because, for once, it seems we had it right. Drop me a line if you want a copy of the original article, it’s on our web site. Anyway, one of the key points I raised a year ago was the expected pressure on lenders to reduce interest only lending. That prediction has most certainly come home to roost. In the past few months we have seen a range of major and second tier lenders bring in restrictive lending standards for interest only property finance and we have seen a number also increasing interest rates on interest only finance. To be sure interest only finance presents a higher credit risk to a lender so I don’t necessarily have a problem with differentiated pricing to reflect that risk. The obvious question is “Will there be a flow on effect for business and commercial finance? ”. The answer is already with us and unfortunately it’s a Yes. There are already major lenders out there whose credit policies do not allow for interest only management rights finance. I should clarify that by saying that this policy applies to borrowers chasing maximum gearing. Go for lower gearing and the interest only option can be available. I should also make it clear that while some lenders are going down the P and I route others seem comfortable with interest only, even at 70% gearing ratios. As we pointed out in August last year there are good reasons to go with interest only finance and certainly strategies for presenting your plans in a favourable light with the banks. Having said that there are two strategies that we strongly suggest you don’t use. The first is the main reason borrowers seem to ask for interest only and it’s got very little to do with tax planning. I want interest only so I’ve got plenty of money left over for good times, travel and lifestyle. Sorry, the bank doesn’t care and if you can’t repay debt due to lifestyle choices that’s probably not a good look for any applicant. The second reason is even more concerning. I want interest only because I can’t afford P and I. Again, sorry, no dice on this one either. Let’s have a think about that last reason in the context of debt servicing. Banks lend money over a

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specific term. Let’s say it’s 15 years. The borrower requests the first 2 years interest only. At the end of that 2 years we need to be able to show the bank that the borrower can afford to repay the loan over the balance term of 13 years. Just to make that calculation a little more challenging we also have to demonstrate that the borrower can meet that P and I obligation at interest rates 2% to 3% above current levels. You can see where this is going…..I hope. Essentially the longer interest only period you ask for the tighter the debt service numbers get. Incredibly banks have not always assessed debt service capacity in this manner but I can tell you that they all do these days. Given the current demeanour of regulators and ratings agencies we expect debt service guidelines to become more conservative and onerous over the next 12 months for both personal and business borrowers. In particular we expect lenders will place less reliance on tax savings through negative gearing on property, will make higher allowances for living expenses and will test debt service capacity sensitivity at even higher rates. I know what you’re thinking. I’m on interest only finance right now and it’s coming to an end. I want more interest only, I like interest only, I am addicted to interest only and my finance contract says I am going to P and I. Please don’t take my interest only away. How do I restart the interest only clock. There are certainly strategies for achieving this outcome, the most obvious being to simply refinance to another lender. However, there are also good arguments you can put to your current lender to negotiate a further interest only period or indeed to restart the entire loan term clock. One of the better strategies to achieve initial interest only terms or further terms on existing finance is to argue the notional amortisation strategy. We have just used this strategy successfully for a new applicant and achieved great results for a number of clients who wished to roll interest only loans for a further term So, what the hell is notional amortisation. Sorry, I can’t give that one away. Gratuitous plug……………………for all these reasons use an industry expert finance broker! END 62

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GALLERY

VIE

two years on... by

JOHN MAHONEY

BACKGROUND

t is now over two years since the Queensland Civil and Administrative Tribunal (QCAT) in April 2015 handed down a decision that threw the financing of management rights into turmoil. Some banks just stopped lending to the industry altogether, others would only lend to proven operators whilst others struggled to come up with any sort of policy at all. The Body Corporate and Community Management Act recognises financiers of management

Editorial

rights operators by requiring the body corporate to give a financier 21 days notice of, and an opportunity to rectify, a manager’s default. The Act precludes the body corporate from terminating an agreement if the financier acts in place of the manager or appoints a receiver. The Act then states that this does not stop the body corporate from terminating the agreement for something done or not done after the financier started to act under the subsection. It had always been understood that: • The section related to the financier or receiver – so that if post stepping in they did or did not do something under the agreement which entitled a body corporate to terminate it then the body corporate could do so; and • The financier was protected from termination as a consequence of something which the manager or some other person did or did not do pre or post the financier or receiver stepping in.

In Gallery Vie Suncorp as financier appointed a receiver to the manager. Subsequently a creditor successfully applied to have the manager placed into liquidation. Under the management rights agreement the appointment of a liquidator gave the body corporate the right to terminate. QCAT ruled that the body corporate could terminate. It found that even though a financier has stepped in or appointed a receiver, a body corporate could still exercise a statutory or contractual right to terminate an agreement due to the actions or inactions of another party. As a matter of interest the body corporate did not terminate but allowed the receiver to sell to a new manager – whose bank insisted that what have become known as the Gallery Vie changes be made to the management rights agreements! The effect of the decision was that financiers no longer had the protection they, and indeed all of the industry, thought they had. The facts leading to the problem in Gallery Vie were unique and incidentally could have easily been avoided by Suncorp. Personally I consider the banks to have grossly overreacted to the QCAT decision (a view is supported by the fact that at Gallery Vie, Suncorp was able to sell the rights to a third party) but unfortunately that is what we have had to deal with. THE GOVERNMENT’S RESPONSE As soon as the consequences of the decision became apparent, ARAMA briefed the government on the adverse consequences of the decision and lobbied hard on the point. The Queensland Law Society also made submissions to the government seeking a legislative change. The department acknowledged that this was not the intention of the Act and was an apparent anomaly. Still the government has failed to make the very simple amendment to the Act that would easily solve the problem. The rationale seems to be that the average person in the street is not disadvantaged so why do anything? Whilst it is possible that the amendment might be part of future

changes to the Act as a consequence of the ongoing review of the legislation, that might still be a year or more away and the government’s failure to act beforehand is extremely disappointing. Also disappointing is the fact that the banks who made (and continue to make) a big issue of the problem, did not even have the Australian Bankers Association make a submission to government or lobby in any way for change. DEALING WITH THE ISSUE The safest way to overcome the problem, from the banks’ perspective, is to amend the agreement at a general meeting of the body corporate, to remove the body corporate’s right to terminate where the bank was acting in place of the manager or had appointed a receiver, except in the case of default by the bank or the receiver. That of course requires a general meeting of the body corporate and delays settlement (in the case of a sale) for at least a month. It also requires that owners be convinced of the need to amend the agreements when there is no immediately apparent advantage to them in doing so. To compound the problem some of the more difficult body corporate lawyers are advising bodies corporate that they should not agree to the changes. The issue obviously arises at the time of an assignment or on refinancing. It might also arise at the time of a general review of a manager’s loan facilities. Mahoneys and 2 other management rights law firm came up with a solution to address the issue on assignment at committee level. Some banks adopted the solution but regrettably a number of the lawyers acting for bodies corporate will not accept that the problem can be dealt with that way. POSITION OF BUYERS Most lawyers acting for buyers will not insist on changes to the agreements to address the Gallery Vie problems. However the buyer’s bank may well want the agreements

INFORMER SEPTEMBER 2017 |

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Editorial

amended and of course the buyer must also recognise that whilst it may not be a problem for them when they buy it may become a problem for them when they sell. THE BANKS’ POSITIONS As indicated above, different banks adopted different positions on the issue and most have subsequently altered their positions. Sometimes the official position being offered by a bank does not match the position being taken at branch level. The positions being taken include: 1. Ignore Gallery Vie and it is business as usual. No banks have adopted this as a general position officially but a couple are doing just that in the case of certain operators or transactions; 2. Raise the issue, seek to have the agreements amended at general meeting, but if not possible require the buyer to attend to that post settlement. Although a common way of dealing with less serious perceived defects in agreements, this is not

generally something many banks have been prepared to entertain in relation to this problem; 3. Address the issue in the deed of assignment at committee level. Although in my view this is a relatively safe approach, it is one that only a couple of the banks have been prepared to follow and is also one that many body corporate lawyers oppose; and 4. Insist on the agreements being amended at general meeting before settlement. This is probably a less common approach than it was for a year or so after Gallery Vie and whilst we can generally raise some sound arguments why owners should support such changes there can be difficulties where body corporate lawyers advise their clients not to support such changes. THE FUTURE As a consequence of Gallery Vie, assignments and refinancing became more complicated and in

some cases almost impossible. There can be additional delays and expenses with general meetings and body corporate lawyers. The position has though improved slightly over the past 18 months or so with banks becoming a little more practical. Whilst I cannot see the position changing too much for the better any time soon, I do not think it will get worse despite the banks generally tightening their lending policies. Many managers are sensibly having their agreements amended at AGMs or EGMs now rather than waiting for when they sell or refinance. I certainly encourage all managers to do that. Whilst I am hopeful that the government will step up to the plate and make the simple legislative change needed to solve the problem, my initial confidence that this would happen has all but evaporated. Regrettably though, until that does happen, there will be some sales and refinancings which are going to become more difficult, more protracted and more expensive. END

Experts in Management Rights law Mahoneys law firm has represented the Management Rights industry and the Australian Resident Accommodation Managers Association (ARAMA) for more than 25 years.

With offices in Brisbane and on the Gold Coast, Mahoneys’ Management Rights team regularly: • Acts in the sale and purchase of management rights • Develops strategies to approach bodies corporate to secure new agreements • Attends and addresses body corporate meetings • Handles dispute resolution matters • Prepares letting appointments or special conditions • O ffers general advice and assistance on all management rights issues.

For advice from one of our Management Rights experts, call:

resortbrokers.com.au | INFORMER SEPTEMBER 2017 Brisbane: +61 7 3007 3777 Gold Coast: +61 7 5562 2959

www.mahoneys.com.au

› Management Rights REF: MR004848

Safe As Houses In Leafy North Brisbane On offer is the management rights and manager’s residence to Notting Hill Terraces and Bridgeman Greens, two permanent management rights complexes located directly adjacent to each other and operated as a single business since they were built. The business is currently run by a single operator with the assistance of contract gardeners. The current owner lives offsite and has tenants living in the manager’s unit. As such, the business would be ideal for a purchaser looking to live off-site, as well as an existing operator looking for an add-on business. Alternatively, with an unusually large stand-alone 4 bedroom house, this opportunity would be ideal for a purchaser with a family looking for a larger residence. In short, the set-up offers great flexibility in regards to operation and living arrangements. Despite superb access and being situated only 13km from Brisbane CBD, Bridgeman Downs is a very green and peaceful suburb of Brisbane. Located only a short drive to the Westfield Chermside and Gympie Road, local amenity is extensive. This all makes for a great suburb to live in and strong demand from renters.

Letting Pool Year Tenure

Bed

Bath

›› Secure management rights with very stable trading history ›› BC approval for the manager to live off-site ›› Additional $15,000 net income per annum in rent from manager’s unit ›› Set-up to be managed by one person – ideal as add-on business ›› Spacious stand-alone four bedroom manager’s residence with garden ›› Good scope to add additional income stream (ie maintenance) ›› Long tenure to agreements

Financials Nett Profit: $284,000 Price: $2,112,500

Exclusive

Alex Cook Broker

M. +61 467 600 610 E. alexcook@resortbrokers.com.au

Bridgeman Downs INFORMER SEPTEMBER 2017 |

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Agent Profile

Meet

JANE FANG BROKER CHINESE DESK

Our agents pride themselves on their local knowledge. They each look after a geographical patch, and grow to know it intimately. We feel this adds greatly to the confidence with which a property can be sold. In this feature we will get some thoughts on their local area and will also learn a bit about their personalities. HOW LONG HAVE YOU WORKED AT RESORT BROKERS AUSTRALIA? I joined Resort Brokers in November 2016. It has been the right decision for me and being part of a dynamic team of brokers who are passionate about the hospitality industry and its people is a real bonus for me as the Chinese Liaison Broker. WHAT IS YOUR BACKGROUND? I am from China and have been in Australia since 1990. I started work in retail in the tourism sector and then launched an importing business as a wholesaler to retailers. I built this business until it was sold in 2012. The importing business helped me to understand the interaction between cultures. I have real empathy for Asians doing business in Australia. I feel the experience gained in my own business equipped me well to assist Resort Brokersâ&#x20AC;&#x2122; Asian customers, in my role as Chinese Liaison Broker. TELL US ABOUT YOUR AREA I generally work in the Southside of Brisbane and service the Asian community around the Sunnybank district and further south. My understanding of Asian culture and local business greatly assists me to assess what is required by the Asian market when buying or selling a hospitality property. In my liaison

resortbrokers.com.au | INFORMER SEPTEMBER 2017

role, I link with other brokers in the company nationwide as a service to assist Asian buyers and sellers. I am passionate about the success of the Asian community in Australia and enjoy forming partnerships with happy and successful business people. TELL US ABOUT AN ISSUE WITH A SALE THAT YOU HAVE OVERCOME AND WHAT YOU LEARNT FROM THAT? I have only been with the company for a few short months and have learned that part of our company DNA is to work hard for the customer and never take anyone or any situation for granted. All issues whether big or small are important and must be addressed fully along the way. WHAT HAS BEEN YOUR BIGGEST SUCCESS SINCE STARTING AT RESORT BROKERS AUSTRALIA? I feel my biggest success to date is helping several buyers in the Chinese Community find the right property which suits them. I appreciate the focus and support provided to me by Resort Brokers as we connect with Asian businesses involved in tourism, accommodation and hospitality.

customer service and always strive to be open and transparent in my dealings with people. WHAT DO YOU LOVE? I love my family time and they are very important to me. I love working with people and feel very good when I see people succeed and we are part of it. I enjoy working with people to sort out their plans and that is why I am enjoying working in hospitality, because it is all about people and how they communicate with each other. DO YOU HAVE A NICKNAME? I was a good girl at school in China and did not really have a nickname while growing up. I get many versions of my Australian name Jane. There is Jen and Jenny and I suppose after many years now in Australia, my favourite nickname is my real Chinese name which is Juan. WHAT TO YOU DO IN YOUR SPARE TIME? In my spare time, I relax well and like reading, gardening, going to house auctions and the movies. I also enjoy following finance and the share market.

WHAT ANNOYS YOU? Dishonest people annoy me. Honesty and Integrity are very important to me. I like providing good

WeChat: JaneFang12

Sold Properties

Resort Brokers Australia has sold and settled 124 properties since the 6th January 2017. We have a further 132 under contract.

Passive Investment Kimba, SA

Management Rights Biggera Waters, QLD

Leasehold Motel Point Cook, VIC

FH Passive Investment Perth, WA

Leasehold Motel Albury, NSW

Management Rights Port Douglas, NSW

Leasehold Motel Bundaberg, QLD

Leasehold Hotel Cooktown, QLD

Management Rights Bundall, QLD

Freehold Motel Emerald, QLD

Management Rights Hamilton, QLD

Leasehold Motel Portland, VIC

Management Rights Noosa, QLD

Leasehold Hotel Melbourne, VIC

Management Rights Newstead, QLD

Leasehold Motel Wondonga, VIC

Management Rights Strathpine, QLD

Management Rights Surfers Paradise, QLD

Leasehold Motel Spring Hill, QLD

Management Rights Southport, QLD

Leasehold Motel Mundubbera, QLD

Management Rights South Brisbane, QLD

Management Rights Port Macquarie, NSW

Management Rights Labrador, QLD

Leasehold Motel Cairns, QLD

Management Rights Coolangatta, QLD

Leasehold Motel Belmont, NSW

OTP management Rights Mooloolaba, QLD

Management Rights Cairns, QLD

Freehold Motel Maclean, NSW

Freehold Motel Port Macquarie, NSW

Freehold Motel Bundaberg, QLD

Leasehold Motel Point Cook, VIC

Management Rights Noosa Heads, QLD

Management Rights Ningi, QLD

INFORMER SEPTEMBER INFORMER MARCH 2017 |

resortbrokers.com.au

Relief Managers Please note: This is simply a directory service that we provide to assist you. Should you choose to go on holiday or take a break, we recommend you interview and qualify relief managers yourself, before hiring. NB. You’ll find more managers listed on our website: resortbrokers.com.au/buy/reliefmanagers Ramon Spidla

Steve Reynolds

Barry & Lesley Roberts

MOTELS, RESORTS & CARAVAN PARKS NATIONWIDE

MANAGEMENT RIGHTS & MOTELS BRISBANE, GOLD & SUNSHINE COAST

MOTEL NATIONWIDE

M EE

M E

0413 614 936 steve.managementrightsrelief@gmail.com

M E

0428 422 456 lez.baz@bigpond.com

Llew & Trisha Pointon

Marion & Peter Keulen

Michael Stirling

RESORT & MOTELS NATIONWIDE

CARAVAN & HOLIDAY PARKS NATIONWIDE

MANAGEMENT RIGHTS, RESORTS & MOTELS QLD & NSW

M E

0400 035 359 llewp@tpg.com.au

M E

0411 865 905 marion_keulen@hotmail.com

M E

0437 455 865 stirling6298@yahoo.com

Michael & Carolyn Grealy

Mike and Teresa Thomson

Nanette Mortimore

MOTELS, HOTELS & CARAVAN PARKS QLD, NSW & VIC

MOTELS NATIONWIDE

MANAGEMENT RIGHTS BRISBANE

M E

0437 697 772 cmgrealy@optusnet.com.au

M E

0419 174 221 info@mitemgt.com.au

M E

0419 707 773 nanette.mortimore@gmail.com

Patricia Laverty

Paul & Jane Hansen

Peter & Janine Templeton

MOTELS & RESORTS QLD, NSW & VIC

CARAVAN PARK & VILLA QLD, NSW & VIC

CARAVAN PARK & MOTELS NATIONWIDE

M E

0478 611 202 patricia_laverty@hotmail.com

M E

0438 877 932 happycamperparkmanagement@gmail.com

M E

0408 178 130 tempy7@bigpond.com

Phillip & Sharyn Stallman

Rob & Lyn Keen

Rowena & Pat Magee

MOTELS NATIONWIDE

MANAGEMENT RIGHTS QLD & NSW

MOTEL & CARAVAN PARKS NSW & VIC

M E

0428 931 589 pjstal@bigpond.com

M E

0406 884 343 roblynkeen@gmail.com

M E

0437 232 227 rowenamagee@hotmail.com

Sally & Edward Shirke

Shane & Jodie Adamson

Shane & Madonna Ashman

ALL PROPERTY TYPES NATIONWIDE

CARAVAN PARK QUEENSLAND

MANAGEMENT RIGHTS NATIONWIDE

M E

0437 606 918 sshirkie@gmail.com

M E

0427 155 399 info@safejourneyaustralia.com.au

M E

0438 146 091 shaneashman@outlook.com

Vicki & Wayne Gowland

Yvonne & George Arato

Charlie & Jacky

MANAGEMENT RIGHTS & MOTELS QLD, NSW & VIC

ALL PROPERTY TYPES NATIONWIDE

CARAVAN PARKS & MOTELS QLD & NSW

M E

0434 200 110 vickigowland@hotmail.com

M E

0410 685 003 hgarato@bigpond.com

M E

07 4622 3221 jacquelineryan1@bigpond.com

Belinda & David Gustason

Carmel Moloney

Christian Carbone

ALL PROPERTY TYPES QLD & NSW

MOTEL QLD - GOLD & SUNSHINE COAST

ALL PROPERTY TYPES NATIONWIDE

M E

68 68

0402 255 078 rayann3010@hotmail.com

0403 219 562 gustafsondavid@hotmail.com

resortbrokers.com.au | INFORMER MARCH 2017 resortbrokers.com.au | INFORMER SEPTEMBER 2017

M E

0400 483 291 carmela1management@mail.com

M E

0432 008 988 alisonandlinley@icloud.com

Jeff Mitchell & Colleen Barnes

The Good Knights

Pauline & Robert Donald

Hotel and Motels NATIONWIDE

RESORTS, MOTEL & MANAGEMENT RIGHTS AUSTRALIA WIDE, OVERSEAS, EAST COAST BASED

MOTELS & CARAVAN PARKS QLD & NORTHERN NSW

M E

0418728493 jeff.colleen@bigpond.com.au

M E

0412 005 537 julia@brightandbold.com.au

0419 810 052 donaldhospitality@gmail.com

M E

Gary & Robyn Loakes

Jim & Carmel Ryan

John & Lesley Gibson

ALL PROPERTY TYPES NATIONWIDE

MOTELS AUSTRALIA & NEW ZEALAND

MOTELS NATIONWIDE

M E

0408 798 352 grl21@bigpond.com

M E

0437 404 079 muttley8@optusnet.com.au

0418 681 124 long.yard@bigpond.com

M E

John & Susan Conde

Kane Ansell & Robyn Hall

Kristy & Lance Butt

MOTELS QLD & NSW

MOTELS SOUTH EAST QLD & NORTHERN NSW

MOTELS SOUTH EAST QLD

M E

0438 488 738 jnsmotelrelief@internode.on.net

M E

0416 016 614 info@businessbay6.com.au

M E

0428 902 878 nqpropertygroup@gmail.com

Maria Delange

Paul & Arleene Moore

Paul Anthony Kirkpatrick

MOTEL & MANAGEMENT RIGHTS CENTRAL QLD

MOTEL MANAGERS QLD & NSW

MOTEL, RESORT & HOTEL NATIONWIDE

M E

0425 732 569 mariajdl@bigpond.com

M E

0404 855 711 pfandammoore@live.com

M E

0419 675 671 paul.kirkpatrick@gmail.com

Annie & Gary Miegel

Garry Baker

Chris Campbell

OPERATIONS MANAGERS NATIONWIDE

ALL PROPERTY TYPES NATIONWIDE

MOTELS & MANAGEMENT RIGHTS SOUTH EAST QLD & NORTHERN NSW

M E

0449 790 039 annieandgaz@hotmail.com

M E

0437 455 865 garrybaker7@hotmail.com

M E

0449 957 414 cj.campbell@gmail.com

Christopher Hillman

Colin & Laraine Fields

Elizabeth Grimm

MANAGEMENT RIGHTS, MOTELS & RESORTS QLD & NSW

ALL PROPERTY TYPES QLD & NSW

MANAGEMENT RIGHTS GOLD COAST

M E

0488 550 005 christopher.hillman@bigpond.com

M E

0402 176 933 larainefields@gmail.com

M E

0408 000 891 yellowroses4me2222@yahoo.com.au

Garth & Trish Carey

Geoff & Maryanne Cheeseman

Graeme & Deborah Wallace

RESORT & MOTEL QLD & NSW

ALL PROPERTY TYPES NATIONWIDE

MOTELS QLD & NSW

M E

0421 359 059 garth@careynominees.com.au

M E

0410 662 963 cheezmg@bigpond.com

M E

0427 512 751 graemedeb@motelmanagers.com.au

Peter Mackay

Karen & Robert Nisbet

Karla Harding

MOTELS & CARAVAN PARKS NSW

MOTEL & CARAVAN PARKS NATIONWIDE

B&B & GUESTHOUSE AUSTRALIA & NEW ZEALAND

M E

0408 000 554 mackas@gmail.com

M E

0488 934 899 karen.nisbet70@gmail.com.au

M E

0414 767 499 bnbangel@fastmail.net

Grant & Kerry Oâ&#x20AC;&#x2122;Sullivan

Lauren Kropp

Linley and Alison Maddick

ALL PROPERTY TYPES NATIONWIDE

ALL PROPERTY TYPES QLD & NSW

MOTELS NORTHERN NSW & SOUTHERN QLD

M E

0404 473 100 grant2466@bigpond.com

M E

0458 416 484 lauren@realstrategix.com.au

M E

0432 008 988 alisonandlinley@icloud.com

INFORMER MARCH 2017 | resortbrokers.com.au INFORMER SEPTEMBER 2017 | resortbrokers.com.au

69 69

Directory Introducing Resort Brokers Australiaâ&#x20AC;&#x2122;s national team of accommodation business and property brokers. We are the industry experts at your service in every state and territory.

Ian Crooks

Tim Crooks

Alex Cook

MANAGING DIRECTOR

SALES MANAGER

OFF THE PLAN SPECIALIST

BROKER

Nationwide

North Gold Coast & Surfers & Quest

M 0411 171 648

M 0477 882 210

M 0422 208 450

M 0467 600 610

E iancrooks@resortbrokers.com.au

E trudycrooks@resortbrokers.com.au

E timcrooks@resortbrokers.com.au

E alexcook@resortbrokers.com.au

Carla Cook

Nathan Eades

Gareth Closter

Brent Staker

MARKETING MANAGER

BROKER

Nationwide

Brisbane

South Brisbane

M 0467 600 611

M 0448 339 920

M 0423 182 766

M 0410 344 344

E carlacook@resortbrokers.com.au

E nathaneades@resortbrokers.com.au

E garethcloster@resortbrokers.com.au

E brentstaker@resortbrokers.com.au

Jessica Wilkie

Trudy Crooks

Neville Littleton

Glenn Millar

Tyler Millar

BROKER

South Brisbane

North Brisbane

Sunshine Coast

M 0401 003 023

M 0407 727 194

M 0412 277 804

M 0411 271 761

E jessicawilkie@resortbrokers.com.au

E nevillelittleton@resortbrokers.com.au

E glennmillar@resortbrokers.com.au

E tylermillar@resortbrokers.com.au

resortbrokers.com.au | INFORMER SEPTEMBER 2017

Arron Bailey

Ian Dore

Jenny Sorenson

Todd Warner

BROKER

Sunshine Coast

North NSW & Gold Coast

South Gold Coast

M 0452 022 387

M 0412 752 238

M 0475 089 468

M 0438 170 763

E arronbailey@resortbrokers.com.au

E iandore@resortbrokers.com.au

E jennysorenson@resortbrokers.com.au

E toddwarner@resortbrokers.com.au

Paul Mueller

Des Fagg

Shane Mullins

Chenoa Threlfall

BROKER

Central Gold Coast

North Queensland

Far North Queensland

M 0439 255 507

M 0427 849 119

M 0447 185 001

M 0403 143 151

E paulmueller@resortbrokers.com.au

E desfagg@resortbrokers.com.au

E shanemullins@resortbrokers.com.au

E chenoathrelfall@resortbrokers.com.au

Lynne Booth

Len Booth

Lindsay Cooper

James Carrick

BROKER

Central Queensland

West Qld & North NSW

Mid North & North West NSW

M 0408 704 778

M 0438 139 422

M 0418 711 047

M 0400 664 065

E lynnebooth@resortbrokers.com.au

E lenbooth@resortbrokers.com.au

E lindsaycooper@resortbrokers.com.au

E jamescarrick@resortbrokers.com.au

Shane Wynhoven

Andrew Rendall

Russell Rogers

Jim Chapman

BROKER

VICTORIAN STATE MANAGER

Greater Sydney, Central Tablelands & Hunter

Central NSW

South Coast, Nsw

Quest Specialist - NSW, VIC, SA & TAS

M 0424 174 592

M 0412 635 344

M 0416 166 909

M 0413 444 782

E shanewynhoven@resortbrokers.com.au

E andrewrendall@resortbrokers.com.au

E russellrogers@resortbrokers.com.au

E jimchapman@resortbrokers.com.au

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Stuart Charles

Michelle Matthews

BROKER

West Victoria

Melbourne CBD & West Victoria

M 0458 588 472

M 0400 474 861

E stuartcharles@resortbrokers.com.au

E michellematthews@resortbrokers.com.au

Damien Loorham

Kelli Crouch

BROKER

North East Victoria

South Australia

M 0409 399 932

M 0410 441 750

E damienloorham@resortbrokers.com.au

E kellicrouch@resortbrokers.com.au

Ray Ironside

Jane Fang

BROKER

Chinese Liaison Broker

Tasmania

National

M 0418 130 364

M 0402 399 613

E rayironside@resortbrokers.com.au

E janefang@resortbrokers.com.au

1300 665 966 resortbrokers.com.au

QUEENSLAND

PO Box 5004 West End, QLD 4101 (07) 3878 3999

NEW SOUTH WALES PO Box 78 Freshwater, NSW 2096 (02) 9904 8224

VICTORIA

PO Box 1100 Carlton, VIC 3053 (03) 9347 3100

SOUTH AUSTRALIA

PO Box 327 Fulham Gardens, SA 5024 (08) 8356 5057

1300 665 966 resortbrokers.com.au Follow us on social media

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