Informer Issue 104

INFORMER I S S U E N O. 1 0 4

AU S T R A L I A ’ S BES T ACCOM M ODAT I ON I N V E S T M E N T S H OWCAS E

®

SPECIALISING SPECIALISING FURNITURE HOTELS, ININFURNITURE FORFOR HOTELS, MOTELS, SERVICED MOTELS, SERVICED APARTMENTS, RESORTS APARTMENTS, RESORTS AND AND REFURBISHMENTS. REFURBISHMENTS.

NUMBER NUMBE NUMBE NUMBER

ONE ON ON ONE

IN HOTEL IN HOTEL FIT OUTS FIT O

IN HOTEL FIT O IN HOTEL FIT OUTS

OUR SERVICES OUR SERVICES SPECIALISING SPECIALISING IN INFURNITURE FURNITURE FORFOR HOTELS, HOTELS, MOTELS, MOTELS, SERVICED SERVICED APARTMENTS, APARTMENTS, RESORTS RESORTS AND AND REFURBISHMENTS. REFURBISHMENTS.

SPECIALISING SPECIALISING

FURNITURE HOTELS, ININFURNITURE FORFOR HOTELS, MOTELS, SERVICED MOTELS, SERVICED APARTMENTS, RESORTS APARTMENTS, RESORTS AND AND REFURBISHMENTS. REFURBISHMENTS.

Furniture FF&E design conce Furniture FF&E design concepts

Rendering & Furniture Ov 3D Rendering3D & Furniture Overlays

Custom furniture and joinery Custom furniture and joinery manufacturemanufacture

OUR SERVICES OUR SERVICES Turnkey packages Turnkey packages

Furniture FF&E Furniture design concepts FF&E design conce

Project Management Project Management 3D Rendering 3D & Furniture Rendering Overlays & Furniture Ov

Custom furniture Custom and joinery furniture and joinery Inhouse quality control Inhouse quality control manufacturemanufacture

Turnkey packages Turnkey packages Freight and logistics manag Freight and logistics management

OUR SERVICES OUR SERVICES Project Management Project Management

Full installation Full installation Furniture FF&E design Furniture FF&E design Inhouse quality Inhouse controlconcepts quality controlconce

Freight and logistics Freightmanagement and logistics manag warranties Commercial warranties 3D Rendering & Furniture Ov 3D RenderingCommercial & Furniture Overlays

Full installation Full installation

Custom furniture and joinery Custom furniture and Servicing Australia and Inter Servicing Australia andjoinery Internationally Commercial Commercial warranties warranties

manufacturemanufacture

Servicing Australia and Internationally Servicing Australia and Inter

Turnkey packages Turnkey packages

Hotelinteriors.com.au Hotelinteriors.com.au Hotelinteriors.com.au Hotelinteriors.com.au

Project Management Project Management

Dennis Clark MDIA Dennis Clark MDIA Dennis Dennis Clark Clark MDIA MDIA

info@Hotelinteriors.com.au 876 055 0420 info@Hotelinteriors.com.au 1300 022 info@Hotelinteriors.com.au 1300 876 876 055 0551300 0420 257 022 info@Hotelinteriors.com.au 13000420 876257 055 0420 257 257 022 022 Inhouse Inhouse quality controlquality control

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Contents

What’s Inside I S S U E N O . 104

22 14

32

THE SKY’S THE LIMIT FOR TOGA

A BY ADINA

The east coast capitals are making a postpandemic comeback

Meet the family behind TOGA - the creators of homes, hotels and commercial and retail spaces

Launching the city’s first sky lobby, A by Adina Sydney is one of the latest brands to grace the NSW capital

40

42

54

62

SUCCESS STORIES

MANAGEMENT RIGHTS REPORT 2022

MR REPORT LAUNCH 2022

REGIONAL SNAPSHOP: NSW

How a chance meeting while driving his taxi changed Colin Vaughan’s life

Explore analysis and insights into the MR Industry from across the country

A brilliant industry turnout for or our MR Report launch at The Calile Hotel

Four times the size of the UK, there’s no one-size-fits-all approach when it comes to selling property in NSW

A CAPITAL IDEA

6

QTR 1 SALES ACTIVITY We showcase some of our biggest deals from around the country during Q1

Regular Features 26

46

79

80

82

BROKER INSIGHT

ON THE MARKET

SALES ACTIVITY

RELIEF MANAGERS

MEET OUR TEAM

Our Tassie broker Marissa von Stieglitz shares her views on the Apple Isle

Why our Managing Director Trudy Crooks is so optimistic about spring

A round up of our top sales from around Australia

Taking a holiday?

Need a manager?

Find one here

ResortBrokers' national directory

resortbrokers.com.au

4

Words_Ian Crooks, Chairman

Preface

Back To The Big Smoke It’s beginning to feel a little like everything old is new again. But with a twist. Everywhere I look at the moment, there’s a sense of deja vu. Dare I say it, a hint of the 80s?

Glance at the Big Screen, and you’ll encounter Jurrassic Park, Top Gun and even Elvis is back in the building (well, he’s more 60s but you get my drift).

Sure, they’ve all been given a 2022 facelift, but the essence of the story remains the same. Look at the markets, and the stock exchange has those all-too familiar jitters, interest rates are rising, and there’s an ongoing foreign war.

While there is a bit of doom and gloom around at the moment, we prefer to focus on the opportunities. Here at

ResortBrokers, we believe there are always new ways of doing business.

And there are plenty of emerging opportunities as Australia’s east coast capitals emerge from their pandemic slumber.

With our new broker Tim Mayoh dedicated to the Greater Sydney area, along with our strong teams in Melbourne and Brisbane, there’s never been a better time to place the spotlight back on the big smoke and in our cover story, we unpack what’s happening in these cities.

Speaking of new brokers, we are always looking for fresh talent and possess a unique culture where we seek experienced sales industry experts and train and transform them into exceptional brokers. We currently have an opening for a broker in New South Wales for a great patch which covers major towns such as Coffs Harbour, Port Macquarie, Armidale and Tamworth.

Back in Sydney, we take a peek at TFE Hotel’s A By Adina which touts itself as an entirely new concept “hotel living” and boasts the stunning Sky

5

Commercial property is becoming more mainstream and profitable by the day with 1 in 8 Australian Property Investor readers nominating commercial as their property focus in the year ahead, an increase of 20% over the December quarter.

Source: API Magazine

Lobby – a first for Sydney. Meanwhile we’ve snared an exclusive with the TOGA group – which owns TFE among a range of other brands – about their meteoric rise from their humble beginnings to becoming a major property player.

In July, we launched an industryfirst report into the state of the Management Rights’ industry and our inhouse property economist Josh Mangleson analyses our findings. You might be surprised at what this sector of the industry is worth to the Australian economy.

As a company with brokers on the ground covering vast areas around the nation, we are aware of the bite that the rising cost of fuel is having on Australians. In this edition, we turn our attention closer to the capitals and look at what the caravanning and camping industry has on offer within a short drive which won’t break the bank.

At the same time, we haven’t forgotten our all-important regional cousins and we speak with Colin Vaughan, the owner of Roma’s Motel Carnarvon, who,

can you believe it, I convinced to move into the industry 23 years ago, when I caught a cab with the then taxi driver.

Talk about déjà vu.

Meanwhile, our Tasmanian born and bred broker Marissa von Stieglitz takes us down to the southern end of the country with her crunchy insights into the Apple Isle.

As I stated previously, we’re always looking at new ways of doing things and hotel photographer Mauro Risch offers up some great tips on how you can maximise your property for sale with a few clever tweaks.

Speaking of new, Director of New Developments and Hotels and my son, Tim Crooks, shows us the latest in the industry, including the arrival of leisure brand Peloton into Australian properties such as the Sofitel Sydney Darling Harbour.

So, on your bike. It may feel like there’s a few speed bumps and a little like the 80s right now, but it’s most definitely 2022 and there’s still plenty of great opportunities to be had on the road ahead. END

WE’RE HIRING NEW BROKERS W E C U R R E N T L Y H AV E A N OPENING FOR A BROKER I N N E W S O U T H WA L E S F O R A G R E AT PATC H W H I C H C O V E R S M A J O R TO W N S SUCH AS COFFS HARBOUR, PORT MACQUARIE, A R M I D A L E A N D TA M W O R T H .

We’re looking for quick thinkers, enthusiastic negotiators, proactive performers, proven sellers, ambitious career climbers.

Please send your resume with cover letter detailing your experience to the National Operations Manager, Marissa von Stieglitz. marissa@resortbrokers.com.au 0437 198 164

6

Sales Activity

QTR 1

Our Top Recent Sales & Listings We’ve been experiencing incredibly high demand across all accommodation asset classes. Here’s a selection of some of our biggest and best sales and listings.

LISTING

GREENWICH INN, FREEHOLD, GREENWICH, NSW

SOLD

SANCTUARY LAKE APARTMENTS, MANAGEMENT RIGHTS CURRUMBIN, QLD

Enter the tightly held Sydney market with potential for major development and upside.

Wonderful beachside mixed business with consistent high net income.

Contact: Tim Mayoh M: 0419 038 882

Contact: Todd Warner M: 0438 170 763

LISTING

COUNTRY ACRES CARAVAN PARK, FREEHOLD, SINGLETON, NSW Rare opportunity to own a highly successful business located in a vibrant tourist destination.

Contact: Jacqueline Featherby M: 0424 497 056

UNDER CONTRACT SOLD

MANTRA QUAYSIDE, FREEHOLD, PORT MACQUARIE, NSW

resortbrokers.com.au

JULIE-ANNA INN, FREEHOLD BENDIGO, VICTORIA

The city’s best property located in one of the most sought-after markets.

An extremely rare freehold motel, Bendigo’s premier four-star accommodation.

Contact: Greg James / Trudy Crooks M: 0416 247 068 / 0477 882 210

Contact: David Jefferies M: 0447 101 970

7

LISTING

RIVELLO HAMILTON, MANAGEMENT RIGHTS BRISBANE, QLD Outstanding opportunity to acquire the Off-The-Plan Management Rights at this riverside location.

Contact: Tim Crooks M: 0422 208 450

UNDER CONTRACT

ALEXANDER MOTEL, FREEHOLD, WHYALLA, SA A high-netting 41-room Freehold motel and restaurant located in the Iron Triangle region.

Contact: Kelli Crouch M: 0410 441 750

JUST SOLD

MAISON NOOSA, MANAGEMENT RIGHTS NOOSA, QLD High-netting holiday Management Rights with absolute beachfront location.

Contact: Glenn Millar M: 0412 277 804

UNDER CONTRACT

CASTAWAYS ON MORETON ISLAND, COMBINED FREEHOLD/LEASEHOLD, MORETON ISLAND, QLD A fully licensed store/café with a range of accommodation options.

Contact: Alex Cook / Steve Campbell M: 0467 600 610 / 0407 220 668

LISTING

THE BROOKLYN STEAMSHIP COMPANY, FREEHOLD, BROOKLYN, NSW An unrivalled opportunity to own Australia Post’s last remaining riverboat mail run and cruise company.

Contact: Jacqueline Featherby M: 0424 497 056

LISTING

THE BILLI, FREEHOLD, CABLE BEACH, WA A rare and irreplaceable resort along one of Western Australia’s most famous beaches.

Contact: Blair Macdonald / Glenn Millar M: 0433 149 144 / 0412 277 804

resortbrokers.com.au

RESORT FREEHOLD 18 SUITES

OWNER’S RESIDENCE 1 BED 1 BATH

The Billi Resort

Cable Beach, WA

REF // F H 0 0 7 2 8 4

Rare and irreplaceable boutique resort The Freehold Going concern of The Billi Resort in WA’s Kimberly region is being offered for the first time since opening. Being Broome’s newest and most unique boutique accommodation The Billi Resort has been featured in many articles, in high end travel publications and is rated No.1 in its class on Tripadvisor.

The facility consists of eight, two-bedroom dual key villas, nine fully self-contained eco tents and a studio apartment. There is also a manager’s apartment on site with open plan living/kitchen and ensuite. The first stage of the complex was opened in October 2011 with the second stage being the eco tents completed in June 2012 and more tents in May 2014, 2020 and 2021.

Architecturally designed, the villas have dramatic high-pitched roof lines with large eaves. All accommodation is connected by raised timber walkways and fringes a large modern resort-style pool with daybeds, water wall and a sunken lounge area.

The resort is fully staffed by professional long term staff hence a purchaser can either run it themselves or treat it as a passive investment. All wage expenses are included in the financials.

Significant repeat visitation with waiting lists for most periods A profitable and strong, solid business to add to an existing portfolio or group High demand from wedding and group market with minimum stays in place, total buyouts, no commission and high profitability Site inspections are strictly by appointment and can be arranged by contacting the agents. Daily flights are available from Perth.

Recently expanded to include 3 more keys. Nearly $400,000 spent on improvements and upgrades in past 24 months Fully staffed walk-in/walk-out if required

Net Profit (FY2022)

$890,000

$

Price

Offers over $5.2m

BLAIR MACDONALD

GLENN MILLAR

BROKER

BROKER

+61 433 149 144

+61 412 277 804

blair@resortbrokers.com.au

glenn@resortbrokers.com.au

MANAGEMENT RIGHTS 78 UNITS

32 LETTING

25 YEARS OWNER’S RESIDENCE 3 BED 2 BATH

Moda Melton Nundah, QLD

REF // M R 0 0 7 2 8 7

Expertly structured Management Rights, ensuring strong net profits With excellent processes in place (so it can be run by one person), Moda Melton is an outstanding Management Rights business opportunity. Situated in the highly desirable inner north suburb of Nundah, this extremely well-established complex and business has excellent return on investment (over 14 per cent), a renovated premium three-bedroom manager’s residence and no set office hours.

This opportunity has all the elements of a high-performing Management Rights business and given the high net profit of $240,992, presents a significant opportunity for an astute buyer looking for a well structured business with strong profits High net profit of over $240k Well-documented and transparent procedures Currently run by one person plus a part-time cleaner Extremely well-maintained and liveable complex Renovated and well-presented manager’s residence Fantastic Return on Investment over 14 per cent Simple revenue model (Body Corporate salary + Letting income + auxiliary rent roll, built from scratch) Conveniently situated within eight kilometres of Brisbane CBD and within walking distance to Nundah Village

Net Profit

$240,992

$

Real Estate Price

$560,000

$

Price

$1,660,000

FRANK MATUS

NATHAN EADES

BROKER

BROKER

+61 435 742 698

+61 448 339 920

frank@resortbrokers.com.au

nathan@resortbrokers.com.au

M OT E L L E A S E H O L D 27 ROOMS 21 YEARS OWNER’S RESIDENCE 3 BED 1 BATH

Cedar Lodge Motel Townsville, QLD

REF // L H 0 0 7 0 0 6

Strong solid platform which constantly performs with room to grow This is an opportunity to secure the leasehold of a high performing motel located in the popular Nathan Street precinct which is within close proximity to the major shopping centre in Townsville.

Located on one of the main thoroughfare roads into Townsville (with daily passing traffic totalling 34,933), it is unaffected by noise but just moments to all amenities such as the Townsville University Hospital and major shopping centre.

It is in the perfect location for holiday makers or for corporate workers and hospital guests looking for an overnight or longer-term stay. It has the advantage of being an approved motel for the PTS (Patient Subsidy Scheme) with the hospital guests providing stability of income as the motel is the nearest accommodation to the hospital and there is no competition close by.

The 27 room property features a variety of air-conditioned rooms ranging from queen, queen/single, family and a three-bedroom unit that sleeps up to 15, which is very popular for large gatherings such as sporting, school and family groups.

Offering a strong platform which has constantly performed well, this motel can be easily operated by a couple and offers a spacious three-bedroom residence located across from reception.

Growing large net profit Good quality accommodation configuration Approved PTS Patient Travel Subsidy Scheme Motel and the closest in proximity to the Townsville Hospital Lease agreement currently 21 years can be extended Strong solid business which keeps perfoming in growing Townsville Potential to grow business with various possibilities Good consistent staff who have been part of the team for many years Property inspections are by appointment only

Projected Net Profit

$500,000

$

Projected Turnover

$1,058,233

$

Asking Price

$1,650,000

DES FAGG

GLEN CUMMINS

BROKER

BROKER

+61 427 849 119

+61 427 215 863

des@resortbrokers.com.au

glen@resortbrokers.com.au

MOTEL FREEHOLD 13 ROOMS

OWNER’S RESIDENCE 3 BED 2 BATH

Sandpiper Motel Ulladulla, NSW

REF // F H 0 0 7 3 3 5

Freehold opportunity on the popular NSW South Coast The Sandpiper Motel’s location couldn’t be better - situated on the Princes Highway along the popular NSW South Coast route between Sydney and Melbourne, and in close proximity to Ulladulla’s shops and restaurants. Set on a large 2,068sqm corner block and zoned R3 medium density residential, the property boasts dual street entry access points which is very rare to find.

All 13 rooms have been updated and modernised with work completed in November 2021. Refurbishments include all new bathrooms, air-conditioning, bedding, decor and fresh paint. The contemporary rooms offer multiple occupancy and interconnecting suites, make this property a prime location for family travel.

The recently refurbished on-site owner’s residence offers spacious accommodation with three bedrooms and two bathrooms, ideal for a small family or couple.

If on-site accommodation is not required, this residence could potentially be included into the motel offering as a substantial family suite for holidaymakers or as a permanent rental providing a steady income.

With a loyal cohort of repeat clientele and a sound annual return, there is every reason to consider the Sandpiper Motel for your next move.

500 metres from Ulladulla town centre, close to beaches and the harbour Large 2,068sqm corner block with R3 medium density residential zoning A sound annual profit offers a viable income for new owners 10KW solar system offers sustainable energy, keeping on-site costs low Spacious 3-bedroom, 2-bathroom owner’s residence Enjoys a long list of repeat clientele All 13 rooms have been recently refurbished Massive development potential in prime location (STCA)

Net Profit

On application

$

Turnover

On application

RUSSELL ROGERS SENIOR EXECUTIVE +61 416 166 909 russell@resortbrokers.com.au

$

Asking Price

EOI

MANAGEMENT RIGHTS 66 APARTMENTS, 43 LETTING 19.5 YEARS

11 STOREYS OWNER’S RESIDENCE 2 BED 2 BATH

Clubb Coolum Coolum, QLD

REF // M R 0 0 7 3 2 4

Prime beachfront resort with rooftop facilities for events Offered for the first time in 14 years, this iconic Coolum business is ready for a new operator to take it to the next level. The resort presents as an 11-storey high rise holiday complex, featuring 65 self-contained two and three-bedroom holiday apartments, positioned for success with absolute beach frontage on one of Australia’s most in-demand tourism destinations.

The property features a large hotel style lobby and reception desk with a sizeable back office, complete with kitchenette. With exceptional common areas and guest facilities it is easy to see why the net profit continues to elevate and increase with each month that passes. Continued guest demand of the resort shows a high increase of net profit trajectory and strong forward bookings well into 2023.

The pièce de résistance is the rooftop area which is under occupational authority to the managers for their sole use and is currently being upgraded to high standards featuring a large deck with seating, bar, an all-weather awning. This is a rare and unique feature never seen before to the scale of the area in any other Management Rights across the country. This will allow incoming managers to cater for functions, weddings, family gatherings or any type of event without Body Corporate or owner approval needed.

It boasts sensational views across Coolum Beach and right up to Sunshine Beach.

Management have just spent $40,000 on this area and there is no income generated from this enterprise on the P&L – the opportunity for additional revenue is endless!

Long accommodation module agreements Full Renovated 2-bedroom manager’s residence (valuation available) Circa $200k BC remuneration Full resort facilities including oceanfront pool, tennis court, gym etc Exclusive use rooftop Huge amount of storage 8 car parks on exclusive use

Net Profit

$576,146

$

Price

$4,756.000

GLENN MILLAR

CHENOA DANIEL

BROKER

BROKER

+61 412 277 804

+61 403 143 151

glenn@resortbrokers.com.au

chenoa@resortbrokers.com.au

MOTEL FREEHOLD 28 ROOMS

OWNER’S RESIDENCE 3 BED 1 BATH

Mud Hut Motel

Coober Pedy, SA

REF // F H 0 0 7 3 1 5

Your Outback adventure awaits ResortBrokers is delighted to bring to market this high netting, 28 room Freehold and Business motel in the unique Outback location of Coober Pedy in South Australia.

The motel comprises 24 well-appointed above-ground motel rooms and four, two-bedroom apartments. Other facilities include a commercial kitchen and dining room with seating for 42 guests currently operating for breakfast, guest laundry and ample parking including space for larger vehicles and trailers.

The Mud Hut Motel attracts a strong mix of leisure travellers and workers from diverse industries. It also enjoys good repeat clientele and has a high percentage of direct bookings.

Buyers can either run as owner operators or under management.

The other option is that a lease could be split off and buyers can hold onto the much sought-after passive investment.

This well-presented motel is enjoying high occupancy, strong forward bookings and is well placed to enjoy the continued demand in Outback travel.

Showing a 24.4% return to owner operators High netting 28 room Freehold and Business motel Good mix of corporate and leisure travellers Currently 84.6% occupancy and strong forward bookings High percentage of direct bookings Opportunity for investors or owner operators 3-bedroom residence

Net Profit

$807,031

$

Turnover

$1,275,194

KELLI CROUCH BROKER +61 410 441 750 kelli@resortbrokers.com.au

$

Price

$3.3M + SAV

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Feature

A Capital Idea

It’s been nothing if not interesting in Australia’s capital cities during the past few years. A ride as bumpy as a Luna Park rollercoaster, as murky as a Brisbane River flood, and at times as chaotic as a Melbourne laneway.

But, as Christine Retschlag discovers, the east coast capitals are making a comeback and there’s plenty of reasons to rejoice and reinvest.

resortbrokers.com.au

15

Crowded House may have had Melbourne on its mind when it penned the lyrics to Four Seasons In One Day, but it was a North Face jacket-wearing Premier who became the symbol of its season of discontent. The Victorian capital may have caught a cold, but the rest of the east coast capitals shivered along in sympathy. And the nation’s tourism industry shuddered.

Fast forward to 2022 and the lights are flickering back on in Australia’s capital cities. And it’s a power surge worth celebrating. In an article in the Australian Financial Review, PwC Australia Integrated Infrastructure Partner Janice Lee says fears that Australian CBDs are “dead” in a new era of hybrid work models, are unfounded.

“Through lockdowns and border closures, Australia’s commercial property markets have shown surprising resilience,” Ms Lee says.

“PwC analysis found that investment volumes in 2021 rebounded in the first three quarters of the year to USD24.8 billion – up 106 per cent on the year and 21 per cent higher than the 2015 to 2019 average.

“The question is what can we do now to address the uneven nature of the recovery within our CBDs. Developing the strategic planning for world-class precincts in health, advanced manufacturing and emerging industries, is a global pitch to investors and to the best and brightest talent to come to our CBDs and business hubs.

“Darling Square and Barangaroo entertainment and hospitality precincts in Sydney are prime examples.

They have been designed for walkability and to activate local businesses, with winding, vibrant laneways that have been abuzz with activity post-pandemic.

“Australia has a rare window of opportunity to shape our cities for the future.”

NSW Minister for Tourism Stuart Ayre says Vivid 2022 “smashed” attendance records, with visitor numbers up 7.5 per cent on pre-pandemic 2019 to 2.58 million.

“Beyond the good vibes and bright lights, there were also very strong economic benefits from the festival. More than 100,000 Vivid Sydney travel packages alone were sold during the event,” he says.

“Vivid Sydney also drew millions of patrons to live music venues, restaurants, bars and hotels. More than two million visitors enjoyed a sit-down or take-away meal at the festival, with the number of people dining in restaurants up 24 per cent on 2019.”

A by Adina Sydney Hotel General Manager Jay Hore, whose new central “hotel living” style CBD property opened in the middle of the COVID pandemic, says travellers are returning to the harbourside city. resortbrokers.com.au

16

Feature

“We are hopeful that this positive momentum continues into the second half of 2022 as international border restrictions ease and consumers continue to support the tourism and hospitality sectors,” he says.

Shane Jolly, General Manager of Sydney’s five-star Langham Hotel, says they’ve bounced back to surpass 2019 figures, by focusing on fewer guests and higher room rates, in a surprise tactic which is working.

“We tried putting our room rates as low as the could go, and as high as they could go until we found that sweet spot. Over the past two years we’ve added $200 to our average room rate due to demand and being able to provide people with a value proposition,” he says.

“We are making sure that when people walk through the door they think ‘this is expensive’ but when they walk out the door they say ‘that was expensive, but you have got to stay there’.”

Meanwhile, the Sydney Morning Herald (SMH) reports a flurry of international commercial property investors into Australia and in particular capital cities, citing the $2 billionplus sale of the Southern Cross Towers in Melbourne.

The SMH reports 862 applications to invest in a combined $82 billion in Australian commercial property in a trend which leans heavily towards Sydney and Melbourne across all sectors, particularly office space.

resortbrokers.com.au

Visit Victoria says tourism recovery in Melbourne is gaining momentum as restrictions ease and confidence builds, citing new hotels opening since January 2022 including AC by Marriott, Lyf Collingwood, voco Melbourne Central, Courtyard by Marriott, Holiday Inn Express Little Collins and a major multi-million-dollar refurbishment of Sofitel Melbourne.

Still in the pipeline for 2022 are 388 Williams Street, Veriu Queen Victoria Market, Meriton Suites, Le Meridien and the much-anticipated Ritz-Carlton with more than 2100 additional rooms predicted to come online this year.

“In Melbourne this year, Formula One’s 2022 Australian Grand Prix set a new attendance record for an event held at Albert Park in Melbourne, with an estimated attendance of 419,114 over the four-day weekend,” Visit Victoria says.

“This was the biggest sporting weekend on record for Melbourne, aside from the 2006 Commonwealth Games and 1956 Olympics, with more than 580,000 fans. CBD hotel occupancy sat around 90 per cent for the duration of the weekend, a strong signal of events leading the recovery of the country’s sporting and cultural capital.”

While Brisbane was largely regarded as bulletproof during the past few years with few lockdowns, prolonged

Source: Howarth HTL Capital City and Key Markets Hotel Market Outlook and Insights March QTR 2022 Edition

17

Queensland border closures posed their own challenges, as did the city’s early 2022 floods.

Arguably, Brisbane is currently flavour of the month, with its sights set on the 2032 Olympics and more than $30 billion worth of major infrastructure projects planned or underway.

But if history has taught Australians anything, never rule out the powerhouses that are Sydney and Melbourne who could well borrow from the somewhat prophetic song of local Brissie band The Go Betweens who released Streets Of Your Town in 1988.

Their catchy lyrics “round and round, up and down” pretty much sum up the pandemic state of play for Australia’s commercial property sector.

But in an industry which is prone to swings and roundabouts, for now, it’s a case of being on the up and up. And that’s something to sing about whether you are on the banks of Brisbane’s recovering river, staring at Sydney’s sparkling harbour or gazing at graffiti along those lovely laneways of Melbourne. END

Trends in Australian Hotel Markets The RevPAR Performance Snapshot shows the Australian capitals have all rebounded with increases in revenue per available room in the Calendar Year 2021 – YTD Jun 2022 v YTD Jun 2021.

+30.5%

+76.5%

+22.9%

Canberra ACT

+8.4%

Hobart

Melbourne

Darwin

TAS

VIC

NT

+44.2%

+16.9%

+51.1%

Brisbane

Perth

Sydney

QLD

WA

NSW

resortbrokers.com.au

MANAGEMENT RIGHTS 111 UNITS 50 LETTING

21.6 YEARS OWNER’S RESIDENCE 3 BED 2 BATH

Rivergreen Villas Bundamba, QLD

REF // M R 0 0 7 3 3 1

Large permanent Management Rights in Queensland growth corridor of Ipswich ResortBrokers is delighted to exclusively offer to the market the Management Rights and manager’s residence of Rivergreen Villas, an exclusive enclave of 111 architecturally designed three-bedroom villas, ideally located in the booming eastern Ipswich suburb of Bundamba.

Built in 2014, there are 50 units managed in the on-site letting pool. The caretaking agreement offers a generous salary of $118,311 and the workload is very manageable for an on-site couple. The complex has a great set up with no community gate and caretaking duties are clearly defined and manageable, including maintaining the pool and gardens.

The P&L has been prepared by a professional industry specialist accountant. This modern and beautifully maintained permanent townhouse complex presents as a solid business suitable for a first-time buyer looking to secure a stable low maintenance business or an experienced operator who wants to expand their existing portfolio.

Please contact the agent today with your enquiries as this type of MR business is in high demand and will not last long before sold.

Modern permanent townhouse complex - no community gate Solid net profit over $200k - P&L prepared by industry accountant Strong Body Corporate salary (60% of total income) More than 21 years remain on accommodation module agreements Consistent letting pool of 50 units Suitable for either first time buyer or experience operator to expand existing portfolio Stunning great value 3-bedroom manager’s unit with large air-conditioned office on title Highly sought-after location with consistent demand for rentals Upside potential through additional income streams Property inspections are by appointment only

Net Profit

$200,368

$

Price

$1,441,987

JESSIE SHI

NATHAN EADES

BROKER

BROKER

+61 422 935 428

+61 448 339 920

jessie@resortbrokers.com.au

nathan@resortbrokers.com.au

MANAGEMENT RIGHTS 45 ROOMS

21 LETTING

22 YEARS OWNER’S RESIDENCE 2 BED 2 BATH

Sanctuary Beach Resort Currumbin, QLD

Fantastic growth opportunity, beachfront, mixed letting business, prime spot, act fast Nestled among the sand dunes of Currumbin Beach is where you will find Sanctuary Beach Resort. This mixed letting business consists of 45 x two and threebedroom apartments, with 15 holiday let and 6 permanent let units. Resort-style facilities include a tropical inground pool, outdoor spa, full sized tennis court and barbecue area all maintained by the on-site caretaker.

Some units are absolute beachfront with spectacular ocean views and direct beach access. The business has performed well during the pandemic, with plenty of growth in income still to uncover. The current managers do not live on-site and have an employed caretaker residing and carrying out all main duties.

Long-term 22-year agreements round out this wonderful opportunity, combined with the potential to grow the income and lifestyle balance, this could be the perfect business for you to explore.

Contact ResortBrokers and book your inspection today.

22-year agreement Easy to manage resort facilities Onsite management available No requirement to reside onsite Beautiful resort-style facilities Positive Body Corporate and community of owners $209k net profit with upside from local tourism boom Can be managed by one person or perfect for first-time operators, new to the industry Wonderful beachfront location in sought-after Currumbin area Property inspections are by appointment only

Net Profit

$209,437

$

Price

$1,700,000

TODD WARNER BROKER +61 438 170 763 todd@resortbrokers.com.au

REF // M R 0 0 7 3 0 5

MANAGEMENT RIGHTS 144 UNITS 48 LETTING 19 YEARS OWNER’S RESIDENCE 2 BED 2 BATH

Atmosphere & Waters Edge

Southport & Biggera Waters, QLD

REF // M R 0 0 7 3 4 3

Rare Management Rights opportunity with two businesses netting over $350,000 Located within the Gold Coast, these two Management Rights properties consist of 144 units with 48 in the letting pool. The business is further underpinned by a $268,763 Body Corporate salary, which provides over 75 per cent of the net income.

Both properties are of modern standard and have manageable duties, able to be performed by a two-person team.

With a manager’s office located separately onsite, no set office hours, long-term agreements in place and the option to put a nominee in the manager’s unit, this opportunity will not last long.

Gallery Vie Compliant Strong Body Corporate salary of $268,763 Large Net profit of over $350,000 Option to put a nominee in unit Letting pool manageable by a single property manager Long-term agreements in place with 19 years remaining No set office hours Excellent Body Corporate relationship Office located onsite for ease of access Property inspections are by appointment only

Net Profit

$357,521

$

Price

$2,970,000

PAUL MUELLER BROKER +61 439 255 507 paul@resortbrokers.com.au

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22

Faces Of The Industry

The sky’s the limit For TOGA They’re the family behind TOGA - the creators of homes, hotels, and commercial and retail spaces around the world - but it began with humble beginnings for Holocaust survivors Ervin and Charlotte Vidor. In an industry exclusive, Christine Retschlag speaks with Allan Vidor – TOGA Group Managing Director and TFE Hotels Chairman - about their enduring philosophy “to create and shape meaningful spaces for life.”

Words_Christine Retschlag

The Calile Hotel_Brisbane

23

Allan Vidor TOGA Group Managing Director

Could you share a little of your parent’s European background and what brought them to Australia?

My father, Ervin, was born in Budapest, Hungary and my mother, Charlotte, in Lvov, Poland which became Lviv, Ukraine after the Second World War. Both arrived as refugees having survived the Holocaust. Charlotte arrived in 1948 with her parents and Ervin arrived alone in 1949 at the age of 17. Like many Europeans at that time, their families were seeking new beginnings following the devastating effects of the war. Years later, they met at a dance in Sydney, fell in love and married.

Ervin started his own business making metal boot tips shortly after arriving in Australia. From there his business changed direction and he started manufacturing costume jewellery. Charlotte, who was a pharmacist, would dye the jewellery’s stones. They sold this business in the early 1960s and founded TOGA together with Antonio Stillone - an Italian immigrant who was a small builder at the time. Their first venture in the industry was a block of nine flats in Glebe. In the 1970s, they started the ‘Glen’ chain of motels and then in the early 1980s, the first Medina apartments opened in Sydney’s suburb of Randwick.

The company philosophy is “creating and shaping meaningful spaces for life” – can you elaborate on what this means?

One of our current projects, Surry Hills Village in Sydney, is a great example of this where we are creating a mixeduse precinct of homes, retail and commercial spaces, event spaces and a beautiful new Collection by TFE Hotels property that will enrich the community and provide unique experiences, ensuring a lasting legacy.

How many people does TOGA now employ?

TOGA employees over 2,000 people in Australia, New Zealand, and Europe.

Photographer_Sean Fennessy

24

Faces Of The Industry

You have three arms to your business – can you explain them a little?

TOGA’s business includes Development & Construction, Property Investment and TFE Hotels.

TOGA’s Development & Construction (D&C) teams do just that – they develop residential, commercial, or mixed-use real estate opportunities and then build them. Currently, we are developing eight projects to the value of $2.3 billion.

TOGA’s Property Investment team manages a diverse portfolio of real estate assets. The diversity extends to asset class, geography and product type and includes retail, commercial offices, industrial assets, car parks, residential and marinas.

TFE Hotels is a joint venture between TOGA Group and Singapore’s Far East Orchard. Our brands include Adina Hotels, Vibe Hotels, Rendezvous Hotels, Travelodge, Quincy, A by Adina, and Collection by TFE Hotels which span Australia, New Zealand, Singapore, and Europe.

How many hotels does TOGA Group operate?

As at July 2022, our hotel division, TFE Hotels operates 68 hotels (10,079 keys) across seven brands and six countries.

Surry Hills_Sydney

Adina Apartment Hotel_Brisbane

Artist Impression

25

Quincy Hotel_Melbourne

In which countries are you based?

TFE Hotels operate in Australia, New Zealand, Singapore, Germany, Hungary, Denmark, and Austria with Adina Geneva set to open in Switzerland in March next year.

How have you managed your growth?

The diversity of our portfolio has ensured continued performance through the changing market cycles. Also, the agility, dedication and perseverance of our teams have been remarkable.

Do you have a favourite property?

And if so, why?

Like with my children, I don’t play favourites with the hotels. Each brand has its own personality. Each new opening is an innovative sign of the times, which is, naturally, exciting.

What are the key elements of TOGA’s success?

There are many things that have contributed to TOGA’s success starting with the vision and entrepreneurship of my parents, Ervin and Charlotte. This created the culture of the business which despite our size and

sophisticated systems and governance, still retains a strong family feel with a flat accessible management structure, unanimity of purpose, entrepreneurship, and a lack of politics.

What has been your biggest challenge and learning from that?

The biggest challenge is having the discipline to know when to say no to an opportunity, and then communicating this across the group. In the late 1980s we were overly diversified, which became unmanageable. We have learnt the discipline of strategic planning while at the same time not losing our entrepreneurial culture.

What can guests expect at your hotels that they won’t get anywhere else?

We are constantly striving to provide our guests with a memorable experience. Each of our brands caters to a specific demographic and the special touches we implement reflect the desires of that demographic.

At the Quincy in Melbourne, guests are offered a taste of South-East Asia through its world-class food and beverages. The tiffin service turns room service into a fantastic in-room dining experience. Even the minibar is stocked with incredible flavours from the region.

26

Broker Insight

What’s All The Mania Around Tasmania?

Words_Marissa von Stieglitz

Born and bred Tasmanian and ResortBrokers Tassie Broker Marissa von Stieglitz takes a bite out of the Apple Isle and unpacks why it’s our most southern state’s time to shine.

Renowned for its fresh seafood and beautiful wine, while Tasmania has always been stunning, the face of tourism really changed around 2011 with the opening of the world-class MONA Museum of Old and New Art - in Hobart.

The outdated perception that you could go to Tassie and drive the entire state and see everything in three days are long gone, with the average visitor now spending 10.8 nights in the state.

MONA opened the flood gates of opportunity and in the past 11 years, the entire state has flourished through domestic and international visitation. Tourism now comprises 33,600 of Tasmanian jobs (13%) which are directly and indirectly supported by the travel industry. This is higher than the national average and in fact the highest in the country.

Mountain bike riding is also a major contributor to the booming Tasmanian tourism industry and responsible for luring an influx of visitors to the state. The Blue Derby Mountain Bike Trails opened in 2015 in the temperate rainforest region of north-east Tasmania.

Before this, Derby had been a more or less desolate town after the closure of the tin mine in 1948. Now, the transformation of the town is simply unbelievable.

Last year, a recorded sale of a dilapidated twobedroom cottage known as ‘the crack house” sold for $1.3 million. Prior to 2015, you could have purchased a house in Derby for under $100,000.

And the mountain biking phenomenon has spread its tourism tentacles right across the state, with major trails in St Helens on the east coast, Latrobe and Sheffield in the north-west and Queenstown on the west coast.

In October, The Spirit of Tasmania will change the route of its 18-year journey from Station Pier in the Melbourne CBD to Geelong. This signals greater accessibility for inbound tourism to Tasmania for travellers towing caravans as well drive market visitors, with the boat docking at Devonport.

Perched on the north-west coast, Devonport has never been a “destination” in its own right. However, this spring, a new 187-room, 4.5-star hotel will open in Devonport, breathing fresh life into the local tourism industry.

This development was sold to Singapore’s Fragrance Group for $40 million. Branded as a Novotel, the hotel will bring a new quality of accommodation to the north-west coast that has been lacking. Last year, Frankie J’s opened in Devonport, heralding the first new entertainment venue in the past 15 years.

The accommodation face of Hobart, where I lived for three years while studying Tourism and Hospitality at the Drysdale, has changed dramatically in the past five years. There has been an influx of new rooms into the market since 2017 starting with the 196-room Ibis Styles Hobart (another property owned by the Fragrance Group); followed by The Crown Plaza Hobart (235 rooms in June 2020; The Vibe Hotel Hobart (142 rooms in November 2020); the Movenpick Hotel Hobart (221 rooms in January 2021); and The Tasman (150 rooms) - a luxury collection from the Marriott group - at the end of 2021.

Despite the introduction of all these new rooms, the Hotel Occupancy Report for April shows that 81.57 per cent of available rooms across the state were filled, which is the strongest April figure we’ve ever witnessed by about five per cent. The occupancy figures for the first quarter of 2022 are also up compared to last year which is a strong signal of confidence in the industry.

With around 30 events scheduled for the last six months of 2022, the outlook for Tasmania is strong.

ResortBrokers sold Franklin Manor in Strahan last year to a Queensland investor who saw the opportunity to develop this property into a boutique high-end hotel. In June this year we settled the Strahan Beach Cabin and Tourist Park to a family from the New South Wales south coast who have always managed big tourist parks on the mainland and saw the opportunity to further enhance this park.

We currently have the Snug Beach Tourist park under offer and received an exceptionally high amount of interest in this property for a leasehold park. However, there is generally not a lot of movement in the Tasmanian accommodation sector, with many properties tightly held and a lot held generationally.

The general consensus is that most operators are choosing to stick it out for a bit longer and reap the rewards of the lost revenue during COVID. However, I predict after the summer of 2023, there will be some substantial movement in the market.

Tassie may be situated in the roaring 40s, but for now it’s smooth seas before the anticipated sales’ storm ahead. END

®

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28

Glenn Millar & Chenoa Daniel - Sunshine Coast

Sunshine Coast’s No. 1 Brokers when results count ResortBrokers Sunshine Coast team settled an average of one Management Rights business every 14 days, worth over $44 million, in the last financial year

On The Beach

Noosa Crest

Aquarius

Seanna Residences

Curve

Noosa, QLD

Noosa Heads, QLD

Birtinya, QLD

Bokarina, QLD

Birtinya, QLD

The Beach Retreat

Bluewater Point Resort

Mariners Resort

Edgewater

Horton Apartments

Coolum Beach, QLD

Minyama, QLD

Caloundra, QLD

Kawana, QLD

Maroochydore, QLD

The Parks

Revive Oceanside

Kardinia

Ivory Palms Resort

Aqiv

Sippy Downs, QLD

Birtinya, QLD

Wurtulla, QLD

Noosaville, QLD

Brightwater, QLD

Pacific Beach Resort

Salt on Kings

Island Waters

Verve on Cotton Tree

Camargue Beachfront Apartments

Mooloolaba, QLD

Caloundra, QLD

Birtinya, QLD

Maroochydore, QLD

Maroochydore, QLD

Northwind Apartments

Essen

The Plaza Central Apartments

Affina

Mooloolaba, QLD

Brightwater, QLD

Maroochydore, QLD

Brightwater, QLD

Lux

Maison

Noosa Pacific

Noosa Quays

Beach on Sixth

Aegean

Noosa Heads, QLD

Noosaville, QLD

Noosa Heads, QLD

Maroochydore, QLD

Brightwater, QLD

Brightwater, QLD

And we have already settled 5 more in the first month of the new financial year with a total value of $22 million.

For an obligation-free appraisal or simply to chat about the market, give us a call or drop us an email

Glenn Millar

Broker, Sunshine Coast 0412 277 804 glenn@resortbrokers.com.au

Chenoa Daniel

ARAMA Broker of the Year 0403 143 151 chenoa@resortbrokers.com.au

®

MANAGEMENT RIGHTS 44 ROOMS

8 LETTING

9 YEARS OWNER’S RESIDENCE 2 BED 2 BATH

Monaco Riverfront Apartments

Surfers Paradise, QLD Buy a beautiful 2-bedroom, 2-bathroom unit overlooking the Nerang River with an income of $83k for $925,000 Ideally located on the border of Broadbeach and Surfers Paradise, this wellpresented complex consists of 44 units with eight in the manager’s letting pool.

The business is further underpinned by a $70k caretaking salary, which provides 85 per cent of the net income of the business.

With nine years remaining on the agreement and a renovated two-bedroom, twobathroom manager’s residence, this is an exceptional opportunity for a first-time or experienced operator looking to downsize and enjoy the Gold Coast lifestyle.

The manager’s residence is a ground floor apartment and pets are allowed in the building. A stone’s throw to shopping, dining, parks and beaches, this location will be the envy of your family and friends. Barbecues watching the sunset down the river will be in order most of the year round with the Gold Coast climate.

With a supportive Body Corporate Committee and no set office hours, this new life will enable you to enjoy everything that the Gold Coast has to offer.

Nine years remaining on agreements Supportive Body Corporate committee Secure parking for one vehicle No set office hours Excellent location within close proximity to the beach, shopping and dining precincts Beautiful two-bedroom, two-bathroom manager’s residence with views over Nerang River Property inspections are by appointment only

Net Profit

$83,523

$

Real Estate Price

$680,000

STEVE CAMPBELL BROKER +61 407 220 668 steve@resortbrokers.com.au

$

Total Price

$995,000

REF // M R 0 0 7 3 5 6

MANAGEMENT RIGHTS 23 UNITS 20 LETTING

8.5 YEARS OWNER’S RESIDENCE 2 BED 2.5 BATH

Beaches International Forster, NSW

REF // M R 0 0 7 2 9 4

Exceptional beachfront Management Rights business On the market exclusively through ResortBrokers, the impeccably maintained Beaches International is an incredible Management Rights complex overlooking the magnificent water of Main Beach in Forster.

With a growing and consistent net profit verified by an industry accountant, coupled with a Body Corporate remuneration of $62,934, this is truly an incredible sea change business plus lifestyle.

The manager’s unit is a contemporary, two-bedroom, two-and-a-half-bathroom apartment with an office on title. Immaculate, deluxe, ocean-facing apartments complete the picture of this 4.5-star offering.

The current owners have done all the hard work in establishing the business structure to operate efficiently. The simplicity and ease of operation make this first-time to market beachfront Management Rights an opportunity not to be missed. Get in touch today to take advantage of the current domestic tourism boom.

23 spacious, deluxe, self-contained, ocean view apartments 20 units in holiday letting pool with no outside agents Unparalleled beachfront location in mid-coast, NSW Repeat guests and consistent forward bookings Consistent net profit and growth, verified by industry accountant Evidence of bi-annual contract top-ups with supportive owner’s corporation Well-established business structure providing efficient operation for a couple Guest facilities include a large outdoor pool, spa, barbecue area, gym room, car wash bay and Wi-Fi Property inspections are by appointment only

$

Business Price

$1,850,000

$

Real Estate Price

$900,000

GREG JAMES BROKER +61 416 247 068 greg@resortbrokers.com.au

$

Total Price

$2,750,000

C O S M O IN O G N

MANAGEMENT RIGHTS 44 ROOMS, 36 LETTING

23 YEARS

13 STOREYS R E A L E S TAT E 1x 1 BED APARTMENT 1x 1 BREAKFAST ROOM

Manor Apartments Hotel Brisbane, QLD

REF // M R 0 0 7 3 6 8

The best short-stay MR in Brisbane - $960k NOP This is a once-in-a-lifetime opportunity to acquire a truly unique hotel business in Brisbane’s most central location. The Management Rights and associated real estate to Apartments Hotel presents a lucrative and exciting opportunity to secure a high netting business generating over $960,000.

This stunning heritage-listed building is located on Queen Street, in the heart of the Brisbane CBD and has an iconic 1930s facade. It is regarded as a first choice for short-term accommodation and comprises 44 apartments over 13 levels and includes a manager’s unit and office.

There are 36 apartments in the letting pool, nine of which are twin keyed, providing a total of 45 keys. The property is presented to an incredibly high standard and has performed strongly since the passing of pandemic conditions (and for many years pre-COVID). It continually achieves top TripAdvisor reviews in Brisbane and benefits from extensive repeat clientele.

From a room / apartment perspective, all suites have had some degree of refurbishment and the majority have been completely renovated in recent years.

1930s heritage-listed building in central Brisbane CBD location 13 storey mid-rise, comprising 44 apartments 36 apartments in the short-term letting pool, providing 45 keys 23 years remaining on the Caretaking and Letting Agreements Manager’s office/unit, plus separate breakfast room on freehold title BC salary over $80,000 p.a. $961,334 verified net profit from industry specialist accountant

Net Profit

$961,334

$

Expressions

of Interest

Closing Date

TBC

ALEX COOK

JESSIE SHI

DIRECTOR

BROKER

+61 467 600 610

+61 422 935 428

alex@resortbrokers.com.au

jessie@resortbrokers.com.au

32

Property Profile

A by Adina Destination A Launching the city’s first Sky Lobby, A by Adina Sydney is one of the latest brands to grace the NSW capital.

TFE is touting this offering as an entirely new category for premium hotels - different from Apartment Hotels, Hotel Residences or All Suites. Described as “hotel living”, Christine Retschlag checks into an upscale Destination A apartment and checks out what this “elevated” new market segment is all about.

Words_Christine Retschlag

33

Forget the devil in the detail, here they call it the “detail in the detail”. So what the devil is A by Adina talking about? Considered one of Australia’s newest premium hotel brands, A by Adina is scaling new heights with its Destination A stays showcasing superior views, tailored amenities and signature service.

In Australia’s city which never sleeps, it’s not easy to gain cut-through in the cut-throat competitive hotel space. But the 194-room A by Adina Sydney has become rapidly entrenched as a landmark feature along the skyline. With its sparkling Sky Lobby on the 21st floor featuring 20-metre-high floor-to-ceiling glass windows, the city skyscraper views are redolent of New York.

Perched along 2 Hunter Street in the heart of the CBD, A

by Adina was designed by JPW Architects with interiors

by Carr Design Group.

John Sutcliffe, Director of Development at TFE Hotels, says the two-year build, on a former site of a low-rise commercial tower with just a 600 square metre footprint, was not without its challenges.

“It was fairly challenging because of its location and access, there’s not anyone else putting up hotels on a piece of land this size in a city like this. It was 100 per cent an ambitious project but this shows what TFE is capable of,” he says.

“We are different to other hotels as we are developers who own hotels as well, so we’ve got experience.

“It’s prime real estate. We can realise the commercial return on an asset in this premier location and an asset like this attracts the best staff.”

Upon arrival, escape Sydney’s sassy streets and into the hotel through an understated entrance at which you will be greeted by concierge on the ground floor.

Staff will ensure your luggage is sent to your room, while you are dispatched to the Sky Lobby where reception is anticipating your arrival. Even your suite itself is expecting you, with the curtains automatically sashaying open the minute you step foot on the natural timber floors.

Think: flexible check-in/out, smart speakers by a curated playlist supporting Australian artists, a “Daily Pause” involving a grazing box, and cocktail cart with the likes of Eucalypt gimlets.

Still not satiated? Then you might wish to head to the property’s Dean & Nancy on 22, which has recently been named as on the world’s top 10 best new international cocktail bars and was developed by the same minds which imagined Maybe Sammy at The Rocks.

Slurp on shucked oysters, sip on classy cocktails which froth and bubble before your eyes, and feast on the likes of lobster sliders.

Or, for something more substantial, try the 600-gram grain fed rib eye from the New South Wales Riverina.

Back in your Destination A apartment, a hotel team member or “Curator” can assist with your every desire with Amenities on Demand – all Australian of course – or in-room massage delivered by the ultra-luxe LUXIT team.

From its gum leaf-coloured couches to its soft furnishings in the warm hues of an Australian autumn, to the corner cocktail cart and the all-Aussie mini bar items, there’s little doubt you’ve arrived in one of Australia’s stylish cities. And this hotel is intent on sustainability too, from its linen bathrobes and laundry and tote bags to a subtle sign reminding guests that Sydney water is among the best in the world to drink straight from the tap.

TFE Hotels Director of Marketing Katia Giurtalis, who was among the team to devise the concept of “hotel living”, says it is a blend of a hotel and high-end residential apartment experience.

“Guests love Adina but wanted something a little more premium with luxe finishes and a lot more hotel service,” she says.

“We looked at this idea of ‘wouldn’t it be great to offer a premium product where you get a fully catered apartment with a kitchen and laundry in a part of the city which is elevated with luxe amenities such as robes, slippers, a premium mini-bar, cocktails and grazing platters.

“It’s this idea where you can have the best of both worlds.

The concept has been very well received in both Sydney and A by Adina in Canberra where guests appreciate the space but when they want service it’s on demand.“ Back on the 22nd floor at Dean & Nancy – which pays homage to James Dean and Nancy Sinatra - it’s a New York city kind of vibe where the waitstaff are dressed in 1950s-style jackets and those contemporary cocktails are delivered with that good old-fashioned service. Yes, start spreading the news, there’s a new kid on the block of Sydney’s streets. END

36

What’s Cool

What’s Cool In The Accommodation Industry From luxury private resorts to budget-friendly accommodation and one of the planet’s bestknown fitness brands, the tourism industry is back on the bike, quite literally as it turns out. Director of New Developments and Hotels Tim Crooks checks out the latest trends in the industry.

Tim Crooks m: 0417 544 562 e: tim@resortbrokers.com.au

Private Resorts ANI Private Resorts – the world’s first collection of private resorts and pioneers of a new form of luxury travel – have relaunched with a new brand identity and enhanced guest privileges. Designed exclusively for a single group at a time with an unrivalled level of privacy and personalised service, you’ll find these heavenly hideaways in Thailand, Sri Lanka, Anguilla and Dominican Republic. For those with spare change, all-inclusive stays from dining to spa treatments start from USD$13,000 a night for six suites and a minimum of five nights. www.aniprivateresorts.com

Digital Nomads On Your Bike It’s back on the bike for many travellers in more ways than one and Peloton Commercial are making this easier than ever with its debut in Australia. More than 30 properties across more than 20 boutique and premium brands around the country, including the five-star Sofitel Sydney Darling Harbour, have incorporated this interactive fitness platform into their offerings. The experience enables hotel guests to access thousands of live and on-demand classes, choosing from more than 10 fitness disciplines, and taught by a roster of more than 50 elite global Peloton instructors. commerical.onepeloton.com

The phrase digital nomad has been floating around for a while now, but what’s new is the arrival of the world’s first stay, work and play ecosystem in Australia with the introduction of Selina properties in Melbourne. Sure, it sounds a little like a young, hip cousin coming to stay which is ideal, as Selina is targeted at Millennial and Gen Z travellers who have embraced the modern-day work/ life balance with gusto.

The two new properties – in the CBD and at St Kilda – feature budgetfriendly accommodation as well as co-working and recreational spaces, including in-house cinemas. www.selina.com

MANAGEMENT RIGHTS 197 UNITS

39 LETTING

25 YEARS

Summerlin Banyo Banyo, QLD

REF // M R 0 0 7 3 5 1

Multi-staged development with strong net over $265k This is an exciting opportunity to secure the coveted caretaking and letting rights to a premium master-planned community located in the heart of Banyo - a quiet and leafy suburb in Brisbane’s north east 10 minutes from Brisbane airport and bayside.

This extensive estate hosts a contemporary collection of high quality terrace homes and trendy mid-rise apartments that are positioned around a central communal recreational area. Summerlin offers residents access to incredible on-site amenities including a 20-metre lap pool with sun deck, yoga lawn, golf putting green, gymnasium and entertainment areas featuring kitchen and dining facilities. The manicured grounds are beautifully landscaped and create a tranquil residential estate.

Banyo is a high growth location, one-kilometre from the train station and under 10 minutes to Brisbane Airport. It is also close to Boondall Entertainment Centre, Westfield Chermside centre, Nudgee Golf Course, the Australian Catholic University and Nudgee College.

No requirement to live on-site or own a lot in any scheme 197 residential apartments, terrace homes developed over six stages Predominately caretaking business with small amount of letting projected P&L has been prepared by industry accountant giving projected net of $265,900 Fantastic family-based location with high appeal for owner occupiers Comprises Parkside Residences, Poolside Terrace, Lilly Residences, Summerlin Terraces and Magnolia Residences.

Strong BC salary of $238,925 p.a. plus GST with $40K+ wage allowance for caretaker adopted in P&L.

Net Profit

$265,900

$

Price

$1,276,720

TIM CROOKS

JEFF KEAST

DIRECTOR

BROKER

+61 422 208 450

+61 414 669 007

tim@resortbrokers.com.au

jeff@resortbrokers.com.au

MANAGEMENT RIGHTS 54 APARTMENTS 40 LETTING

22.5 YEARS OWNER’S RESIDENCE 2 BED 2 BATH

Gympie Pines Fairway Villas Gympie, QLD

REF // M R 0 0 7 3 5 4

Best value rights in Queensland - right on the golf course Gympie Pines Fairway Villas is located in a prime position adjacent to the Gympie Golf course. The resort is the only fully furnished, fully self-contained apartment accommodation in Gympie itself. The remainder of accommodation venues in Gympie are either motel units, hotel rooms, cabins or the caravan park.

The resort consists of 54 self-contained units, with 40 apartments in the letting pool.

There are 27 units which are permanently let by the manager and continue to attract long-term, quality tenants. The 13 short-term corporate apartments run at exceptional occupancy levels all year round. The short-term side of the business is run as a corporate operation with many federal and state government and private corporate contracts already in place, so there is no need for OTA agents to be used.

The manager’s residence is a two-bedroom, three-bathroom townhouse style villa with golf course views. An asking price of $365,000 for the residence makes this stunning unit the most affordable in the region while maintaining a high ROI for the overall asking price.

The Body Corporate salary is a solid $101,000 complemented by 22.5 years remaining on the agreements. The business is Gallery Vie compliant and there are no fixed office hours. The complex is immaculately presented and would be perfect for a sole operator or a relaxed couple looking for a strong return while still being able to hit up the golf course right on their doorstep.

Only self-contained accommodation in town Mainly corporate market Solid Body Corporate remuneration Great value manager’s residence Long Accommodation Module agreements Right on the golf course Supportive Body Corporate committee Solid ROI

Net Profit

$233,000

$

Price

$1,180,000

GLENN MILLAR

CHENOA DANIEL

BROKER

BROKER

+61 412 277 804

+61 403 143 151

glenn@resortbrokers.com.au

chenoa@resortbrokers.com.au

MOTEL FREEHOLD 8 APARTMENTS 4 ACRES OWNER’S RESIDENCE 4 BED 2 BATH

Melview Greens Country Apartments Orange, NSW

REF // F H 0 0 7 2 7 6

Boutique property set on 4 acres located just minutes from the CBD of Orange A rare opportunity to purchase the Freehold Going Concern of this resort-style property, situated on 4 acres in Orange, NSW is now available.

This unique property features eight contemporary accommodation units as well as a stunning, four-bedroom homestead built in the 1800s surrounded by beautiful, established gardens. Located just minutes from the Orange CBD and opposite a sensational golf course, the boutique business boasts an adjusted net profit of $294,868 p.a. in the 2021 financial year.

Secure a fantastic sought-after home with an onsite established business in a tourist hot spot in regional NSW. Grand four-bedroom homestead built late 1800’s Six studio apartments and 2 x two-bedroom apartments Strong repeat clientele Additional land onsite for further units to be developed An adjusted Net profit of $294,868 p.a. 2021 Financial Year Stunning residential home in Orange with business already established onsite All self-contained apartments with well-equipped kitchens or kitchenettes Located opposite Orange’s Wentworth Golf Club and adjacent to Towac Park Racecourse Well-presented boutique property located on 4 acres of established gardens, just minutes away from town Property inspections are by appointment only

Net Profit

$294,868

$

Turnover

$471,550

CHRIS KELLY BROKER +61 431 055 221 chris@resortbrokers.com.au

$

Price

$5.1m -5.3m

Success Stories

How A Chance Meeting While Driving His Taxi

Changed His Life

Here at ResortBrokers, we love hearing about how the lives of the people in our network have changed for the better with a move into, or within, the accommodation industry. These are the stories of those who decided to make a positive move.

Words_Christine Retschlag

MOVED FROM: BRISBANE 1,072KM COLIN & NANTIYA VAUGHAN

FORMER JOB: TAXI DRIVER

BUSINESS: MOTEL CARNARVON ROMA, QLD

Twenty-three years ago, ResortBrokers Founder and Chairman Ian Crooks jumped into a Brisbane cab, bound for the airport on a business trip. He started chatting with the cabbie about his life and asked: “Have you ever thought about owning a motel?” The rest, as they say, is history.

“I was an owner driver at Yellow Cabs in Brisbane. I got a job at Chelmer and Ian Crooks jumped in. He talked about motels all the way to the airport. When he got back from his trip, we went and talked to him, looked at the figures on 10 motels and physically looked at seven properties,” Mr Vaughan says.

“We nearly didn’t get Motel Carnarvon as it was under contract, but that fell through. We inspected the 20-room property and agreed to buy the lease for $285,000.

“I’d been driving a taxi for six years and was working 90 hours a week. We had two children, aged five and three, who I rarely saw. Every time we looked at another business like an IGA store, I thought we’d be working 14 hours a day and still never see the kids. Even though we might be busy in a motel, we would still get to see a lot more of them.”

Mr Vaughan says there have been lots of learnings along the way, including when a customer told them the reason he wasn’t returning was because of the quality of the beds.

“After that, every time we had some spare money we’d buy new beds,” he says.

“In 2002, we talked to the motel owner and paid around $700,000 for the Freehold. We immediately renovated bathrooms, installed split-system air-conditioning and painted the interiors and exterior. Subsequently, our occupancy and room rates increased.”

The Vaughans continued to invest in the property, building 10 apartments in 2005. They began to harbour concerns that they may have constructed a “white elephant”.

However, 2006 brought the gas boom and its workers

to Roma who occupied approximately 11 rooms for the next six years. They renovated the managers’ residence in 2007 and built an additional eight apartments in 2008.

This brought the total number of rooms to its current 38.

In 2011, after increasing the turnover from $300,000 in 1999 to $1.8 million, the Vaughans sold the lease and became landlords, returning as owner-operators in 2016.

In 2020/21, 11 three-star motel units were upgraded to four-star apartments. Motel Carnarvon continued to trade almost continually throughout COVID, capitalising on the increased traffic headed west.

Colin, 68 and Nantiya, 63, now have Motel Carnarvon on the market, having transformed it into a highly-successful business, with a projected turnover of $1,719,880 and a projected net profit of $980,331.

“We weren’t going to sell for another three years but we thought if we get the right price, we’ll let it go, so we can focus on retirement,” Mr Vaughan says.

“Our biggest learning has been in any business, don’t think about what you want but what your customers want.

Do everything you can to keep them happy so that they return and share their positive experiences with their friends.

“If you think about the money you want to make instead of what your customers need, you will fail.”

Mr Vaughan says prospective new buyers can enjoy a lifestyle business which is in great shape.

“The success of motels is reliant on clean rooms, customer service, product and excellent staff. We are fortunate to have all of those things,” he says.

The Freehold Going Concern of Motel Carnarvon is on the market with ResortBrokers south-west Queensland broker Jason Vogler for $8.5 million.

Contact Jason on jasvonv@resortbrokers.com.au or 0427 431 213.

42

The inaugural report is a game-changer for the industry with ResortBrokers utilising its bespoke, back-of-house research system to collect and collate the data from around Australia. Be sure to access a copy of the report to gain greater insight into the industry.

Some key content covered in the report includes: - Recent trends observed in the MR sector - Analysis of subtypes and sizes of MR businesses - Regional overviews of local MR markets - Ranges and averages of multipliers achieved - Detailed transaction highlights

43

The Management Rights’ Industry Snapshot $4.8b

3,679

250,652

Estimated Total Value Management Rights Industry

Number of Schemes Nationally

Number of Lots Under Management Rights Model

68

33,000

$120b

Average Lots Per Scheme

Number of People Employed

Assets Under Management

ResortBrokers Research ResortBrokers is the only agency of its kind with an in-house Research Department, established in 2021 and headed by property economist Josh Mangleson.

The research team works with ResortBrokers’ agents and the management team, as well as industry professionals, bodies and clients, to provide business intelligence services and produce data and economic commentary for reports.

This invaluable data supports both agents and their clients through reports and content about assets

classes in which ResortBrokers specialises such as Motels, Management Rights, and Caravan Parks.

The research is used to provide trends and predictions to support the purchasing decisions of buyers and the selling decisions of vendors.

Moving forward, research will be used to produce annual reports in a variety of sectors with which ResortBrokers works with the information used to support and showcase the scale and intricacies of the accommodation sector.

Contact

Josh Mangleson Property Economist

Alex Cook Director

Tim Crooks Director of New Developments

07 3878 3999 josh@resortbrokers.com.au

0467 600 610 alex@resortbrokers.com.au

0422 208 450 tim@resortbrokers.com.au

M OT E L F R E E H O L D 22 ROOMS 6,688sqm OWNER’S RESIDENCE 3 BED 1 BATH

Mossman Motel & Holiday Villas Mossman, QLD

REF // F H 0 0 7 3 4 9

Outstanding Freehold opportunity in a fantastic location at Mossman, QLD ResortBrokers is delighted to exclusively present to market this resort-style property, comprising 22 spacious, separate cabins spread over 1.6 acres that cater to a strong mix of corporate and holiday travellers.

With the business currently showing a healthy yield of 16 per cent return, this is an exceptional opportunity for an incoming operator to purchase a rare and highly sought-after freehold motel and holiday villa.

Returning Net profit of $227k, circa 16 per cent Strong corporate and holiday mix clientele One of only two motels in the Mossman township Large three-bedroom manager’s residence Property includes 22 multi-configured cabins Strong upside from a low base Located within four kilometres of the world famous Mossman Gorge Beautiful resort-style pool surrounded by tropical gardens Property inspections are by appointment only

Net Profit

$227,669

$

Turnover

$395,558

SHANE CROGHAN BROKER +61 418 451 006 shanec@resortbrokers.com.au

$

Price

$1,450,000

C A R AVA N PA R K F R E E H O L D 28 CABINS 50 CAMPSITES 2.23 HECTARES

Captain Cook Holiday Village Seventeen Seventy, QLD The Captain Cook Holiday Village has a monopoly on cabin accommodation in the area ResortBrokers is delighted to bring exclusively to the market The Captain Cook Holiday Village perched on the largest remaining parcel of land in the coveted Queensland seaside Town of 1770.

Expressions of Interest are invited on this 28-cabin and 50 caravan and camping site park, which sits on a rare 2.23 hectares and nets in excess of $800,000 thanks to the creative thinking to maximise profits per site.

Capitalise on the only caravan park in the region zoned for self-contained cabins and the ability to unlock the full potential of the land with further development options.

The unique parcel upon which it sits is surrounded by National Park to the north and south, and a private beach at the back, creating a limited and highly sought-after area that is comparable to Byron Bay and Noosa.

Largest remaining block of land in the town of 1770 Profitable business netting in excess of $800,000 Only caravan park in the region zoned for self-contained cabins Surrounded by national park and its own private beach 2km from the bustling 1770 marina Development potential Own freshwater spring directly on site Town sewerage and electricity High bandwidth internet across the entire site

Net Profit

$800,000+

$

Expressions

of Interest

NATHAN BENJAMIN BROKER +61 459 955 649 nathanb@resortbrokers.com.au

REF // F H 0 0 7 3 7 4

46

On The Market

New Financial Year New Opportunities Words_Trudy Crooks, Managing Director

Spring is in the air and the accommodation industry continues to flourish. A new financial year brings with it an abundance of new opportunities and the resurrection of some which have been dormant for some time.

We will continue to witness a trend of Off Market deals across all asset classes and we think this will only continue to grow. There is nothing more important than having a relationship with a broker you like and trust to make sure you have people working for you and in your best interests.

We are noticing a lot of clients are realising that now, despite looking down the barrel of a very good year of trade but with continuing uncertainty overseas, are seeking to capitalise on strong demand for good assets and more importantly, strong bank and valuer support.

Most deals we do, need to go through a bank and valuer so they often hold the key to the market.

Really experienced operators are realising that now is a great time to cash out, take a holiday and be ready with cash to pounce when new opportunities arise, as they do.

Interestingly, analysis of our inaugural industry report into Management Rights, reveals the biggest growth in asset value has been enjoyed by those buyers who were

resortbrokers.com.au

Short-Term Management Rights deals brokered during the pandemic which have already increased in value

1.

Redvue Luxury Apartments, Redcliffe: A contemporary short-stay complex located directly overlooking Moreton Bay in the breezy bayside suburb of Redcliffe, sold by Jeff Keast and Alex Cook

2.

Astor Apartments, Spring Hill: An iconic short-term Management Rights’ business in Spring Hill within striking distance of Brisbane hotspots, sold by Jeff Keast

3.

The Ridge Apartment Hotel – Sold Off Market by Jessie Shi, this rare 3.5-star accommodation property in the Brisbane CBD came with all of the hard work completed

4.

The Dockside Apartment Hotel, Kangaroo Point: A rare opportunity to secure a 146-unit property over 13 levels, sold by Jessie Shi

S

47

O LD

Noosa Pacific Resort_Noosa QLD This incredibly high-profile riverfront property posted a record multiple for Noosaville and a record manager’s unit price of $2m+ which demonstrates continued demand for Noosa and the Sunshine Coast, sold by our dynamic duo Glenn Millar and Chenoa Daniel.

S O LD

Saltbush Retreat_Longreach QLD An iconic award-winning retreat which highlights the increased demand for regional assets as well as the trend of coupling up properties that have previously been split between Freehold and Leasehold and taking them to market in one line, yielding nearly $9 million.

S O LD

bold enough to buy short-term Management Rights in Brisbane during the pandemic. The big question on everyone’s lips is: “In six to 12 months’ time, where did the smart money go and did you sell at the right time?”

Off-The-Plan sales are making a comeback with a vengeance which is great news for the industry.

While some parts of the market such as regional areas have remained buoyant and have experienced large transactions during the pandemic, there’s been other parts of the market, mainly those affected by international tourism such as the Gold Coast and Cairns and the permanent Management Rights’ space, where there were fewer transactions than previously.

Batemans Bay Hotel_Batemans Bay NSW Set in beautiful Batemans Bay on NSW’s South Coast, this property presented a rare opportunity to own a classic Freehold motel sold for a tight yield by our Broker of The Year 2021/22 Russell Rogers and Sarah Hutchins.

LD

All-in-all, it’s an exciting time to be invested in our industry.

O

With the housing crisis across the country, we hope to see more red tape cut and more support by local governments to help ensure the feasibility of new developments, not only for the good of our industry but for those seeking accommodation in the current tight market.

S

Particularly in the Off-The-Plan space, it is new developments which often entice experienced operators to sell existing assets and create momentum.

We are delighted to see some of the first big Off-ThePlan opportunities such as the iconic Gold Coast development Paradiso Place come back to market.

Quest Mascot_Mascot NSW It’s great to see the first sale in recent times of a Quest franchise. We value our long-term relationship as their exclusive agent and were delighted to attend their recent conference in Cairns attended by a record number of franchisees across the country. They were all talking about record months which is a testament to the strength of the brand and ongoing training.

H OT E L M A N AG E M E N T AG R E E M E N T 65 ROOMS

MANAGER’S RESIDENCE 3 BED 1 BATH

cluBarham Motel, River Motel & cluBarham Golf Resort Barham, NSW

REF // F H 0 0 7 3 6 6

Experienced operators invited to tender for HMA of large-scale resort located alongside Murray River ResortBrokers invites you to submit your Expression of Interest to secure a brand new Management Agreement over cluBarham’s accommodation assets situated along the northern side of the Murray River in the village of Barham in NSW. This incredible regional resort comprises three unique accommodation assets, cluBarham is fully established and offers a total of 65 keys plus several powered and unpowered sites, all presenting in good condition.

Suited to experienced operators, the objective is to increase visitation and drive results to this deserving regional destination. This is an opportunity to stamp your mark on three quality assets with the full support of cluBarham.

Assets include cluBarham Golf Resort with 11 keys and additional caravan sites.

CluBarham Motel, which is the primary accommodation in town, offering 28 keys and the River Motel, with a further 26 keys providing overflow support to the portfolio. cluBarham will maintain management of golf, tennis, bowls, gym, wagering, poker machines, food and beverage and functions. Barham is located on the NSW/VIC border in the western Riverina district approximately 300km to Melbourne and is on the tourist and traveller’s trail.

Brand new Management Agreement with full support from cluBarham Excellent branding opportunity in growing region Three assets offering a total of 65 keys Additional caravan pitches and unpowered sites Pool and barbecue recreational areas Reception and 3-bed manager’s residence Access to fantastic facilities - golf club, tennis, bowls, gym and food & beverage Opportunity to structure MA to align with your business growth plans

$

Expressions

of Interest TIM CROOKS

TIM MAYOH

DIRECTOR

BROKER

+61 422 208 450

+61 419 038 882

tim@resortbrokers.com.au

tim.m@resortbrokers.com.au

Your tourism business should be going places With extensive experience in the Motel, Caravan Park & Backpacker industry and management rights, we’ve helped hundreds of owners purchase, manage and sell their businesses.

How we can help

Purchasing a business

Business management

Selling your accomodation business

We offer tailored guidance on all aspects of your accomodation business purchase, including structures, tax advice, borrowing and contracts.

Once you’ve purchased your business, we give you constant access to accurate figures and expert management advice.

When it’s time to sell your accomodation business, we can manage the process of Profit and Loss reporting.

Specialist accountants & business advisors to the accommodation industry Upper Mt Gravatt

Noosa Heads

Forest Glen

07 3421 3421 2042 Logan Rd. Upper Mt Gravatt QLD 4122

07 5474 8955 S 12 Noosa Central 4-12 Bottlebrush Av. Noosa Heads QLD 4567

07 5443 5833 354 Mons Rd. Forest Glen QLD 4556

www.mcadamsiemon.com.au

Jonathan Whybird M +61 450 924 908 E jwhybird@ajandco.com.au Acquisitions and divestments Interaction with Government bodies Commercial disputes

Sarah Bird

ACCOMMODATION INDUSTRY EXPERTS – AUSTRALIA WIDE AJ & Co Lawyers is the go-to legal service provider for participants in the Australian accommodation industry. Our knowledge and passion for the industry allows us to deliver market leading results for our clients in every State and Territory.

We are the trusted advisors to major hotel and motel brands, investment funds and family businesses. Clients value our down to earth approach in delivering excellent legal advice in a commercial context. We take the time to understand our clients’ businesses, their goals and their challenges.

Our services cover all aspects of accommodation businesses including: Acquisitions and divestments of hotels, motels, resorts and management rights Management rights negotiations Leasing Greenfield site development Interactions with Government bodies Commercial disputes Strata disputes Please contact one of our team today to discuss how we can help you.

M +61 415 622 896 E sbird@ajandco.com.au Leasing Management rights negotiations Greenfield site development

Andrew Johnson M +61 413 378 235 E ajohnson@ajandco.com.au Management rights negotiations Greenfield site development

Ashley Stanton M +61 411 342 032 E astanton@ajandco.com.au Commercial disputes Strata disputes

AJ & Co Lawyers Level 18 Waterfront Place 1 Eagle Street Brisbane QLD 4000 +61 7 3708 0900 www.ajandco.com.au

MANAGEMENT RIGHTS 34 APARTMENTS, 22 LETTING

21 YEARS

4 STOREYS OWNER’S RESIDENCE 3 BED 2 BATH

Sandcastles

Mooloolaba, QLD

REF // M R 0 0 7 3 6 1

Arguably one of Queensland’s Sunshine Coast top locations, Sandcastles Mooloolaba is a multi-award-winning complex Situated right in the heart of the restaurant and cafe precinct, Sandcastles is nestled just behind the iconic Mooloolaba Surf Club. Literally 100 steps from your reception, and you are on the Mooloolaba main beach. The only section of the Mooloolaba beach that is flagged and patrolled by lifesavers, makes this the most popular piece of sandy real estate for families and holiday makers.

This asset has been tightly held by the same entity for eight years and presents as a strong consistent performer, but also a fantastic blue sky business for a savvy incoming manager. Opportunity abounds for increased tariffs and further marketing to tap into additional areas not currently optimised by management. A fresh set of eyes and some new ideas will really take this business to the next level.

The complex features 34 one-bedroom, self-contained apartments designed expressly for couples and solo travellers. Due to the resort being all one-bedroom apartments, management is not dictated via occupancy by school holidays or family orientated weekends, meaning the resort can be driven in a more boutique setting with strong occupancy all year round. No Marco Polo in the pool at this resort.

The business opportunity is further complemented by a three-bedroom manager’s unit with ocean views – one of the most enticing manager’s units on the coast. The opportunity to acquire this asset, with healthy ROI, is expected to cause quite a splash.

The business is presented with wage allocation as actuals and priced to sell.

Positioned for success in unrivalled Mooloolaba location High netting consistant performer with plenty of blue sky for new management All 1-bedroom apartments suitable for couples or solo travellers Easily maintained common facilities Complementary Body Corporate remuneration - $125,633 Long tenure of 21 years Huge 3-bedroom, 2-bathroom manager’s unit (191 sqm), with ocean views

Net Profit

$409,031

$

Price

$3,338,315 including real estate

CHENOA DANIEL

GLENN MILLAR

BROKER

BROKER

+61 403 143 151

+61 412 277 804

chenoa@resortbrokers.com.au

glenn@resortbrokers.com.au

Tropicana Resort Vanuatu

Opportunity for seasoned operator to acquire an absolute beach-front 3-star complex with fantastic on-site facilities on Emten Lagoon, 5 minutes’ drive to Port Vila.

Perfectly placed for short-stay guests or corporate travellers, with 12 studios and 6 twobedroom apartments. Tropicana Resort is a true “getaway” paradise that is conveniently located a short walk to local supermarkets. The property has a private beach, and all 18 apartments enjoy lagoon views and are neatly equipped. Hotel amenities include an outdoor swimming pool, on-site bar with lounge and 40-seat restaurant which sits over the water.

Comprises two independent buildings with total of 18 self-contained units Lagoon views from balconies or terraces Tastefully furnished with quality interiors for comfortable stays Over-the-water restaurant facility with seating for up to 40 guests Tropical gardens, bar, swimming pool and water sports activities On-site reception lobby and visitor car parking

Ocean View Hotel Apartments Vanuatu

Established apartment complex presents an idyllic business opportunity with strong return on investment and DA approved for future 22-room expansion.

Convenient to the airport for guests and a casual stroll into Port Vila CBD, this established complex hosts 24 apartments with access to well-maintained restaurant and pool facilities.

Each of the self-contained apartments have a modern finish with air-conditioning and ocean views from the water-front balconies. With nine studios, six 1-bedroom, six 2-bedroom and one 3-bedroom it can cater to an array of travellers and tourist groups looking to retreat and relax on this tropical island.

24 modern studios and 2-bedroom apartments with bay views Two on-site restaurants – 80 seats and 20 seats respectively Located above Port Vila’s newest shopping centre Tanna Russet Plaza 24-hour security and fully serviced for short-term or corporate clients Additional approved DA for 5-storey building offering 22x apartments and lift access

Coco Beach Resort Vanuatu

Island life awaits astute investors / experienced resort operators!

Take the helm and reshape the future of this truly stunning ocean-front property in Vanuatu Located in Paradise Cove, just 10 minutes’ drive from Port Villa, Coco Beach Resort is a fully refurbished, beach-front holiday complex offering 15 bungalows with amazing ocean views and set in a tropical landscape. On-site amenities include a new lobby, upgraded water-front restaurant and renovated swimming pool overlooking the glistening waters of this private, tranquil white beach.

Total of 15 studio bungalows with modern decor & A/C Large water-front restaurant and bar / new kitchen Brand new 75 year land lease Newly refurbished swimming pool and timber deck

Outstanding opportunity in tax free Vanuatu!

Showing 13% passive ROI, 20%+ when leveraged Tropicana Resort, Ocean View Hotel Apartments and Coco Beach Resort are currently owned and operated by same owner. The vendor is willing to sell these 3 fantastic assets at a discounted rate if they are acquired in one line.

The business in currently operated completely under management, with the current owner overseeing the operation. ResortBrokers is working closely with an experienced, professional ex-pat who is willing to oversee the assets moving forward. The current owner operator is also willing to offer an extended hand over.

As a combined asset portfolio, this represents a great opportunity for an Australian based investor (or investors) to acquire a substantial business, and to receive a high passive yield. With ANZ Vanuatu currently offering LVRs of up to 50% and favourable interest rates, there is scope to leverage this substantially.

• • • • • •

55 lots across 3 complexes/resorts – mix of apartment and bungalows Very high passive income of $1,500,000 at a yield of 13% Good bank lending appetite, including ANZ (circa 50 LVR, 5.5% interest) Run completely under management with option of adding supervisory management Benefit from the imminent tourism boom growing since international border opened July 1st Income earned on-shore in Vanuatu exempt from taxation

Tropicana Resort Est. NOP, Under Management

$383,000 AUD

$

Price

$3,200,000

Ocean View Hotel Apartments Est. NOP, Under Management

$427,000 AUD

$

Price

$

Price

$

Price

$3,550,000

Coco Beach Resort Est. NOP, Under Management

$323,000 AUD

$2,700,000

Combined Portfolio Est. NOP, Under Management

$1,150,000 AUD

ALEX COOK

IAN CROOKS

DIRECTOR

CHAIRMAN

+61 467 600 610

+61 411 171 648

alex@resortbrokers.com.au

ian@resortbrokers.com.au

$8,900,000

54

Event

The inaugural Management Rights Report Launch Well, the sun certainly wasn’t shining for ResortBrokers’ MR Industry Report launch party in July, but fortunately the cold, gloomy weather didn’t stop an outstanding turnout from the leading lights of the industry.

The main function room of The Calile Hotel was filled to the rafters with an array of industry leaders operators, lawyers, developers, accountants, valuers and agents, all intent on a delicious breakfast and the launch of the MR Industry’s first over-arching report.

A rousing welcome from Tim Crooks (Director) was followed by a thorough run-through of the report

by Alex Cook (Director) and Josh Mangleson (new inhouse Property Economist / Analyst).

Comments from the numerous attendees continue to roll in, and all have been extremely positive. Not only did everyone seem to thoroughly enjoy the event, but the feedback on the quality of the report itself, and its contribution to the industry, has been great. END

Josh Mangleson, ResortBrokers in-house Property Economist

55

®

HOTEL LEASEHOLD 60 SERVICED APARTMENTS 36 YEAR LEASE

Quest Echuca Echuca, VIC

REF // L H 0 0 7 1 8 1

Award-winning Quest franchise with long lease and solid performance Don’t miss out on this highly successful 60 key Quest Leasehold, Quest Echuca. With a long lease, recent major refurbishment and solid performance, this opportunity is begging for the right operator to walk in and start profiting. Year-on-year growth and high demand during and following COVID-19, there is so much on offer for one lucky buyer.

Recent full refurbishment Long lease Awarded the 2021 Quest Apartment Hotel Franchise of the Year for Victoria / Tasmania Consistent turnover growth year-on-year Located in central Echuca, within walking distance to all amenities 60 large serviced apartments Echuca is a strong Victorian regional hotel town Good longevity of staff Member of the Quest Apartment Hotels network Property inspections are by appointment only

Net Profit

$1,255,303

JACQUELINE FEATHERBY BROKER +61 424 497 056 jacqueline@resortbrokers.com.au

$

Turnover

$3,426,041

$

Price

$5,250,000

Appointments

New Kid On The Block Our national team has been bolstered with the addition of Tim Mayoh who joins ResortBrokers with an outstanding skill set from a diverse background.

Welcome to our new broker who will be covering Greater Sydney.

“I’m fortunate to be equipped with unique hospitality career experiences around the globe. Experiences which have stamped a deep understanding of the hotel, motel, spa, cruise and timeshare sectors.

I embrace the importance of driving results and the need for superior service to ensure all stakeholders achieve their ambitions.”

Born and raised in Sydney, Tim’s first taste of hospitality was that of a luggage porter and concierge at the Sheraton on the Park which cemented his passion for the hotel industry. From this point on, a desire to experience all the world had to offer was developed and he has never looked back.

In his early career days, Tim gained experience in operations in downtown international hotels, Canadian ski resorts and remote island resorts which provided a strong foundation for leadership positions to follow. Several contracts onboard Carnival Cruise Liners based out of the United States managing food and beverage outlets, exposed Tim to large-scale logistic operations where a firm regiment and attention to detail were paramount.

Tim completed a Bachelor of Business degree and pursued management roles in luxury hotels including managing a boutique hotel in Vancouver Canada before landing a dream job.

Travelling the world, he assessed hundreds of the world’s leading luxury hotels and resorts for groups such as Four Seasons, Marriot, IHG, Mandarin Oriental, Jumeirah, Dorchester, Langham and Leading Hotels of the World.

“These experiences were beyond my imagination and allowed me to network with an amazing array of hoteliers, both management and owners of various cultures,” Tim says.

“Not only did this provide me with a deep understanding of the demands and requirements of owners, the interactions with the world’s best hoteliers delivered the most rewarding moments in the role.”

After close to a decade based in Vancouver, Tim and his young family returned home to Sydney. A successful tenure as Development Director with Choice Hotels Asia-Pac reaffirmed his focus on leveraging a strong career in operations for the purpose of helping owners maximise their assets.

BROKER, GREATER SYDNEY

TIM MAYOH

Tim has thoroughly enjoyed growing a strong network of accommodation owners across the country, which has led him to Resort Brokers.

When not working, you can find Tim on a golf course and when time permits, back in Canada with family enjoying skiing the mountains of British Columbia.

He’s a passionate rugby and cricket supporter, and loves refining his painting skills with oils, acrylics, and pastels.

As a Sydney local, Tim possesses a sound knowledge of this key Australian market. Bolstered by significant experience working with assets from motels to large-scale hotels, Tim’s pursuit is to ensure owner’s goals and expectations are exceeded.

“Whether it’s a small motel or a large CBD hotel, the outcome for the investor is consistent,” he says.

“I am most excited to leverage my experience and knowledge to service my clients to ensure success for all involved.” END

58

Events

Let's Get Social!

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

80 TWENTY HOTEL CONFERENCE

MANAGEMENT RIGHTS REPORT

BROADBEACH

BRISBANE

Everyone enjoys the benefit of 20/20 hindsight but at the 80 TWENTY Hotel Conference on 14 June at The Star, Gold Coast, our forward-looking Director Alex Cook spoke about what new hotel developments might look like in the future as well as the challenges faced by the sector.

More than 100 movers and shakers attended the ResortBrokers release of the inaugural Management Rights report on 22 July at The Calile Hotel in Brisbane. Our groundbreaking report revealed the staggering amount that Management Rights contributes to the Australian economy.

QUEST FRANCHISE CONFERENCE 2022

ARAMA’S TOP AWARDS 2022

CAIRNS

BRISBANE

ResortBrokers Managing Director Trudy Crooks and Quest specialist broker Jacqueline Featherby headed to Cairns at the end of July for the 2022 Quest Franchise Conference aimed at reconnecting suppliers and business owners face-to-face.

The ResortBrokers team dressed in their finest for the ARAMA annual awards at Brisbane City Hall in late July, where our very own Sunshine Coast broker Chenoa Daniel won Sales Broker of the Year.

resortbrokers.com.au

59

THE URBAN DEVELOPER AWARDS FOR INDUSTRY EXCELLENCE GOLD COAST ResortBrokers Managing Director Trudy Crooks had the privilege of sitting on the judging panel of these prestigious awards which were announced on the Gold Coast on 4 August. Both Trudy and fellow Director Tim Crooks attended the black-tie gala sponsored by Trilogy Funds.

BIG4 NATIONAL CONFERENCE SUNSHINE COAST We love working with the caravanning and camping industry and two of our brokers Glen Cummins and David Faiers packed that passion when they attended this conference at Novotel Twin Waters on 6-8 September.

BEST WESTERN HOTELS CONFERENCE

MANAGEMENT RIGHTS MADE EASY

SYDNEY

GOLD COAST

Hotels are also a few of our favourite things and two of our NSW brokers, Jacqueline Featherby and Tim Mayoh attended the Best Western Hotels Conference on 9-12 September.

Our Gold Coast team took the mystery out of Management Rights with their latest Management Rights Made Easy seminar on 10 September at the RACV Royal Pines Resort at Benowa.

®

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®

ResortBrokers Award Winners

ResortBrokers staff and brokers from around the country gathered at the company’s West End headquarters in Brisbane in late July for our mid-year conference and to celebrate the end of financial year – our most successful in four decades in business!

Top Sales Broker_Russell Rogers

Top MR Broker_Todd Warner

For the sixth time in 11 years, our South Coast NSW Broker Russell Rogers took out Top Sales Broker for 2021/22. In the past 11 years, Russell has brokered 135 deals worth $272 million in sales.

Gold Coast Broker Todd Warner demonstrated again and again what an expert he is the Management Rights’ sector, taking out Top Management Rights Broker for 2021/22.

Top Volume Broker_Chenoa Daniel

Rising Star_Frank Matus

Sunshine Coast Broker Chenoa Daniel settled a staggering 24 deals in 12 months – and with an amazing pipeline of 8 deals already on the books for this year – to take out of Top Volume Broker for 2021/22.

Starting with ResortBrokers in September 2021, Brisbane Broker Frank Matus settled two deals in his first nine months, and is going into the new financial year with 6 deals, earning him the Rising Star award for 2021/22.

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ResortBrokers

Culture Means Success + Client Satisfaction Words_Glenn Millar & Chenoa Daniel

Have you ever wondered why ResortBrokers agents are so upbeat?

What makes the ResortBrokers team such a well-oiled machine?

Why are we successful? Why do we make more sales than other brokers? Why do we win many industry accolades and most importantly: why do we love waking up each day wanting to go to work?

The answer is simple. As brokers, in our case servicing the Sunshine Coast and surrounds, it all comes down to company culture and actually loving what we do.

What is company culture and why it is so important to the success of the team? Let’s discuss how that passion and drive resulting from our culture then passes that high level of satisfaction down to you - our valued clients and stakeholders.

ResortBrokers embraces a positive company culture in spades. We work hard and play hard. If you have been to one of our many social events you would be well aware of our reputation for a good time.

Company culture comes from the top of the tree and without that passion and drive it doesn’t filter down the branches. It’s not just the team we are part of, but our culture also flows over to the associates with whom we choose to work.

As a family company with family members steering the ship, the accommodation industry is in our DNA and the management team are experts in their fields. Flowing down from the top, it is important not to underestimate the importance of the vast resources which sit behind each individual broker.

Our company possesses a powerhouse of great minds that are the driving force behind us. Our clients reap the benefits of years of experience and multiple minds working towards the same goal: a successful result for our partnerships between vendors, purchasers and brokers.

ResortBrokers boasts a team of 30 brokers with feet on the ground in every Australian state and territory. Importantly, and one of our key points of difference, are the support staff in head office. The ‘behind-the-scenes’ side of our business may translate to higher operating costs, but the benefits are priceless including providing the best service to our clients and supporting the ongoing stability and growth of our industry.

Long gone are the days of just listing a property and sitting back waiting for enquiries. In a day of digital and technological advances (weekly it seems), ResortBrokers is on the forefront, hiring in-house economists, journalists, graphic designers, administration, finance and support staff, to keep pace with the ever-changing market and demographic of buyers.

It is our culture within our brand that demands we keep up to date and continue to reinvent ourselves, always being one step ahead as the market leaders and in doing so staying accountable and keeping our A-game on point.

Great culture means sharing resources, sharing leads and working as a team as opposed to an individual spoke in the wheel, or a two or three-man band. With happy and motivated staff, this translates into high levels of performance and ultimately a high level of client satisfaction and peer recognition.

Ultimately, our positive culture enables creativity to flourish and space to explore new opportunities, allowing brokers flexibility in work/life balance which generates longevity in service and staff satisfaction. END

®

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Regional Spotlight

New South Wales Measuring four times the size of the United Kingdom, it’s easy to see why there’s not a one-size-fits-all approach when it comes to selling property in New South Wales. In the first of this two-part series, we speak to some of our brokers covering this dynamic state.

Russell Rogers Broker, South Coast

What’s been your biggest/best sale in recent times and why?

Mollymook Surfbeach Motel & Apartments part of the Golden Triangle, bought off-market by Knox Developments who are spending a huge amount of money upgrading it to a top-shelf luxury offering. This is a good example of the conversion of coastal motels being bought for redevelopment.

What is the market doing and where do you see it going?

Over the past 10 years we have seen a steady increase in the market. The past 12 months have by far been the best, even though we are seeing a downward trend in the residential market. With the talk of $3 trillion in Australian super funds, and the amount of corporate money we are seeing chasing motels and caravan parks, we are confident of another very strong year.

What’s driving this?

Supply and demand. We still have more buyers than sellers. We have a large number of developers who have now entered our market space. People are buying coastal motels and taking them to an extremely high four-star level and doubling tariffs.

Most popular asset classes?

Freehold motels both coastal and regional as well as coastal caravan parks and larger caravan parks which continue to go from strength to strength.

Challenges? Opportunities?

We believe the challenge this year is getting enough good listings. The market is strong with qualified cashed up buyers. There are a number of corporate buyers in serious acquisition mode.

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New commercial buyers are happy to pay top dollar for good assets, however they do also want to ensure that everything is in perfect order. We were able to achieve a good sale and the vendor called me after the completion to thank me as they had almost doubled the trade it had done in the past.

Chris Kelly

Broker, Central West

What’s been your biggest/best sale in recent times and why?

I’d have to say the Quality Inn Bathurst now Mantra Bathurst. This was a silent listing and the vendor owned one motel and 30 service stations. He had very limited financial records that had to be forensically investigated to see how it was trading. The vendor didn’t have a fire safety schedule or any fire safety certificates. This took a lot of investigating to find out if it could still actually be trading and correspondence with NSW Fair Trading, Bathurst Council and independent investigations into the structural issues of compliance of the building.

What is the market doing and where do you see it going?

There are so many variables with fuel prices and the flow on for cost of operating as well as a massive shortage in staffing. Following COVID lockdowns, all venues are enjoying professionals and travellers again, but the rising cash and interest rate is slowing down enquiry. If rates go up and occupancy goes back to what it was, or down as the cost of living goes up, then we about-face and will have people looking to cash in on the past year of trading figures meaning there will be some great opportunities for astute buyers.

Most popular asset classes?

Leaseholds are starting to be looked at again due to their high returns which protect against interest rate hikes but they need to be experienced buyers to satisfy the lenders.

Tim Mayoh

Broker, Greater Sydney

What is the market doing and where do you see it going?

Sydney’s market is steadily improving and the worst is behind us. According to STR preliminary May data for Sydney, occupancy was at 65.1 per cent and ADR at $233.96 which is a steady improvement on recent times.

Tuesday and Wednesday nights fetched occupancies between 65 and 75 per cent which suggests corporate travel has strengthened. The question is, during a slowing economy, will accommodation asset divestment increase in a traditionally tightly held city? We believe so and expect to see an increase in institutional and private savvy investor confidence in the robust Sydney market which will always be strong and the buyers will be ready.

Most popular asset classes?

Larger high-end hotels in Sydney will always be extremely attractive for both domestic and global

investment firms and the world’s leading management groups to strategically include in their portfolio.

Sydney-wide and particularly the surrounds, the smaller economy to mid-scale classes are always particularly popular assets for domestic investment. Two key reasons: strong historical results and confidence around capital gains, and the abundance of properties in the metropolitan surrounds that are prime candidates for experienced operators to aesthetically improve and drive strong results.

Challenges? Opportunities?

The reduced employee pool and higher operational costs are a significant challenge for owners and the government needs to ensure foreign workers including students are encouraged back to our shores. The greatest opportunity I see are long held family assets coming to market that have weathered the pandemic storm and are ready for a new direction.

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Feature

How to be a

Hot Shot Improve Your Website Search Ranking (And Property Sales)

If a picture is worth 1,000 words, Mauro Risch - known as The Hotel Photographer - believes “one perfect photo is worth 1,000 bookings”. Mr Risch is the preferred photographer for some of the top brands in the industry, including Intercontinental, Meriton and Wyndham.

We speak to this award-winning photographer about what constitutes the ideal accommodation shot and his top tips to make your property sing.

“It has been a very intense year for hotel photography so far. After a couple of years of repressed demand, the need for fresh content is at the highest level I’ve seen in Asia Pacific since moving to Australia more than a decade ago,” Mr Risch says.

“There are a lot of new properties on the market as well as lots of refurbished hotels, resorts and motels ready to tell their stories to guests who are just preparing for ‘revenge travel’.

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“The number of properties I have photographed this year is at a record high and it does not seem to be cooling down soon.

“It’s quite common to see hotel websites showing their product using the same image to describe different room types. We can all be limited by budget but be aware that this could be hurting your sales.

“Google will penalise your website for the use of duplicate content and bring your ranking to a lower position because of that.

“Also, if your guest is searching for a room, how can you justify the same room image with different room types and rates. Stop using duplicate images on your website as soon as possible.”

Mr Risch says most OTAs request at least four different images per room type.

Here’s list of suggested images: • Room overall shot – find the best angles and time of day to shoot it •

Bathroom shot – Australians love seeing bathrooms

•

Reverse angle shot – sometimes the most unorthodox angles work very well

•

View shot – show them the window, city, hinterland, waterfront, river or simply the street view

•

Room close up detail – beside table, desk, corner chair, lamp

•

Balcony shot

•

Lifestyle shot with model/s – it takes the production value to a whole different level and worth every penny

•

Bathroom detail shot – amenities, towels, robe

“These things alone will most likely have a massive impact on your search ranking, moving your property up on the list/page,” Mr Risch says.

“Expand your storytelling visually. Show them. Tell as much of your story as you can and they will come.

“You should also consider short videos, 360 degree panoramas, time lapses and cinemographs. The more you tell them, the higher the chances to sell.”

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Associate Article

Rising Cost of Insurance and the impact of rising inflation Words_Charles Gow-Gates, Barrack Broking

The main factors driving the rising cost of insurance It only takes a quick look back at the news headlines from 2022 thus far to get an idea of the large-scale events we’ve lived through as a nation this year. The pandemic has understandably upheaved life as we know it and has been the root cause of many price hikes in the insurance space.

More pressingly, though, the catastrophic flooding experienced in QLD and NSW between February and March 2022 has proven to be one of Australia’s costliest disasters. Second only to the Eastern Sydney hailstorm of 1999, the recent flooding events came at the cost of at least $5.134 billion.

Considering the additional bushfire, storms and other extreme weather events that have wreaked havoc on our country since February last year, it’s little wonder that Australia’s insurance industry has experienced an extraordinary rise in claim costs. Resultantly, there will be continued pressure for higher premium rates from insurers, especially for risks exposed to natural catastrophes.

At what point do insurers increase premiums?

Premium increases are determined and handed down at the insurer’s discretion and therefore aren’t always predictable.

If you’ve experienced a change to your premium, there are several reasons this may have occurred: •

Your insurer may have reassessed your individual risk following a claim or a natural disaster. Government or expert information also provides the catalyst for reassessments to take place.

•

There have been a considerable number of claims experienced within that sector of the insurance industry.

•

The insurance industry experienced large-scale claims due to natural disasters

•

The price and availability of re-insurance have been affected by global and domestic events.

Rising inflation has triggered the need to adjust the current premium rate.

Why does inflation cause a premium rate hike on business insurance?

Premium rate increases from insurers aren’t always self-serving. Consider inflation’s impact on what you’re insuring in the first place: often, inflation will increase either the value, quantity (or both) of what you’re insuring. Understandably, a rise in the value or volume of insured assets or events means a flow-on impact on the insurer’s business cost.

The rising cost of living doesn’t discriminate — its impacts are felt in every business, including the country’s largest insurers.

Maintaining strong business protection in the face of inflation Taking a proactive approach toward your business insurance is your best defence when balancing your business’s essential protection needs with your bottom line. Consider the cost of repairs verse the actual price of the cover, and gauge its adequacy in case of a claim.

Work with your business insurance broker More than simply sourcing your business cost-effective cover, a business insurance broking specialist can provide invaluable assistance in: •

Ascertaining the correct sums insured to ensure your business doesn’t end up under or over-insured.

•

Identify appropriate deductible and indemnity periods that are relevant to your unique business needs.

•

Provide relevant guidance on your risk management measures, including accessing a property risk report and assessing your current operating climate.

•

Form an insurance framework to identify gaps in coverage and provide a structure to continually build upon to ensure coverage into the future.

Hail, floods, storms, bushfires and cyclones have always been a part of Australian life. However, as we adjust to the ‘new normal’ of living with COVID-19, insurers need to balance the cost of continuing to provide coverage for the ever-present and seemingly increasing threats of natural catastrophes.

Accessing commercial insurance brokers can be your key to unlocking efficacy in an inflationary environment. END

Delivering strategy, ideas and certainty to protect the accommodation industry

SPECIALISED INSURANCE SOLUTIONS FOR YO U R I N D U S TRY

O U R E X P E R T I S E I N A C C O M M O D AT I O N We have an experienced and specialist team, focused on servicing clients in the accommodation industry. We’ve helped hotels and motels, student accommodation and

The accommodation sector is an industry exposed to a diverse range of strategic and operational risks. The risks vary considerably depending on the style of accommodation, location, target customer and ownership structure.

While accommodation businesses may have common business objectives and experience the same risk issues, there are unique aspects to every situation. These unique aspects demand a tailored approach to risk management and insurance.

worker facilities, through to luxury holiday resorts.

Our purpose is to help you succeed. We ask what business success looks like for you and identify the barriers to reaching your goals. We add value by thoroughly investigating your existing risk management activities and making recommendations on refining or enhancing these so that we can present your business in the best possible light.

This ultimately provides better and more cost-effective protection.

POINTS TO CONSIDER Good records of asset valuations,

Start activities for your next renewal

inventory, financials, compliance and

early. Doing so will allow you to

management policies are critical to

anticipate and respond to any possible

having the right insurance.

challenges.

Photos cataloguing your buildings,

Work with experts in your industry.

plant & equipment can really assist in

Whether brokers, lawyers, accountants

demonstrating quality to insurers.

or valuers.

Talk to usDirector about your accommodation business Graeme Hay, T: Graeme (02) 9191Hay, 7320Director E: ghay@barrackbroking.com T: (02) 9191 7320 E: ghay@barrack.com.au

B A R R A C K . C O M. AU

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Associate Article

Sustainability: Meaningless Catch Cry or Call to Arms?

Words_Mike Phipps

As always, I have decided what to write about this month. That’s pretty much as far as I usually get before writer’s block sets in and I resort to Google for an appropriate opening quote. It always works but not today.

The word “sustainable” has been hijacked by the woke, the deluded and the thought police and must now only be used in the context of saving the world. All manner of sustainable practices and definitions pop up, mostly meaningless motherhood statements and sadly none addressing infinite population growth on a finite ball of spinning rock.

In my mind, sustainability is the concept of maintaining a process, relationship, practice or dynamic which can be reliably replicated over time. Of course, if any such practice diminishes a finite resource, then it’s not sustainable. Simple.

As an example, I am not an easy bloke to live with and the Managing Director has a finite level of patience. As such my demeanour is not sustainable unless the MD makes a concerted effort to move to an infinite patience setting.

Despite my best efforts to convince her of the benefits of such an arrangement, there seems little prospect of success. Put simply, to sustain my relationship with the MD, I need to make an effort to be a more beautiful and compassionate person. Simple.

Of course, there are those who argue that a practice can be sustainable even if it relies on a finite resource.

That is, the use of the finite resource will be replaced with a different process before the resource runs out.

The flaw in this argument is that the “different process” is often an unproven and uncosted concept that fails to account for resource use in its delivery.

Those carbon fibre wind turbines aren’t made from fairy dust apparently. A tangled web to be sure.

All this, dear readers, inevitably leads me to the point of this month’s missive. (About time you say).

In the Management Rights and motel industries, businesses are bought, sold and valued with reliance on a range of information. In recent times, buyers and their advisors have started to pay attention to the sustainability of the business.

That is, can current business practices be sustained over time and can the business maintain or improve profitability based on historical levels? In fact, we are starting to see sustainability of net profit creeping into contract conditions. Not before time.

The challenge as always is that vendors want to maximise price. The strategies to do so range from highly professional presentation of the opportunity through to what some might think of as misleading and deceptive conduct. Of course, the best way to maximise price is to maximise net profit, either real or imagined.

To this end, in nearly all cases we see vendors argue that their actual operating costs are inflated by practices that are discretionary in nature. Labour costs are the big ticket item and the easiest to fudge.

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For example, in Management Rights the typical two person team - despite arguments to the contrary - is not an infinite resource.

As such the sustainability of the business profit needs to be predicated on the reasonable performance of the managers and the support they will require.

When a vendor says that they have staff they don’t need, all they are really saying is that they are trying to sell an unsustainable business model.

While adjusted operating costs is an obvious area of discussion, I think the concept of sustainability needs to inform vendor due diligence in all facets of the business. For example: •

•

Can current vendor practices be perpetuated while maintaining a cordial relationship with a Body Corporate, unit owners or landlord?

In an environment of increasing holding costs and interest rates, will investor owners be happy with current letting agents’ fees and commissions?

•

Can advertising levies continue to derive profit in cases where the direct use of those levies cannot be satisfactorily explained?

•

Is it fair to adopt the current BC salary in the profit where there’s been a recent increase but ignore proportionate cost increases in delivering caretaking services?

•

Can the goodwill of the BC be relied upon for future agreement top ups?

Of course, it’s not all bad news. Plenty of these businesses have upside and provided a buyer can readily assess the opportunity, there’s no reason not to factor profit or value uplift into price considerations.

For buyers there is a simple solution to ensuring the sustainability of the business. Take into account all the information provided, adjust the profit and loss statement to reflect your expectations, assess your risk appetite and make an offer accordingly.

The profit and loss for sale purposes is not engraved in granite and you have every right to disagree.

Just make sure you can justify your position. In doing so remember that a truly sustainable business model is worth more than a one year wonder. END

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Associate Article

Can a Management Rights’ operator profit from advertising?

Words_John Mahoney, Mahoneys

resortbrokers.com.au

s

Despite having written articles about this issue in the past, I am regularly asked by clients, sales brokers and others if it is lawful for a Management Rights’ operator to profit from advertising levies collected from owners.

There has been a common belief that a manager cannot, or if the manager does, that profit not be taken into account when assessing the net profit of the business.

The rationale for that view is that monies paid to the manager for advertising is to reimburse the manager for advertising expenses incurred by the manager.

So, if there might be anything left over from what the manager has collected in levies after meeting the actual advertising expenses, that excess belongs to the owners, not the manager who must account in some way to the owners.

The rule made some sense in the past where advertising took the form of paid advertisements in newspapers, magazines, brochures and other publications. However, in today’s world, advertising rarely takes that form. Today a manager’s website is probably the most critical tool in advertising, marketing and promoting a complex. A modern, sophisticated and attractive website can generate significant increases in occupancies and returns to owners.

0Brisbane7Q3l0d4703 7

All advertising levies collected belong to the manager and any excess above what might be actually expended should be taken into account for profit calculation purposes.

I have consistently maintained that advertising and promotion can be treated not as an expense to be reimbursed, but as part of a service of advertising, promotion and marketing to be provided by the manager. Where the letting appointment is properly structured in this way, the manager is providing an overall service which involves expenditure by the manager and the provision of labour, time and effort, in exchange for which the owners pay advertising levies.

advertising levies collecteda for this purposes – the C o t t Pa a d manager r can lawfully retain all of the levies collectede e d 42 without having to account separately3 to owners or 0 0 2 2 9 59 others for any actual expenditure.

9

It is important that the fee or charge be properly described, that the POA Form 6 is properly completed, and that there is proper disclosure of these things in the letting appointment (as for example in the ARAMA addendum drafted by Mahoneys).

0730 73 7 w w.mahoneys.com.au075 62 95

Developing, maintaining and utilising a website in other social media r promotions and s y and partaking e activities are just some of the labour-intensive work that a manager does to advertise, market and promote a complex. While any actual expenditure on a website designer and a software provider would be properly regarded as expenses, there is a huge component of labour (by the manager or the manager’s staff ) that cannot be properly classified as an expense. The consequence, if advertising is treated as an expense, is that the manager cannot be reimbursed or keep the advertising levies for those labour costs.

Where advertising is treated in this way – and

0VarsityLake7s5Q6ld2492530 71

More and more accountants and valuers now take the view that a manager can make a profit from advertising levies, particularly where advertising, promotion and marketing are part of a “bundled” fee or charge as contemplated in the various articles I have published (where most of the manager’s fees, charges and commission are bundled into one all-encompassing percentage amount).

However, they will look to make sure that any labour costs associated with such activities are accounted for in the profit & loss, that any profit is reasonable, and that there has actually been regular marketing and promotion of the complex to ensure ongoing occupancy levels. END

The Management Rights Lawyers

w w.mahoneys.com.au

Brisbane L 18, 167 Eagle Street Brisbane Qld 4000 07 3007 3777

Gold Coast L 2, 235 Varsity Parade Varsity Lakes Qld 4230 07 5562 2959

www.mahoneys.com.au

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Associate Article

Legal considerations for financing purchases of leasehold motels Words_David Adolphe, Enyo Lawyers

Financing the purchase of a motel can be quite different from the financing of the purchase of other types of businesses.

One of the unique aspects of the leasehold motel business, not surprisingly, is the importance of the interest in the lease. The saying, ’position is everything’ in business could not be truer for motels.

The lease of a motel usually runs for an initial term of about 10 years with four options of five years each.

As the lease periods expire, the tenant and landlord will negotiate the grant of further options’ periods to ‘top up’ the total lease term.

A buyer will need to consider whether their financier will require these arrangements and they should be aware of the timing of how the arrangements will be implemented prior to settlement. That is to say that consideration should be given to the timing for the following process: 1. The buyer will apply for the loan and provide all the necessary information to commence the process 2. The lender will undertake its reviews of the financial position of the buyer and usually conduct valuations of the business (and any other existing businesses or property that may be cross collateralised in the lending arrangement) 3. The lender will then, hopefully, grant finance approval (subject to certain conditions being satisfied)

The long lease term forms the basis of the value of the leasehold business and financiers will lend to the buyer for purchase of the leasehold motel business taking security over the lease.

4. After finance approval, the lender will prepare the loan and security documents which will need to be executed and returned (which will be one of the conditions referred to above)

Financiers will often enter into the following arrangements with the buyer in the purchase of a leasehold motel:

5. After the executed loan and security documents have been received by the lender, the lender will need to check the documents and book settlement

1. A loan agreement setting out the terms of the lending arrangement

Often parties to a transaction will only focus on the period up to finance approval but will not take into consideration the following steps (4 and 5 above) which are then required to finalise the lending arrangement and settle the transaction. In some cases, the parties only allow for one to two weeks to complete these steps.

2. A general security agreement which provides the basis for the lender to take security over the assets of the business (this is usually in the form of security interests registered on the Personal Property Security Register) 3. A guarantee and indemnity deed in which the directors of the buyer entity guarantee the performance of the buyer’s (the borrower’s) obligations in the loan agreement 4. A mortgage of the lease. This is similar to a mortgage over land but is registered on the title specifically over the lease and gives the financier (the mortgagee) rights to enter into possession of the motel under the terms of the lease 5. A Deed of Right of Entry and Consent signed by the landlord and any mortgagee of the land

Another important consideration for the parties will be the requirements of the lender for third parties to the transaction such as the landlord and existing mortgagees on title. These parties may have their own time frames (some of which may be prescribed in the lease for the landlord) for receiving requests for consent, considering, and then responding to the requests. This can add additional time and may impose significant delays if not handled properly. For example, a seller who waits too long to involve the landlord may face difficulties in trying to rush the process at that stage because of a looming settlement date.

While ultimately it is the responsibility of the buyer to arrange their financing for their purchase, it is essential that the parties understand, agree to and implement the necessary process and timeframes of the financing so the matter progresses quickly and efficiently to settlement. END

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Acc. Spec. (Bus.) - Qld Special Counsel, Enyo Lawyers M. 0410 644 246 E. david@enyolawyers.com.au David Adolphe is a Queensland Law Society Accredited Business Law specialist and has been in practice for 20 years.

He has advised clients in all manner of business transactions and takes a specific interest in tourism and hospitality matters. David takes a practical approach to delivering the best possible strategic legal advice to clients on all aspects of business and commercial law matters.

Enyo Lawyers is a leading boutique commercial and litigation firm with offices in Brisbane, Gold Coast and Melbourne. The firm focuses on delivering efficient outcomes for clients in small to large sized commercial enterprises.

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

It’s Business.

But it’s Personal.

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Vital lessons for building managers Words_Col Myers, SMH Director

This might sound a bit basic, but I can’t emphasise enough the importance of building managers ensuring that they read (and re read) their Building Management Agreements to ensure that they have a full understanding of what their obligations are under the agreement, what duties they must perform and how regularly they must perform them.

History of the Term of Agreements in NSW In NSW, most Caretaking Agreements (now called Building Management Agreements) established in the late 1990s and early 2000s were for a term of 10 years with two further options in favour of the building manager of 10 years and five years (making a total of 25 years).

However, on 10 February 2003, the NSW Government amended the strata legislation to state that all future Building Management Agreements could only be for a maximum of 10 years. Letting Agreements however, were not regulated like Building Management Agreements, and still remain unregulated. They can be for any term.

This legislation “grandfathered” existing Building Management Agreements by excluding them from the 10-year term cap.

Consequently, lawyers working in the NSW Management Rights area went to great lengths to ensure that any pre-10 February 2003 agreements were only ever “varied” when adding further option terms - and never “re-engaged” so they continued to fall outside of the 10-year term cap.

However in 2020, the NSW Supreme court, in a decision relating to the “Summit” building in George Street, Sydney, held that a variation of a pre-2003 Building Management Agreement, which added further 5 year term(s) resulted in the creation of a “new” agreement, and are thereby was caught by the 10-term cap. Consequently, it is now accepted that all pre 2003 Building Management Agreements can only run for a maximum term of 10 years.

Terminating Caretaking Agreements for No Performance If an Owners’ Corporation is not satisfied with the performance of its building manager, it has been the usual practice that the Owners’ Corporation would hold a vote to terminate the agreement by alleging the building manager breached one or more of the contract terms, or failed to satisfactorily perform the building management duties under the agreement.

The danger with this approach is that if a court later decides that the building manager was not in substantial breach, the Owners’ Corporation is then liable to pay substantial damages to the building manager for the wrongful termination of the Building Management Agreement.

However, a recent decision of the NSW Civil and Administrative Tribunal (NCAT) has provided Owners’ Corporations with new ground by making orders for the termination of a Building Manager Agreement pursuant to s72 of the Strata Schemes Management Act 2015. The finding in this case was that the building manager had failed to perform the relevant agreement satisfactorily, and that the Building Management Agreement, in the circumstances of the case, was harsh, oppressive, unreasonable or unconscionable.

The strata plan in this matter was registered in January 2001 and covered two buildings in Ultimo, Sydney that were originally developed by Meriton. In October 2000, Meriton sold the caretaker Management Rights to a building management company which has had control of those rights since that time.

However, for whatever reason, the Owners’ Corporation did not receive a full copy of the Building Management Agreement until 2020.

When the Owners’ Corporation eventually reviewed the Building Management Agreement, they discovered that the agreement only provided for annual increases in management fees in accordance with the CPI. The building manager however, had been charging annual increases of 5 per cent since October 2000.

The Owners’ Corporation was also dissatisfied with the performance of the building manager and ultimately commenced proceedings in NCAT, seeking an order that the Building Management Agreement be terminated pursuant to s72 of the Act. Specifically, the Owners’ Corporation sought an order on the basis of several parts of s72(3) including, that: • the building manager had performed the agreement unsatisfactorily • charges payable by the Owners’ Corporation under the agreement were unfair • the Building Management Agreement was, in the circumstances of the case, harsh, oppressive, unconscionable, or unreasonable

75 75

What the building manager didn’t do

• enable one party (but not No. Golden to breach or terminate On my reading of the case, the building manager made aenable lot of one • another) party (but not #2 No.Rule • read enable one party (but not No.that Golden Golden mistakes should have been avoided, if they had and the contract another) to breach or terminate #2 Rule Must showtheir the Gross Income another) to breach or terminate understood Building Management Agreement. #2 Rule the contract • penalise one party (but not

Associate Article

Agents may also claim any expenses relating to cancellations that Agents may also claim any Agents may alsoappointment claim any to are stipulated in the expenses relating to cancellations that expenses relating toexpenses cancellations that act.

If cancellation are not are stipulated in the appointment to and Must not the Netthe Income are stipulated in the appointment to the contract show Gross Income stipulated in the appointment, Must show Grossmanager: Income act. If cancellation expenses are the not agent breaching For example, thethe building • another) penalisefor one party (butornot and not the Net Income act.

If cancellation expenses are not • penalise one party (but not Lesson to be learned and not the Net Income cannot claim them, and, if a cancellation stipulated in the appointment, the agent Agents must account to their clients for terminating contract. another) forthe breaching or stipulated in the appointment, the agent 1. Refused to provide the Owners’ Corporation accessanother) for breaching or cannot claim them, and, if a cancellation fee is retained from a guest’s deposit, this Agents they mustreceive accountand to their clients for everything disburse. terminating theand contract.

When the terms conditions cannot claim them, and, of if awhat cancellation account to their clients for toAgents CCTV must footage terminating the• Always contract. have a 100 periscent understanding your this fee retained guest’s deposit, everything they receive and disburse. must be paid tofrom the aaowner.

Agents cannot report their rental When the terms and conditions fee is retained from guest’s deposit, this it, a booking cancellation everything they receive and disburse. allow for duties are under your Building Management Agreement When the terms and conditions must be paid to the owner.

2. Failed to provide keys when requested by the secretary Agents cannot report their rental income as the net amount.

They must forkept it, a booking cancellation An exception toof this rule would be be paid to the owner. feeallow can be from deposit cannot report their rental andmoney don’t deviate must from the performance those duties allow for it, a booking cancellation ofAgents the Owners’ Corporation as the net amount.

They must a guest An exception to this rule would fee can be kept from deposit money showincome the gross payment received and where a booking administration fee be has has accommodation. income as the net amount. They must An exception to this rule would be fee can bepaid keptfor from deposit money showto the gross payment received and with • Although not relevant to this case, diarise your option where a booking administration fee has a guest has paid for accommodation.

3. Failed provide the Owners’ Corporation a proper any deductions, then the net amount. been to the guest in excess of the usually depending on show the gross payment received and Inasome wherecharged a booking administration fee has guestcases, has paid for accommodation. exercise dates don’tcharged miss them.

If you areinone day late, any of deductions, then the net amount. been to the guest of the copy the Building Management Agreement until 2020 some usually on and accommodation costs and isexcess not payable theIn thecases, booking wasdepending made, such any deductions, then the net amount. been charged to the guest in excess of the Inway some cases, usually depending on losesuch the ability to exercise the option (andislater options) accommodation costs and not payable the way theparty, booking was you made, to the owner. as via a third guests also pay a accommodation costs and is not payable 4. Had been charging the Owners’ Corporation based on the way the booking was made, such No. Golden and your term falls away to the owner. as via aadministration third party, guests payremaining a booking feealso on top per cent Golden annual increases, instead of the CPI increases to theAt owner. as via a third party, guests also payofa the end of each month, the agent #35asNo. Rule No. Golden booking administration fee on top of • Wherever possible, maintain lines ofmonth, communication At thegood end of each the agent specified in the Building Management Agreement #3 Rule thebooking accommodation costs. administration fee on top of is required provide account their At theto end of eachan month, theto agent #3 RuleCancellation Fees the accommodation costs.

Accommodation with your committee and strata manager is required to provide an account to their the If accommodation costs.

Accommodation Cancellation Fees a guest cancels their booking is required to provide an account to their clients that clearly shows each amount 5. Allowed the principal of the Building Management Accommodation – Who is Entitled? Cancellation Fees If a guest cancels their booking clients clearly shows each in regular touch withthat your owners byand way of aamount – Who istoEntitled?

If a guest with cancels their booking clients that clearly shows each amount company be a member of the strata committee, and is although penalised a• Stay cancellation the agent has received exactly how – Who is Entitled? and is penalised with a cancellation the agent has received and exactly newsletter.

Let them know the good things that you dohow at theto and is penalised a cancellation prohibited under the Building Management Agreement the agent has received and exactly how fee in accordance with the agent's Booking cancellation fees for it was paid out.

A client should be able fee in accordance with the agent'sand remember, Booking cancellation fees for it was paid out. A client should complex you only need 51 per centbe of able thoseto fee in accordance with the agent's Booking cancellation fees for in it was paid out. A client should be able to terms, accommodation maymay betoapplicable ascertain from this monthly account 6. Allowed its employee improperly and pursue booking terms,the thefee feeisisgenerally generally accommodation be applicablecommence in booking ascertain from this monthly account ififa a owners that vote at a meeting of the Owners’ Corporation booking terms, the fee is generally accommodation may be applicable in ascertain from this monthly account if considered rental income and should certain circumstances when ainguest deposit wasthe received fromBuilding aguest guestfor fora aa Supreme Court proceedings the name of theconsidered Owners’ rental incomeorand should certain circumstances when a guest was received Body Corporatedeposit to extend term offrom your a considered rental income and should certain circumstances when a guest deposit was received from a guest for athe be paid to the owner. cancels theirtheir booking.

However, all all Corporation, attempting to prevent the 2020 AGM from booking that was wascancelled cancelledand andhow howthe be paid to the owner. cancels booking.

However, booking that Management Agreement be paid to the owner. cancels their booking.

However, all booking that was cancelled and how the cancellation terms andand conditions must going ahead, without proper authority or instructions; andanan deposit was distributed distributed(i.e. (i.e.the theamounts amounts cancellation terms conditions must Where appointment deposit was Where appointmentto toact act cancellation terms and conditions must deposit was distributed (i.e. the by amounts • Taketo annual Where an appointment act holidays! be clear and transparent at the time of be clear and transparent at the time of returned to the guest, claimed the refers to an agent’s commission returned to the guest, claimed by the refers to of anthe agent’s commission 7. Had, through conduct of at thethe principal be clear andthe transparent time ofand employees returned to the guest, claimed by the refers to an agent’s commission booking (as part of the booking form booking (as part of the booking form agent, and paid to the owner).

Liability limited by a scheme approved under Professional expressed in the form of a percentage, agent, paid to the owner). expressed in the form of a percentage, building tobooking the 2020form AGM, falsely represented bookingmanager (as partprior of the agent, and paid to the owner). expressed in the formStandards of a percentage, or athat term and condition on the booking or athe term and condition on the booking END limitedby this rate ofof commission this rate commissionmust mustbe beLegislation AGM had been cancelled, conduct was allegedly Liability byaascheme schemeapproved approvedunder under Liability limited or a term and condition on thewhich booking this rate of commission must be web and they must not: Liability limited by a scheme approved under webborne site),site), and they must not: out of a desire to control the Owners’ Corporation, calculated on the actual amount of calculated on the actual amount of Professional Standards Legislation Professional Standards Legislation web site), and they must not: calculated on the actual amount of Professional Standards Legislation than to serve the Owners’ Corporation, ascollected, required rent collected, whichininthe theevent eventof of • enable enable one party (but the rent which • rather one party (but notnot the Disclaimer – This isisprovided Disclaimer Thisarticle article providedfor for rent collected, which in the event of • enable one party (but not the Disclaimer – This article is provided for information purposes Disclaimer This article is provided for by other) the Building Agreement a cancellation, mayonly onlybe bepart partof ofaa other) toManagement avoid or limit their a cancellation, may to avoid or limit their information–purposes information purposesonly onlyand andshould shouldnot notbebe a cancellation, may only be part of a other) to avoid or limit their information purposes only and should not be only and should not be regarded as legal advice. retained deposit. obligations under the contract regarded as legal advice. retained deposit. obligations under the contract regarded as legal advice. retained deposit. obligations under the contract regarded as legal advice.

Management ManagementRights Law Specialists Australia Wide Austral

ustedetedamteamof oflegallegalexpert experts,sl,eldRights edRights Myers,Law draws onSpecialists over 30 years experi Law Specialists OurOurtrManagement usttrManagement bybyColColMyers, experieencencetoto Management Rights Law Specialists Australia Wide AustraliaWide Wide Australia possibble outcome. getgetyouyouthtehebestbestpossi Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to trusted team legal experts, led by Col Myers, draws on experience to Our trusted team of legal experts, years experience Our trusted team of legal experts,led ledby byCol ColMyers, Myers,draws draws on on over over 30 30 years years experience toto OurOur trusted team of of legal experts, led by Col Myers, draws on years experience to get you the best possible outcome. get you the best possible outcome. get you the best possible outcome. getyou youthe thebest bestpossible possibleoutcome. outcome. get Although our full suite of services is more Although our full suite of services is more Although our full suite of services is more Although our full suite of services is more Although our full suite of services is more comprehensive, particular expertise covers: comprehensive, particular expertise covers: comprehensive, particular expertise covers: comprehensive, particular expertise covers: comprehensive, particular expertise covers: - Buying & Selling Buying & Selling Buying & Selling -- Buying & Buying & Selling Selling --- Structuring Structuring Structuring -- Structuring --- Variations Structuring Variations Variations -- Variations -- Renewals Variations -- Renewals Renewals -- Renewals - Establishments Renewals -- Establishments -- Establishments - Establishments Licences & Letting Appointments Establishments -- Licences & Appointments Licences &allLetting Letting Appointments -- Licences Letting Appointments Advice Corporate Licences &on Letting Appointments - Advice& on all Body Body Corporate Issues Issues -- GST, AdviceStamp on all Duty Bodyand Corporate Issues Tax -- Advice on all Body Corporate Issues - GST,onStamp Duty and Tax Issues Advice all Body Corporate GST,strategies Stamp Duty and Tax -- Exit -- GST, Stamp Duty GST, Stamp Duty and and Tax Tax -- Exit strategies Exit strategies - Dispute resolution -- Exit strategies - Dispute resolution Exit strategies Dispute resolution --- Legal due diligence -- Dispute resolution Legal due diligence reports reports Dispute resolution - Legal due diligence reports -- Legal Legal due due diligence diligence reports reports

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76

Associate Article

Noosa: Invest & Multiply How a dilapidation report led to a $14 million dollar renovation.

Words_Alina Martin, Australian Valuers If you have not visited Noosa since pre COVID, you may be forgiven for thinking the Netanya Noosa has been flattened and rebuilt from scratch.

Originally built in 1984 with an extension added in 1989, the Netanya was a 1980s wedding cake-style building in canary yellow. Formerly a hotel, the Netanya became strata titled in 1994.

approximately $200 - $400 per property and are dependent upon the number of inspections required.

The Queensland Building and Construction Commission can provide the names of registered building practitioners who are licensed to carry out a dilapidation report.

An initial dilapidation report of Netanya identified the needs of the building works required to 47 units (including 16 rooftop apartments).

Three architectural tenders were obtained to interpret the report and understand the extent of the fatigue of the building. Any non-compliance issues were highlighted and the goal was both to bring the building up to code and also to pave the way for possible improvements and upgrades.

“There is an obligation to act on and rectify (findings) from a dilapidation report,” Mr Bradford says.

In 2014, Graham Bradford joined Netanya operations as the onsite Manager. He obtained a routine dilapidation report.

“A two thirds majority vote of the seven Body Corporate members took six years.

“A dilapidation report gives you a base point on where to start,” Mr Bradford says.

New owners buying in during this time were groomed on the potential pending levies which included funds for a new pool; thousands of metres of tiles on the common walkways; extensive repair of leaking membranes; contemporary glass balustrades; extended lift wells that now reach to the roof; and smooth rendered external walls that contemporise the building.

“It serves three main purposes: It protects the interests of the owners, it protects the building and highlights any compliance issues, and it provides transparency for insurance purposes.”

A thorough dilapidation report is vital pre-renovation, because if building works cause damage, there is a report of the current structural state of the building.

A dilapidation report is also usually a requirement before a building permit can be issued for works of neighbouring properties.

A visual inspection of the property is executed to identify minor and major defects. Costs vary from

“It was a transparent journey with attention to detail.”

The streetscape certainly has not been forgotten, with the opening up of the Hastings St Providore courtyard inviting locals and guests for coffee and local artisan offerings. Relaxed grey and white tones epitomise the laidback luxury that Netanya now embodies.

The final result of actioning the findings of a dilapidation report (and in this case investing close to $14 million dollars) reveal: “Netanya is now future-proofed for 25 years. There has been an immediate uplift in the value of each unit, irrespective of the current real estate market.

The position of Netanya as a place in which to stay or invest has peaked in desirability.” END

77

Industry Insight

Pitch

Perfect

Think caravanning and camping need be remote?

Think again. While Australia features some excellent regional and Outback campgrounds and van parks, there’s some pretty perfect places in which to pitch a tent, park a van or get your glamp on near our capital cities as well.

Words_Christine Retschlag

Latest 2021 Census data reveals there are now 60,000 caravans around the country – a 150 per cent increase since the 2016 Census.

So where are people parking them?

Closer to home than you may think, according to Comiskey Group Director Rob Comiskey, whose first endeavour into the the holiday park industry was heralded by the opening of BIG4 Sandstone Point Holiday Resort – just 45 minutes north of the Brisbane CBD - in November 2018.

“BIG4 Sandstone Point Holiday Resort is not only a convenient place to stay for event attendees of our iconic entertainment venue Sandstone Point Hotel, but a tourism destination in its own right,” Mr Comiskey says.

“The resort has become the highest selling holiday park within the BIG4 network, offering world-class facilities including a water park, heated pool, fire pit, basketball court, pump track, jumping pillow and more, across from the pristine beaches and scenic bushland of Bribie Island.

“Providing guests with multiple accommodation options suitable for all kinds of stays, guests can choose from a variety of villas and glamping tents, as well as 175 camp and caravan sites.”

Despite only opening a few years ago, BIG4 Sandstone Point Holiday resort has already increased in size by 50 per cent due to its popularity.

“BIG4 Sandstone Point Holiday Resort is perfectly positioned directly between the Brisbane CBD and the Sunshine Coast,” Mr Comiskey says.

“The resort has become a popular place for families from these population dense locations to holiday, particularly those with young children who find

a quick 45-minute drive north from Brisbane or south from the Sunshine Coast, a much easier feat than an international trip or interstate getaway.

“BIG4 Sandstone Point Holiday Resort benefits from its location, not too far from the city but feeling a world away.

Particularly during COVID when things were uncertain, people didn’t want to stray too far from home, we saw plenty of locals holidaying with us.”

Caravan Industry Association of Australia CEO Stuart Lamont says there has been a consistent trend of Australians taking shorter trips, closer to home, during the pandemic, largely due to interstate travel uncertainty and health concerns.

“Fuel prices are always a factor that influences consumer spend. Add to this the current state of inflation across the board and it will be difficult for many to justify travelling further from home,” he says.

“However, it may come as a surprise that a $0.20 increase in the price of fuel, on average, adds less than $3 extra per day to the cost of a caravan trip.

This dollar amount shouldn’t deter anyone from embarking on trips to regional areas and supporting these local economies in dire need of the tourism income.

“This is not to say that you can’t holiday close to home, the caravan and camping industry has ample offerings just a stone’s throw from any capital city.

“These parks offer many types of accommodation, everything from luxe glamping to roughing-it unpowered sites and allow their patrons to disconnect with the stresses of daily life and reconnect with friends and family without having to travel long distances.”

BIG4 Sandstone Point Holiday Resort_QLD

The best caravanning and camping destinations within two hours of your capital city

1.

Adelaide to Rapid Bay (1.5 hours)

2.

Melbourne to Venus Bay (2 hours)

3.

Sydney to Watagans National Park (1.5 hours)

4.

Brisbane to Toowoomba (1.5 hours)

5.

Perth to Nambung National Park (2 hours)

6.

Hobart to Cockle Creek (2 hours)

7.

Darwin to Wagait Beach (1.5 hours)

Source: South Australian-based REDARC, which researches, designs, develops and manufactures a range of products including trailer brakes

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79

Sold Properties

Our Deals Settle SOLD MANAGEMENT RIGHTS FULLERTON COVE, NSW

SOLD MANAGEMENT RIGHTS BOKARINA, QLD

SOLD MOTEL FREEHOLD KINGSCLIFF, NSW

SOLD MOTEL FREEHOLD MANJIMUP, WA

SOLD MANAGEMENT RIGHTS FORTITUDE VALLEY, QLD

SOLD MANAGEMENT RIGHTS NEWSTEAD, QLD

SOLD MANAGEMENT RIGHTS MELBOURNE, VIC

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MOTEL FREEHOLD HAY, NSW

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SOLD

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MOTEL FREEHOLD ARMATREE, NSW

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MANAGEMENT RIGHTS MOOLOOLABA, QLD

SOLD MOTEL FREEHOLD ROCKHAMPTON CITY, QLD

SOLD MANAGEMENT RIGHTS LUTWYCHE, QLD

SOLD MANAGEMENT RIGHTS COOLUM BEACH, QLD

SOLD MOTEL FREEHOLD BATEMANS BAY, NSW

SOLD CARAVAN PARKS LEASEHOLD CHARTERS TOWERS, QLD

SOLD MANAGEMENT RIGHTS TOOWONG, QLD

MOTEL FREEHOLD TOWNSVILLE CITY, QLD

SOLD MANAGEMENT RIGHTS MERMAID BEACH, QLD

SOLD MOTEL LEASEHOLD LONGREACH, QLD

SOLD MANAGEMENT RIGHTS KANGAROO POINT, QLD

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SOLD MOTEL FREEHOLD MOLLYMOOK, NSW

SOLD MANAGEMENT RIGHTS SOUTH BRISBANE, QLD

MANAGEMENT RIGHTS NOOSA HEADS, QLD

SOLD MANAGEMENT RIGHTS SURFERS PARADISE, QLD

SOLD MANAGEMENT RIGHTS NOOSA HEADS, QLD

SOLD MOTEL FREEHOLD SINGLETON, NSW

SOLD CARAVAN PARKS FREEHOLD CLONTARF, QLD

SOLD MANAGEMENT RIGHTS BILINGA, QLD

SOLD MOTEL LEASEHOLD BEGA, NSW

SOLD MOTEL FREEHOLD GOONDIWINDI, QLD

SOLD MANAGEMENT RIGHTS ESSENDON, VIC

SOLD MANAGEMENT RIGHTS WYNNUM, QLD

SOLD MANAGEMENT RIGHTS MIAMI, QLD

SOLD CARAVAN PARKS LEASEHOLD STRAHAN, TAS

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SOLD MOTEL FREEHOLD LONGREACH, QLD

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80

Regular Feature

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

GRAEME & DEBORAH FILIPPE

KARLA HARDING

MARION & PETER KEULEN

Motels, QLD & NSW

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

Caravan & Holiday Parks Nationwide

0427 512 751 graemedebmotelmanagers@outlook.com

0414 767 499 bnbangels@gmail.com

0411 865 905 marion_keulen@hotmail.com

DONNA & WALTER SIMMEN

DAVID & SANDRA CAIRNS

CARMEL MOLONEY

All property types QLD

Management Rights QLD

Motels QLD Coast

0497 675 105 info@simmenanderson.com

0411 335 539 moretonbeachhouse@bigpond.com

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

ROGER ANDREWS & JILLIAN CAIN

FRED BISHOP

VICTORIA MCDONOUGH & BRENDAN HUGHES

Hotels & Motels, VIC & SA

Motels Nationwide

Motels, East Coast

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

0429 444 010 flashb2261@yahoo.com.au

0412 138 642 vickymcdonough@bigpond.com.au

KEVIN & MELISSA SPEER

PETER & MICHELLE JACOBI

GRANT SKINNER

All property types QLD

Motels & Caravan Parks Nationwide

Management Rights Nationwide

0422 006 497 speer1@bigpond.com

0427 183 416 casabargara@gmail.com

0408 996 188 grantandjuliet@bigpond.com

THE GOOD KNIGHTS

SUE BARTON

CHRISTINE WILMOTT

All property types Nationwide

Motels Nationwide

All property types QLD

0412 005 537 info@thegoodknights.com.au

0432 411 900 bartonsue@rocketmail.com

0413 452 263 christine.09@bigpond.com

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81

PAUL & TANYA GREEN

SCOTT & LIN MCKENZIE

JOHN & SUSAN DONE

All property types NSW

Management Rights Brisbane Only

All property types Nationwide

0411 874 392 tanyacooper1@msn.com

0451 010 117 scott@mcwu.com.au

0447 077 420 suedone@mac.com

KAREN & ROBERT NISBET

DILYS & NEIL HARVEY

SHARON & STEPHEN DEWSBURY

Motel & Caravan Parks Nationwide

Motels Nationwide

All property types Nationwide

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

0420 948 996 neil.dilys@xtra.co.nz

0402 142 075 sharon@airliebeach.net.au

CHARLES & COLLEEN LUBANS

BAY6 MOTEL MANAGEMENT

GEORGIANNA DYSON

Management Rights QLD

Motels Nationwide

Motels Nationwide

0432 586 099 colleenlubans@hotmail.com

0416 016 614 info@businessbay6.com.au

0438 527 894 georgi1440@icloud.com

THOMAS GRAF

CHRIS CAMPBELL

KRISTY & LANCE BUTT

Management Rights, Motels, Caravan Parks & Resorts, Nationwide

Motel & Management Rights Nationwide

All property types QLD & NSW

0438 014 035 07 4032 1573 tomas49@me.com

0449 957 414 cj.jwcampbell@gmail.com

0428 902 878 kristymay22@outlook.com

BRUCE DRURY

CHARLIE MILLINGTON & JACKY RYAN

PAUL KIRKPATRICK

Motel & Caravan Parks Nationwide

Caravan Parks & Motels Nationwide

All property types Nationwide

0428 631 573 bruceandsandra34@gmail.com

jacquelineryan1@bigpond.com

0419 675 671 paul.kirkpatrick@gmail.com

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82

Regular Feature

Meet our team Introducing ResortBrokers' national team of accommodation business and property brokers.

We are the industry experts at your service in every state and territory.

IAN CROOKS

TRUDY CROOKS

TIM CROOKS

ALEX COOK

Chairman Nationwide

Managing Director Nationwide

Director of New Developments and Hotels, Nationwide

Director Nationwide

0411 171 648 ian@resortbrokers.com.au

0477 882 210 trudy@resortbrokers.com.au

0422 208 450 tim@resortbrokers.com.au

0467 600 610 alex@resortbrokers.com.au

CARLA COOK

MARISSA VON STIEGLITZ

NICHOLA LANE

CAITLIN O’HALPIN

Director of Marketing and Strategy, Nationwide

Operations Manager Nationwide

EA to Trudy Crooks

EA to Tim Crooks & Alex Cook

0467 600 611 carla@resortbrokers.com.au

0437 198 164 marissa@resortbrokers.com.au

07 3878 3999 nichola@resortbrokers.com.au

07 3878 3999 caitlin@resortbrokers.com.au

JESSIE SHI

JEFF KEAST

FRANK MATUS

NATHAN EADES

Broker Brisbane

Broker Brisbane

Broker Brisbane

Broker Brisbane

0422 935 428 jessie@resortbrokers.com.au

0414 669 007 jeff@resortbrokers.com.au

0435 742 698 frank@resortbrokers.com.au

0448 339 920 nathan@resortbrokers.com.au

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PAUL MUELLER

TODD WARNER

STEVE CAMPBELL

GREG JAMES

Broker Gold Coast North

Broker Gold Coast South & Northern NSW

Broker Central Gold Coast

Broker Gold Coast & Northern NSW

0439 255 507 paul@resortbrokers.com.au

0438 170 763 todd@resortbrokers.com.au

0407 220 668 steve@resortbrokers.com.au

0416 247 068 greg@resortbrokers.com.au

GLENN MILLAR

CHENOA DANIEL

DES FAGG

GLEN CUMMINS

Senior Broker Sunshine Coast

Broker Sunshine Coast

Broker Townsville and Surrounds

Broker North QLD

0412 277 804 glenn@resortbrokers.com.au

0403 143 151 chenoa@resortbrokers.com.au

0427 849 119 des@resortbrokers.com.au

0427 215 863 glen@resortbrokers.com.au

D A V I D FAI E R S

SHANE CROGHAN

NATHAN BENJAMIN

JASON VOGLER

Broker Sunshine Coast & Fraser Coast

Broker Far North QLD

Broker Central QLD

Broker SE & SW QLD, NW NSW & New England Region

0432 766 788 davidf@resortbrokers.com.au

0418 451 006 shanec@resortbrokers.com.au

0459 955 649 nathanb@resortbrokers.com.au

0427 431 213 jasonv@resortbrokers.com.au

CHRIS KELLY

JACQUELINE FEATHERBY

RUSSELL ROGERS

SARAH HUTCHINS

Broker NSW Central West

Broker NSW Central Coast, Hunter & Blue Mountains

Broker NSW South Coast

Sales Manager to Russell Rogers, South Coast NSW

0431 055 221 chris@resortbrokers.com.au

0424 497 056 jacqueline@resortbrokers.com.au

0416 166 909 russell@resortbrokers.com.au

0407 020 443 sarah@resortbrokers.com.au

KELLI CROUCH

DAVID JEFFERIES

DEBBIE COOPER

TIM MAYOH

Broker South Australia & Northern Territory

Broker South West Victoria

Broker South West NSW & Northern Victoria

Broker Greater Sydney

0410 441 750 kelli@resortbrokers.com.au

0447 101 970 david@resortbrokers.com.au

0427 559 545 debbie@resortbrokers.com.au

0419 038 882 tim.m@resortbrokers.com.au

BLAIR MACDONALD

RYAN KIDD

ELLEN O’NEILL

JOSH MANGLESON

Broker Western Australia

Graphic Designer

Graphic Designer

Data Analyst

0433 149 144 blair@resortbrokers.com.au

07 3878 3999 ryan@resortbrokers.com.au

07 3878 3999 ellen@resortbrokers.com.au

07 3878 3999 josh@resortbrokers.com.au

KIRSTEN JOHNSON

DZUNG LE

VASA THEODOULOU

JOLEEN CARDEN

Head of Administration, Nationwide

Listing Assistant

Financial Controller, Nationwide

Accounts Administration, Nationwide

07 3878 3999 kirsten@resortbrokers.com.au

07 3878 3999 dzung@resortbrokers.com.au

07 3878 3999 vasa@resortbrokers.com.au

07 3878 3999 joleen@resortbrokers.com.au

CHRISTINE RETSCHLAG Content and Communications, Nationwide

ResortBrokers is going from strength to strength, become a part of our family.

For more information, contact Marissa von Stieglitz at marissa@resortbrokers.com.au or on 0437 198 164

07 3878 3999 christine@resortbrokers.com.au resortbrokers.com.au

Queensland PO Box 5004 West End, QLD 4102 (07) 3878 3999 New South Wales PO Box 567 Ulladulla, NSW 2539 (02) 9904 8224 Sydney PO Box 810 North Sydney 2059 Victoria PO Box 1100 Carlton, VIC 3053 (03) 9347 3100 South Australia PO Box 327 Fulham Gardens, SA 5024 (08) 8356 5057 Tasmania PO Box 3024 Devonport, TAS 7310 (03) 6424 3474 Western Australia PO Box 103 South Perth, WA 6951 (08) 9314 7638

1300 665 966 resortbrokers.com.au

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