Informer Issue 110

I S S U E N O. 1 1 0 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

®

Turnkey packages

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 Project Management

INInhouse HOTEL FIT OUTS FIT O qualityIN control HOTEL

IN HOTEL FIT O IN HOTEL FIT OUTS Freight and logistics management

OUR SERVICES OUR SERVICES SPECIALISING SPECIALISING

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

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

Rendering & Furniture Ov 3D Rendering3D & Furniture Overlays

SPECIALISING SPECIALISING

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

Full instal ation

Custom furniture and joinery Custom furniture and joinery manufacturemanufacture

Commercial warranties

OUR SERVICES OUR SERVICES Turnkey packages Turnkey packages

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

Servicing Australia and Internationally

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

Hotelinteriors.com.au

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 Inte Servicing Australia andjoinery Internationally Commercial Commercial warranties warranties

Dennis Clark MDIA

manufacturemanufacture

info@Hotelinteriors.com.au 1300Turnkey 876 055 0420 257Turnkey 022 packages packages

Servicing Australia Servicing and Internationally Australia and Inte

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 13000420 876257 055 info@Hotelinteriors.com.au 1300 876 876 055 0551300 0420 257 022 info@Hotelinteriors.com.au info@Hotelinteriors.com.au 1300 876 055 022

0420 257 257 022 022 0420 Inhouse Inhouse quality controlquality control

Contents

What’s Inside I S S U E N O . 110

6

10

16

24

ON THE MARKET

EMBRACE THE ALGORITHM

GO, GO GADGET

FACES OF THE INDUSTRY

Managing Director Trudy Crooks discusses where the market is at.

If you’re not already using dynamic pricing, you’re missing out.

Hi-tech whiz-bangery to help streamline your operations.

Mandala Asset Solutions’ John Zeckendorf on his blueprint for success.

38

58

62

78

REGIONAL SNAPSHOT: WOLLONGONG

FANTASTIC PLASTIC!

BROKER PROFILE

WHAT'S COOL

Mayor Gordon Bradbery on how his council turned Wollongong around.

Check out ResortBrokers’ Barbie-themed Christmas party.

Meet the Gold Coast’s lifesaver broker, Syd Douglas.

Director Tim Crooks checks out the best tech hotels.

Regular Features 60

66

80

82

NEW APPOINTMENTS

BROKER INSIGHT

RELIEF MANAGERS

MEET OUR TEAM

Meet out two new Victorian brokers.

The importance of motel lease top-ups.

If you need a break, you’ll need a manager.

Find one here.

ResortBrokers’ national directory #weareeverywhere.

4

Preface

Tech in Check

Pilot Partners We’re pleased to announce that Informer will now be distributed in select airports around the country.

Our great thanks to Brisbane Airport and Ballina Byron Gateway Airport, our first two partners to sign up for this exciting new initiative. More airports will come online soon, so watch this space.

5

We’re off to a flying start in our first Informer of calendar year 2024 with our main feature on dynamic pricing fitting into our “tech” theme.

Words_Ian Crooks, Chairman If we’re to believe sci-fi movies, we know the evolution of artificial intelligence doesn’t end well for the human race.

But concerns about AI’s potential dangers aren’t limited to the spinners of stories. An early forewarner was the late Stephen Hawking who knew a thing or two about science.

of you don’t, especially smaller motel and caravan park operators. So, we’ve approached the topic at the most fundamental level by asking:

Big Tech leaders Tim Cook (Apple), Mark Zuckerberg (Meta), Bill Gates (Microsoft), Eric Schmidt (formerly Google) and Jack Ma (Alibaba) have also expressed concerns about the detrimental consequences of unrestrained AI, while still pushing ahead with harnessing its power for the benefit of their businesses.

Thanks to those who provided their expert insights on this subject: Andrew Bullock, CEO, 1834 Hotels; Anthony Stanley, Director Performance & Revenue Management, Choice Hotels AsiaPac; Chris de Closey, Director, Switch Hotel Solutions; Wayne Chang, General Manager – Commercial Strategy, Discovery Parks Group; and Melissa Kalan, CEO, Australian Revenue Management Association.

It’s clear AI is here to stay and that it’s we humans who are having to adapt to it rather than it to us. (I became “self-aware” I was in a brave new world the first time a website questioned my humanity by asking me to confirm “I am not a robot.”)

One area where AI is changing our industry, and for the better, is dynamic pricing. An AI algorithm can adjust an accommodation business’s rates several times a day without the operator even touching it.

Quite remarkable really.

I know some of you already have dynamic pricing in place, but many

What is dynamic pricing?

And how can it improve my business?

If you read our main feature, you’ll find out.

Our Faces of the Industry this issue is Mandala Asset Solutions’ John Zeckendorf. At ResortBrokers, we’ve long said, “Coast for show, inland for dough.” It’s a time-tested principle meaning that investors get better investment returns when they’re prepared to consider regions that city slickers in Melbourne, Sydney and Brisbane might sniff at.

John is like-minded on this issue.

Mandala specialises in regional assets and John shares his views on why other investors baulk at

them (and how they’re missing out by so doing). In our feature, you can read about Mandala’s remarkable growth from one hotel to a $200 million nationwide portfolio of 35 under John’s stewardship, as well as John’s incredible, and often colourful, career and mountaineering achievements.

Our Broker Insight this issue comes by way of Sunshine Coast and Fraser Coast broker David Faiers who stresses the importance of keeping your motel lease toppedup. If you’re not already doing this, David’s article is a cautionary tale!

Meanwhile, on the other coast, our Central Gold Coast broker Syd Douglas shares his community service experience as a surf lifesaver and the life lessons he has gained from it (and, yes, even applied in the management rights field).

Finally, we’re delighted to introduce two new brokers for Victoria. Former Colliers Western Region Victoria general manager Hugh Thomas will cover the state’s west. Chris Boschetti, previously Victorian Sales Operations manager at Australian Liquor Marketers, will look after the east. Welcome aboard, gents. END

6

On The Market

Maintain the Gauge In this market, you need a broker who understands price — and will defend yours.

In this column, I always like to give you our take on where the market is sitting.

ResortBrokers doesn’t set the market — supply and demand does, as ever — but we understand it as professionals who are active in this space on a day-to-day basis meeting buyers and sellers on the ground. We like to keep you abreast of where the market is at, so you can best position yourselves for sale or your next purchase.

So, what’s the market doing?

We’re seeing huge demand for new hotels, motels and caravan parks across the country. As our wise founder Ian Crooks (aka dad) says, hatches, matches and dispatches will always drive the accommodation market.

Add to births, weddings and funerals the following: a population explosion, domestic migration, an itinerant workforce, international tourism and Australians’ great love for holidays!

The macro-economic outlook for our industry remains positive out to the horizon. The enormous demand we’re seeing for new accommodation businesses comes as no surprise given our insatiable need for them. In the last decade alone, the number of hotels alone has risen a staggering 40% across Australia.

But there’s also significant barriers to entry these days: spiralling construction costs, ongoing supply chain challenges, rising borrowing expenses, as well as motels being converted to social housing by government in response to our ongoing housing crisis.

What’s more, building companies are spoiled for work. There’s so much infrastructure either under construction or in the pipeline that Class 3 buildings like hotels are finding it harder to get out of the ground.

That puts existing stock at a premium.

We’re seeing a lot of that stock come onto the market now.

ResortBrokers has traditionally sold around 200 accommodation properties and businesses a year. In the privately owned, small business space, we were accustomed to properties turning over every five to seven years.

Obviously, Covid was the almightiest of spanners thrown in the works. Because of that, we’re now seeing the release of built-up compression of owners and operators who were ready to sell prior to Covid, had no choice but to hold through Covid, then came out the other side into one of the most profitable trading periods we’ve ever seen historically for accommodation businesses.

While these businesses have much more room to grow, these sellers are understandably ready to move on.

With more supply coming onto the market, vendors need to meet the market on its terms. Don’t get me wrong, there’s no shortage of highly qualified buyers. But no one is paying overs. Accommodation businesses that are priced fairly will sell, in many cases very quickly. We have sold and settled some deals inside four days (yes, you read that right).

Four of the Best Across Australia SOLD & SETTLED

SOLD & SETTLED

City Edge Apartment Hotels franchise_Melbourne VIC

Quest Liverpool_Sydney NSW

ResortBrokers has delivered another whole brand sale — one I was delighted to handle personally. City Edge Apartment Hotels comprises 271 apartments across five Melbourne hotels. We sold the entire franchise off-market to Choice Hotels Asia-Pac, which doubles its Melbourne portfolio with this single acquisition. To the best of our knowledge, no other agency has brokered an entire brand sale. This was the second such sale for us; the first being the celebrated Art Series that includes five Melbourne hotels and one each in Brisbane and Adelaide. We sold that brand, also off-market, for Deague Group to Mantra for $45 million in 2017.

Our Sydney brokers Jacqueline Featherby and Tim Mayoh made history with the largest ever sale of a Quest franchise. The sale of the 88-apartment Quest Liverpool broke Jac and Tim’s own record, set in November 2023, with the 59-apartment Quest Cronulla Beach. The sale of 4.5-star Quest Liverpool, located approximately 30 minutes’ drive from the CBD in Greater Western Sydney, followed a successful campaign that attracted strong interest resulting in an offer and acceptance within days of going to market. ResortBrokers has been Quest’s preferred agent nationwide for over a decade.

7

Accommodation businesses that are overpriced are getting little, if any, attention. Some vendors are expecting to achieve the same yields as when interest rates were 3% lower. That’s just not going to happen in this market.

Unfortunately, we’re having to turn down vendors with unrealistic price expectations.

We pride ourselves on being honest with our clients in delivering a service. In this market, we’re levelling with vendors by saying we don’t think they should

Sold at list price

lose three months or more holding out for an unrealistic sale price that simply won’t be achieved.

That said, if we take your sale on, we’ll defend your price to the hilt.

Having analysed over 500 sales across the last three years, we found that compared to our competitors, ResortBrokers is:

In many cases we’ll exceed your price expectations because we know how to create competition for quality assets and businesses.

2.4 times more likely to achieve a result at list price

ResortBrokers’ inhouse research department spends a lot of time analysing the accommodation market’s performance across the country.

4.6 times more likely to achieve a result above list price

Sold above list price

35%

30%

25%

We also analyse our own performance.

There’s nothing that pleases us more than pleasing our clients. Your success is our success, as we say. We’re in a market with many moving parts. It’s more important than ever to engage a broker who understands market prices, will defend yours and even exceed it. END

4.6x

20%

15%

10%

2.4x

5%

0%

Competitors

ResortBrokers

Words_Trudy Crooks, Managing Director

SOLD & SETTLED

SOLD & SETTLED

Gladstone Downtown Central_Gladstone QLD

Gabba Central Apartments_Brisbane QLD

Another sale that demonstrates one of our signature skills: the ability to find buyers for assets right around the country, no matter where they’re located. Our Central Queensland broker Nathan Benjamin sold this passive freehold comprising 37 strata titled lots to a Victorian buyer for a yield of 8.02%. The purchaser is a very wellestablished caravan park owning family out of Geelong. This is the third asset they have bought through ResortBrokers across the country, highlighting our scale.

Our dynamic director duo of Tim Crooks and Alex Cook settled one of Brisbane’s largest ever transactions with this off-market deal that saw the management rights of the 317-key Gabba Central Apartments change hands from seller Collective Hotel Management to a private syndicate for more than $10 million. Again, this transaction underscores ResortBrokers’ strength in having sophisticated buyers’ networks and knowing our buyers’ individual investment profiles so we can match up businesses that interest them.

8

Sales Activity

QTR 3

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

SETTLED

SETTLED CLUBB COOLUM BEACH COOLUM BEACH, QLD

PARK REGIS CONCIERGE APARTMENTS SYDNEY, NSW

This iconic Sunshine Coast holiday resort has been sold by ResortBrokers for the second time in its history. The first time was 16 years ago!

This rare Sydney business, a 65-apartment complex in blueribbon Cremorne, was bought by an experienced Queensland operator.

Chenoa Daniel M: 0403 143 151 Glenn Millar M: 0412 277 804

Tim Mayoh M: 0419 038 882

SETTLED GOLD COAST AIRPORT MOTEL BILINGA, QLD

SETTLED

This nifty 13-room hotel, only 300m from the airport and 80m from Kirra Beach, has sold.

MITCHELL CARAVAN PARK BOURKE, NSW

Miguel Bozina M: 0419 848 444

Prime regional assets like this 40-site caravan park in Bourke are in huge demand.

Chris Kelly M: 0431 055 221

SETTLED WINTERSUN GARDENS MOTEL BICHENO, TAS This easy-to-run 14-room motel on Tasmania’s east coast has sold.

UNDER CONTRACT CASINO MOTOR INN CASINO, NSW

Marissa von Stieglitz M: 0437 198 164

This profitable, 30-room motel near Casino’s CBD is now under contract.

resortbrokers.com.au

Miguel Bozina M: 0419 848 444

9

UNDER CONTRACT NOOSA HEADS MOTEL NOOSA HEADS, QLD The leasehold for this 23-key, 4-star rated motel in Noosa’s highly competitive accommodation market is now under contract.

David Faiers M: 0432 766 788 Chenoa Daniel M: 0403 143 151

LISTING SPRING HILL TERRACES MOTEL & APARTMENTS BRISBANE, QLD This 28-room budget motel on a prime 1,672 sqm inner-city lot is on sale for $8.9 million.

Trudy Crooks M: 0477 882 210 Alex Cook M: 0467 600 610

LISTING EDEN HOTEL APARTMENTS SHEPPARTON, VIC Set for completion in September quarter 2025, this off-the-plan 4.5-star 67-key hotel is set to raise the bar in Shepparton’s high-end accommodation market.

Tim Crooks M: 0422 208 450 Alex Cook M: 0467 600 610

LISTING ROOM MOTELS GATTON, QLD Recently listed, the freehold going concern of the 39-key Room Motels is the Lockyer Valley’s latest four-star accommodation for corporate and leisure travellers.

Jason Vogler M: 0427 431 213 David Faiers M: 0432 766 788

UNDER OFFER QUEST MACQUARIE PARK SYDNEY, NSW The franchise to this 111-key apartment hotel in one of Sydney’s most prominent business park districts is now under offer.

Jacqueline Featherby M: 0424 497 056 Tim Mayoh M: 0419 038 882

SETTLED MIRAMBEENA MOTEL WHYALLA, SA We received huge enquiry and multiple offers for this 46-room motel, showing a 7.5% return with a long-term lease, located in South Australia’s second largest regional centre.

Kelli Crouch M: 0410 441 750 resortbrokers.com.au

10

Feature

// Main program loop while (true) { // Get user input String input = getUserInput(); // Check for exit condition if (input == "quit") { break;}

Embrace the Algorithm Advances in software and AI have made dynamic pricing accessible to even the smallest accommodation businesses. If you don’t already use it, you’re missing out.

“Dynamic pricing is a process whereby you’re looking to maximise the supply and demand curves for any accommodation asset in whatever location it may be in,” says Andrew Bullock, CEO, 1834 Hotels.

Andrew Bullock, CEO, 1834 Hotels.

Words_John Miller HOW TO SOLVE IT? Whether you operate a hotel, motel or caravan park, no matter the size, you face the same issue: a fixed number of rooms. Sure, you can always build more, but you’ll need development approval and have to make a capital expense, which in the current building crisis isn’t an appealing option. Even if you build, your room count will only go so high until you max out on space. There’s no getting away from it; fixed supply remains accommodation business operators’ constant problem when it comes to increasing revenue.

The silver bullet is dynamic pricing.

Dynamic pricing uses software to raise or lower an accommodation business' rates several times a day, typically three or four.

Rates are adjusted after accounting for a wide range of factors including competitors’ rates and current and forward supply and demand.

Dynamic pricing is an element of revenue management, though the terms are often used interchangeably.

“If you work on a static rate philosophy, the fixed supply arrangement of hotels means you’re always going to have a certain number of rooms you can sell on any given night.”

“But if you use dynamic pricing, you can increase revenue by driving your rates up in times of high demand.

You can also drive occupancy in lower demand periods, by offering discounts, for example, to improve your overall RevPAR.” 1834 Hotels applies dynamic pricing as part of its comprehensive hotel management package. Founded in Adelaide in the 1980s, the white label management company serves a nationwide clientele of hotels, motels, resorts and serviced apartments. Over the more than two decades Bullock has been with 1834 Hotels, the last 15 years as CEO, he has seen the democratisation of dynamic pricing technology make it both accessible and affordable to most operators, regardless of size.

“Once upon a time you needed a team of revenue managers to be able to dynamically price your hotel,” says Bullock. “It was predominantly used by large CBD hotels who had teams of people working manually off spreadsheets to determine rate changes and positioning. That’s just not the case anymore.”

11

“Dynamic pricing technology has come a long way to where it was even five years ago. With the tools available in today’s market, you can do it with even the smallest accommodation assets.”

1834 Hotels uses dynamic pricing software Duetto and its own proprietary reporting software to adjust rates for the hotels it manages. These programs web scrape rate and other data from a hotel’s competitor set, which can be set as wide as a client likes. After importing the data, the system then makes projections of the hotel’s best rate position by room type.

“What are you leaving on the table by not moving your rate position around?”

“Today’s technology uses AI algorithms that will price point your hotel three or four times a day, putting all your competitor set data in, looking at forward demand curves, historical data, etcetera, and then drive your rate and occupancy position without you even touching it almost,” says Bullock. “Obviously, you need companies like ours to manage that process, but these platforms are far more acceptable and easier to use than they once were.”

Bullock says operators who don’t use dynamic pricing don’t realise the substantial returns they’re missing out on.

“It’s often a case of operators not knowing what they don’t know,” he says. “Your hotel may be doing well with good occupancy. But what are you leaving on the table by not being able to move your rate position around? Doing so can deliver enormous revenue uplift. Twentyfive per cent plus in revenue uplift is not out of the question for a hotel moving from a static price model to a dynamically priced model.”

While the number of keys will impact how far ChoiceMAX can increase revenue, returns can be significant.

“We’ve proven an average return on investment of five-to-one over the course of a 12-month period,” says Stanley. “So, for every dollar you invest you’re getting five back in terms of revenue uplift.”

Anthony Stanley, Director of Performance and Revenue Management, Choice Hotels Asia-Pac.

OCCUPANCY AND RATES: TWO SIDES OF THE SAME COIN Anthony Stanley, Director of Performance and Revenue Management, Choice Hotels Asia-Pac agrees some operators still don’t appreciate the benefits of dynamic pricing.

“We still hear it today, this obsession with occupancy while overlooking rates,” he says. “It’s been an education piece for us to get our franchisees to think about both sides of the equation: occupancy and rates.”

“If you can drive average daily rates higher when compared to occupancy then, ultimately, you’re making the business more profitable because your revenue increases while your operational expenses remain the same.”

Choice Hotels Asia-Pac introduced revenue management as an opt-in program for its franchisees about six years ago. Today, approximately 75 per cent of its franchisees in Australia and New Zealand take advantage of the service.

In an industry first, Choice Hotels International developed its own automated revenue management system, ChoiceMAX, which integrates with its proprietary property management system, ChoiceADVANTAGE. In Choice’s US homebase, ChoiceMAX is now in its third year of operation. In Asia Pacific, ChoiceMAX is coming into its second year.

Despite the undeniable upside, Stanley says some Choice franchisees are still hesitant to embrace dynamic pricing.

“Some operators get side-tracked by the implementation cost,” he says. “Others believe their revenue potential has peaked. Others can be concerned with a perceived loss of control.”

“For every dollar you invest you’re getting five back in terms of revenue uplift.”

“But the process can be as hands-off or as collaborative as the operator likes. We have some franchisees our revenue management team never hears from. They’re happy to delegate that responsibility so they can concentrate on the operational aspects of the business. Then we’ve got others proactively working with their revenue manager multiple times a week. How they manage that section of their business is completely in their control.”

12

Feature

Chris de Closey, Director, Switch Hotel Solutions

DYNAMIC PRICING IN MANAGEMENT RIGHTS Switch Hotel Solutions, a full-service agency specialising in the management rights sector, uses a combination of software Lighthouse (formerly OTA Insight) and RoomPriceGenie, and benchmarking data STR, alongside its own proprietary system.

“Lighthouse provides market level data for the regions,” says Chris de Closey, Director, Switch Hotel Solutions.

“Say, for example, you have a short-term letting business on the Gold Coast. The first 22 days of December are looking very soft. That means we’re having to adjust our revenue strategy accordingly to meet the demands of the market.”

“Software like RoomPriceGenie assists you to monitor market movements and pricing. So, if the market moves a specific percentage, it will make your property move in the same direction. That way you’re not missing out on any market movements.”

“We use benchmarking data like STR to tell us whether what a particular client is experiencing — higher occupancy, say — is true for the wider market as well. For example, our client might be at 20 per cent whereas the market might be at 10 per cent.”

SWITCH HOTEL SOLUTIONS TEAM

13

“Or they might be at 80 per cent and the market might be at 100 per cent. It gives us different levels of data about how the market is performing, how we’re performing against the market and then we make the revenue decisions from there.”

De Closey founded Switch in 2019 and now has over 60 clients around the country, predominantly short-term holiday letting businesses in the 20- to 50-room range.

“Dynamic pricing in a management rights model is a little different because you’re potentially dealing with individual unit owners,” he says. “While we want to optimise prices as much as we can, we still need to get the occupancy as well to ensure we’re getting unit owners returns on their properties.”

“It’s really about educating operators on the advantages of dynamic pricing.”

Returns after implementing dynamic pricing can vary wildly, says de Closey. “We’ve had some clients see returns of over 50 to 60 per cent year-on-year growth, while others have reported 10 to 20 per cent.”

“It really depends on the business as there are so many different pieces to factor in.”

As with regular hotels, the conversation around dynamic pricing is still one to be had with many operators, says de Closey.

“In the management rights space, some experienced operators can be a bit set in their ways,” he says. “They’ve been doing it for 15 or 20 years and don’t have the understanding or knowledge to increase what they need to do in terms of revenue management.”

“It’s also the case that in the regional markets, dynamic pricing is not as prevalent as the metro markets. It’s really a matter of education and explaining to operators the advantages of dynamic pricing.”

14

Feature

Dynamic Uplift Melissa Kalan, CEO, Australian Revenue Management Association (ARMA).

DYNAMIC PRICING TAKEUP INCREASING Melissa Kalan, CEO, Australian Revenue Management Association (ARMA), says the adoption of revenue management and dynamic pricing in the accommodation sector has significantly improved in the last decade.

“Larger hotel chains and upscale accommodations were early adopters, starting in the late ‘80s and early ‘90s,” she says. “Over the last 10 years, and particularly from around 2016, we’ve seen a much greater uptake from holiday parks, resorts, apartmentstyle properties, franchisee networks and many more independent operators.”

"In the last five years, the barriers for small operators to adopt dynamic pricing have drastically diminished."

ARMA was founded in 2011 to improve the understanding of the practice of revenue management and dynamic pricing within the accommodation sector.

“Operators such as Choice Hotels Asia-Pac and Best Western Hotels & Resorts began offering a revenue management opt-in service for their franchisees with great success,” says Kalan.

“There was a lag in tech operators serving the broader mid-market that could accommodate a broad range of budgets and the nuances that small-medium operators have over large chains. This has changed drastically in the last five years, breaking down barriers to entry for many operators. With an abundance of data, including the AI capabilities of today, many of the larger chains are incorporating data for dynamic personalised pricing and lifetime customer pricing strategies.” END

Switch Hotel Solutions was engaged in July 2021 by the owner of a 31-room motel in Outback Queensland to implement revenue management. Switch applied dynamic pricing using a combination of its own proprietary software together with Lighthouse (formerly OTA Insight) and RoomPriceGenie, as well as benchmarking data STR. Within a year of using dynamic pricing, the motel’s monthly revenue of $70,000 increased to over $100,000 in July 2022 and then to over $129,000 in July 2023. Occupancy of 45% in July 2021 almost doubled, reaching 85% and 86% in July 2022 and July 2023 respectively. The graph on the right shows the revenue uplift month-on-month.

Parks & Tech

In the holiday and caravan park space, Australia’s largest owner-operator Discovery Parks has led the way on dynamic pricing. Discovery first trialled dynamic pricing in 2018 and now has 50 of its 87 parks around Australia using AI software Ideas (styled IDeaS).

Pricing is controlled by Adelaide support office, which decides whether a park should go on Ideas, but with the active engagement of park managers. Discovery Parks’ competitor sets include other parks in the area, as well as motels offering facilities similar to caravans such as kitchenettes, and even apartments offering full-size kitchens which are akin to park cabins.

“Generally speaking, we aim to not under-price ourselves against a competitor motel or overprice ourselves against a luxury apartment,” explains Wayne Chang, General Manager – Commercial Strategy, Discovery Parks.

In adjusting prices, Ideas will consider a host of factors, including OTA ratings of competitor parks.

If a competitor park offers similar facilities but has a lower rating on Booking.com due to, say, poor guest

15

Yearly Comparison (by Month)

2021

2022

2023

“With dynamic pricing, we can achieve strong margins when demand is at its highest and offer lower tariffs through off-peak periods,” he says. “This means we’re able to provide a price point that suits a certain segment in the market who can’t afford to travel in peak periods but who now can because we’ve provided affordable rates in times of low demand. That's a win for consumers and allows us to achieve additional occupancy during times we may otherwise be much quieter."

“Airlines have done a great job educating consumers on dynamic pricing.” service, Ideas can adjust the rate of the Discovery Park accordingly.

Says Chang, “Consumers will go online and say, ‘Well, Discovery has a 9.2 rating on Booking.com, but this other one has only 8.1.’ It helps consumers decide, ‘Well, for another $20 a night I’d be happier staying at a place with a higher rating.”

Chang says dynamic pricing benefits park guests as much as park operators.

While the introduction of Ideas and dynamically changing rates has been an education process within business, Chang says today’s consumers are savvy and expect prices to move around.

“Airlines have done a great job educating consumers in this space,” he says. “The pressure is not really on the accommodation industry. Consumers realise if they book late, they could miss out or have to pay more. They understand that, depending on the time of year, if they leave it too late to book, they probably may not get the room type they want and that rates will most probably go up.”

Ideas updates prices three times a day but getting the timing of those updates right is crucial, says Chang.

“Our research shows consumers have a habit of looking for destinations during their work lunch break as well as when they get home from work,” he says. “So, we make sure we update our pricing before the majority of consumer activity happens during the day.” END

16

Feature

Go, Go Gadget

Remote Control Contactless motel management is a growing trend — and smart locks are making it increasingly viable

No contact. No keys. No drama.

Hi-Way Motel Grafton is a 31-room budget motel whose manager is onsite about once a month. The rest of the time, he’s managing the motel remotely from his Brisbane home, over three hours’ drive away.

Mackay was introduced to Salto at a NoVacancy Expo in 2022. By January 2023, Hi-Way Motel Grafton had Salto installed. At $60,000, including internet upgrades, the cost was steep, but worth every bit of the owner’s investment, says Mackay.

“Guests would just walk off with keys or not respond when we asked for them back. With inflation, costs have gone out of control. It’s now about $200 to replace a traditional lock. So, we needed a solution.”

Salto locks are activated by a six-digit access code the guest will receive by text and email about 10 minutes before check-in commences. The guest simply enters the code into the lock’s keypad to get room access. Mackay has set up a profile for each room within the Salto KS system that will generate a fresh code for each new reservation. Housekeepers and supervisors are issued their own separate codes.

Enter Salto KS, a cloud-based smart lock system that gives motel managers control over room access from anywhere at any time. The Spanish-based company’s locks are now used by over 20 million guests in 90 countries.

“The efficiencies are terrific,” says Mackay. “It really does the job perfectly for what we need. For guests, it gives them a lot more reassurance and safety. We don’t generate the access codes. They’re all auto generated by Salto.”

“We were looking at going contactless pre-Covid, but Covid really put it into focus for us,” says Hi-Way’s manager Cameron Mackay.

17

From smart locks to smart apps and destination EV charging, tech is revolutionising accommodation businesses

“Another benefit is that it has helped reduced bad debts. We don’t send the room access code without payment first."

“Also, if a guest breaks house rules, we can lock them out of their room straight away. Fortunately, we’ve only had to do that once. If need be, we can give emergency services a unique access code as well.”

Mackay says most younger guests love contactless management, but there is a generational divide.

“Smart locks give both guests and managers a lot more reassurance.”

“Some people love the fact they don’t see anyone, that they can walk straight into their room. Older guests aren’t that sold on it. Most in that demographic want a manager physically there. I’d say if you’re considering implementing a smart lock system, it’s worth thinking about whether it’s suitable for your guest profile.”

Hi-Way’s owner is now looking to install Salto at two of his other properties, a backpackers’ hostel in Ayr and a nine-room motel in Mackay (North Queensland), which is also managed remotely by (Cameron) Mackay using traditional lock boxes and physical keys.

“Personally, managing multiple properties, it’s better for my own mental health,” says Mackay. “I can carve out a reasonable life for myself. When you’re always onsite you kind of get caught up in your own world, and it’s 24/7 stressful. Contactless is much better. I went up to Mackay last week and was still operating Grafton in transit very easily. All I needed was my phone and laptop.” END

18

Feature

Go, Go Gadget

Plug and Play ChargeBoss brings EV charging to accommodation businesses

Destination electric vehicle (EV) charging is becoming increasingly important in the accommodation space. Rising demand is driving hotels, motels and resorts to consider installing EV charging for guests.

“Destination EV charging is fast becoming a pivotal point of difference in the choice of accommodation for the growing number of EV drivers, which tripled in 2023,” says Emma Allen founder and director of ChargeBoss.

“We’re going to get to a point in the next 10 years where EVs make up 50 to 80 per cent of new car sales."

“From an accommodation perspective, EV drivers will use EV charging station maps like PlugShare which enables us to see exactly where chargers are and how to map our trip."

“Say a hotel has EV charging and another doesn’t. As an EV driver, my preference would be the hotel with EV charging. It can literally put you on the map.”

“EV charging is fast becoming a pivotal point of difference.”

Allen launched ChargeBoss in May 2023 to provide accommodation businesses, clubs and entertainment venues with fully automated 24/7 EV charging stations. ChargeBoss stations require no handling by hotel/motel staff. There are no apps, subscriptions or calls. Guests interact directly with the charger.

They simply scan, pay and plug their car into the charger.

“Guests can then sit by the pool, have lunch or leave it overnight,” says Allen.

ChargeBoss’ system generates direct revenue for the hotel, allowing operators to set their own charge rates (for example, 29 cents per kilowatt) and run tailored marketing campaigns.

19

“A hotel can offer free charging if, say, a guest spends $50 at the bar,” says Allen. “Or, they could have a free charging weekend for dads on Father’s Day.”

Chargers range from Level 2 AC medium-to-long dwell time chargers to Level 3 DC fast chargers. The fastest DC chargers can fully juice EVs in as little as 15 minutes.

Based in St Leonard’s, Sydney, ChargeBoss has a growing list of accommodation clients from smaller boutique hotels to the over 50-rooms range in New South Wales, Victoria and Western Australia, with plans to expand into other states. The business has just been designated as preferred EV charging provider by a large hotel chain, to provide a consistent solution across its operators nationwide.

Allen says implementation costs will vary depending on the age of hotel and how much wiring is needed. Charging units can cost as little as $2,000 to $2,500 and are OCPP (open charge point protocol) compliant, making it eligible for various grants. Installation varies from $3,000 to $30,000 or more depending on the requirements of the site.

Allen says she was inspired to start ChargeBoss to fill a gap in the hospitality market.

“If a hotel wanted to do it themselves it would be hard for them to research,” she says. “Who do I know who does this? What chargers are commercially viable? What software do I integrate with it?

What ChargeBoss has done is build an eco-system that integrates the charger with the payment software and electrical infrastructure. It’s an all-in-one solution.” END

20

Feature

Go, Go Gadget

A Touch of Paradiso Paradiso Place’s smart phone app give its residents control of everything in a single app (yes, just one)

21

The three glittering towers that will comprise Paradiso Place in Surfers Paradise are still under construction, but SPG Land’s flagship Australian development has already collected a swag of industry awards.

Paradiso Place’s app controls everything, including air conditioning, lighting, curtains and intercoms and connects with building management services to allow residents to book amenities and concierge services.

The $1 billion luxury development swept last year’s 5th Annual PropertyGuru Asia Property Awards (Australia) with seven wins from seven nominations, including the coveted Best Apartment Development (Queensland) award.

“With other developers, if they give you a smart lock from Yale, for example, you have to use the Yale app to open the door,” says Lim. “If you get aircon from, say, Mitsubishi they’ll give you the Mitsubishi app that comes with it, which means you need to open a second app to control your air conditioning.”

Among the prizes Paradiso Place took home was Best Smart Building Development. This was due in large part to the development’s integrated smart phone app that gives residents everything they need to control in a single app, activated by a finger click or voice command.

“Most developers think of smart home technologies as an afterthought,” says Lester Lim, SPG Land’s Senior Regional Marketing Director. “What we’ve done is work at the planning stage of Paradiso Place to develop the Paradiso Place app.”

“Paradiso Place’s app is integrated which means the same app allows you to control all the devices in the home.”

“Because we’ve planned this from the ground up, Paradiso Place’s app is integrated which means the same app allows you to control all the devices in the home.”

Each of Paradiso Place’s 258 apartments are fitted with a smart hub that integrates all appliances. Residents can ‘set the mood’ of their apartment before they arrive home or grant access to their guests remotely.

“Because we did the planning from the start, we also installed smart solutions in the common areas,” says Lim. “What this means is that our app allows you to send an invitation. I can, say, invite you to my apartment in Paradiso Place through the app. You will be sent a QR code, which you accept. When you arrive at Paradiso Place you can scan the QR code at the door for access. Or, say you have a function on Level 26 of the building. The QR code will allow you access to Level 26. The resident doesn’t need to come down to get their guest. They don’t need to buzz them in or make a rearrangement or whatever. Of course, for security purposes, the QR code is one-time use only.”

Paradiso Place Tower 1 opens in 2026. END

FREEHOLD MOTEL 28 ROOMS 1,672 SQM BLOCK INNER CITY L OC AT I O N

SPRING HILL TERRACES SPRING HILL, QLD REF // FH008163

H E R S TO N

R O YA L BRISBANE & WOMEN’S H O S P I TA L

Rare, inner-city Brisbane freehold motel, one of the last remaining

BRISBANE SHOWGROUNDS

V I C TO R I A PA R K

SPRING HILL T E R R AC E S M OT E L & A PA R T M E N T S

ROMA ST PA R K L A N D S

SUNCORP S TA D I U M

ST ANDREW’S WA R M E M O R I A L H O S P I TA L

F O R T I T U D E VA L L E Y

H O WA R D S M I T H WHARFS

BRISBANE ARENA N E W FA R M

BRISBANE CBD M I L TO N

CROSS RIVER RAIL

QUEEN’S WHARF BRISBANE B O TA N I C GARDENS

A scarcity of accommodation so close to central Brisbane makes the freehold going concern of Spring Hill Terraces Motel & Apartments an extremely rare offering, one of the few that has not already been snapped up by investors.

The 28-room Spring Hill Terraces occupies a prime inner-city site along Water, Warry and Kennigo streets, only 1.5 km from the CBD and a few hundred metres from Fortitude Valley.

The large lot size of 1,672 sqm is extremely rare for inner Brisbane, adding to this freehold asset’s incredible development potential.

Currently operating as a budget motel, this versatile asset’s wide variety of room configurations range from fully self-contained two-level townhouse and studio apartments to standard rooms, twin rooms and singles.

Inner Brisbane is a major beneficiary of Brisbane’s ongoing population boom which will continue to drive demand for existing accommodation, especially in the current market where there are significant barriers to entry for new supply. For the new owner, this incredibly versatile asset invites repositioning, redevelopment or to simply continue as is.

•

Rare, inner-city Brisbane freehold accommodation in a tightly held market

•

28-room motel occupying a prime inner-city Spring Hill location, only 1.5 km from the CBD

•

Large 1,672 sqm lot, incredibly rare for inner Brisbane

•

Huge guest demand for Brisbane city-fringe accommodation in a squeezed supply environment

•

Recent refurbishments by the owner of approximately half the motel’s rooms

•

Ideal for repositioning or redevelopment to upscale or luxury accommodation to capitalise on Spring Hill’s unique character and location

•

Untapped potential to attract corporate, public sector and hospital guests

•

Dynamic pricing and savvy digital marketing will unlock revenue and increase occupancy

•

Huge upside to increase the motel’s easily achieved annual net profit of $825,000

•

Wide variety of room configurations, including 7 fully self-contained two-storey townhouse apartments

NET PROFIT

TURNOVER

PRICE

$825,000

$1,288,267

$8,900,000

TRUDY CROOKS

ALEX COOK

Managing Director 0477 882 210 trudy@resortbrokers.com.au

Director 0467 600 610 alex@resortbrokers.com.au

Invest in you.

Boost your business without the extra hours.

Collaborate with Choice Hotels™ and take your business to the next level, leaving more time to spend on the things you love.

Visit JoinChoiceHotels.com.au or call 03 9243 2500

24

Faces of the Industry

25

Mandala Asset Solutions’ John Zeckendorf discusses his company’s steep ascent, whether money can buy happiness, and breaking down mountain-size problems into manageable molehills.

Words_John Miller

When John Zeckendorf was preparing to climb Denali on his quest to conquer the Seven Summits, he would take a dice along on his regular training sessions. If at the end of any session he rolled a six, he committed to repeating the session in full.

Zeckendorf’s idea was to introduce a chance factor, something he couldn’t control. Hence the dice.

“Denali’s weather is completely unpredictable,” says Zeckendorf.

“You can turn up at a campsite to find it too dangerous to stay in or that it’s blown away entirely. So, you have to push on to the next camp or climb back down to the last one.

It’s like running a marathon only to realise you have to run it again once you get to the finish line. So, I introduced a random element, something outside my control in order to adjust my mindset, if necessary. If I rolled a six, I had to do the whole thing again regardless of what it was I’d just done. In one case, it was an eight-hour run. I had to call my wife to tell her I’d be a bit late.”

The method in this madness worked. Zeckendorf went on to summit Denali, his third of the seven following his earlier climbs of Kilimanjaro and Elbrus. After Denali, it was Vinson, then Aconcagua, which he managed on his second attempt in 2016. The following year, he became the first Tasmanian to summit Everest, thereby completing his conquest of the Seven Summits, the highest mountains in each of the seven continents.

Broad Peak, opposite K2, is a likely contender were Zeckendorf to attempt another summit above 8,000 metres. “But don’t tell my wife,” he jokes. As to why he climbs the world’s tallest mountains, he gives a Malloryesque response: “I climb them because they’re mountains I want to climb,” he says.

Throughout this mountaineering at high altitudes, Zeckendorf has also managed to steer Mandala Asset Solutions, one of Australia’s largest regional accommodation funds, which he founded in 2002 with business partner Ryan Shaw.

The pair met working at PricewaterhouseCoopers in the 1990s where they specialised in insolvency. When Southeast Asia melted down in the 1997 Financial Crisis, they relocated there to take on a number of floundering assets.

The skills Zeckendorf acquired came in handy when, in 2000, he left PwC to reconcile the profligate spending of Prince Jefri Bolkiah, the notorious playboy and younger brother of the Sultan of Brunei, who chalked up $40 billion worth of debt. More on this later.

Mountaineering has helped Zeckendorf navigate the commercial challenges his work has thrown him, but business has also informed his mountaineering. The trick, he says, is to break down the mountain, be it figurative or actual, into smaller manageable targets.

“You end up in this position where it doesn’t really matter what’s thrown at you, you can find a way through it,” says the 53-year-old, who is based in Kingston Beach, just outside Hobart.

26

Faces of the Industry

“People get overwhelmed by the enormity of what’s before them.

Most people look at a big problem and focus on the wrong question.

They think, gosh, how can I do that?

But they need to ask, what do I need to be able to do to break that down into something I can do? You do that quite a lot with climbing mountains.

You don’t think of the enormity of the mountain in front of you. You think, OK, what do I have to do next?

I’ve just got to make it up to here.

I’ve just got to go there. I know I’ve got to get through this tricky bit, so I need to practice and prepare for it. When you get around to actually doing it, it’s just a matter of putting it all together.”

Mandala’s success has come from assembling those constituent parts.

From a single hotel acquisition in 2002, it has grown its portfolio to 35 properties in 22 cities across Australia, representing some $200 million in accommodation assets under management. Mandala is also expanding its external management offering to owners of regional and city accommodation properties that want to benefit from Mandala’s highly successful operating model.

“The word mandala means segment,” says Zeckendorf. “It’s when you put the segments together that you end up with the whole. It’s about the

harmony of the elements working together. Take any one segment away and it doesn’t work. It’s a principle most people have heard of, the idea of taking things that aren’t the same and putting them together, with the whole being greater than the sum of its parts. That’s what Mandala has always done. We’ve always collaborated with people in long-term partnerships. We tend not to do one-night stands, we’re much better at being married."

“It works in a business sense. It’s not that we’ll only work with certain people, it’s that when you find a formula that works you want to keep it going to some extent. That’s what’s really worked well with ResortBrokers.”

“When you find a formula that works you want to keep it going to some extent.

That’s what’s really worked well with ResortBrokers.”

Mandala’s primary focus is the acquisition and management of accommodation properties in regional locations, where Zeckendorf says you will always find better

returns than major metropolitan areas. The company is attracted to accommodation businesses in regional economic centres that are export driven, especially by mining or agriculture, or have strong government-based services or domestic tourism.

“The returns can be fabulous,” he says. “But often these accommodation businesses and regions are often overlooked by investors.”

“There’s probably a number of reasons why. For one, these buildings often aren’t shiny or glamourous.

They may be in towns people haven’t heard of, or if they’ve heard of them, it may not have been for the right reasons. It’s also quite an ordeal just getting to some of these towns because of the vast distance. Then there’s the issue of management.

If you want to run something in the middle of nowhere, you’re probably not going to attract a firstclass manager. We’re lucky. Most of our managers are fabulous and we can track them because we’re bigger.”

Besides mountaineering and commerce, Zeckendorf has been on another journey, one which guides his life, personal relationships and business ethics. No profile of him would be complete without

27

mentioning it, though accepted wisdom tells us the subject should not be discussed in polite company.

Raised Jewish, and with a grandfather who perished in Auschwitz, Zeckendorf converted to Christianity when he met his wife in his 20s and remains a committed Christian today. He is comfortably open about his Christian faith, neither pushy nor reserved.

“Everyone in Mandala knows my faith position but it doesn’t mean I broadcast it,” he says. “A Russian friend of mine says, ‘You Australians don’t talk about religion or politics, but we Russians realise there’s nothing else worth talking about.’”

“I realise I’m not just accountable to my investors but to a higher authority. I know I could make more money if I cut corners, but I want to do the right thing. The good news is that when Fair Work does an audit on any of our employees, we never have a problem as we don’t underpay them!”

Between 2000 and 2002, Zeckendorf opened one of the most unique chapters in his storied life when he worked to reconcile the debt of Prince Jefri Bolkiah who served as Brunei’s Minister of Finance and Economy before being undone by the 1997 Asian financial crisis.

Zeckendorf was recruited by his predecessor, a friend from his PwC days who had burnt out working to square the debt, whose parting advice was to stay well clear of court politics.

“It was the best tip he gave me,” says Zeckendorf. “And he was absolutely right. That wasn’t my job. My job was to clean up the mess.”

“Basically, they threw me the keys to 70 assets around the world, including luxury hotels, jewellery, palaces, you name it, and a whole bunch of toys. We had about $5 billion worth of assets. But we also had $40 billion worth of

liabilities. So, we had a mismatch between the prince’s means and his responsibilities. My job was to resolve both sides of that equation. After three years I had basically done that.”

“It was the perfect role for me.

It was a huge amount of autonomy and responsibility but solving these sorts of problems are fascinating to me. I’m a troubleshooter who likes a good crisis.”

Zeckendorf saw the trappings of extreme wealth as well as the traps it laid for the prince. It recalled, he says, the lament of King Solomon, the wise sage of the Old Testament, whose pursuit of his own pleasure did not result in lasting fulfillment, only spiritual emptiness. “Come now, I will test you with pleasure and gratification; so, enjoy yourself and have a good time. But behold, this too was vanity,” says Ecclesiastes, a book of the bible attributed to Solomon.

“His immense wealth left him wanting,” says Zeckendorf.

“Prince Jefri had many, many girlfriends, many mistresses and

a whole bunch of wives. Around mega wealthy people there’s also an abundance of what I shall politely call parasites.”

“That’s where all the loose women and cocaine and that sort of stuff was going on.”

“One of the last wives that came along, they actually really loved each other. He didn’t have money in those days, and she didn’t want money. She actually loved him.

From what I saw at a distance that was probably the relationship that made him happier than everything else. It was just that one woman that he had fallen in love with, and she with him.”

As for Mandala, Zeckendorf says the plan is to develop the business for the foreseeable future. If the company were to reach $1 billion of accommodation assets under management, he says it would be highly attractive to a sovereign wealth or super fund for a roll up.

“For the next five, ten years we’ll grow it, but at some point in that journey someone will make us an offer and our investors may say, ‘OK, that sounds like enough.’” END

Mandala & ResortBrokers SCALING THE HEIGHTS

Mantra Mackay

Mantra Bathurst

Knotts Crossing Resort

(formerly Mackay Marina Motel)

(formerly Quality Hotel Bathurst)

Katherine, NT

Rydges Armidale

Peninsula Boutique Hotel

Lincoln Downs Resort & Spa

(formerly Powerhouse Hotel Armidale)

Port Douglas, QLD

Batemans Bay, NSW

Quality Inn Carriage House

Thunderbird Motel

Cullen Bay Resorts

East Wagga Wagga, NSW

Yass, NSW

Darwin, NT

SPECIAL PROJECT

Mt Barney Lodge Scenic Rim, QLD

REF // FH008199

Stunning Scenic Rim eco-friendly acreage accommodation ResortBrokers in conjunction with Andreas Realty presents the amazing eco-friendly Mt Barney Lodge.

Mt Barney Lodge is the perfect destination for conferences, seminars, team-building retreats and camps. With its unique location bordering the World Heritage-listed Mt Barney National Park, and around a 2-hour drive from the Brisbane and Gold Coast airports, the lodge provides the perfect backdrop for corporate or educational events.

Tightly held by the same family for many years they have developed a solid school groups, families and corporate bookings, year round. Adventure activities, catering, F&B and conferences create a diversified income stream away from the more traditional accommodation services provided.

The unique atmosphere of getting back to nature by day and then relaxing in various levels of comfort by night, provides an edge over other properties on the market. A must inspect for anyone looking for a quality eco-friendly accommodation business.

•

3 renovated Queenslanders

•

2 rustic family cabins

•

2 deluxe hybrid caravans

•

2 Mountainview camper trailers

•

Campground capped at 100 pax for comfort

•

Amenities Block

•

Site Office

•

Adventure activity packages

Net Profit

On qualification

$

$

Turnover

Price

On qualification

Offers around $4.5M

Jason Vogler

Andrea Sommerville

Broker, SE & SW QLD jason@resortbrokers.com.au +61 427 431 213

Andreas Realty andrea@andreasrealty.com.au +61 439 413 555

MANAGEMENT RIGHTS 36 APARTMENTS

31 LETTING

17 YEARS

OWNER’S RESIDENCE 2 BED 2 BATH

Agnes Water Beach Club Agnes Water, QLD

REF // MR008151

Regional Australia’s best buy — by far!

Situated in the heart of Agnes Waters, the Agnes Water Beach Club showcases 36 two-bedroom self-contained apartments, strategically positioned near shops, cafes, and Australia’s northernmost surf beach.

The manager’s residence includes a fully air-conditioned, ground-level apartment featuring two bedrooms, two bathrooms, and an outdoor deck.

Boasting a net income nearing half a million dollars, along with a robust body corporate salary and a low buy-in multiplier, this property stands out as one of Queensland’s premier investment opportunities.

Agnes Water has earned recognition from Lonely Planet as one of Queensland’s top 10 holiday destinations. Acting as a gateway to the Great Barrier Reef, the town is enveloped by national parks, offering secluded beaches, breathtaking coastal landscapes, and excellent fishing opportunities.

•

Accommodation module agreement

•

Fully staffed if you don’t want to operate it yourself

•

Prime location in the heart of Agnes Water

•

Two-bedroom manager’s residence

•

31 units in letting pool

•

Solid body corporate remuneration

$ Net Profit

$480,000

Business Price

$1,460,000

$

$

Real Estate Price

$490,000

Total Price

$1,950,000

Glenn Millar

Chenoa Daniel

Broker, Sunshine Coast glenn@resortbrokers.com.au +61 412 277 804

Broker, Sunshine Coast chenoa@resortbrokers.com.au +61 403 143 151

MANAGEMENT RIGHTS 202 A PA RT M E N T S 84 LETTING 25 YEARS 2 TOWERS

REFLECTIONS Coolangatta Beach GATT

C

C

B EA

OO LA

A

N

REF // MR008090

Premium Coolangatta Super Rights.

Landmark Property.

H

With a net operating profit (NOP) of $1,977,775 for FY23, this is a genuine ‘super rights’ offering, one of the largest ever to come to market on the Gold Coast.

This premium management rights business would suit an experienced operator looking to expand their portfolio with a top-tier complex.

Situated in the heart of Coolangatta directly across from Greenmount Beach, Reflections Coolangatta Beach’s two landmark towers, Reflections on the Sea and Reflections Tower 2, each rising 21 storeys, have made it one of Coolangatta’s

most recognisable and sought-after holiday destinations.

Comprising 202 luxury apartments and resort-style facilities, Reflections Coolangatta Beach’s exceptional visitor appeal is reflected in its extraordinary occupancy rate of over 92 per cent, which is some 25 per cent higher than the Gold Coast average of 67 per cent (as per STR data for the calendar year to July 2023).

On Booking.com, Reflections on the Sea and Reflections Tower 2 enjoy a “Fabulous” 8.7 rating and a “Very good” 8.2 rating respectively.

Landmark Coolangatta resort in prime beachfront location

Consistently high performing holiday business with repeat clientele

NOP $1.97M backed by $608K BC salary across two schemes

Fantastic occupancy rate 92%+

202 total apartments over 2 towers

Highly experienced on-site management/staff

25-year caretaking and letting agreements

Multi award-winning property

84 apartments in letting pool

Net Profit

$1,977,775 Expressions

of Interest

C A R AVA N PA R K 30 CABINS 62 CARAVAN SITES 2 H E C TA R E S OWNER’S RESIDENCE 4 BED 1 BATH

Charters Towers Tourist Park Charters Towers, QLD

REF // FH008081

Charters Towers Tourist Park offers an exceptional opportunity and a proven track record Charters Towers Tourist Park has been meticulously owned and operated for seven years, demonstrating a proven track record of revenue growth and operational excellence.

The park offers a diverse range of accommodation options, from comfortable ensuite cabins to powered sites, catering to a broad range of guests. Recent improvements include an upgraded camp kitchen, painted amenities and new air conditioners in several cabins.

In addition, the park is equipped with 16 security cameras, ensuring a safe and secure environment for guests, as well as Wi-Fi throughout the premises, giving guests uninterrupted connectivity during their stay.

Charters Towers Tourist Park is situated in a town buzzing with development activity with a strong presence of boarding schools as well as promising a steady influx of local visitors and tourists to spur potential further growth.

This is a unique opportunity to invest in a thriving tourist park with multiple accommodation streams, a strong growth trajectory and a prime location in a bustling town.

The Charters Towers Tourist Park is more than just a business; it’s a lifestyle and a chance to be part of the Charters Towers tourism industry.

•

Steadfast ownership and operation spanning 7 years

•

Positioned as a top-tier tourist destination

•

Offers a diverse array of accommodation options

•

Consistent track record of revenue growth

•

Located in a dynamic town with significant regional development

•

Park-wide Wi-Fi for guest convenience

•

Features a comfortable and well-equipped manager’s residence

Net Profit

$665,115

$

Turnover

$1,107,134

Des Fagg Broker, Townsville & Surrounds des@resortbrokers.com.au +61 427 849 119

$

Price

$4,750,000

FREEHOLD HOTEL 1 0 . 6 H E C TA R E S

OWNER’S RESIDENCE 2 BED 1 BATH

Mulga Creek Hotel Byrock, NSW

REF // FH008008

This FHGC has it all! Hotel/motel, caravan park and lucrative mail-sorting business The Mulga Creek Hotel is more than just a place to stay; it’s a destination in itself that attracts visitors from far and wide, eager to experience the charm and hospitality of this iconic establishment.

The hotel is the town. It serves as a central meeting place and postal delivery hub, further cementing its importance within the local community.

The property boasts a commercial kitchen, enabling the provision of quality food services to guests and locals alike. The hotel also includes three motel rooms attached directly to the main building, providing convenient and comfortable guest accommodation.

The caravan park and cabins offer additional accommodation options, ensuring the property caters to a wide range of visitors.

One of the standout features of this opportunity is the annual mail sorting contract, which generates an additional income of $50,000. This not only provides a steady revenue stream but also further integrates the hotel into the fabric of the local community.

•

Multifaceted property offering hotel, motel, caravan park, cabins and camping facilities

•

Additional annual income of $50,000 from onsite mail sorting service

•

Three motel rooms conveniently attached to the main hotel building

•

Additional accommodation options are provided by cabins

•

The property serves as the central hub of the town

•

Equipped with a commercial kitchen for quality food service

•

Inspections are by appointment only

Net Profit

$175,323

$

Turnover

$554,805

Chris Kelly Broker, Central West NSW chris@resortbrokers.com.au +61 431 055 221

$

Price

$1,100,000

HOTEL LEASEHOLD 50 KEYS 23 YEARS ON LEASE

OWNER’S RESIDENCE 1 BED 1 BATH

Quest Yelverton Kalgoorlie Kalgoorlie, WA

REF // LH007991

Quest regional powerhouse with net profit over $1M located in WA’s Golden Outback The immensely profitable Quest Yelverton Kalgoorlie is on the market for the first time in 18 years. Situated in the mineral-rich Goldfields region of Western Australia, Quest Yelverton Kalgoorlie comprises an extensively refurbished 50-key complex situated in the heart of Kalgoorlie. The business has consistently high occupancy rates (3-year average of 83%) and a corporate client ratio above 75% making it the go-to Kalgoorlie destination for corporate travellers from around Australia.

Quest Yelverton Kalgoorlie has solid leases in place with multiple option renewals available out to 2046, which gives an incoming owner security of tenure and the opportunity to grow and develop the business over time. The apartments have been consistently upgraded with the staggered refurbishment of three accommodation blocks completed from 2017 to 2019.

Kalgoorlie is the gateway to the Goldfields region and has thriving mining and tourism industries which attract visitors from around Australia.

The business is backed by the successful Quest franchise model.

This business would suit a first-time operator and/or an experienced business owner looking to join the prestigious Quest brand.

•

High revenue and profit performance

•

Operated under the Quest brand

•

Long-standing relationship with key corporate clients

•

Predominantly refurbished facilities

•

Excellent lease tenure with comparatively affordable rent

•

Central Kalgoorlie location

•

Extensively refurbished 50-key strata complex

•

23 years remaining on lease terms including options

Net Profit

$1,167,767

$

Price

$3,790,000

Blair Macdonald Broker, Western Australia blair@resortbrokers.com.au +61 433 149 144

Boundary lines are indicative only

FREEHOLD GOING CONCERN MOTEL ADDITIONAL LOT

EXPRESSIONS OF INTEREST

Dragon Phoenix

Resort & Restaurant 353 & 361-363 Frome Street & 332-338 Balo Street, Moree NSW ResortBrokers has been appointed by Receivers and Managers to market, by way of an expressions of interest campaign, the following assets which are offered to the market separately and in one line: •

the freehold going concern and business operations of the Original Dragon & Phoenix Motel at 361-363 Frome Street, Moree NSW 2400 (situated at Lot 21, 22 and 23 on DP1154009);

•

the freehold going concern and business operations of the (former) Billabong Motel at 353 Frome Street, Moree NSW 2400 (situated at Lot 100 on DP1080846); and

•

Lot 20 (DP1154009) at 332-338 Balo Street, Moree NSW 2400.

Original Dragon & Phoenix Motel occupies a 4,406 sqm* lot and comprises 39 rooms including a two-bedroom manager’s residence, a restaurant and commercial kitchen, function room, and two outdoor artesian thermal baths.

The (former) Billabong Motel occupies a 2,113 sqm* lot and comprises 24 rooms, including a three-bedroom manager’s residence.

Lot 20 (DP1154009) occupies a 2,984 sqm* lot. The building on the lot comprises 34 partially complete apartments in respect of which no final occupation certificate has been issued.** The property includes two tradable water licences (Water Access License No. WAL20980 and WAL15676) which relate to an artesian bore located on Lot 22 on DP1154009.

An Information Memorandum is available in addition to further information in the Data Room. * approximate ** Fire safety concerns, among other structural defects, have been identified in the construction

•

Motel comprising a total of 63 rooms in central Moree location

•

Motel benefits from Moree’s locational advantages as a regional hub of northern NSW

•

Potential upside through proposed Moree Special Activation Precinct

•

Restaurant and function area offer a potential for additional income streams independent of letting business

•

Includes two managers’ residences, one in each motel complex

•

Array of solar panelling

•

Surrounded by chrome moly fences which act as a security measure

For sale by expressions of interest closing Friday, 26 April 2024 at 5pm AEST.

Alex Cook

Jason Vogler

David Faiers

Director alex@resortbrokers.com.au +61 467 600 610

Broker, SE & SW QLD jason@resortbrokers.com.au +61 427 431 213

Broker, Sunshine & Fraser Coast david@resortbrokers.com.au +61 432 766 788

REF // FH008183

MANAGEMENT RIGHTS 17 UNITS

13 LETTING

20 YEARS

OWNER’S RESIDENCE 3 BED 1 BATH

L’Amor Holiday Apartments Yeppoon, QLD

REF // MR008121

Relaxed coastal lifestyle with a growing business Discover the unique investment opportunity of L’Amor Holiday Apartments, nestled on the Lammermoor Beach and a stone’s throw from Yeppoon.

This exclusive management rights offers more than just a coastal lifestyle; it presents a thriving business venture with a robust repeat clientele base, including corporate guests and valued partnerships with Blue Care and the local hospital.

With 20 years remaining on long-term agreements and growing net profit, L’Amor is a beacon of security and profitability in the picturesque coastal market.

•

Experience the perfect blend of business and coastal living

•

Enjoy a strong partnership with Blue Care and the local hospital

•

Benefit from a strong, repeat customer base, including extended-stay corporate guests

•

Relish the security of long-term agreements, with two decades remaining

•

Take advantage of low operational costs

•

Delight in the property’s prime location, just minutes from Yeppoon’s city centre and directly opposite Lammermoor Beach

•

Appreciate the ease of maintaining the property grounds

•

Offers guests unique, individually styled, air-conditioned apartments with stunning island views

$ Net Profit

$208,800

Business Price

$700,000

Nathan Benjamin Broker, Central Queensland nathanb@resortbrokers.com.au +61 459 955 649

$ Real Estate Price

$700,000

$ Total Price

$1,400,000

F R E E H O L D C A R AVA N PA R K 15 CABINS

36 POWERED SITES

MANAGER’S RESIDENCE 3 BED 2 BATH

Gunnedah Tourist Caravan Park Gunnedah, NSW

REF // FH008154

Enjoy a country lifestyle and solid income with this easy-to-run caravan park This easily manageable caravan park is perfect for newcomers to the industry, tree changers or someone seeking a semi-retired lifestyle. Gunnedah Tourist Caravan Park offers a range of cabin, caravan and site accommodation set among 3.75 acres of spectacular land.

Located in a strong regional town, this well-established business has been consistently growing year on year. Along with the continued economic development in the area, undoubtedly it will bring more visitors to the region increasing the demand for accommodation and services provided by the caravan park You may choose to operate with the current tourist focus, however, you may wish to capitalise on the initial development income along with an ongoing permanent stream of income. Gunnedah Tourist Park has a licence to operate 20 permanent dwellings providing an opportunity to add relocatable homes.

Gunnedah Tourist Caravan Park is a solid investment opportunity with a proven track record, strong growth prospects and a peaceful rural lifestyle. This is an opportunity not to be missed.

•

Located in the bustling regional town of Gunnedah

•

Untapped growth opportunity with no current OTA listings

•

Spacious property spread across 1.6 ha of land

•

Expansion potential with the ability to add relocatable homes

•

Consistent business growth year on year

•

Semi-retirement lifestyle opportunity in a thriving caravan park

•

Key future growth planned for local region

Net Profit

$346,651

$

Turnover

$578,261

$

Price

$1,950,000 Firm

Russell Rogers

Jason Vogler

Senior Executive Broker russell@resortbrokers.com.au +61 416 166 909

Broker, SE & SW QLD jasonv@resortbrokers.com.au +61 427 431 213

38

Regional Spotlight

The reinvention of New South Wales’ third largest city is one of the great urban renewal stories of the last decade. Lord Mayor Gordon Bradbery spoke to Informer about how his council managed it.

Words_John Miller

The Gong is having a moment. In its official marketing, Wollongong spruiks itself as a “city of innovation”.

Slick sloganeering, surely. But money doesn’t lie.

Billions of investment dollars are pouring into Wollongong at a rate of knots. Cranes dot the skyline, new hotels are popping up, and bars and restaurants are abuzz into the wee small hours. Last year, the NSW Top Tourism Town Awards recognised Wollongong’s leisure appeal with a top three place.

“We’ve been in Sydney’s shadow for so long, people are discovering something quite incredible has happened right under their nose,” says Lord Mayor Gordon Bradbery.

39

Bradbery, 72, has overseen Wollongong’s renaissance as mayor for the last 12 years. Wollongong City Council under his leadership has been vigorously pro-business and forward thinking, working to a 10-year masterplan,

Economic Development Strategy 2019–2029. Invest Wollongong, a collaboration between council, the state government and University of Wollongong, has attracted unprecedented levels of investment.

“Sydneysiders are discovering something quite incredible has happened right under their nose.”

“We’ve got ourselves into a position where we can pick and choose our investment opportunities,” says Bradbery. “Whereas we were once more vulnerable to just accepting any offers that came our way that looked like investment opportunities, we can now be a bit more selective in the way we apply the attention and kudos we’ve developed out of our economic development strategy.”

40

Regional Spotlight

Wollongong’s CBD alone has attracted $1.9 billion worth of projects over the last decade. During that time, the number of bars and cafes has doubled to almost 200.

The CBD has recently seen a 75 per cent uplift in A-grade office space as Wollongong positions itself as a cheaper alternative to Sydney, which has long cast its shadow some 90 kilometres south.

The positioning is working. The city’s population is now almost 220,000 including over 10,000 Sydneysiders who, since the last census, have left the state capital for Wollongong’s coastal charm, lower cost of living and better traffic. On the worklife balance front, Wollongong has a happy labour force with staff turnover at half the national average. The city has also become a darling for start-ups, particularly tech companies, so much so that it has earned the cute moniker “Siligong Valley.”

Wollongong’s reinvention has been 12 years in the making and is still a work in progress says Bradbery.

The city was in a funk when he was voted mayor in September 2011 in the first elections since council was put into administration by the NSW Government in 2008 following an ICAC enquiry that found widespread corruption.

“The city had a reputation, and not one to be proud of,” says Bradbery.

“It was pretty down in terms of the council it had up until 2008 when it was dismissed. It reinforced the sense that we’d been in the malaise.”

Wollongong’s decline has its roots in the collapse of its coal mining and steelmaking industries decades earlier. Between them, these two industries had been the city’s mainstays for the better part of the 20th century before a massive downturn in the mid-1980s. The bust precipitated two lost decades for the city. When Newcastle’s steelworks closed in the late 1990s, there was talk Wollongong’s Port Kembla would go the same way.

“Wollongong went into sort of a hibernation,” says Bradbery. “The city was really just marking time.”

Today, Port Kembla is on the rebound. Construction on Port Kembla Energy Terminal is 70 per cent complete. When it comes online in 2026, the terminal will meet more than 75 per cent of New South Wales’ gas needs, as well as attract gas-intensive advanced manufacturing to Wollongong.

Another huge energy project is Hydrogen Headstart. In delivering the 2023-24 Federal Budget, Treasurer Jim Chalmers singled out Wollongong as central to this initiative that will see the Commonwealth invest $2 billion to support large-scale renewable hydrogen production such as BOC Gas in Wollongong’s southern suburb of Cringila.

Energy is just part of Wollongong’s new economic mix. Under Bradbery’s stewardship, council is determined to widen Wollongong’s economy across a diverse range of industries including health, tech, education, sport, culture, aged care, retail, tourism and hospitality.

“Being so dependent on coal and steel meant we were extremely vulnerable to cyclical fluctuations.

That’s why there was such a positive attitude in council back then towards reinvention, looking at ways we could diversify our economy to future proof it against cyclical downturns,” says Bradbery, who was elected as an independent, unaligned — and unimpeded — by party affiliation.

“Wollongong’s reinvention has been 12 years in the making.”

41

In setting Wollongong’s direction, Bradbery says council didn’t look to other cities, neither here or abroad, for a template of urban reinvention.

“That’s not to say we’re not open to learnings from other locations, but at the same time the city had spent so much time comparing ourselves to others that it was almost paralysed with comparisons,” he says. “That was the problem in as much as everyone was telling us what everyone else was doing and how successful they were and that we weren’t up to the benchmarks that had been set by other cities.”

“So, we more or less just decided, let’s utilise the talents and visions within, and just stick to our own sense of self-worth and direction, instead of trying to be all things to all people. Let’s do what we can well.

We just asked, What are our unique features? What are our skill sets?

Then a basic SWOT analysis and we just got on with it.”

Gordon Bradbury, Lord Mayor, Wollongong

“We’ve given people plenty of reasons to come here now.”

Bradbery says pulling everyone together on the same page was the initial challenge, bringing onboard business organisations like Illawarra First, Business Illawarra, Regional Development Australia and i3net.

“What we created were critical masses of common interests that then plugged into implementing our economic, social and environmental vision for the city,” he says.

Another successful council initiative was the Wollongong CBD Night Time Economy Policy, in force since 2020.

The policy has turned Wollongong into a genuine night-time destination by extending operating hours to 2am for bars and other businesses. Over 35 approvals for new and expanding businesses in the CBD have been granted, including restaurants, bars, theatres and gyms.

Most of all, Bradbery says unlocking Wollongong’s natural features by way of infrastructure that allows locals and visitors to enjoy them has played a significant part in the coastal city’s revival.

“What we realised was the city’s natural beauty, sandwiched between our iconic escarpment and the ocean,” says Bradbery. “So, we built the Grand Pacific Walk, a 50 km shared bike and pedestrian path that stretches from Helensburgh in the north down to Windang in the south and takes in Wollongong’s 17 beaches and nine ocean pools.”

“It’s those natural features people are discovering, simply because in the past Wollongong was often bypassed. It wasn’t a significant stopover when you were heading south from Sydney, you’d just keep going. We’re not saying Wollongong is perfect, but we’ve given people plenty of reasons to come here now.”

END

Grand Pacific Hotel

Und Const er ruction Due Comp For le Q1/Q2 tion 2025

WOLLONGONG

Wollongong is rising.

WITH COMPLETION SET FOR Q1/Q2 2025, GRAND PACIFIC HOTEL WOLLONGONG IS THE SINGLE MOST IMPRESSIVE HOTEL DEVELOPMENT EVER UNDERTAKEN IN THE ILLAWARRA REGION. This upscale, 96-room, six-storey hotel will epitomise Wollongong’s remarkable renaissance.

The dramatic reinvention of NSW’s third-largest city is one of the great urban success stories of the last decade.

There is no other high-end hotel development like this in Wollongong. Nor is there likely to be in the foreseeable future. Climbing construction costs, ongoing supply chain challenges and rising borrowing expenses, makes it extremely unlikely a hotel of this scale and sophistication would get off the ground in the current market.

This makes Grand Pacific Hotel Wollongong a one-off opportunity not to be missed.

UNDER-CONSTRUCTION UPSCALE HOTEL,

ONE-OFF OPPORTUNITY TO BUY A NEW,

DUE FOR COMPLETION IN Q1/Q2 2025

LARGE-SCALE HOTEL AMID THE BUILDING CRISIS

96 ROOMS OVER 6 STOREYS WITH SPECTACULAR VIEWS OF THE ILLAWARRA ESCARPMENT

BOOMING WOLLONGONG ENJOYS STRONG TARIFF AND OCCUPANCY GROWTH

CBD LOCATION WITH DOUBLE STREET FRONTAGE ALONG YOUNG ST AND BELMORE ST

SOME OPERATORS ARE PREPARED TO UNDERWRITE THEIR OWN OPERATIONS WITH RARE PERFORMANCE GUARANTEES

WITHIN EASY WALKING DISTANCE OF WIN STADIUM AND OTHER KEY ATTRACTIONS

ROOFTOP RESTAURANT AND BAR WILL CEMENT HOTEL’S DESTINATION STATUS

Trudy Crooks

Tim Crooks

Tim Mayoh

Managing Director 0477 882 210 trudy@resortbrokers.com.au

Director of New Developments 0422 208 450 tim@resortbrokers.com.au

Broker, Greater Sydney 0419 038 882 tim.m@resortbrokers.com.au

MANAGEMENT RIGHTS 42 UNITS, 15 LETTING 19 YEAR AGREEMENTS

OWNER’S RESIDENCE 3 BED 2 BATH

Surfers Tradewinds

Surfers Paradise, QLD

REF // MR008094

Perfect entry-level opportunity for new operators or add-on business to existing portfolio Centrally located in the heart of bustling Broadbeach, this property is well-presented and ideally positioned close to shops, business/event precincts, cafes, restaurants, public transport and beaches. Currently operated as a mixed letting business, there is huge potential to convert and grow the letting business given there are 15 of 42 units currently under management with the majority being permanent.

With no set office hours, low-maintenance gardens and common property areas, there is nothing holding you back from taking this business to the next level. Given the size and current overview, this is the ideal opportunity for either a new operator looking to enter the management rights industry with a scalable business, or for an existing business owner looking to expand their portfolio with real capital growth and economy of scale.

This business is on an Accommodation module with 19 years remaining on term, which provides the new owner with a great base and peace of mind for their investment future. The manager’s residence is a well presented generous 3-bed, 2-bath apartment with office attached. Also included are large basement storage areas for exclusive use. Live there and reap the benefits from being onsite, or appoint a nominee and live where prefer.

Don’t delay. Opportunities with this much potential and flexibility are selling fast.

• • • • • • • •

Great location, close to public transport, beaches and cafes/bars Easy to operate with 1 or 3 person team Healthy sinking fund and supportive body corporate committee Spacious, air-conditioned manager’s unit — 3 bed, 2 bath, courtyard and storage Established operation with current owner’s successful 8-year tenure Perfectly sized for easy maintenance, ideal for first-time operators or addition to existing portfolio Long-term security with 19 years remaining on agreements Opportunity for growth

$ Net Profit

$131,608

Business Price

$403,332

Syd Douglas Broker, Central Gold Coast syd@resortbrokers.com.au +61 427 973 537

$ Real Estate Price

$800,000

$ Total Price

$1,203.332

OFF-THE-PLAN MANAGEMENT RIGHTS 112 APARTMENTS

Marin & Orilla

Scarborough & Woody Point, QLD Dual waterfront off-the-plan opportunity, under construction now Introducing Marin & Orilla, the two newest management rights opportunities from Traders in Purple on the Redcliffe Peninsula.

Marin offers 80 units with a mix of 2 and 3-bedroom residences, featuring a solid BC salary of $1,350 per lot and new 10-year agreements. Orilla boasts 32 luxurious apartments with a secure $1,100 per lot BC salary, caretaking only.

Both developments enjoy prime waterfront locations in sought-after Moreton bayside suburbs.

Situated within 10 minutes of each other, they offer a compelling dual investment opportunity.

With a projected net income of $187,002, these properties promise excellent returns for experienced operators. Don’t miss out on this lucrative venture.

•

Two off-the-plan, permanent business-only management rights

•

Prime waterfront positions in high-growth bayside areas

•

No requirement to live onsite or own a lot, and no office hours

•

Marin offers 80 lots – caretaking and letting

•

Orilla has 32 units – caretaking only

•

Brand new 10-year Standard module agreements

•

Marin provides an office space under occupational authority

•

Solid BC salary in both buildings

•

Developer will only consider experienced management rights operators

•

Inspections by appointment only

Net Profit

$187,002

$

Price

$841,509

Jeff Keast Broker, Brisbane jeff@resortbrokers.com.au +61 414 669 007

REF // OTP008112

HOTEL LEASEHOLD 85 SERVICED APARTMENTS BUILT 2014

Quest Townsville on Eyre Leasehold

REF // LH008132

85-key, high growth opportunity in booming Townsville This is an exceptional opportunity to join Australia’s largest and most successful apartment hotel brand in one of Australia’s fastest-growing regions.

Quest Townsville on Eyre is the only Quest hotel in Townsville, making this a rare opportunity.

The hotel’s highly desirable location near the city centre, Queensland Country Bank Stadium (home to the Cowboys), The Strand, and other local attractions makes it a popular guest choice as its robust occupancy demonstrates.

With a net profit of more than $650,000 for the last 12 months and a long tenure through 2042, this business provides both stability and longevity.

Support from Quest HQ is second to none and designed to further your success with ongoing training. Comprising 85 serviced apartment-style rooms with full-sized kitchen facilities, Quest Townsville on Eyre caters to both corporate and leisure guests. The hotel’s wide array of room configurations, ranging from studios to three-bedroom apartments suits singles, couples and groups.

A spacious conference centre accommodating up to 80 delegates and extensive business facilitates help attract corporate trade and further underpins the business.

•

Strong net profit with further growth potential from a hands-on operator

•

Strength of Quest brand, Australia’s leading apartment hotel brand

•

85 serviced apartments from studios to three-bedroom apartments

•

Long lease in place with a supportive landlord

•

The only Quest property in Townsville driven by a strong local corporate market

•

The laid-back lifestyle of tropical NQ

•

Inspections are by appointment only

Net Profit

$685,056

$

Turnover

$3,057,383

$

Price

$3,200,000

Nathan Benjamin

Des Fagg

Trudy Crooks

Broker, Central Queensland nathanb@resortbrokers.com.au +61 459 955 649

Broker, Townsville & Surrounds des@resortbrokers.com.au +61 427 849 119

Managing Director trudy@resortbrokers.com.au +61 477 882 210

MANAGEMENT RIGHTS 52 UNITS

36 LETTING

20 YEARS

Moreton Townhomes Everton Park, QLD

Price reduction for quick sale! Everton Park Business-only Management Rights, $178k net profit Priced for a quick sale, this high-quality permanent townhouse management rights business is located in the desirable suburb of Everton Park. Set up as a profitable business-only management and letting right opportunity, there is no real estate to purchase or office hours specified.

Opened in 2019, the complex has extraordinary tenant appeal with incredible amenities that include an enticing outdoor swimming pool and entertainment area, as well as a gymnasium.

Located 10 km north of the city in one of Brisbane’s thriving growth corridors, Moretown Townhomes offers the incoming manager a highly marketable product for a strong rental yield.

As a premium complex, there is great letting income with 36 of the 52 apartments in the pool, with rentals always in high demand. Perfect for operators seeking an add-on with dependable income or as a base to develop a ready-made business in a fantastic area.

•

Total of 52 townhouses - 36 in the letting pool

•

High Net profit verified by industry accountant c. $178,000

•

Underpinned by strong BC salary of $64,410

•

Accommodation Module (25 year agreements, 20 plus years remaining)

•

No set office hours

•

No real estate to purchase or requirement to live onsite

•

Premium product with strong rental yields

•

All inspections by appointment only

Net Profit

$177,991

$

Price

$996,749

Frank Matus Broker, Brisbane frank@resortbrokers.com.au +61 435 742 698

REF // MRB007834

MANAGEMENT RIGHTS 105 UNITS, 60 LETTING

24+ YEARS

MANAGER’S RESIDENCE 3 BED 1.5 BATH

Royale Gardens & Terraces on Garfield Slacks Creek, QLD

REF // MR00XXXX

Robust 15.6% ROI on $285K net profit — permanent MLR An enticing opportunity to acquire the management rights of two low-maintenance permanent townhouse complexes.

The smaller complex is a small easy to caretaking-only MLR (Standard module) with solely body corporate remuneration and no requirement to purchase any real estate. The main complex (Accommodation module) is beautifully maintained and consists of a manager’s unit plus a separate stand-alone office and storage room which all are on title.

This is a perfect opportunity for an individual or family to live in a peaceful complex while enjoying the convenience of managing a lucrative business that offers more than 15.6% return on investment.

One of the key highlights of this opportunity is the flexibility it offers. The two complexes are within very close proximity - only 8 minutes apart. There are no set office hours, allowing the incoming operator to enjoy the flexibility to suit their circumstances in how they operate this business over time.

With more than 24-years agreement terms remaining, the longevity and stability of this investment is suitable for both first-time buyers and experienced MLR operators.

•

Robust 15.6% return on investment

•

No set office hours

•

Long agreement terms - 24+ years

•

Thorough P&L prepared by industry professional accountant

•

Excellent body corporate relations

•

Strong and consistent letting pool

•

Located in the highly sought-after Southside area with high rental demand

•

Suitable for either first-time buyer or experience operator as add-on to their existing portfolio

•

Property inspections by appointment only

$ Net Profit

$285,598

Business Price

$1,370,000

Jessie Shi Broker, Brisbane jessie@resortbrokers.com.au +61 422 935 428

$ Real Estate Price

$455,000

$ Total Price

$1,825,000

H O T E L PA S S I V E I N V E S T M E N T 85 SERVICED APARTMENTS BUILT 2014

Quest Townsville on Eyre

Freehold Passive Investment Exceptional opportunity to own the freehold of the only Quest property in Townsville ResortBrokers is excited to exclusively present to the market an exceptional opportunity to own the freehold of the only Quest-branded property in Townsville, Quest Townsville on Eyre.

Boasting a current yearly gross rent of $1,462,930 + GST, the rent will increase by 4% in April 2024 in line with the lease agreement. Quest Townsville on Eyre presents an outstanding opening to own a first-rate accommodation asset ready to capitalise on Townsville’s ever-growing appeal as a tourist and business destination.

With a blue chip tenant in the form of Quest, the incoming owner will have the security of having Australia’s leading apartment hotel brand as a competent operator managing a fully staffed and experienced team. The franchisee has a long term lease in place extending to 2042.

Notably, the property will have all major items required to be refurbished on behalf of the landlord completed before settlement or, if these works cannot be completed due to the very high occupancy the property has been enjoying, the refurbishment funds will be held in trust.

•

Freehold passive investment of Townsville’s only Quest-branded property

•

Annual rent of $1,462,930 + GST

•

Opportunity to buy a first-class asset with a high yield compared to other asset classes

•

85 serviced apartments from studios to three-bedroom apartments

•

Wide array of room sizes caters to business/leisure, long/short stays

•

Conference facilities accommodating 80 delegates attract corporate trade

•

Central Townsville location, walking distance to The Strand

•

Townsville’s established and growing appeal as a business/leisure destination

•

Inspections by appointment only

Annual Rent

$1,462,930

$

Price

$19,900,000

Nathan Benjamin

Trudy Crooks

Broker, Central Queensland nathanb@resortbrokers.com.au +61 459 955 649

Managing Director trudy@resortbrokers.com.au +61 477 882 210

REF // INV008130

ARTISTS IMPRESSION

OTP MANAGEMENT RIGHTS 114 UNITS 60 LETTING POOL 25 YEAR AGREEMENTS

AMAYA

Broadbeach, QLD

REF // OTP007392

Premium off-the-plan opportunity, soaring 33-level high-rise in beautiful Broadbeach ResortBrokers is proud to exclusively present to market the management and letting rights to Amaya Broadbeach on behalf of Amalgamated Property Group and Base Developments.

Amaya Broadbeach is set to become an iconic residential complex in the heart of Broadbeach.

This off-the-plan business presents a top-shelf opportunity for experienced operators.

ARTISTS IMPRESSION

ARTISTS IMPRESSION

Construction is well-progressed and is estimated to complete by Q3 2025. Amaya has a 50% projected investor letting pool based on the 90% of secured apartment sales to date.

The business offers excellent security for operators being underpinned by brand new 25-year caretaking and letting agreements, a body corporate salary of $129,545+GST and a projected net profit of over $428,000.

Located just 300m from the beach, and within minutes from first-class dining, shopping and cultural attractions, Amaya’s striking design is set to become a Broadbeach landmark. The complex’s superb facilities include a swimming pool, lounge, gym and outdoor areas. Foyer, reception and back-of-house set up under OA is designed for the incoming operator.

This prestigious opportunity in a prime Broadbeach location is a must for all high-end operators to consider.

• • • • • • • • • •

Premium-grade brand new residential development from Amalgamated Property Group Unique layout with only four apartments per level Excellent blend of 1-, 2- and 3-bedroom layouts Designed for permanent occupation 25-year caretaking and letting agreements Projected 50% investor profile based on sales to date Construction is well progressed and due to complete in Q3 2025 $129,545+GST body corporate salary linked to CPI Over 90% of apartments sold Designated operating space with back of house, reception and foyer

Expressions of interest close Friday 19 April 2024 at 5pm AEST ARTISTS IMPRESSION

Net Profit ARTISTS IMPRESSION

$428,608

$

Expressions

of Interest

Alex Cook

Syd Douglas

Director alex@resortbrokers.com.au +61 467 600 610

Broker, Central Gold Coast syd@resortbrokers.com.au +61 427 973 537

MANAGEMENT RIGHTS 43 UNITS

26 LETTING

23 YEARS

OWNER’S RESIDENCE 3 BED 1 BATH

Comfort Resort Blue Pacific Mackay, QLD

REF // MR007408

Invest in paradise — 19% returns at Comfort Resort Blue Pacific!

Dive into the opportunity at Comfort Resort Blue Pacific’s management rights, available for the first time in 23 years.

Boasting a robust net profit of over $300K with a body corporate salary of $146,566 and an unbeatable beachfront spot, this venture promises earnings and an enviable lifestyle.

Featuring 43 diverse units, including 26 in the letting pool, it offers versatile income avenues through both holiday and permanent rentals. This award-winning resort epitomises financial success and lifestyle luxury, bolstered by a substantial salary and a remarkable ROI of over 19%, plus the potential to unlock more revenue streams.

The real estate includes a 3-bedroom, 1-bath manager’s residence, 1-bedroom, 1-bath unit, office, reception and games room, and restaurant/conference room that is currently not in use but could be reopened under new ownership.

Just 16km from Mackay CBD, seize this unparalleled chance to own a slice of paradise.

•

Opportunity to grow the letting pool

•

Long-term agreement in place with 23 years remaining

•

Beachfront location with sea views

•

Consistent high occupancy and repeat clientele

•

High net profit and very supportive body corporate

•

Revenue growth by revising restaurant and conference room

$ Net Profit

$301,444

BC Salary

$146,566

Des Fagg Broker, Townsville & Surrounds des@resortbrokers.com.au +61 427 849 119

$ Real Estate Price

$700,000

$ Total Price

$1,595,000

MANAGEMENT RIGHTS 160 SUITES

97 LETTING

20 YEARS

Broadwater & Saltwater Birtinya, QLD

REF // MRB008166

Business-only Sunshine Coast permanent resort with $516K net profit Embark on an enticing investment journey with the sale of Broadwater and Saltwater in Birtinya. This seamless merger presents a notable net profit of $516,102, accompanied by a combined body corporate salary exceeding $276,000 and zero real estate to purchase!

Strategically positioned to optimise letting potential while minimising staffing requirements, these properties present exceptional opportunities for profitable returns. Benefiting from 20-year tenure on both agreements, Broadwater and Saltwater are positioned to provide stability and profitability.

With the conversion of 6 units to short stays and rental adjustments, the projected net income for the 12-month period ending December 2024 is estimated to surge to $572,715—an impressive increase of approximately $56,000. Given the shortage of shortstay accommodations in this area, new management stands to benefit from unforeseen profitability gains by accessing this untapped market.

Offering an unbeatable ROI of 17.2%, this opportunity represents a remarkable chance to step into a role where success is not just promised but proven.

•

Achieving a net profit of $516,102

•

A lucrative opportunity for high returns, suitable for independent operation or management oversight.

•

20-year tenure on the accommodation modules.

•

Flexible operations with no set office hours.

•

No real estate purchase obligation.

•

No mandatory onsite residence requirement.

•

Efficient dual management of both schemes.

•

Combined Body Corporate salary amounting to $276,093.

•

A substantial combined letting pool, totalling 97 units.

•

The net income is projected to rise to $572,000 within 12 months (projections available)

Net Profit

$516,102

$

Price

$2,993,391

Chenoa Daniel

Glenn Millar

Broker, Sunshine Coast chenoa@resortbrokers.com.au +61 403 143 151

Broker, Sunshine Coast glenn@resortbrokers.com.au +61 412 277 804

MANAGEMENT RIGHTS 35 UNITS, 33 LETTING

25 YEARS

MANAGER’S RESIDENCE 3 BED 2 BATH

The Victoria

Port Fairy, VIC Boutique management rights on the Great Ocean Road Located in the quaint village of Port Fairy on the Great Ocean Road, this high quality boutique property has 35 keys, with 33 keys in the onsite letting pool.

Underpinned by new 25-year agreements, this business boasts a healthy annual net profit of over $289K and is ready for hands-on operators to take it to the next level. Alternatively, there is a wage allowance in the financials of $123,000 to allow you to employ staff.

The complex comprises one- and two-bedroom apartments, as well as The Drill Hall Cottage, an historic four-bedroom cottage located beside The Victoria Apartments that accommodates under eight guests. The living area has a large north-facing window to let in the winter sun, opening out to the paved courtyard.

The management rights package includes a stylish and comfortable three-bedroom manager’s residence and ground floor office/reception area.

This is a unique opportunity to acquire a high quality business in one of Victoria’s most beloved destinations.

•

Annual net profit of over $289K

•

Unleash the potential with this hands-on operator’s dream

•

Brand new 25-year agreements

•

Low maintenance with no pools, gyms, or other facilities to upkeep

•

Supportive owner’s corporation

•

High quality three-bedroom manager’s residence, with a formal valuation of $800,000 (available on request)

•

Wage allowance of $123K

•

Maximise profits with all units in the manager’s letting pool

•

No fixed office hours

Net Profit

$289,357

$

Price

$1,585,000

Hugh Thomas Broker, South West Victoria hugh@resortbrokers.com.au +61 420 996 319

REF // MR008186

HOTEL LEASEHOLD 132 APARTMENTS 20 YEARS

Quest Woolloongabba Woolloongabba, QLD

REF // LH008185

Unlock Premium Investment Opportunities with Quest Woolloongabba Business In the heart of Woolloongabba, just a stone’s throw from Brisbane’s bustling CBD lies a remarkable opportunity for the sophisticated investor. The Quest Woolloongabba leasehold business is now on the market, offering an exclusive chance to be part of the Quest Apartment Hotels Network, Australia’s largest and fastest growing apartment hotel Franchise.

Located just 300m from The Gabba, 2km from Princess Alexandra and Mater Hospital, Quest Wooloongabba is positioned as the obvious choice for your corporate traveler.

This prestigious property boasts 132 serviced apartments, ranging from studios to spacious three-bedroom configurations, catering to a broad spectrum of guests. Alongside ample onsite parking, the hotel features versatile conference rooms, a rooftop deck for city views, and a fully equipped gym, ensuring a premium guest experience.

Quest Woolloongabba is the gateway to seizing the corporate market flowing into Brisbane.

Brisbane is also hosting the 2032 Olympics, and the years leading up to the games further cement the success story for corporate-designed hotels. The Quest brand is renowned for its commitment to excellence and customer satisfaction, making this opportunity ideal for those looking to invest in a proven business model.

•

132-key serviced apartments in diverse configurations, from studio to three-bedroom units.

•

Onsite parking spaces.

•

Equipped with conference rooms and facilities for business needs.

•

Features a rooftop deck and gym for leisure and fitness.

•

Located in a future Olympic city.

•

Proximity to the bustling Brisbane CBD, the Gabba and major private hospitals.

•

Caters to a diverse corporate customer base.

•

An opportunity with potential for business growth.

Net Profit

$716,116

$

Turnover

$5,590,695

Nathan Benjamin Broker, Central Queensland nathanb@resortbrokers.com.au +61 459 955 649

$

Price

$3,200,000

No. #2

Golden Rule

•

Agents may also claim any enable one party (but not expenses relating to cancellations that another) to breach or terminate are stipulated in the appointment to the contract Must show Gross Income Agents may also claim any • enable one party (but not No.the Golden Golden may also claim anyare not • enable one party (but not act.

IfAgents cancellation expenses No. • penalise one to party (but expenses relating to cancellations that another) breach ornot terminate and not #2 the NetRule Income expenses relating to cancellations thatagent another) to breach or terminate stipulated in the appointment, the #2 Rule another) for breaching or are stipulated in the appointment to the contract are stipulated in the appointment to the contract Mustaccount show the Gross Income cannot claim them, and, if a cancellation Agents must to their clients for terminating the contract.

Must show the Gross Income act.

If cancellation expenses are not • penalise one party (but not and not the Net Income act.isIfretained cancellation expenses aredeposit, not • penalise one party (but not fee from a guest’s this everything receive and disburse. andthey not the Net Income stipulated in the appointment, the agent another) for breaching or When the terms and conditions stipulated in the appointment, the agent another) for breaching or must be paid to the owner. cannot claim them, and, if a cancellation Agents must account to their clients for terminating the contract.

Agents cannot report their rental allow for terminating it, a bookingthe cancellation cannot claim them, and, if a cancellation Agents must account to their clients for contract. fee is retained from a guest’s deposit, this everything they receive and disburse. income as the net amount.

They exception this rule would When the terms andmoney conditions fee is An kept from deposit retained from atoguest’s deposit, thisbe everything they receive andmust disburse. fee can beWhen the terms and conditions must be paid to the owner.

Agents cannot report their rental show theAgents grosscannot payment received and allow for it, afor booking cancellation where booking fee has must bea paid to theadministration owner. a guest has accommodation. report their rental allow forpaid it, a booking cancellation income as the the net amount.

They mustIn some An exception to this rule would bethe fee can be kept from deposit money any deductions, then net amount. been charged to the guest in excess of cases, usually on income as the net amount. They must An exception to this rule would be fee can be kept fromdepending deposit money show the gross payment received and where a booking administration fee has a guest has paid for accommodation. accommodation costs and is not thehas booking was made, such show the gross payment received and the way where a booking administration feepayable has a guest paid for accommodation. any deductions, then the net amount. charged to the guest in excess of the In some cases, usually depending on tobeen any deductions, then the net amount. as via the owner. been charged to the guest in excess of the a third party, guests also pay a In some cases, usually depending on No. Golden accommodation costs and is not payable the way the booking was made, such accommodation costs and is not payable the way the booking was such booking administration feemade, on top of Atowner. the end of each month, the agent to the as via a third party, guests also pay a #3 No. Rule Golden the owner. as via a third party,costs. guests also pay a the accommodation No. Golden istorequired provide anmonth, account their booking administration fee on top of At thetoend of each theto agent Accommodation Cancellation Fees #3 Rule Rule booking administration fee on top of Atthat the end of each month, the agent #3 If aaccommodation guest cancels their the costs.booking clients clearly shows each amount is required to provide an account to their – Who isAccommodation Entitled? the accommodation costs.

Cancellation Fees is required to provide anand account to their with a cancellation agentthat has received exactly how Accommodation Cancellation Fees and is penalised If a guest cancels their booking the clients clearly shows each amount – Who is Entitled?

If a guest cancels their booking clients that clearly shows each amount fee inand accordance with the agent's Who is Entitled?

Booking–cancellation fees for is penalised with a cancellation it was paid out.

A client should be able to the agent has received and exactly how Dedicated to property and is penalised with a cancellation the agent has received and exactly how fee in accordance the agent's booking terms, the feewith is generally Booking cancellation fees for in it was paid out.this A client should be able to accommodation may be applicable ascertain from monthly account if a fee in accordance with the agent's Booking cancellation fees for it was paid out. A client should be able to bookingrental terms,income the fee is generally accommodationwhen may be applicable in considered ascertain from this monthly account if and should certain circumstances a guest deposit was received from a guest for a booking terms, the fee is generally accommodation may applicable in of transaction from this monthly account if a With experience dealing inbe awhen diverse range and considered rental income and should ascertain certain circumstances guest depositthat was received from a and guesthow for a be paid to the owner. cancels their booking.

However, allaaguest was cancelled considered rental income and should booking certain circumstances when deposit was received from a guest for a the be paid to the owner. cancels their booking.

However, all non-transaction based commercial advisory and property work, booking that was cancelled and how the cancellation terms conditions must deposit (i.e. amounts beWhere paid toan theappointment owner. cancels theirand booking.

However, all to act bookingwas that distributed was cancelled andthe how the cancellation terms and conditions mustthat you Where deposit was distributed (i.e. the amounts an appointment to act we want to guide you through the activities undertake in be clear cancellation and transparent theconditions time of must termsat and returned to distributed the guest, claimed by the deposit was (i.e. the amounts to an agent’s commissionto act Where an appointment be clear and transparent at the time ofrefers returned to the guest, claimed by the refers to an agent’s commission be transparent at the time of booking (asclear partand oftothe booking form the marketplace achieve that optimal outcome. returned to the guest, claimed by the deliver agent, and paid to the owner). refers to agent’s We listen We respond We inan the formcommission of a percentage, booking (as part of the booking form expressed expressed in the form of a percentage, agent, and paid to the owner). (as part ofonthe booking form this expressed or a termbooking and condition the booking agent, and paid to the owner). in the form of a percentage, commission must be be or a term and condition on the booking rate Liability approvedunder under this of rate of commission must Liabilitylimited limitedby byaascheme scheme approved orand a term andmust condition on the booking web site), they this rateon ofthe commission must beof calculated actual amount web site), and theynot: must not: Liability limited by a scheme approved under Professional Standards Legislation calculated on the actual amount of Professional Standards Legislation web site), and they must not: on the actual amount of Professional Standards Legislation collected, which in the event of • enable one party not thenot the rentcalculated rent collected, which in the event of • enable one(but party (but Disclaimer providedfor for Disclaimer––This Thisarticle article is is provided rent collected, which in the event of • enable one party (but not the Disclaimer – purposes This article is provided for not a cancellation, maymay onlyonly be part of of a a information other) toother) avoidtooravoid limitortheir a cancellation, be part limit their only and should notbebe information purposes only and should Contact usunder today on 07 3221 9149 spranklinlegal.com.au a cancellation, may only be part of a other) to avoid or limit their information purposes only and should not be retained deposit. obligations under the contract retained regardedasaslegal legaladvice. advice. deposit. obligations the contract regarded

Integrity.

Trust.

Honesty.

Management a l i s ts ManagementRiRightsghtsLawLawSpeci Specialists

That’s what we’re about.

obligations under the contract

Austral AustraliaiaWiWiddee retained deposit.

regarded as legal advice.

rManagement utsteamed teofamlegalof leexper gal experts, ltesdRights , lbyeRights dRights byColColMyerMyers,Law sdrLaw ,Law drawsawsononSpecialists over3030yearyearssexper experieiencencencetototo Specialists Our trManagement uOurstetdManagement over Specialists AustraliaWide Wide Australia Wide Australia come. ome. get getyouyouthethbeste bestpossipossiblebleoutoutcome.

Our trusted team of legal experts, led by Col Myers, draws on over 30 years experience to

team of of legal legal experts, experts, led led by

by Col ColMyers, Myers,draws drawson onover over30 30years yearsexperience experienceto Our team Our trusted trusted of legal experts, led by Col Myers, draws on over 30 years experience tototo Our team of experts, led by Col Myers, draws on over 30 years experience Our trusted trusted teamteam of legal legal experts, led by Col Myers, draws on over 30 years experience to get you the best possible outcome. get you you the the best bestpossible possibleoutcome. outcome. get get you the best possible outcome. get get you you the the best best possible possible outcome. outcome.

Although our full suite of services more our full full suite suite of of services services isis is more more Although our

Although our full particular suite of services is more Although our full suite of services is more comprehensive, expertise covers: Although our full suite of services is more comprehensive, particular expertise covers: comprehensive, particular expertise covers: comprehensive, particular expertise covers: Buying & Selling comprehensive, expertise - Buying & & particular Selling comprehensive, expertise covers: covers: Selling -- Buying & particular Selling Structuring -- Buying & Selling Structuring Buying & Selling -- Structuring Structuring Variations -- Structuring Variations Variations Structuring -- Variations Renewals Renewals -- Variations Variations -- Renewals Renewals Establishments Establishments -- Establishments -- Renewals Renewals -- Establishments Licences & Letting Appointments Licences & & Letting Letting Appointments Appointments Licences -- Establishments Licences & Letting Appointments Establishments -- Advice on all Body Corporate Issues Advice on on all all Body Body Corporate Corporate Issues Issues Advice on all Body Corporate Issues -- Licences & Letting Appointments Licences & Letting Appointments -- GST, Stamp Duty and Tax GST, Stamp Stamp Duty Duty and and Tax -- GST, Stamp Duty and Tax TaxIssues -- Advice on all Body Corporate Exit strategies Advice on all Body Corporate Issues strategies -- Exit strategies Exit strategies -- GST, Stamp Duty and Tax DisputeDuty resolution GST,--Stamp and Tax resolution resolution -- Dispute Dispute resolution -- Exit strategies Legal due Exit strategies due diligence diligence reports reports -- Legal Legal due due diligence diligence reports reports -- Dispute resolution Dispute resolution -- Legal Legal due due diligence diligence reports reports

Although our ful suite of services is more Although our ful suite of services is more comprehensive, particular expertise covers: comprehensive, particular expertise covers: - Buying & Selling - Buying & Selling - Structuring - Struct-uVarringiations - Variat-ioRenewal ns s

Contact us us today today Contact Contact us today

Contact ushow today Contact us today to find find out out we can can assist assist you; you; Contact us today to how we to find out how we can assist assist you; you; toP:find out how we can +61 (0)7 5552 6666 toP: find out how we6666 can assist assist you; you; P: +61 (0)7 5552 6666 to find out how we can +61 (0)7 5552 P: +61 (0)7 5552 6666 M: +61 (0)417 620 516 P:M: +61 (0)7 5552 6666 M: +61 (0)417 620 516 +61 (0)417 620 516 P: +61 (0)7 5552 6666 M: +61 (0)417 620 516 E: cmyers@smh.net.au M: +61 (0)417 620 620 516 516 E:+61 cmyers@smh.net.au E: cmyers@smh.net.au M: (0)417 E: cmyers@smh.net.au W: smhmanagementrightslawyers.net.au W: smhmanagementrightslawyers.net.au E:W: cmyers@smh.net.au W: smhmanagementrightslawyers.net.au E: cmyers@smh.net.au smhmanagementrightslawyers.net.au W: smhmanagementrightslawyers.net.au smhmanagementrightslawyers.net.au W:

Contaactctusustotodayday Cont Contact us today assisst tyou;you; ttootofifnifnidnddoutoutouthow howhowwewewecancancanassiassi st you; 55526666 6666 P:P:+61+61(0(0)7)75552 P: +61 (0)7 5552 6666 M:M:+61+61(0(0)4)41717620620516516 M:E:+61cmyer(0)s4@smh.

17 620net516.au E: cmyers@smh.net.au E:W:cmyer s@smh.net.ariguhtslawyers.net.au smhmanagement

73 73

I S S U E N O. 9 8 _RESORTBROKERS.COM.AU I S S U E N O. 9 8 _RESORTBROKERS.COM.AU

10% DISCOUNT FOR INFORMER READERS

Contact Ian Crooks on 0411 171 648 or ian@resortbrokers.com.au to book today.

SANDARIVILLA.COM

MORE INCOME HIGHER VALUE

EASY TO RETROFIT EXISTING BUILDINGS

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

If you outsource internet service provision in your permanent building, you are missing out on valuable income. With gigafy’s simple WiFi network system, you become the preferred ISP. Residents enjoy better service. We take care of

Full coverage, including common areas No contracts, flexible plans No set-up fees, no equipment needed No dealing with telcos/ISPs

billing and support. You collect the $$$.

It’s why gigafy’s WiFi solutions are found in more than 30,000 apartments and

VALUE FOR YOU

450 venues across Australia.

New on-going revenue stream Proven 300-500% 5yr ROI Faster, more reliable connections

YOUR BUILDING COULD BE MAKING YOU MORE!

High tenant satisfaction and retention Increased management rights resale value Easy switch between permanent and short-term uses

gigafy.com.au

1300 444 239

58

Fantastic Plastic!

ResortBrokers’ 2023 end-ofyear party Huge night to see out a huge year!

ResortBrokers’ cast and crew dolled up for our Barbie-themed Christmas do at QT Gold Coast to celebrate the year that was 2023.

Our Barbies and Kens pimped out, rocked out and, towards the end of evening, some even passed out.

And they say plastic is hard to break down...

59

60

Appointments

Victoria,

Here We Come

ResortBrokers is pushing into Victoria with two major appointments: Hugh Thomas will cover the state’s west, while Chris Boschetti will look after the east.

Words_John Miller

Hugh Thomas will be ResortBrokers’ go-to broker for hotel, motels and caravan parks in southwest Victoria.

His zone will extend west of the state capital to the South Australian border, covering major regional cities such as Geelong, Ballarat, Bendigo, Warrnambool and Horsham.

Hugh joined ResortBrokers in March after a successful and varied business career, including general manager at Colliers Western Region Victoria for the last 18 months.

At Colliers, Hugh oversaw significant growth for the agency, formalising its presence in the Bendigo region and building on its established operations in Ballarat and Geelong.

Hugh’s initiatives at Colliers to spur development and profitability, as well as create a positive agency culture, contributed to Colliers Geelong winning the Real Estate Institute of Victoria’s 2023 Commercial Agency of the Year Award.

Prior to Colliers, Hugh spent almost four years, from 2019 to 2022, as regional business manager with APCO Service Stations, Australia’s largest independent fuel and convenience provider. During Hugh’s tenure, his region enjoyed unprecedented year-on-year growth despite the significant challenges of the pandemic.

“I’m one for identifying and seizing big opportunities,” says the 43-year-old. “Expanding ResortBrokers’ market share in southwest Victoria is among the biggest challenges I’ve ever taken on. I hope to use all my past business experience, passion for commercial real estate and ability to build enduring relationships to drive ResortBrokers’ presence in this part of Victoria.”

“High-level commercial skills, especially an ability to understand financial statements in detail, a genuine care for my clients and a solutions-orientated approach founded in a positive attitude, are key to being a successful broker,” he says.

Melbourne-born Hugh, his wife and three daughters, have made their home in Barwon Heads on the Bellarine Peninsula southeast of Geelong for the last six years. Hugh is also familiar with Nagambie, 1.5 hours north of Melbourne, where his parents have a farm.

When he is not spending time with family and friends, Hugh loves to surf off Thirteenth Beach, west of Barwon Heads. A keen follower of all sports, Hugh is a diehard Bombers supporter.

Before APCO, Hugh spent almost three years at Aussie Farmers Direct, which supplies 100 per cent Australian fresh produce to over 100,000 customers across the country each week, where he oversaw more than 60 franchise rounds.

For over five years, from 2009 to 2015, Hugh founded and built his own successful waste management franchise, Mobile Skips. By the time he sold the business in 2015, Hugh and his business partners had achieved $2 million in revenue, with operations in four states and a national partnership across 80 sites with Australia’s leading hardware chain.

Hugh Thomas, ResortBrokers, West Victoria

61

Born in Shepperton and raised in Melbourne, Chris Boschetti joined ResortBrokers in January after a 17-year career in hospitality and liquor sales working for some of the biggest names in the business.

This energetic and at times colourful career has seen him orchestrating state sales operations for major liquor suppliers as well as managing restaurants and pubs, and for eight years, from 2002 to 2010, as general manager of two of Australia’s leading nightclubs on the Gold Coast.

From 2019 to 2023, Chris held senior positions with Australian Liquor Marketers, the nation’s largest liquor supplier, first as on-premises manager for Victoria and Tasmania and later as state sales operations manager for Victoria. Prior to that, he enjoyed a seven-year stint from 2012 to 2019 at Bacardi Martini, one of Australasia’s leading beverages companies. This saw him rise through the ranks as territory manager for Queensland and Victoria, field sales manager for Victoria, national account manager and finally trade advocacy manager.

“I bring to the table a high level of customer service and satisfaction, as well as strong communication skills,” says the 47-year-old. “Communication is key, and if my 20-plus years in management have taught me anything it’s that you can never over-communicate when it comes to dealing with customers, clients and stakeholders.”

After almost two decades in the hospitality/liquor industry, Chris and his wife took on a new challenge, building their own business from the ground up in 2019, a small cafe in their East Melbourne home suburb of Ringwood North. The business was only operating for nine months before the pandemic hit in early 2020.

Chris Boschetti, ResortBrokers, East Victoria

“We quickly pivoted from a dine-in cafe to takeaway.

Communication was the critical ingredient to our success during a very challenging time and I will bring this skill across with me in my new role as broker.”

Having successfully negotiated the difficult pandemic trading period, the couple sold the cafe in October 2022 for a handy return on investment.

Their business not only survived Melbourne’s harsh lockdowns but thrived, which Chris puts down to the couple adapting to the situation.

“I understand the pressures of running a small business, especially throughout a difficult operating environment,” says Chris. “When we sold the cafe, we had extensive dealings with business brokers. I understand the emotion and complexity of selling a business and I will look to leverage my knowledge, ensuring people I work with achieve their desired outcomes and have a great experience.”

“Whatever’s thrown at you, in our case Covid, you just have to be flexible,” he says.

Outside work, this happily married father of two daughters, enjoys playing golf and entertaining family and friends. END

62

Broker Profile

Meet the Gold Coast’s Lifesaver Broker In his first year with ResortBrokers, our Central Gold Coast broker Syd Douglas is on the crest of a wave with several high-profile listings. We let him catch a break for this column to tell us about his other great passion: surf lifesaving.

Words_Syd Douglas Outside my work as a management rights broker, I’m a surf lifesaver.

So is my wife. Our two boys, aged six and eight, are on the Nippers program, the surf lifesaving pathways for kids. Between us, we’re pretty much a surf lifesaving family.

There are plenty of parallels between surf lifesaving and management rights: preparation, teamwork, networks, skill acquisition, anticipating situations and applying solutions before problems arise. While these synergies exist, I’m really here to talk surf lifesaving this time around.

“Many operators relate to me better when I tell them that I’ve sat on their side of the desk. But when I say I volunteer as a surf lifesaver, they're intrigued.”

I have the great pleasure of meeting many management rights operators in my Central Gold Coast patch. As a former management rights operator myself, I find many operators relate to me better when I tell them that I’ve sat on their side of the desk. I can speak their language and relate to their day-to-day operations. But when I say I volunteer as a surf lifesaver, they’re intrigued. I’m really not one for talking about myself, but if it does come up in conversation, suddenly our chat becomes very warm. Not that I do it for that reason. I got involved in surf lifesaving in 2003, long before I became a broker. That year, I earned my Bronze Medallion at North Burleigh Surf Life Saving Club (SLSC), and today I’m a volunteer at Tallebudgera SLSC near our family home. When operators find I volunteer on weekends as a surf lifesaver, they’re intrigued by the rescues, duties and functions of what it entails.

63

64

Broker Profile

Sometimes they ask why I do it.

The simple answer is I love the Gold Coast and want to give back to the community we belong to. Surf lifesaving allows me to do that.

Over 18 million beach visitations occur each year in Queensland.

SLSCs provide safe swimming environments for anyone who visits here. In the 2022/23 season, Surf Life Saving Queensland recorded 3,276 rescues and over 18,000 first aid treatments performed on our beaches.

“Swimming between the flags works for vendors too.”

SLSCs cover almost 2,000 kilometres of coastline from Tweed Heads right through to Port Douglas. Red and yellow flags go up every day of the year whether they are patrolled by volunteers or paid professionals.

During the surf lifesaving season, we’re there every weekend and public holiday, including those sacred family occasions like Christmas and Easter.

I volunteer two or three weekends a month, usually a six-hour shift. I could be on beach patrol with a group of 10 or 12 other lifesavers or on a WaveRunner (PWC / jet ski) tracking the drumlines, reporting on sharks and rips via our radio system. Or I could be on an IRB (Inflatable Rescue Boat) rescuing someone from a boat capsize in Tallebudgera Creek. Surf lifesaving is a highly coordinated and mostly volunteer system that could see us working with Queensland Fire and Emergency Services (QFES), Queensland Ambulance Service (QAS) or Queensland Police Service (QPS) in any given emergency.

I don’t see what I do as a sacrifice or burden. For one, I enjoy it immensely. What’s more, surf lifesaving has given me and my family so much more in return than we’ve ever given it.

In surf lifesaving we use the common tagline of “Swim between the flags.

If we can’t see you, we can’t save you.” Not too dissimilar from being a broker really. If you’re a vendor and you want the best results, take the advice of industry experts and stay in the advised parameters. Use industry experts and trust the advice given under the watchful eye of your broker. If something goes wrong, then help is on its way. Swim between the flags for your safety. Use industry experts to get the best results.

People I’ve met through surf lifesaving over the last 20 years are among my best friends today. If you’re in a situation when you’ve got to work together to do something, it forms a really strong bond between people.

Moreover, the skills I’ve acquired in first aid, spinal carries, resuscitation methods, torniquet proficiency, preventative drowning and the like, is great training. A few years ago, I recall a situation where a police officer had gone into cardiac arrest on Hedges Ave. A member of a local surf club happened to be close by and sprang into action, immediately performing CPR methods he’d learnt as part of his club training. You just never know what might happen or when the skills you’ve acquired will be tested. When you’re on duty, anything could happen, and you have to be prepared for it. I can recall many situations where things could have been catastrophic if help wasn’t there. Being able to activate those skills when emergencies arise can and does save lives.

Best of all, my wife and I love what surf lifesaving has given our boys.

The skills surf lifesaving provides to kids in the Nippers program is second to none. It’s not just the surf skills of reading the conditions and respecting the ocean. It’s also the life skills of community, teamwork and our responsibility to others. It’s helping a mate and having their back.

There’s a tremendous synergy between the day-to-day operations of being a management rights broker and my volunteer work as a surf lifesaver. It’s using your specialist skills to provide people with an environment where risk is managed through competence and proficiency, helping them navigate often choppy waters, and sometimes giving them a safety net and circle of trust. END

66

Broker Insight_Motel Leases

Stay on Top of Top-ups Not topping up your motel lease risks missing out on big bucks when it’s time to sell — or not being able to sell at all.

Words_David Faiers, Sunshine Coast & Fraser Coast broker

WHAT DO YOU HAVE TO SELL? HOW LONG DOES YOUR LEASE HAVE TO RUN? These are the first two questions I ask motel lease operators looking to sell their business. Essentially, that’s what they’re taking to market: goodwill and tenure.

Many motel operators focus on goodwill and overlook tenure.

When it’s time to sell, the bottom line is you need both to be working for you not against you. The best goodwill in the world simply won’t compensate for a lease with a suboptimal term remaining.

In the trade, we call this a ‘short lease.’ Unfortunately, we see it all too frequently in the marketplace — operators who’ve purchased a 20- to 25-year motel lease and have been effectively running their businesses for, say, seven to 10 years leaving them with the balance of 18 years remaining at best. I’ve even seen leases that were sub 15 years, at which point these businesses become much harder to sell.

There are formulas we use to assist in applying a value to short leases and can assist in giving you an appraisal of your motel business on a short lease versus a lease at full term or a 20-year plus term.

Vendors are always amazed at the differential when I show these comparisons to them, which often well exceed the cost of acquiring additional years from a landlord prior to going to market.

SET YOURSELF UP FOR SUCCESS NOT FAILURE You’re doing yourself no favours by letting your lease term run down.

Look, I get it, operators are busy running their motels. I’ve run an accommodation business, so I know how little time and headspace it gives you for anything else.

But operating your business with little to no thought as to an exit strategy or retirement is setting yourself up for failure. It’s actually heartbreaking to see operators put hard work and effort into building a great motel business only to let themselves down by letting their lease term run down.

As an example, a couple of years ago there was a listing for a quality four-star, 40-room motel, with a high net profit, but with a lease term balance of just 15 years. It was a terrific business — except for the short lease. Unfortunately, I was unable to secure a buyer despite my best efforts as broker. Now, two years on, the vendor is in an even worse position. With only 13 years left on the lease, the motel business has gone from being difficult to sell to being near impossible to sell. The business has retained its healthy net profit; however, incoming buyers are only focused on the remaining tenure and will struggle to obtain a competitive finance package for the short lease terms on offer. Don’t let this be you.

HOW MANY YEARS?

Keeping your lease topped up is clearly the clever thing to do. So, how many years should you top-up for?

Buyers are generally looking for 20 years plus. They want the same security of long tenure that you wanted when you were initially looking for a motel lease.

67

David Faiers’ outstanding success in his first year with ResortBrokers earned him the Rookie of the Year Award for FY23.

David Faiers, Broker

Banks generally want no less than 18 years. From their perspective, a minimum term of 18 years allows enough time for any loans to be paid in full. Obviously, anything above 18 years is preferrable — longer terms mean more time to service the loan.

“Keeping your lease topped up is the clever thing to do.”

This is the rule of thumb for management rights too. But management rights operators have a couple of advantages over their motel counterparts. First, there’s a lot more awareness among management rights operators regarding top-ups. Operators know that when their caretaking and letting agreements dip below 18 to 20 years it’s time to apply to the body corporate for a top-up. Second, there’s a built-in alarm clock by way of the annual general meeting to give management rights operators a prompt to top up. When AGM papers are issued, it jogs their memory to submit a motion for a top-up, if they haven’t thought of it already.

TOP-UP COST Obviously, topping up comes at a price. You’ll need to negotiate with your landlord over how and what you’ll pay for the top-up, as well as foot the legal costs (refer to your lease for specific terms).

20+years for buyers 18+years for banks There are a number of ways landlords negotiate additional years / lease top-ups. They can charge a nominal value per year, there may be a rent increase option, or you may discuss a refurbishment and/or maintenance option as a trade-off with your

“Think of your motel lease term as petrol in your car. Keep an eye on your fuel gauge.”

landlord for the increase. This is something you’ll need to negotiate with your landlord, which is why it always pays to have a healthy ongoing relationship with them.

Should your landlord want a nominal value per year, there’s no hard and fast rule as to the amount. I’ve seen everything from $4,000 to $15,000 per year, depending on the quality and size of the motel.

Whatever money you spend topping up your motel lease will be money well spent when the time comes to sell. If you don’t spend the money and wind down the clock on the lease, you risk ending up with a motel business you can’t sell.

Think of your motel lease term as petrol in your car. Keep an eye on your fuel gauge. If you’ve got a 10-bar gauge, keep it at eight bars at the very least.

That way you’ll never run out of fuel, and you’ll have nearly a full tank if you decide it’s time to hit the road.

END

68

Associate Article

What is a lot owner deed and why is it so important?

Words_ Amy O’Donnell, Mahoneys In 2018, there was a decision by the Office of the Commissioner for Body Corporate and Community Management (OCBCCM) which highlighted the importance of complying with the lot owner deed provisions of the Body Corporate and Community Management Act (Queensland). While these provisions have always existed, the Allure Decision, as it is commonly known among lawyers, changed the interpretation of this section of the Act. In simple terms, section 116 of the Act requires (and since 2003, always has required) that where the letting business is conducted from a lot in the scheme, then at all times: A. t he letting agent must be the registered owner or lessee of the lot; or B. a deed must be in place between the body corporate and the owner or lessee of the lot, under which that person agrees to transfer the lot if the letting agent is required to transfer the management rights.

resortbrokers.com.au

This deed is commonly known as a lot owner deed or a s116 deed and is usually included in the original letting agreement or a subsequent deed of assignment.

Section 116 goes on to provide that, without such a deed, the letting agent’s authorisation as letting agent has no effect.

The first point to note is that this section only applies where the letting business is conducted from a lot in the scheme. There are many businesses where this will not even come into play.

Secondly, if the owner of the manager’s lot (that is used to conduct the letting business) is the same entity as the owner of the management rights, then this section will also not apply.

The decision of the OCBCCM involving Allure Apartments Townsville considered a scenario where the letting agent did not own or lease the lot which contained the reception area. There was also no lot owner deed in place.

69

Experts in Management Rights and Motel Law For over 20 years Mahoneys has been one of Australia’s leading management right and motels law firms.

We are a preferred supplier to the Accommodation Managers Industry and have been recognised by the peak industry body (ARAMA) for our service to the industry.

Our team of industry leading lawyers regularly assist clients with:

buying and selling accommodation businesses preparing and reviewing leases, licences and service agreements renewing and varying existing management arrangements assisting with remuneration reviews, disputes and other disagreements

Contact us if you need help buying, selling or running a management rights business.

www.mahoneys.com.au

With the consent of the body corporate, the letting agent transferred the letting agreement to a new manager.

After that transfer, the body corporate subsequently argued that the transfer was of no effect due to the absence of the original lot owner deed.

The adjudicator found in favour of the body corporate, ruling that the transfer of the letting agreement was of no effect and that the committee’s resolution consenting to the transfer was invalid.

Brisbane office L 18, 167 Eagle Street Brisbane Qld 4000

Gold Coast office L 2, 235 Varsity Parade Varsity Lakes Qld 4230

p 07 3007 3777

p 07 5562 2959

Importantly, the OCBCCM did make it clear in the Allure decision that it was open to a letting agent in a similar situation to rectify the defect and put in place a lot owner deed. So, in certain circumstances this defect can and should be remedied.

This is yet another timely reminder to ensure that long before considering a sale, steps are taken to ensure that a resident manager/letting agent has their house in order and all of their i’s dotted and t’s crossed.

For over 20 motels law fi That was found to be the case even though the new letting agent complied with the requirements of the section.

As a consequence of this decision, it is important that there has been historical compliance with section 116 of the Act at all times.

As always, every business and set of agreements will be slightly different, so please take our comments as guidance and contact Mahoneys if you require advice on your agreements. END

70

Associate Article

The Empathy Challenge Words_Mike Phipps, Mike Phipps Finance

Some time ago the managing director decided to sell her perfectly practical German-engineered SUV for an impractical variant.

For reasons unfathomable to a mere male, she concluded that a firmer riding device with less headroom, less cargo space and the capacity to induce claustrophobia would make a great daily driver. Clearly a German engineer had colluded with an Italian designer to come up with a modern version of motorised medieval torture.

No matter. Once acquired, the MD loved the thing and basked in the many compliments of passers-by who had never experienced the compromises and deprivations required to achieve the end visual result.

As time went by, and I continued my running commentary regarding the many failings of the vehicle, the MD seemed to grow tired of my rants and, one suspects, of the impracticalities of her mode of transport. Finally, just before Christmas, she agreed to rid us of the damn thing provided I replaced it with something of her choosing.

I suspect her cunning plan to punish me was hatched while she observed me mowing the lawn in 34-degree heat and 100 per cent humidity. Heat and humidity are my worst enemies; I hate them both with equal passion. From the

comfort of her air-conditioned abode, she decided that whatever vehicle she chose, it must be located somewhere hot, humid and far away.

Furthermore, I must be compelled to travel to whatever hell on earth the purchase was to take place and drive the new ride home.

From here her task was fairly straightforward. Townsville in summer met all her requirements, with the added bonus of possible cyclone risk and the occasional flooded road and subsequent crocodile encounter.

The purveyor of her preferred German brand had her perfect replacement in stock, and negotiations commenced.

“Clearly a German engineer had colluded with an Italian designer to come up with a modern version of motorised medieval torture.”

I would fly to Townsville, hand over the loot and drive home. Initial discussions with the sales guy went well and we struck up a bit of what felt like mutual respect. That is, I respected the fact that he was going to take my money, and he respected the

fact that the managing director was calling the shots.

Then the sales guy went on holidays, and I ended up in discussions with someone else. The existing rapport and respect seemed to evaporate, and I started to get cold feet. The numbers still worked, and the car was still very appealing, but I now felt like I was doing business with someone who hadn’t taken the time to get to know the customer or build any relationship.

In my experience, buying a vehicle for someone who has the power of life and death in your world is an emotional one, and needs to be treated as such.

In any event the new guy turned out to be the dealer GM and, to his credit, worked me out pretty quickly. This ability to change tack, combined with the return of the original sales guy, got the deal done.

Here’s the thing: Most people of my acquaintance don’t like being sold stuff. They like to think that they made the purchase call, and the salesperson is merely the facilitator of information provided to support that decision.

Really good salespeople know this and spend much time and energy building rapport in order for the information they provide to be well received and, more importantly, believed.

I’m amazed at the number of times I’ve experienced a salesperson go for the close in the initial stages of

71

“Really good salespeople spend much time and energy building rapport in order for the information they provide to be well received and, more importantly, believed.”

increases. Needless to say, when a multi-million-dollar business purchase is in play, the rapport stage becomes super critical.

rapport building. This comes across as insincere at best and high pressure at worst. I’ve had car salesmen tell me a car is perfect for me without ever asking what I intend to do with it or what I’m driving at present.

It’s a zero-credibility game that fails when selling low-cost items and gets worse as the value of the transaction

Good salespeople like the bloke in Townsville provide information in a timely but low-pressure manner, are helpful but exude an attitude of wanting to sell you something but it being OK if you decide not to buy.

Hell, you’re such a good bloke I’d feel guilty if I didn’t spend some money with you. Now, that’s sales.

I’ll leave you with this from famous departed American comedian George Burns: “The key to success is sincerity. If you can fake that, you’ve got it made.”

Postscript #1: As luck would have it, I had the last laugh and left the managing director somewhat disappointed. It turns out Townsville is far from hell on earth, being one degree cooler than the Sunshine Coast.

Here’s the other thing: Salespeople who depend on commission, and are not doing well, are the most predisposed to a lack of rapport building and a rush to the close. It’s a self-fulfilling zero-sum strategy, as their desperation dictates a personal demeanour that’s almost guaranteed to fail.

To add insult to injury (for the MD), the car dealership put me up at The Ville Resort, which turns out to be an excellent hotel with a world class swimming pool area, magnificent views, lovely rooms and very welcoming staff. I even had a good experience checking in at Brisbane Airport and flying Qantas.

Of course, it takes discipline to hold your nerve when every fibre of your being is screaming, for god’s sake, just buy the bloody thing!

Turns out hell on earth ain’t so bad. END

Flight on time, crew friendly and beer cold. It’s a Christmas miracle! So there, my dear, you should have come with me.

Industry finance specialists with over 80 years combined experience.

Mike Phipps | Director

0448 813 090

Paul Grant | Broker

0448 417 754

Head Office 4/31 Mary Street NOOSAVILLE QLD 4566 www.mikephippsfinance.com.au

Cameron Wicking | Broker ACL (364 314)

0477 776 859

72

Associate Article

Associate Article

Apportionment of Purchase Price in Contracts Words_ David Adolphe, Principal, DC Adolphe Legal

An issue which often arises in the sale and purchase of motels and caravan parks can be the apportionment of the purchase price between: 1. l and and business, in a freehold going concern transaction; or

ARE THE PARTIES REQUIRED TO APPORTION IN THE CONTRACT?

2. goodwill, inventory (or plant and equipment) and other business assets including intangible rights (i.e., intellectual property rights, option rights etc.), in a leasehold transaction (and within the business contract in a freehold going concern transaction).

There is no legal requirement for the parties to agree to an apportionment of the purchase price within a contract. This is the case despite any claim by some representatives that it is ‘usual practice’ to apportion purchase prices or that there is a requirement from Commonwealth or state governments to apportion.

This can become an issue between the parties because of the different capital gains tax treatments for the purchaser and vendor, depending on the apportionment, and for the calculation of duty payable by the purchaser in some Australian states where exemptions may apply.

“Even if the parties agree to an apportionment, that is no guarantee that government agencies will necessarily accept that apportionment reflects the unencumbered value of the dutiable property for taxation and duty purposes.”

However, where there are separate contracts in a freehold going concern transaction because the purchaser intends to purchase the land in one entity and the business in another, there is a legal requirement to have separate purchase prices so each contract will have certainty and be legally binding on the respective parties.

WHAT IF THE PARTIES AGREE TO APPORTION? The parties are, of course, free to agree to an apportionment within their contracts. If the parties agree to an apportionment, they may then be legally bound to those apportionments for taxation purposes. So, it is very important they obtain specialist legal and accounting advice before entering into any agreement.

Even if the parties agree to an apportionment, that is no guarantee that government agencies will necessarily accept that apportionment reflects the unencumbered value of the dutiable property for taxation and duty purposes.

73

WHAT IF THE PARTIES DO NOT AGREE ON APPORTIONMENT? Often parties will include a special condition in their contracts which provides an acknowledgement that they do not intend to agree to an apportionment in the contract and that the parties are able to make their own apportionments based on advice from their respective advisers.

This approach is consistent with duties and tax rules issued by government agencies which anticipate that the parties may not have expressly apportioned consideration in a contract and evidence of value might be required. However, generally evidence of value will not be required unless there is some indication the transaction is for less than full consideration or that the parties are not transacting at arm’s length.

WHAT EVIDENCE OF VALUE MAY BE REQUIRED? In these types of transactions, usually evidence of value may be provided by an accountant who specialises in motel and caravan park freehold land and business assets.

A more formal valuation by a specialist actuary, quantity surveyor or valuer may be required in certain circumstances where there are more unusual aspects to the values claimed or the nature of the land and/or business assets.

An issue of costs in the context of the value under review may be considered as well in determining the extent of the formality of valuation required.

KEY TAKEAWAYS ON APPORTIONMENT As noted above, the apportionment of a purchase price in a contract may produce different tax and duty outcomes for the parties which may present a very difficult negotiation point ultimately threatening a prospective transaction. Parties would be well advised to avoid these unnecessary potential complications in the negotiations to reduce costs and risks of their transactions not proceeding.

Even if there is an apportionment and potentially an assumption that it does reflect suitable evidence of value, there is no guarantee that it will be accepted by the relevant authority for assessment of tax and duties.

72pragmatic approach would be for the parties A more to resolve to make their own apportionment on advice from their accounts, with a special condition reflecting that included in the contract, and to keep evidence Associate Article apportionment of their respective accountant’s determinate to be provided to any government agency in the event of an audit. END Disclaimer: Please note that the comments in this article are general in nature and not intended to be taken as advise on any particular transaction. Any party to a transaction should seek the appropriate specialist legal and accounting advice prior to entering into any contractual arrangements to ensure their rights and interests are protected.

David Adolphe BA LLB LLM Acc. Spec. (Bus.) - Qld Principal M: 0410 644 246 E. david@dcadolphe.com.au

David Adolphe is a Queensland Lay 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.

DC Adolphe Legal is a specialist business law firm provided legal advice and services to all sectors of the accommodation and hospitality industry with a particular focus on transactions involving hotels, motels, serviced apartments, pubs and caravan parks.

74

Events

Let’sSocial!

Get As market leader, ResortBrokers is a familiar presence at major industry conferences, giving presentations or forging the connections our sector thrives on. #weareeverywhere

AHICE SOUTH EAST ASIA SINGAPORE

A ResortBrokers’ power contingent of Chairman Ian Crooks and Director Tim Crooks represented the company at the inaugural AHICE South East Asia in Singapore from 27–29 February. AHICE is the Asia Pacific’s largest and most influential hotel conference, widely known as “the hotel event where deals get done.”

2023 PRET AUSTRALIA AWARDS NIGHT BRISBANE

On 25 November, PRET Australia honoured ResortBrokers’ Jessie Shi with its highest award at its annual awards night. Jessie was one of five winners of PRET Australia’s Top Agent Award, and the only management rights broker among the winners, who were drawn from more than 80 nominations and a shortlist of 14 finalists.

PRET Australia’s Awards Night was held at the Royal International Convention Centre with Brisbane Lord Mayor Adrian Schrinner and Lady Mayoress Nina Schrinner in attendance. PRET Australia raised $210,000 on the night to be donated to the Lord Mayor’s Charitable Trust, Mater Foundation, RBWH Foundation and FareShare.

Managing Director Trudy Crooks and Director of New Development & Hotels Tim Crooks were on stage to happily deliver ResortBrokers’ $5,000 contribution towards these worthy charitable endeavours.

GOLD COAST MARKET UPDATE GOLD COAST

Huge turnout on 27 October for the Gold Coast team’s management rights catch-up at the Gold Coast’s newest venue The Yot Deck at Mariner’s Cove Marina in Main Beach. Senior Broker Todd Warner, Brokers Syd Douglas and Clint Amos, and National Operations Manager Marissa von Stieglitz met operators, industry professionals and other stakeholders over a few drinks and nibblies.

MANAGEMENT RIGHTS MADE EASY GOLD COAST

On 11 November, ResortBrokers held one of its regular primers on the management rights industry. Eager learners enjoyed presentations from our expert panel of industry professionals, ably moderated by our long-time Gold Coast Senior Broker Todd Warner assisted by his fellow Gold Coast Brokers Syd Douglas and Clint Amos.

® resortbrokers.com.au

Holmans have been our accountants for nearly a decade and have always been wonderful to work with.

Glen Tarrant

76

Book, Play, Earn Today.

Book Experiences. Delight Your Guests.

Meet Local Agent, a top-tier experiences booking platform designed for the accommodation industry. From pre-arrival to check-in, to self-serve in room or poolside. Local Agent creates memories for your guests and revenue for your location.

100% free to join with no onboarding or ongoing service costs

Simple installation, supported with staff training and ongoing support

Earn ‘best in industry’ commission on every sale made in person or self-serve

Branded by you, with free customised mobile friendly website and vouchers

Visit agent.experienceoz.online or scan to sign up today

77 77

Local Experts Nationwide Coverage Management Rights

Motels & Hotels

Unmatched accessibility and certainty on fees.

Caravan & Tourist Parks

Partnerships & Consortiums

Suite 226 ‘Lakehouse’ 34 Glenferrie Drive Robina QLD 4226 (07) 5562 6111 www.pevylawyers.com.au

Top-ups & Lease Renewals

Structuring & Asset Protection

Work with the only law firm that delivers industry leading transaction services and advice across all accommodation business types in every state and territory.

Helping hundreds of resident managers, moteliers and park operators each year to acquire, sell, protect and grow their businesses.

78

What’s Cool

What’s Cool In The Industry ResortBrokers Director of New Developments & Hotels Tim Crooks checks out the world’s best tech hotels.

Tim Crooks M: 0422 208 450 E: tim@resortbrokers.com.au

Ginza Gizmos Recognised by Guinness World Records as the world’s first robot hotel, the 98-key Henn na Hotel in Ginza, Tokyo, gives new meaning to the term ‘plastic smile.’ At check-in, incoming guests are greeted by ‘female’ humanoid robots fluent in English, Japanese, Chinese and Korean. These fembots are immaculately groomed with never a hair out of place, are always standing at attention and have indefatigable patience that no number of guest questions can ever exhaust. As employees, robot staff never tire or get ill, which means owners never need to provide motivation or fork out sick pay. In fact, they don’t need to pay them at all. We have no idea how these robots make the beds, but we’re sure when asked to do so they never blink.

TOKYO-GINZA.HENNNAHOTEL.COM

London to a click Eccleston Square Hotel offers a heritage-listed building, Pimlico posh and enough cool tech to make it a tempting option on your next visit to London. Occupying a leafy residential square in Westminster, these stately digs were voted Europe’s best High-Tech Hotel by Condé Nast Traveler a few years ago. Incoming guests receive a Samsung tablet at check-in to order room service and other amenities. Each of the hotel’s 39 rooms have electronically adjustable Hästens beds with built-in massage features as well as 49-inch Samsung televisions with Google Chromecast. With starting rates around AU$300 this is affordable London luxury. Rates include an hour of free international calls daily so you can brag to your mates back home about living the high life in the Old Dart.

ECCLESTONSQUAREHOTEL.COM

Tech heavy lies the crown Crown Towers Sydney’s sophisticated sculptural form turned heads even before it opened to the public in late 2020. But it’s the sophisticated technology inside this 350-key Barangaroo beauty that won it the Tech Hotel prize at the 2023 HM Awards. Combining luxury with gadgetry, rooms come with smart tablets, touch screen in-room light, temperature and curtain controls, and 55-inch televisions with media streaming capabilities. Guests would do well to occasionally disconnect from the tech to enjoy the scintillating skyline and harbour views that only Sydney’s tallest building can deliver.

CROWNHOTELS.COM.AU

79

Sold Properties

Our Deals Settle SOLD

SOLD

SOLD

SOLD

SOLD

MOTEL LEASEHOLD BOONAH, QLD

MOTEL LEASEHOLD ST GEORGE, QLD

FREEHOLD EMU BAY, SA

LEASEHOLD HERVEY BAY, QLD

LEASEHOLD MOTEL MENINGIE, SA

SOLD

SOLD

SOLD

SOLD

SOLD

FREEHOLD GOING CONCERN NAMBUCCA HEADS, NSW

LEASEHOLD MOTEL BICHENO, TAS

LEASEHOLD MOTEL MARYBOROUGH, QLD

MOTEL LEASEHOLD COPACABANA, NSW

MANAGEMENT RIGHTS MAGNETIC ISLAND, QLD

SOLD

SOLD

SOLD

SOLD

SOLD

PASSIVE INVESTMENT ARMIDALE, NSW

PASSIVE INVESTMENT BOURKE, NSW

MANAGEMENT RIGHTS BRISBANE, QLD

MOTEL LEASEHOLD EDEN, NSW

MOTEL LEASEHOLD STANTHORPE, QLD

SOLD

SOLD

SOLD

SOLD

SOLD

MOTEL LEASEHOLD BILINGA, QLD

MANAGEMENT RIGHTS SPRING HILL, QLD

OFF THE PLAN VARSITY LAKES, QLD

MANAGEMENT RIGHTS BROADBEACH, QLD

OFF THE PLAN NUNDAH, QLD

SOLD

SOLD

SOLD

SOLD

SOLD

PASSIVE INVESTMENT MERIMBULA, NSW

CARAVAN / CABIN PARK FORBES, NSW

MANAGEMENT RIGHTS STONES CORNER, QLD

MOTEL FREEHOLD WYONG, NSW

MANAGEMENT RIGHTS PALM BEACH, QLD

SOLD

SOLD

SOLD

SOLD

SOLD

MOTEL LEASEHOLD PORT MACQUARIE, NSW

OFF THE PLAN PALM BEACH, QLD

PASSIVE INVESTMENT GLADSTONE, QLD

SERVICED APARTMENTS LIVERPOOL, NSW

SERVICED APARTMENTS ALBURY, NSW

SOLD

SOLD

SOLD

SOLD

SOLD

FREEHOLD GOING CONCERN LAKELAND, QLD

PASSIVE INVESTMENT EMERALD, QLD

SPECIAL PROJECT MELBOURNE, VIC

MANAGEMENT RIGHTS COOLUM BEACH, QLD

MANAGEMENT RIGHTS PIMPAMA, QLD

SOLD

SOLD

SOLD

SOLD

SOLD

MANAGEMENT RIGHTS OXLEY, QLD

CARAVAN / CABIN PARK MURRAY BRIDGE, SA

CARAVAN / CABIN PARK MUNDUBBERA, QLD

FREEHOLD GOING CONCERN WODONGA, VIC

MANAGEMENT RIGHTS SOUTH MELBOURNE, VIC

80

Regular Feature

Need A Break?

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. You’ll find more managers listed on our website: resortbrokers.com.au/buy/reliefmanagers

DILYS & NEIL HARVEY

KARLA HARDING

DAVID & SANDRA CAIRNS

Motels Nationwide

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

Management Rights QLD

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

0414 767 499 karla.boutiqueaccomrelief@outlook.com

0411 335 539 moretonbeachhouse@bigpond.com

RICHARD TEMPLE

SABINA WUNSCH

FRED BISHOP

All property types, Australia Wide

All property types, Australia Wide

Motels Nationwide

0412 567 214 richard@rmtsolutions.com.au

0413 155 648 info@swmotelyadvisory.com.au

0429 444 010 flashb2261@yahoo.com.au

CARMEL MOLONEY

ROGER ANDREWS & JILLIAN CAIN

PETER & MICHELLE JACOBI

Motels QLD Coast

Hotels & Motels, VIC & SA

Motels & Caravan Parks Nationwide

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

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

0427 183 416 casabargara@gmail.com

VICTORIA MCDONOUGH & BRENDAN HUGHES

LEIGH & GEMMA PETERS

SUE BARTON

Motels, East Coast

All property types Australia Wide

Motels Nationwide

0412 138 642 vickymcdonough@bigpond.com.au

0432 267 751 geleatham@gmail.com

0432 411 900 bartonsue@rocketmail.com

resortbrokers.com.au

81

GRANT SKINNER

THE GOOD KNIGHTS

CHRISTINE WILMOTT

Management Rights Nationwide

All property types Nationwide

All property types QLD

0408 996 188 grantandjuliet@bigpond.com

0412 005 537 info@thegoodknights.com.au

0413 452 263 christine.09@bigpond.com

MARTIN & LOMA BARNARD

PAUL & TANYA GREEN

SCOTT & LIN MCKENZIE

Strata Complexes, Resorts & Motels Australia Wide, with QLD & NSW preference

All property types NSW

Management Rights Brisbane Only

0403 364 008 dixlin1962@gmail.com

0411 874 392 tanyacooper1@msn.com

0451 010 117 scott@mcwu.com.au

JOHN & SUSAN DONE

KAREN & ROBERT NISBET

GRAEME & DEBORAH FILIPPE

All property types Nationwide

Motel & Caravan Parks Nationwide

Motels, NSW & VIC

0447 077 420 suedone@mac.com

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

0427 512 751 graemedebmotelmanagers@outlook.com

SHARON & STEPHEN DEWSBURY

CHARLES & COLLEEN LUBANS

BAY6 MOTEL MANAGEMENT

All property types Nationwide

Management Rights QLD

Motels Nationwide

0402 142 075 sharon@airliebeach.net.au

0432 586 099 colleenlubans@hotmail.com

0416 016 614 info@businessbay6.com.au

GEORGIANNA DYSON

THOMAS GRAF

CHRIS CAMPBELL

Motels Nationwide

Management Rights, Motels, Caravan Parks & Resorts, Nationwide

Motel & Management Rights Nationwide

0438 527 894 georgi1440@icloud.com

0438 014 035 07 4032 1573 tomas49@me.com

0449 957 414 cj.jwcampbell@gmail.com

KRISTY & LANCE BUTT

BRUCE DRURY

CHARLIE MILLINGTON & JACKY RYAN

All property types QLD & NSW

Motel & Caravan Parks Nationwide

Caravan Parks & Motels Nationwide

0428 902 878 kristymay22@outlook.com

0428 631 573 bruceandsandra34@gmail.com

jacquelineryan1@bigpond.com

resortbrokers.com.au

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

CAITLIN O’HALPIN

HAYLEY ROGERS

Director of Marketing and Strategy, Nationwide

Operations Manager Nationwide

EA to Tim Crooks & Alex Cook

EA to Trudy Crooks

0467 600 611 carla@resortbrokers.com.au

0437 198 164 marissa@resortbrokers.com.au

07 3878 3999 caitlin@resortbrokers.com.au

07 3878 3999 hayley@resortbrokers.com.au

JESSIE SHI

JEFF KEAST

FRANK MATUS

JOSH MANGLESON

Broker Brisbane

Broker Brisbane

Broker Brisbane

Property Economist

0422 935 428 jessie@resortbrokers.com.au

0414 669 007 jeff@resortbrokers.com.au

0435 742 698 frank@resortbrokers.com.au

07 3878 3999 josh@resortbrokers.com.au

resortbrokers.com.au

SYD DOUGLAS

TODD WARNER

CLINT AMOS

MIGUEL BOZINA

Broker Central Gold Coast

Broker Gold Coast South & Northern NSW

Broker Northern Gold Coast

Broker Gold Coast & Northern NSW

0427 973 537 syd@resortbrokers.com.au

0438 170 763 todd@resortbrokers.com.au

0482 061 261 clint@resortbrokers.com.au

0419 848 444 miguel@resortbrokers.com.au

GLENN MILLAR

CHENOA DANIEL

D A V I D FAI E R S

NATHAN BENJAMIN

Senior Broker Sunshine Coast

Broker Sunshine Coast

Broker Sunshine Coast & Fraser Coast

Broker Central QLD

0412 277 804 glenn@resortbrokers.com.au

0403 143 151 chenoa@resortbrokers.com.au

0432 766 788 davidf@resortbrokers.com.au

0459 955 649 nathanb@resortbrokers.com.au

DES FAGG

SHANE CROGHAN

JASON VOGLER

CHRIS KELLY

Broker Townsville and Surrounds

Broker Far North QLD

Broker South East & South West QLD

Broker NSW Central West

0427 849 119 des@resortbrokers.com.au

0418 451 006 shanec@resortbrokers.com.au

0427 431 213 jasonv@resortbrokers.com.au

0431 055 221 chris@resortbrokers.com.au

KELLI CROUCH

RUSSELL ROGERS

SARAH HUTCHINS

JACQUELINE FEATHERBY

Broker South Australia & Northern Territory

Broker NSW South Coast

Sales Manager to Russell Rogers, South Coast NSW

Broker NSW Central Coast, Hunter & Blue Mountains

0410 441 750 kelli@resortbrokers.com.au

0416 166 909 russell@resortbrokers.com.au

0407 020 443 sarah@resortbrokers.com.au

0424 497 056 jacqueline@resortbrokers.com.au

CHRIS BOSCHETTI

HUGH THOMAS

BLAIR MACDONALD

TIM MAYOH

Broker East Victoria

Broker West Victoria

Broker Western Australia

Broker Greater Sydney

0428 812 434 chrisb@resortbrokers.com.au

0420 996 319 hugh@resortbrokers.com.au

0433 149 144 blair@resortbrokers.com.au

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

JOSHUA ROBERTS

RYAN KIDD

ELLEN O’NEILL

JOHN MILLER

Broker Mid North Coast NSW & New England

Graphic Designer

Graphic Designer

Content and Communications

0439 654 464 joshua@resortbrokers.com.au

07 3878 3999 ryan@resortbrokers.com.au

07 3878 3999 ellen@resortbrokers.com.au

07 3878 3999 john@resortbrokers.com.au

KIRSTEN JOHNSON

KATE MCAULAY

J O A N N E C A M P B E L L​

VASA THEODOULOU

Head of Administration, Nationwide

Team Administration Officer, Nationwide

Receptionist/ Admin Assistant

Financial Controller, Nationwide

07 3878 3999 kirsten@resortbrokers.com.au

07 3878 3999 kate@resortbrokers.com.au

07 3878 3999 joanne@resortbrokers.com.au

07 3878 3999 vasa@resortbrokers.com.au

resortbrokers.com.au

®