Informer March 2011

INFORMER

An extreme way to put Queensland tourism on the map

www.resortbrokers.com.au

No. 60 March 2011

Recently Sold

Hotel Furniture Specialists

1300 500 815 admin@resortinteriors.com.au

www.resortinteriors.com.au

AUSTRALIA | USA | NZ | SINGAPORE | CHINA | UK | FIJI | INDONESIA

THE ORIGINAL AND STILL No. 1

Signs are pointing up

N Ian Crooks MANAGING DIRECTOR

“If you were looking for a way to put your destination on the map, it wouldn’t be via catastrophic flood or Category 5 cyclone. But that’s what these extreme events have done for many Queensland locations. Our cover story looks at how the tourism industry is accentuating the positive.

They plan not just to tread water, but to rise to the top again.”

atural disasters notwithstanding, 2011 is shaping up as a year of promise. As the Tubthumping song goes, we ‘get knocked down’, but we ‘get up again’. This year will be the year for ‘getting up’.

Heartfelt sympathy to everyone affected by the extreme weather, especially in Queensland and Victoria. The recovery effort will be mammoth. But we’ve seen tremendous strength and determination, and I know you will triumph.

This edition of Informer heralds a stylish new look for Australia’s leading showcase of tourism-related property and business opportunities. As well as profiling quality motels and management rights available, the Informer brings you topical news, opinion and information on issues affecting the market.

Understandably, our cover story looks at how the recent floods and storms will impact tourism. While realistic about the scale of damage, our correspondent finds good reason to be positive.

Speaking of recovery, there are definite signs Australia’s accommodation sector is regaining its strength. Resort Brokers’ figures are up considerably on the corresponding period last year. Buyers are

increasingly optimistic about business prospects and more confident to invest.

Heading the charge, the major hotel sector has reported a positive turnaround in occupancy rates and revenue per available room. The latest Dransfield Hotel Futures Update shows room revenue up almost 10%, and growth in demand, occupancy and room rates for most of the 10 hotel markets studied.

Sydney delivered the best increases – a good sign, as they lead the market.

Major hotel transaction activity also lifted in 2010, indicating positive investor sentiment in our top end tourism property market.

So the indicators are favourable. We’ve noted a distinct upturn in management rights sales and enquiry. Resort Brokers’ team has expanded to meet rising demand. Having just clocked up 25 years as specialists in our field, we have an unrivalled track record of service and success. Fully licensed and active in every State and Territory, we’re better equipped than ever to assist owners and operators.

Finally, I encourage all who are able to contribute in some way towards the disaster recovery. It was a thrill for me to auction Sonny Bill William’s boxing gloves at his recent Gold Coast fight. It raised $3,000 for the Qld Premier’s Flood Relief Appeal.

The winning bidder may find he has a collectible bargain. A professional boxing career could be next for the talented footballer who won his first serious fight, against Scott Lewis!

Please send your feedback to: thetourisminformer@resortbrokers.com. au or PO Box 5004, West End Qld 4101.

INSIDE MOTELS

4

RELIEF MANAGERS

16

SPECIAL PROJECTS

13

MANAGEMENT RIGHTS

5

INDUSTRY SPECIALISTS

22

RESORT BROKERS DIRECTORY

27

www.resortbrokers.com.au

3

THE ORIGINAL AND STILL No. 1

Best motel in town

This motel ticks all the boxes; a corporate motel in a progressive town and showing good profitability and high occupancy.

The motel is located in the centre of town, close to all the supermarkets, hotels and shops.

• Great return and even better town • 17 spacious ground floor units: standard, family and recently refurbished executive and spa units.

• Restaurant, cocktail bar, spa, pool and BBQ area.

Very Profitable Leasehold

• • • •

Low rent.

Consistently high occupancy (70%+).

Solid brick motel built in early 80’s.

Vibrant Victorian rural city with large projects supporting growth.

• Major brands investing in town: Kmart, Coles and McDonalds (due to open in 2011).

ID: Please supply Nett profit: $190,008 Turnover: $691,448 PRICE: $595,000

Stuart Charles Mobile: 0458 588 472 Victoria Office: 03 9347 3100 Email: stuartcharles@resortbrokers.com.au

Editorial

The Motel Lease - Rent and Rent Reviews

O

ne of the most important functions of the Lease is to set out what is to be paid to whom, and in particular the amount of the rent and how it is to be paid.

There are industry formulae for the calculation of rent and it is essential that anyone considering purchasing a motel lease has experienced consultants to consider the rent compared with industry standards.

This is important when assessing whether there is any room for improvement in the profitability of the business and whether the business is readily saleable.

Generally the rent payable under the lease is paid calendar monthly in advance on the first day of each month. Usually there is provision 4

in most new lease documents for an increase in rent pursuant to the Consumer Price Index on an annual basis.

For these reasons most Motel Leases do not include market reviews of rent although this is not a hard and fast rule.

The concept of market reviews is often debated in the Motel Industry. The issue from a tenant’s perspective is that most market review clauses carry a proviso that the rent shall not be less than the year before. Tenant’s understandably ask the question why should the rent increase because the tenant runs the Motel Business successfully. Market reviews in Leases for commercial tenancies generally look at the supply and demand for Lease premises in the particular area. This appears inappropriate in a Motel. Tenants would more readily accept a market review if the clause allowed for rents to reduce if the business is not performing well.

The other costs that a tenant is responsible for under the Lease are the outgoings. Generally the outgoings will include any costs incurred by the Landlord in owning the motel. For example: rates, taxes, charges and other levies payable to any competent authority and all insurance premiums and other charges in connection with insurance cover.

www.resortbrokers.com.au

Usually the Lease will require the Tenant to pay these outgoings directly to the assessing authority on or before their due date and to provide evidence of payment to the landlord.

By DAVID BURROUGH

THE ORIGINAL AND STILL No. 1

New Building - no unit to buy

Fantastic brisbane location

• New Management Rights inner North Brisbane 5 level luxury 45 unit Apartment Building located close to a major shopping centre & transport infrastructure.

• Forecast figures and price based on 45 lots in the pool subject to a claw back for every unit less than 45 in the pool at 90 days from settlement.

• Body Corp Salary $45,000 plus GST. 25 years agreements.

• Ideal as an ad-on business. Get in early and develop.

• The top capital growth & education centered location guarantees 100% occupancy.

• Spacious 3 bedroom, 2.5 bath, renovated townhouse residence.

• An excellent business easily managed by one allowing the other to pursue a full time career.

• Body corporate salary adjusted annually by 5%.

• 78 units, 29 in the pool.

ID: MR001349 Proj Nett: $144,000 subject to claw back

Neville Littleton - 0407 727 194 nevillelittleton@resortbrokers.com.au

PRICE: $600,000 subject to claw back

Email: colincrowley@resortbrokers.com.au

Colin Crowley - 0428 660 102

ID: MR001245 Nett profit: $131,000 PRICE: $1.055m

Brisbane Office: 07 3878 3999

Price to sell at a 4.5 times multiplier.

Located in a unique location of absolute beachfront luxury, this resort is unique in many ways with a large atrium under the main tower opening up the resorts gardens and ensuring all apartments can access ocean views. The penthouses include their own exclusive rooftop spa and barbecue area. Foxtel and broadband are available in each apartment. The 20 metre salt water pool and barbecue area are set in a Balinese themed garden.

• Body corporate remuneration: $51,100

Neville Littleton Mobile: 0407 727 194 Brisbane Office: 07 3878 3999 Email: nevillelittleton@resortbrokers.com.au

Beachfront island complex Management Rights

(adjusted annually to CPI).

• Terms of Agreement: 25 years as of 2006 - Module: Accommodation.

• Total Units: 37 (26 of which are in the letting pool).

• Manager’s unit: 3 bedroom, 2 level stand-alone apartment with fenced yard - pet friendly.

• Office/reception: Large & freestanding.

• Facilities: Heated pool, spa & BBQ.

Nett profit: $285,000 PRICE: $1.840m Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane Office: 07 3878 3999 Email:glennmillar@resortbrokers.com.au

www.resortbrokers.com.au

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THE ORIGINAL AND STILL No. 1

Industry Specialists Management Rights Specialists for All States of Australia Advice on all Body Corporate Issues Buying/Selling Extensions Developer Setups

Col Myers 0417 620 516

Management Rights & Motel Specialist

www.holmans.com.au Telephone: 07 5552 6666 Facsimile: 07 5528 0955 Email: cmyers@smh.net.au

Level 2, 17 Welch Street Southport Q 4215 PO Box 1876 Southport Q 4215

Brisbane (07) 3041 1311 Gold Coast (07) 5677 0522 Maroochydore (07) 5443 5550 Noosa (07) 5430 7600

We provide industry specific advice to developers and operators on the following issues:

Co n t act : Peter Crawford Pa r t ne r T: +61 3 9242 4707 Me l b o u rn e w w w. m a d g w ic k s . c om . a u

- Establishment of management rights

- Owners corporation issues

The Informer are offering you a range of Industry Specialists as the who we at Resort Brokers have used extensively and know of their professionalism.

Circulation 5,000 - mailed out 7,500 - sent digitally If you would like a company advert on this page please contact: Garry Palmer: 0418 745 227 Office: 07 3878 3999

Tel: 07 3223 1144

Review of Operations Pre-Opening Planning Owner Representation Operations Management

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

THE

Management Rights Laywers

Fax: 07 3220 3434

NQ LENDING

Finance Specialists • • • • •

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

28 years finance experience with access to a preferred range of financiers Comprehensive upfront & ongoing personalised consulting service Danny Adams 0408 772 295 danny@nqlending.com.au

“Begin With the End in Mind” nqlending.com.au

Helping Accommodation Businesses Grow Certified Practicing Accountants & Business Coaching

Servicing Resident Managers throughout Queensland and New South Wales John Mahoney and Matthew Mannz

Brisbane 07 3007 3777 Level 15, 167 Eagle Street Brisbane 4000

Gold Coast 07 5667 7774

Corporate House, 155 Varsity Pde Varsity Lakes 4227

advertising@resortbrokers.com.au

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Lawyers

- Dispute resolution

RESORT MANAGEMENT ADVISORS • • • •

management rights, motels, caravan parks or hotels?

- Sales and acquisition of tourism and hospitality based businesses including management rights

www.resortbrokers.com.au

A: Unit 15/306 Albert Street, Brunswick Vic 3056 P: +613 9385 7700 | W: mbrgroup.com.au

THE ORIGINAL AND STILL No. 1

T

he complex opened in 2008 and features two towers comprising 160 apartments, a large heated saltwater pool, spa, BBQ pavilion, convention centre, onsite public fitness centre, and cafe (separate ownership).

Accommodation consists of 1, 2 & 3 bedroom fully self-contained apartments with spacious living areas, gourmet kitchens, full laundry facilities, a/cond and large shuttered balconies. Featuring breathtaking views from higher levels apartments to harbour/river and ocean, Hinterland or over Coolangatta overlooking the bay to Surfers Paradise.

The conference facility opened in February 2010 and offers two dedicated rooms catering for most types of functions, weddings and corporate seminars. The conference facility has a full fitout and state of the art audio visual equipment and a fully equipped commercial kitchen.

Tweed heads resort Management Rights

Options - The Management rights and associated real estate can be purchased separately at $4.989.000.

- The conference centre can be purchased at $1m inclusive of extensive fitout and fixtures including commercial kitchen.

Vendors will consider trade options and retaining a silent shareholding.

• • • •

125 apartments in the letting pool.

Long Agreements.

2 bedroom, 2 bathroom manager’s apartment.

Heated pool, spa, onsite gym & cafe.

Glenn Millar Mobile: 0412 277 804 Office: 07 3878 3999 Email: glennmillar@resortbrokers.com.au Ian Dore Mobile: 0412 752 238 Office: 07 3878 3999 Email: iandore@resortbrokers.com.au

Nett profit: $835,000 Price: $5.998m (inclusive of Convention Centre)

www.resortbrokers.com.au

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THE ORIGINAL AND STILL No. 1

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NT Resort Motel

he Leasehold interest of a 58 unit resort motel in the heart of Alice Springs CBD within walking distance to local tourist attractions and only 15 kms from the Alice Springs Airport.

4 bedroom managers accommodation, views of the MacDonnell Ranges and beautiful garden settings make this resort motel a fantastic base for tourists from around the world wanting to experience the heart of the Australian outback.

Alice Springs historical sites and attractions make it the place to be if you want to get a feel for what it used to be like over hundreds of years ago. Due to the geographical size of the Northern Territory with the towns being 3 to 4 hours drive between each one, motels do extremely well not only with tourists but the passing trade and the commercial travellers.

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Long Term Leasehold • • • • • • • •

Close to the centre of the city.

Attractive street appeal.

Easy access.

Beautiful indoor/outdoor restaurant and cocktail bar.

Large 4 bedroom owners accommodation.

Upstairs 50 seat conference room complete with kitchen.

Highly rated on a recent Best Western inspection.

Very profitable because food and beverage only account for 21.6% of turnover.

This property enjoys above average occupancy for the region.

www.resortbrokers.com.au

Ian Crooks Mobile: 0411 171 648 Brisbane Office: 07 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: $563,602 Turnover: $1,981,493 Price: $1.575m

THE ORIGINAL AND STILL No. 1

Gold coast

Manager’s unit comprises 2 bedrooms, air-conditioned open-plan living, neutral decor, patio for outdoor living, adjacent office and large enclosed storage area, both on title.

Management Rights Deborah Tilley Mobile: 0424 428 489 Office: 07 3878 3999 Email: deborahtilley@resortbrokers.com.au

Ian Dore Mobile: 0412 752 238 Office: 07 3878 3999 Email: iandore@resortbrokers.com.au

ID: MR001410 Nett profit: $73,000+ Price: $665,000

his permanent complex is in a great rental location as it is within easy walking distance to the Broadwater, Australia Fair, hospital and all facilities.

Currently there is no maintenance included in the figures and there is also the likelihood of further units coming into the rental pool. This potential to increase the income is an advantage for the new owner.

Set in established grounds requiring minimal work, this complex is easily run by one and will appeal to those seeking a business where they have time to enjoy the Gold Coast lifestyle.

• • • • •

This 3-storey walk-up complex was built in 2000 and all units are 2 bedrooms with generous balconies offering sea breezes and broadwater/skyline views.

•

T

• •

First time on market.

Very popular rental location.

28 out of 39 units in the letting pool.

Benefit of no set office hours.

Secure long-term agreement with 24 years remaining.

Air conditioned 2 bedroom manager’s unit.

Lovely landscaped grounds with outdoor seating areas.

Well worth your inspection so call

www.resortbrokers.com.au

9

THE ORIGINAL AND STILL No. 1

O

ffer is the management rights and associated real estate of The Parks Chancellor Village. This permanent complex is being developed in stages with stage 1 to be operating mid 2011 and stage 2 estimated to be operational by Feb 2012 Management rights in this location attract strong attention.

The Parks has been designed and constructed by multi award-winning local builder, RCQ, and is positioned in the heart of Chancellor Village in Chancellor Park.

Underpinned by the nearby university which is expected to double in size over the next ten years and plans for this area to be developed as a leading “smart industries” sector.

• • •

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Stage 1 consists of 50 dwellings, Stage 2 a further 36 dwellings.

Combined full year body corporate remuneration of $77,242.

Spacious 3 bedroom residence &

Brand new complex Off the Plan - Open Mid 2011 • • •

large office on title, front and rear courtyards, undercover terrace and double lockup garage.

Projected 85% investors.

Resort style pool and BBQ Pavillion.

Claw back/ Claw forward provision.

Stage 1 Management Rights Managers Lot: Total Stage 2 Management Rights Proj Nett Profit:

$525,000 + GST $435,000 $960,000 $180,000 + GST $201,641

Payment for stage 2 due upon settlement of that stage. Note: No stamp duty is payable on management rights.

www.resortbrokers.com.au

Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Office: 07 3878 3999 Email: glennmillar@resortbrokers.com.au

Total Price: $1.140m

THE ORIGINAL AND STILL No. 1

Victoria coastal b&b Leasehold Motel John Kenworthy EXCLUSIVE AGENT Mobile: 0427 799 804 Victoria Office: 03 9347 3100 Email:johnkenworthy@resortbrokers.com.au

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Victoria Office: 03 9347 3100 Email:jimchapman@resortbrokers.com.au

ID:LH001359 Nett profit: $187,586 (2009/10 adj) Price: $700,000

T

his 3 ½ star AAA rated motel has it all. An excellent mix of motel units and serviced apartments right in the heart of town in Victoria’s premier lakes and ocean holiday destination.

The vendor has renovated and refurbished all the ground floor units and the business offers excellent profits with a superb lifestyle.

all the boxes – bed and breakfast operation, town centre position, new lease, fair rent, good mix of leisure and corporate trade, separate private accommodation with water views, a coastal lifestyle and is priced to sell.

• • • • • •

New 25 year lease direct from the owner with market rent.

Excellent mix of 18 motel units and 5 FSC apartments.

Accommodation only - small restaurant used for breakfast only.

Inground swimming pool and spa with barbeque area.

2 bedroom FSC manager’s residence.

Lakes Entrance in the heart of town.

A new laundry has been constructed adjoining the office/reception providing improved staff efficiency.

Move in and start earning from day one with nothing to spend. This one ticks

www.resortbrokers.com.au

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THE ORIGINAL AND STILL No. 1

J

Motel site

ust a ten minute drive from city centre in the heart of a developing shopping precinct with highway frontage and perfect visibility. DA ready but subject to approval.

Already in this precinct there is a hotel supermarket, real estate, bakery and takeaway food outlets. In the future proposal, along with the motel site, is a shopping centre, liquor barn, medical centre and truck stop.

Freehold DA Ready • • • •

Sold subject to DA approval.

Visible location adjacent highway Development area.

Area of land 2976m², flat with easy access.

This development is planned for both sides of the highway.

• • • • • • 12

All plans are ready for DA submission.

27 ground floor units.

Car space for every room.

2 bedroom managers quarters above reception.

Disabled units catered for.

Bus parking allowed for.

www.resortbrokers.com.au

Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Office: 07 3878 3999 Email: lindsaycooper@resortbrokers.com.au

Price: $790,000 + SAV

THE ORIGINAL AND STILL No. 1

A chance to be different FNQ Resort on the Hill Shane Mullins Mobile: 0447 185 001 Office: 07 3878 3999 Email: shanemullins@resortbrokers.com.au

T

he freehold interest of 64 registered lots – including a selection of villas, 80 bed backpackers, restaurant and bar, commercial kitchen, day spa & sauna, cinema room, function/conference facilities, gym, tennis court and large resort style pool located over 3.2ha.

The property consists of 59 residential lots, 4 business lots and a vacant lot consisting of three separate areas. Twenty of the saleable lots are dual key villas.

EXPRESSIONS OF INTEREST

There are a variety of options available to purchase. If you feel you have had a property on the market for too long or a valuation has not met the current

market conditions, this may be worth considering.

The resort was strata titled in 2002 and has had the first AGM this year. There is a real opportunity to sell off each lot, lease the restaurant and bar, sell the management rights and the various other cost centres.

• Vendor will consider all forms of trade including beach front property that has lost its appeal in a dwindling residential market.

• Vendor will look at trading a smaller motel/property (lease or freehold).

• Varying prices for residential lots ranging from $50,000 - $158,000 - 46 lots left to sell.

• Options for a manager’s residence.

• Kuranda is located half an hour’s drive west from Cairns, next to the Kuranda Village.

www.resortbrokers.com.au

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THE ORIGINAL AND STILL No. 1

Whitsunday coast Management Rights Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Office: 07 3878 3999 Email: glennmillar@resortbrokers.com.au Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Office: 03 9347 3100 Email:shanemullins@resortbrokers.com.au

ID: MR101274 Proj Nett Profit: $225,000 Price: $1.020m

L

ocated in Cannonvale on the Whitsunday Coast just a short 5 minute drive from Airlie Beach in Queensland, this newly opened development comprises 69 townhouses and 31 apartments set over a 2.15 hectare site at the foot of the Conway Range National Park. The complex is gated with full security in a master planned complex of superior design, deluxe finishes and fittings, stone bench tops, stainless steel appliances and air-conditioning.

Central facilities include; central covered barbeque, lagoon pool, spa and gym.

Newly opened, this business has great growth as there are a number of

apartments and townhouses still to be sold and put in the letting pool. Rental demand is strong and ongoing. The 3 bedroom manager’s residence and office is 189m². Facilities include covered barbeque pavilion, large lagoon pool, spa and gymnasium.

•

• • • • • •

100 lots = 105 keys - potential to convert some apartments to short term letting if desired.

25 year accommodation module agreements. $113,520 body corporate remuneration.

3.5 kms from the beach, minutes from new major shopping complex.

Huge room to grow the letting pool.

87 of 100 lots available for the letting pool.

NRAS government lease on 17 apartments, for 10 years @ 10% commission.

www.resortbrokers.com.au

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THE ORIGINAL AND STILL No. 1

Phillip & Sharyn Stallman M: 0428 931 589 E: shazphilstallman7@bigpond.com

RELIEF

Managers

Sam & Linda Adermann M: 0433 233 773

Caravan Park Relief Managers Ray & Bev Hearn E: management@yourpark.com.au M: 0429 420 826

Relief & Motel Relief Management Llew & Trisha Pointon Ph: 07 5455 5446 M: 0400 035 359 E: llew@tpgcom.au

ServicePlease.com.au Simon Frost E: simon@serviceplease.com.au M: 0433 921 029

Hotel, Motel & Caravan Park Relief Managers Tony & Dawn Davies M: 0412 065 348

Motel, Hotel & Caravan Park Relief Managers Tony & Dawn Davies M: 0412 065 348

David & Belinda Gustafson M: 0403 219 562 M: 0423 041 425 E: gustafsondavid@hotelmail.com

Lyn & Wayne Foster Ph: 02 6889 5070 M: 0427 521 762 E: waynefos@dodo.com.au

Motel Relief Management Steve & Pam McMullen Ph: 02 6736 5535 M: 0418 297 214

Robyn & William Campbell M: 0409 838 856 Hosts on the Run Paul & Wendy Greenfield M: 0408 173 360 M: 0408 717 316 E: info@hostontherun.com.au Norm & Robyn Casson M: 0429 449 884 Clive Rauchle Ph: 07 5438 8381 M: 0414 384 411 E: leo_45boost@msn.com Motel Managers Graeme Filippe & Deborah Wallace M: 0427 512 751 www.motelmanagers.com.au

Bayside beauty

No requirement to live on site

• Rare as Hens teeth - Excellent free standing spacious 3 bed, 2 bath, residence with attached office, DLUG and large storage.

• Located close to Brisbane Bayside College, rail, shopping centre and Wynnum Esplanade.

• 57 units, 40 permanent letting, accommodation module, 100% occupancy.

• No set office hours, easy caretaking and no weekend work means plenty of time to relax.

• Two Brisbane management rights complexes, 3 kms apart, for sale as one business. 55 units. 22 yrs agreements.

• No requirement to live on site. Rent the unit and use the office. A full license is required.

• Residence with 3 bedrooms, 2 bathrooms, slug + one space.

• An impressive ROI overall of 13%. No office hrs. Easy Caretaking. Two ad on management rights.

Neville Littleton - 0407 727 194 nevillelittleton@resortbrokers.com.au Nett profit: $160,000 PRICE: $1.280m

Colin Crowley - 0428 660 102 Email: colincrowley@resortbrokers.com.au

Brisbane Office: 07 3878 3999 16

www.resortbrokers.com.au

ID: MR001374 Nett profit: $107,401 PRICE: $825,000

Neville Littleton EXCLUSIVE AGENT Mobile: 0407 727 194 Brisbane Office: 07 3878 3999 Email: nevillelittleton@resortbrokers.com.au

THE ORIGINAL AND STILL No. 1

Close to sydney cbd Serviced Apartment Business Jim Chapman - EXCLUSIVE AGENT Mobile: 0413 444 782 Victoria Office: 03 9347 3100 Email: jimchapman@resortbrokers.com.au

ID: LH001391 Projected Nett profit: $564,108 ProjectedTurnover: $3,537,875 Price: $1.7m

A

remarkable opportunity to secure the leasehold interest of a serviced apartment business situated in an impressive boutique art deco building fully renovated and refurbished in 2008. 69 x 4 ½ star apartments providing a unique and inviting ambience for the corporate or leisure guest. The local area offers many restaurants, cafes, supermarkets, retail shopping and night time attractions. An adjacent railway station and accessible public transport offers easy access to Central Sydney Station, domestic and international airports and the central business district.

The business enjoys the many benefits and support as a franchisee of an award winning and highly respected franchise brand.

The business commenced in 2008 and has steadily matured into a profitable and consistent operation with substantial occupancies, continued growth and excellent incomes from corporate, tourism and leisure guests.

•

•

• • •

69 x 4½ star executive serviced studio apartments. All apartments provide fully-equipped kitchenettes, generous bathrooms, built-in work station/desk, broadband access, Foxtel and state of the art facilities.

On-site restaurant providing breakfast and dinner. Substantial rooftop terrace.

Manager’s residence is a fully selfcontained studio apartment.

Long lease, fair rent and market reviews.

Currently operated under management and would improve with owner operation.

www.resortbrokers.com.au

17

An extreme way to put Queensland tourism on the map

H

ow’s this for looking on the bright side? When ABC News spoke to Mission Beach’s Castaways Resort manager James Neville Smith the day after Cyclone Yasi crashed through, he said: “more people are going to know where Mission Beach is today than two or three days ago; this cyclone has put us on the map.”

Wow. While acknowledging the scale of destruction and the pain it was causing his community, he was still confident travellers would return to the area soon.

It struck me that, with his simple, stoic response, this guy summed up a mood of Queensland generally and of the tourism industry in particular. ‘We’re down, but not out. And we’ll soon be back better than ever!’

That’s certainly the message tourism industry

18

www.resortbrokers.com.au

leaders are at pains to get out there. We’re a resilient lot. Not just in Queensland either, but in the Outback and in Victoria, wherever the wrath of Mother Nature has been felt.

the floods and the cyclones are bad news and yes, they will put a serious dent in the economy. But we will recover, and probably more quickly than most expect.

But it is in the ‘Sunshine State’ that she has done her worst, dealing a crushing doublewhammy of natural disasters starting with widespread flooding followed by the terrifying cyclone which devastated the Mission Beach, Cardwell and Tully stretch of coast. Mercifully, larger surrounding population centres pulled through relatively unscathed.

Resort Brokers Australia managing director Ian Crooks says he is amazed at the resilience and spirit of people, towns and businesses.

“Our head office, though it stayed high and dry during the Brisbane floods, is located in one of the first and worst hit suburbs. But just days later, I walked along the river and things had been cleaned up to a point where it was difficult to imagine the deluge had been through,” he said.

And that’s the thing. For every picture of inundated properties and flattened trees, there are many more unseen images of tourists still basking under sunny skies, swimming, sailing, adventuring and generally having fun in the many destinations, untouched by these terrible events.

“I honestly think people will bounce back quickly and strongly. We need to look for the positives and get the message out there that, as the Queensland Government has been saying, we are open for business.”

While the reality of the mess in affected areas is undeniable, the toughest problem for the tourism industry may be more about perception than reality. Queensland Tourism Industry Council (QTIC) CEO, Daniel Gschwind, admits as much.

After the horrendous floods, Queensland’s peak industry body, the QTIC swung into action, urging national and international holidaymakers not to abandon the State.

Even before Yasi, hotels, motels, resorts and caravan parks Statewise were hit with cancellations, even in areas like the Gold Coast which had seen none of the extreme weather.

It was a cruel blow for an industry emerging from the economic downturn only to be challenged by a strong Aussie dollar making holidays here a less attractive value proposition.

Now the nation and the world were seeing images of destruction in their newspapers and on their TVs, throwing yet another challenge at the beleaguered sector.

Everyone was told an area bigger than Germany was flooded. In the same breath, they needed to be reminded Queensland is five times the size of Germany!

We need some perspective here. Yes,

At every level – government, industry and at the coalface – the plea is to support tourism, to ‘do the right thing’ and book a holiday now. We should all do our bit to spread that message. Remember, there are roughly 117,000 registered tourism businesses in Queensland and the vast majority are small businesses, most with five or less employees.

Small business operators will be the hardest hit, and we applaud every initiative to extend financial assistance such as grants and concessional interest rate loans to struggling operators, to help minimise job losses and get them back on their feet.

Let’s also remember the upsides and opportunities. The spirit, resilience and amazing generosity being shown is truly inspiring. This also shines through the media reports and leaves people in no doubt that Australia is warm and welcoming, full of places you’d love to visit and full of people you’d love to meet.

“We don’t know how many perception issues we will have to deal with, with people from interstate or possibly overseas concluding that going to Queensland is not a good idea, despite the fact that many major tourism destinations are perfectly fine and open for business,” he told accomnews.com.

The difficultly, he said, was to get the message out that while the disasters are serious and businesses in the impact zones are suffering greatly, the majority of the State’s tourism hot spots are unaffected.

industry’s concerns direct to decision-makers.

In late January, the QTIC hosted a significant event in partnership with the Australian Federation of Travel Agents, inviting highpowered tourism players and key media to a detailed briefing emphasising the ‘open for business’ message.

In many hard hit areas, accommodation will quickly be in great demand to house the armies of construction workers, trades people and government representatives pouring in to play their part in the recovery.

Analysts and researchers at IBISWorld issued a special report immediately after the floods (before Cyclone Yasi) estimating the economic impact of the event. They predicted the floods would mean Australia’s tourism industry revenue in 2010-11 would be cut by 0.7%, or $590 million, to $83.61 billion.

“Just as I was amazed by the speed of the clean-up in Brisbane, I’m confident we will all be heartened by just how quickly and strongly our industry can bounce back everywhere,” Ian Crooks said.

Yasi will no doubt slice several more million dollars off that total. But IBISworld forecasts a rapid rebound as tourism boards and individual operators rise to the PR challenge of communicating that Queensland is back in business, safe to visit and keen to do deals.

IBISWorld and Tourism Queensland echoed similar positive outlooks. TQ CEO Anthony Hayes told ABC News the disasters wouldn’t have a long-term impact on the way Queensland and its localities are seen as tourist destinations. IBISWorld predicted the industry would rebound in 2011-12 as stories of the flooding and storms fade in the minds of prospective visitors.

Indeed, straight after the floods, Tourism Queensland put a $600,000 ‘welcome back’ ad campaign into Sydney and Melbourne and promised more aggressive marketing campaigns, particularly targeting the vital Easter market.

And let’s not forget the ‘O’ factor! The impact of Oprah Winfrey’s visit to Australia meant, while the world did see some scary disaster images, they were also seeing spectacular footage of our country looking her absolute best.

The Queensland and Federal governments waded in with a $10 million Tourism Industry Support Package, and the QTIC took its place as a key member of the Economic Recovery Coordination Group, the Business Activation Group and the Tourism Group, taking the

Queensland Premier Anna Bligh put it well when she said the natural disasters had “tried to do their worst” but Queensland’s spirit had never shone so brightly. Australia, wherever you are in this vast land, is still the place for a holiday of a lifetime. By CATIE LANGDON

www.resortbrokers.com.au

19

THE ORIGINAL AND STILL No. 1

Here is your chance to start your freehold portfolio or add to it. With a solid return and quality built structure it is a superb long term investment. The lessee has upgraded the rooms and there is plenty of land to expand or improve the motel’s facilities.

A solid brick motel in a beautiful Victorian town with a very good return.

The first to inspect will buy.

Landlord needed

Freehold Investment Motel • First time offered for sale.

• Good lease - Rent $43,000 + GST. • Solid brick motel built Circa 1988 (22 years old).

• CPI increases annually.

• Approximately half way between Melbourne and Adelaide.

• Modern motel with Western Highway frontage on two titles.

PRICE: $399,000 Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Victoria Office: 03 9347 3100 Email: stuartcharles@resortbrokers.com.au

Editorial

What to Look Out for when Buying Managements Rights

I

n this second article in this series I want to talk about 2 things to look out for when contemplating the purchase of management rights for the first time.

Lifestyle decision The business of management rights is often promoted as one where you will have a semi-retirement lifestyle. The reality is that only in very few complexes is it the case that you will be well paid and lead a life of semi-retirement. If you happen to find one of these, that’s fantastic, but do not expect that to be the norm.

A manager has a contract with the Body Corporate that will set out in general or specific terms a number of duties. My last article in Tourism Informer looked at ways to work out just what a Body Corporate might expect from a manager in terms of hours to be worked.

No Body Corporate is going to pay a manger a large amount of money to do nothing.

Unit owners begrudge any manager who

20

treats the role as though it is semi-retirement.

Sure, some buildings have minimal or no gardens and grounds and if there are only live in owners or permanent tenants, the hours might be minimal. But owners will, and are entitled to expect, that the common property is kept clean and tidy and the manager is available at reasonable times.

In larger buildings and even in some smaller ones, a manager may well be able to easily engage contractors such as gardeners or cleaners to do a lot of the work – whilst the expense of that will come out of the manager’s income, it will at least allow the manager to lead the semi-retirement lifestyle sought. The good part about that is that when you go to sell, you can justifiably point out that the true income of the business is higher than you have been receiving as you have made a lifestyle decision to engage others to do work that would typically be done by a 2 person management team.

The right personality It is often said that management rights is

www.resortbrokers.com.au

a people business. That is so true. A manager must be able to get along with owners, tenants/guests, the body corporate manager and tradespeople in order to run the business successfully.

Quite simply, if you are not a “peoples person” you should probably think twice about going into management rights.

Also, unlike a motel for example, you are not in all respects your own boss. You will need to deal in a diplomatic way with the individual/s who represent the body corporate and in some ways this is like working for a “boss”. That does not suit someone who is used to working independently.

On the other hand if you are a peoples person and do have the capacity to get on with others, solving rather than

escalating problems, you are well placed to succeed in management rights.

By JOHN MAHONEY

THE ORIGINAL AND STILL No. 1

Off the plan

Management Rights Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Office: 07 3878 3999 Email: glennmillar@resortbrokers.com.au Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Office: 03 9347 3100 Email:shanemullins@resortbrokers.com.au

Proj Nett Profit: $300,000 Price: $1.2m

O

n offer is the management rights of Milieu at Middlemount is a new residential development located in the centre of Middlemount, Central Queensland in the heart of the Bowen Basin, Australia’s booming coal region.

The complex has been designed to ease the critical shortfall in housing availability and consists of a total 74 free standing houses in a landscaped environment.

completed and rented, the first rented at $950 per week on a two year lease. The vendors are in the process of negotiating with one of the major mining firms to rent up to 50% of the houses. A number of major contractors have expressed interest in 33 of the houses. Leases will be between 2 and 5 years at a time.

The Developers will pay the full $100k body corporate salary from date of commencement of the new managers even though the work load will be reduced until further houses are completed.

Additional revenue can be made from lawns mowing and house cleaning.

• •

This regional has high rental demand and high yields with weekly rentals between $900 and $950 being enjoyed by investors.

• • •

The first houses two house have been

•

74 three and four bedroom houses.

BBQ pavilion and Children’s Playground.

Average weekly rental $900 — $950 Estimated 95% - 100% investors.

3 bedroom manager’s residence with office on title. $100,000 Body Corporate Salary.

www.resortbrokers.com.au

21

THE ORIGINAL AND STILL No. 1

T

Near brisbane

rare opportunity to buy a fantastic business only Management Rights. First to see will buy! Self maintaining gardens and a small swimming pool and barbeque area results in 2 - 3 hours of caretaking a week.

This beautiful 25 unit complex has 24 years left on the term commencing from 28th February 2011.

This property is a in a great location only 15 minutes away from the CBD. This business only Management Rights is ideal for potential unit sales in the complex and conversion to short term letting.

Management Rights

• •

•

• •

Body corporate remuneration $27,771.47.

Module - Accommodation terms of agreement: 14 + 10 years as at 28 February 2011.

Unit price approximately $250,000 $260,000 - Optional, can be let if you want to live off site.

Office/reception attached with console software.

Facilities include secure parking, swimming pool, barbeque and gym.

There is option for the Manager to either purchase the unit and live onsite or to rent it out and live offsite.

22

www.resortbrokers.com.au

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane Office: 07 3878 3999 Email: timcrooks@resortbrokers.com.au

ID: MR001413 Adjusted Nett profit: $66,500 Price: $270,000

THE ORIGINAL AND STILL No. 1

Leasehold Offering Western Tourist Town Len Booth Mobile: 0438 139 422 A/h: 07 4155 6330 Email:lenbooth@resortbrokers.com.au

W

ith a population of 4,500 Longreach which is located in picturesque Central Queensland enjoys above average occupancies for motels as it is a rural centre for the area and as well it is the home of Australia Stockman Hall of Fame.

Qantas Airways originated in Longreach and the town enjoys outstanding tourism numbers.

the ground floor with ample car parking and easy access to the units.

All linen for the motel is owned and laundered on the property and there is also a guest laundry.

When travellers leave the coast they inevitably head west for the Hall of Fame.

Once in the area they discover many attractions, which means they often stay for a few days.

• • • •

Nett profit: $250,000 Turnover: $800,000 Price: $3.5m

This motel is one of the more popular in the area and is renowned for its licensed restaurant. Of the 36 units, there are 18 inter-connecting family units plus 2 executive units and they are situated on

• •

36 unit motel with inground pool.

Licensed restaurant and conference room.

2.5 acres in one of Queensland’s premium motel towns.

Spacious 4 bedroom owners residence.

3 star rating.

Longreach home of Qantas and the outback centre.Spacious two bedroom managers unit.

www.resortbrokers.com.au

23

THE ORIGINAL AND STILL No. 1

J

ust built and opened at Christmas 2010, we offer for the first time the business and long term lease of this outstanding 3.5 star standard, business class motel consisting of 25 units and a comfortable 2-3 bedroom managers unit.

Built on 1.019sqm and located on a prominent corner site, this motel is close to the river, the CBD and the main Bruce Highway which runs right through the city of Rockhampton. “The location assures a good night’s sleep.”

Built of masonry block and rendered concrete means for easy maintenance.

The motel is built over 2 levels and has easy stair access at both ends of the property.

The units being brand new are beautifully furnished, the majority however have a queen bed and there are others with a twin and single. All units have flat 24

Brand new motor inn 30 Year Lease

screen televisions, tea and coffee making facilities and internet accessibility.

• • •

• • • • •

Close to the centre of the city.

Stunning roadside appearance Exquisite owners accommodation with a large private deck, ideal for entertainment.

Ample onsite parking.

Separate motel kitchen.

Separate guest laundry.

Low rent.

Business with great future.

www.resortbrokers.com.au

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

Nett profit: $182,516 Turnover: $503,700 Price: $725,000

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

MOTELS

CARAVAN PARKS

MANAGEMENT RIGHTS

David Burrough is the most respected legal advisor for those about to buy or sell an accommodation business Before you go ahead & talk with David and his team learn everything you need to know: t 8IBU SFBMMZ JT BOE JTO U JODMVEFE t ćF MBOHVBHF UIF FYQFSUT VTF

Limited copies of David’s booklets are still available Call: (07) 3220 1144

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Fax: (07) 3220 3434

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HAVE YOU VISITED OUR NEW & AEHJGN=< O=:KAL=7

FEATURES INCLUDE: Hjgh]jlq Yd]jlk % ]eYad Yd]jlk l`Yl eYl[` gf qgmj hjgh]jlq lqh]$ hja[] jYf_] Yf\ Yj]Y [jal]jaY ] F]okd]ll]j % ka_f mh ^gj J]kgjl :jgc]j¿k egfl`dq f]okd]ll]j$ ^mdd afl]j]klaf_ af\mkljq Yjla[d]k <a_alYd J]kgjl :jgc]j¿k Af^gje]j % \gofdgY\ gmj Af^gje]j \aj][l ^jge l`] `ge] hY_] gj o] oadd ]eYad al lg qgm

www.resortbrokers.com.au

THE ORIGINAL AND STILL No. 1

Company Directory Brisbane - Head Office

Telephone: Facsimile: Email: sales@resortbrokers.com.au 2/77 Hope Street, South Brisbane Qld 4101 PO Box 5004, West End Qld 4101 Ian Crooks - Managing Director Ian Dore - Gold Coast & Nth NSW Manager

07 3878 3999 07 3878 1199

North Queensland

Email: shanemullins@resortbrokers.com.au Motels / Hotels / Caravan Parks / Management Rights Shane Mullins 0447 185 001

0411 171 648 0412 752 238

Management Rights Division Tim Crooks Neville Littleton Colin Crowley

0422 208 450 0407 727 194 0428 660 102

Motel Division Ian Crooks Lindsay Cooper Ian Dore

0411 171 648 0418 711 047 0412 752 238

Hotels /Caravan Parks / Pubs Lindsay Cooper Laurence Crowley

0418 711 047 0418 708 604

Gold Coast

Telephone: 07 5510 3900 Facsimile: 07 5510 3111 Email: goldcoastsales@resortbrokers.com.au

New South Wales

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

02 9904 8224 02 9904 8867

Motels Ian Dore - Northern NSW Tim Leahy - Greater Sydney

0412 752 238 0414 813 400

Hotels Ian Dore - Northern NSW

0412 752 238

Caravan Parks Lindsay Cooper - Northern NSW

0418 711 047

Management Rights Ian Crooks Jim Chapman Ian Dore - Northern NSW

0411 171 648 0413 444 782 0412 752 238

Victoria

Management Rights Divison Ian Dore Deborah Tilley Gerard Dixon Alex Cook

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

Telephone: 03 9347 3100 Facsimile: 03 9347 3111 Email: vic@resortbrokers.com.au Suite 1, 746 Swanston Street, Carlton Vic 3053 PO Box 1100, Carlton Vic 3053

Motel Divison Ian Dore

0412 752 238

Management Rights John Kenworthy Jim Chapman

0427 799 804 0413 444 782

Motels / Hotels / Caravan Parks Jim Chapman John Kenworthy Stuart Charles

0413 444 782 0427 799 804 0458 588 472

Sunshine Coast

Email: sales@resortbrokers.com.au

Management Rights Division Glenn Millar Lindsay Cooper

0412 277 804 0418 711 047

Bundaberg/Central Coast/Whitsundays A/h: Facsimile: Email: lenbooth@resortbrokers.com.au

07 4155 6330 07 4155 6440

Motel Division Len Booth

0438 139 422

Management Rights Division Shane Mullins Glenn Millar

0447 185 001 0412 277 804

Tasmania

Email: reception@resortbrokers.com.au Motels / Hotels / Caravan Parks / Management Rights Ken Stronach 0419 374 138

www.resortbrokers.com.au

27

No. 60 March 2011

Recently Sold

MANAGEMENT RIGHTS CARSELDINE

MOTEL LEASE TRAWOOL

MANAGEMENT RIGHTS MINYAMA

MOTEL LEASE BENDIGO

MANAGEMENT RIGHTS BBURLEIGH HEADS

MOTEL LEASE WILLIAMSTOWN

MANAGEMENT RIGHTS SURFERS PARADISE

MANAGEMENT RIGHTS BURANDA

MOTEL LEASE URANGAN

MOTEL LEASE & FREEHOLD DUBBO

MANAGEMENT RIGHTS DECEPTION BAY

MOTEL LEASE NARROMINE

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