resortnews Issue 206 | October 2013 | $13.75 Inc. GST
The Monthly Magazine for Accommodation Industry Professionals
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resortnews EDITORIAL Lyndel Elias - Editor firstname.lastname@example.org Graham Vercoe - Managing Editor email@example.com Mandy Clarke - Industry Reporter Rosie Clarke - Industry Reporter
front desk 6
industry 8 12
News In Brief Special Report: Music Opinion ARAMA Report NSW Strata Report SCA Report Griffith Strata Conference 2013 BCCM Report
EDITORIAL CONTRIBUTORS Jann Stuckey, Andrew Morgan, Mike Phipps, Peter Greenham, Emma Peters, Tony Rossiter, Tim Sheehan, Mike Butler, John Punch, Arvo Elias, Roberta Nedry, Bill Kemter, Col Myers, Simon Barnard, Robert Walker, Larry Mogelonski and Errol Anderson.
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The views expressed in Resort News do not necessarily reflect the views of the publisher, editor, staff or associated companies. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. © 2013. No part of this publication may be reproduced without written permission from the publisher.
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By All Accounts Legal Ease Incorporate Bodies Permanent Parameters Intonet Keeping House To Market Flashback Check In Asbestos Feature Gym Repairs Feature Façade Maintenance Outdoor Furniture Feature Pool Cleaning Feature
tourism 33 34 34
Minister's Report Tourism Report Tourism International
events & appointments 36 38 39
People Events Industry Events Calendar
property guide 44 48 48 50
Thinking Finance New Managers Resort News Sales Report Motel Market
PUBLIC NUISANCE? More congratulations are in order. Heading the hit parade this month are the Sunshine Coast Tourism people who have had a bright idea! Now being a woman, many things are very obvious. For a start it is most important to keep up with all the news and this we do with our smart phones very simply, in fact we can do it with one hand tied behind our backs. In days gone by one needed a wheel barrow to cart one’s mobile about and that was a huge problem. Today they are small and sleek to a point where they become unfindable in ones handbag… an even bigger problem. I am fortunate to have a problem-solving husband. He gave me a couple of phone cases in different colours; one red and one white. The theory was that both colours would be in contrast to the dark cavern of my handbag and therefore would save me time and embarrassment rummaging to find my ringing phone while everyone in the shopping centre, or wherever, was amused watching me as it played the theme from Sex in the City… loudly, so that this hard-ofhearing person could hear it. I can’t live without my phone. There was a time when I was critical of people who were joined at the hip to their mobile device but that was before I joined the club. Therefore, to find my coloured device was really a help and saved me some precious talk time. But even though I am guilty of using or answering mine in lots of places (never at checkouts), I must agree they are an annoyance in public places and I certainly don’t want to listen to other's sagas while dining out or, as was the case once, to have to listen to someone answering a phone in the middle of a movie at the theatre. So I do support discouraging phone use in public while one is on holidays as is proposed for the Sunshine Coast. It’s a nice way to teach some people manners and yes, holidays are to be enjoyed and savoured in peace but personally I wouldn’t go to a place if I couldn’t have my phone with me… after all, someone might need me urgently. So, maybe not such a crash hot idea after all… but I do understand where SCT is coming from and wouldn’t it be a good idea if people turned their phones to ‘vibrate’ when in a public place…that way everyone would be happy.
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preferred suppliers 57
The Preferred Supplier Directory resortnews | october 2013
Lyndel Elias, Editor firstname.lastname@example.org
front desk Feedback
Not happy with ARAMA ARAMA should be the body that represents managers and fights for their rights just like a union does [Let's all get on the same page Opinion, September]. Sadly, it doesn't - at least here in Queensland. I had a long and tawdry battle with my body corporate that wanted to do away with management rights and make my resort "private" (that's their words). They succeeded by refusing to renew my agreements after seven years and just let them expire. Having obtained a full real estate license, I am still managing my letting pool at the resort and living in the manager's unit and operating from the same office that is on title, and there's nothing the BC can do about that - although they certainly tried their hardest to kick me out. I just no longer do the caretaking. Needless to say I have effectively lost the $600,000 value of the business that was our life savings. My wife and I are only just surviving financially without the caretaking salary. Whilst I have the full support of my letting owners, the other owners outnumber them. We lost a vote for new agreements by one vote. This is what can happen to any owner of management rights and there's nothing you can do about it. Government legislation is pitiful in this area. How fair is it that a manager can lose hundreds of thousands, if not millions, of dollars through the actions of a vengeful group of amateurs? Despite numerous attempts to get some sort of help or representation from ARAMA, they just wouldn't listen and refused even to meet with me. Naturally, I am no longer a member and no fan of ARAMA, whose only interest seems to be "hob-knobbing" it with government departments and ministers. ARAMA is a waste of space. Glen Toyer Name and address supplied
Happy with ARAMA A vexed issue! I can only sing the praise of ARAMA and John Mahoney. They have represented our industry admirably through difficult and turbulent times with commonsense and decency. They will always have my support. I have had difficulty with committees from time to time, usually only one member at a time. The majority of people aren't fools and recognise a troublemaker with his own agenda. So what do you do? Get rid of them. As a manager you are entitled to lobby your owners and that is what we do whenever a recalcitrant sneaks onto the committee. People recognise there is a problem and it only reared it's ugly head when this certain person snuck onto the Committee. Under the BCCM Act, there is a stipulation that committee members need to be responsible in their decision making and as a manager and owner you have a duty to support responsible people as committee members who will look after the interests of the majority of the body corporate. One former member of our committee was both negligent and irresponsible in her decision making and I told her so, informing her that I would be lobbying to get rid of her and seek to have a responsible person installed. She was livid and said, "You can't do that!" I said, "Watch me. I, as a manager, have a duty to ensure that both responsible people with no hidden agenda are representative on the committee." She's still fuming but no longer on the committee. Managers need to excercise common sense and good judgement in their dealings and hopefully have the support of a good chairman. Peter (Name and address supplied)
Restrictive trade practices How fortunate for the Brits that they only have one DOFT! Do not
believe that us operators in Australia have chance in hell that the OFTs in all the states will combine with one agenda to try something like this [Consumer/provider protection is long overdue - Editor's Viewpoint, August]. On top of requiring rate parity with accommodation providers own commission free websites, these OTAs gouge commissions ranging from the lowest at 10% and in the case of Expedia and Agoda up to 25%, and on top of that now use VCC for payment which is only for the net, so that the accommodation providers return is further reduced. Maybe ACCC should be looking into the restrictive trade practices of all of the OTAs and DOFT look into the contracts/terms that we are made to enter into under the "unfair contracts". Rohan Wijeyekoon (Name and address supplied)
Part taxes Perhaps it should all come down to what the guest tax invoice shows from the OTA. If it displays as 100% accommodation, maybe they should pay the tax on the whole amount. If they display part of the charge as accommodation and the balance as a service fee, then they should only pay tax on the net amount. However it is unlikely that the OTA would display their profit to the consumer as a savvy consumer would then be even more likely to approach the accommodation provider direct in an attempt to broker a better deal by booking direct. I don't see the outcome being a win for the OTA if a new law is introduced, unless they pass this additional expense onto the accommodation provider in the form of higher commissions. Maybe the underlying answer is to try to encourage Wotif to follow the Booking.com method. The guest doesn't pay them a surcharge at time of booking so is a little more receptive to paying It to the property at the time of check in to cover credit card surcharges. Wotif process the guest card and then have the associated admin with registering the virtual card, all for
resortnews | october 2013
$5.50. They couldn't pass this on to you or absorb your costs due to their own internal costs. However if they never processed the guest card in the first place and used the same model as Booking.com the problem may go away by itself. Wotif may also attract more bookers who are currently heading over to Booking. com to avoid these surcharges. Sylvia Johnston (Name and address supplied)
Why pay commissions? What I have come across when I myself have gone to make a booking direct with a property after maybe seeing it on Wotif - most times the reservation person will not match the Wotif rate and quote the high rate. I have questioned this as they would be saving the commission by taking my booking direct but will not and direct me back to the Wotif site if I want that rate. This in my view doesn't make sense and they would benefit from taking the booking direct at the cheaper rate (without paying a commission). While on the subject of commissions - I must comments on agents, wholesalers, and inbound operators commissions - they charge a high commission rate and with my property at the moment, I spend most of the time dealing with and sorting out the customers booking and still have to pay the commission but have done 90% of the work. I appreciate the customer may have seen their advertisement for my property - but they take no responsibility in organising, arranging and most times passing on important information in regard to luggage restrictions, what to bring etc. Kathie Reilly (Name and address supplied)
Ill-informed committee members Brilliant article, Robert, and well overdue [Approval for body corporate expenses - BCCM Report September]! After many years in the industry, I am still amazed at the number of ill-informed committee members who think they may
pursue their own private vendettas using the body corporate's money! Few people really understand the cost of top legal advice and even fewer understand the ongoing cost of litigation. As a good legal mate of mine once told me, "Mike, if you really want to litigate, that's fine! Just write me out a cheque for $10,000 now to get us started; another cheque for $10,000 next week to keep the ball rolling; then another cheque for $10,000 the week after that to pay for the barrister we will need to consult! That should keep things in order for a few weeks, but of course, I will need a few top-ups as we go along towards our court date - in twelve months' time!" If the commissioner's office can save us all from some of this nonsense, you will be doing everyone a huge service.
Mike Butler (Name and address supplied)
Support for SCA The Queensland Body Corporate Association fully supports the move to industry self-regulated strata manager licensing and also supports SCA as the industry body positioned best to administer the process [Spring time is property law review time - SCA Report, September]. Currently the code of conduct enshrined in law for strata managers is not monitored or applied effectively. Complaints must be made through other legislation overseen by ACCC, ASIC and FTO that has minimal impact on the strata managers working outside the code of conduct. Errol Anderson, CEO, QBCA
resortnews | october 2013
News In Brief
ABBOTT DOWNGRADES TOURISM PORTFOLIO
The tourism industry has been delivered a massive slap in the face by the Abbott Coalition government with the important portfolio being split between trade and investment and industry. Meanwhile sport gets elevated to portfolio status! Tony Abbott has attempted to defend the decision, saying the industry was still important. "I want to promote tourism," he said. "I intend, through a deregulation agenda, to make it easier for the tourism industry." Bob Baldwin, who had served diligently as shadow tourism minister while the Coalition was in Opposition, and did a fairly robust job of it, has now been demoted to parliamentary secretary for industry. Tourism's interests will now be split between trade and investment minister Andrew Robb, who will deal with international tourism and industry minister Ian MacFarlane, who will look after domestic tourism. The situation under the former Labor government showed that tourism got a bum deal when Martin Ferguson shared the portfolio with resources and energy with tourism getting proportionately very little of his attention.
How is the new deal going to be any better? It seems the only group happy with the new status of tourism is the Tourism & Transport Forum. “This is a sensible arrangement which will ensure that tourism is considered in the decision making around Australia’s foreign policy and acknowledges the gateway role that tourism plays in helping foster international relationships for business, education and investment. Economic diplomacy of this type will help to drive synergies in the promotion of Australia as an international destination, leveraging the activities of other Australian agencies in key source markets,” TTF chief executive Ken Morrison said.
Bob Baldwin demoted
the new structure will work and where accountability lies.
Australian Tourism Export Council managing director Felicia Mariani was scathing of the Abbott stance. ATEC said it was a “scary concept” that tourism has been dropped as a cabinet portfolio and will seek urgent talks with Mr Robb.
“Tourism is the largest contributor to the country’s export performance in the services sector and the sixth largest overall within the export industries. As the only national industry association devoted to the development of Australia’s $28 billion export tourism industry, minister Robb must be fully engaged with ATEC in order to understand the needs and complexities of the thousands of businesses who comprise this critical industry,” said Ms Mariani.
“This is the first time in more than 40 years that we have not had a tourism minister and our members, and the industry more broadly, are concerned by this significant omission,” she said. “It is critical that we understand how
Mr Baldwin assured operators in his own constituency around Maitland that tourism industry will not be hampered by Abbott’s decision to split the tourism portfolio and not appoint a tourism minister.
However Hunter MP Joel Fitzgibbon did not share Mr Baldwin’s feelings and was concerned Mr Abbott had dropped the government’s focus on domestic tourism and its future would be gravely affected. “They are trying to argue that it is primarily an export market, which is partly true, but domestic tourism is very important and critical to Australia as well. It appears that in Tony Abbott’s eyes we’re not deserving of a junior ministry and I think that’s a sign of things to come,” Mr Fitzgibbon said. Gold Coast MP Steve Ciobo said, "I would be less concerned about the title and more concerned about getting the runs on the board."
MISCLASSIFICATION AS APPRENTICE LEADS TO UNDERPAYMENT A young worker at a Mackay business was underpaid $16,800 as a result of being paid apprentice rates between 2010 and 2012, despite his employer not officially registering him for an apprenticeship. Under workplace laws, only workers who are registered as apprentices with the appropriate State authority can be classified and paid as apprentices. Fair Work ombudsman, Natalie James, said the case highlights the importance of
classifying employees correctly. “Even a small error in calculating an employee’s base hourly rate can result in a large amount having to be repaid if it’s left unchecked, as occurred in this case,” Ms James said. “No business wants to face a big bill for back-payment of wages they weren’t budgeting for.” Ms James said when Fair Work Inspectors identify a problem and contact a business, most employers cross-check their records, realise they have made an error and fix it immediately.
A Hervey Bay resort receptionist underpaid the minimum hourly rate in 2010-11 has received $5200 in back pay after the Fair Work ombudsman stepped in. She is among a group underpaid Queensland workers back paid a total of $97,600 after intervention by the ombudsman. In all the cases, Fair Work inspectors helped the employers voluntarily back pay the employees and no further action was required, Ms James said.
resortnews | october 2013
Fair Work ombudsman, Natalie James
News In Brief
NSW KIDSAFE WINDOW LEGISLATION INTRODUCED
SOLAR POWER DELIVERS SAVINGS FOR STRATA SCHEMES
NSW minister for fair trading Anthony Roberts has introduced into parliament new window safety laws to help prevent children falling from windows in residential strata buildings.
As consumers feel the pinch of power price rises across Queensland and peak summer season lingers just around the corner, unit complexes trying to reduce bill costs by switching to solar power are facing difficulties convincing body corporate committees.
Mr Roberts said in 2011-2012, 39 children aged nine or younger were hospitalised in NSW due to window falls. “The suffering these children and their families have gone through due to a terrible accident is devastating,” Mr Roberts said. “Window safety devices provide the last line of defence to prevent a serious injury or death. The NSW government’s landmark new laws will help to save lives.” In March, the NSW government agreed to a range of measures, including an amendment to the Strata Schemes Management Act 1996. This followed a report by The Children’s Hospital at Westmead Working Party for the Prevention of Children Falling from Residential Buildings. Mr Roberts said that the NSW government will amend strata and residential tenancies legislation to require owners corporations to install safety devices on all windows
that pose a safety risk to young children, allow owners to install safety devices regardless of the by-laws of the strata scheme and to include window safety devices in the prescribed condition report for rental premises. “Owners corporations will be required to install safety devices that allow windows above the ground floor to open to a maximum of 12.5cm when the lock is engaged,” Mr Roberts said. “Residents will still be able to open their windows as they do now, however they will have the security of knowing that when the lock is engaged, children in their care will be protected from a tragic accident.” Chair of the Owners Corporation Network, Stephen Goddard, said the retro-fitting of safety devices is necessary because many housing strata schemes were built at a time when the community was unaware of the dangers. “The Owners Corporation Network supports any action the government takes to reverse the threat to life and safety from the amenity in a strata scheme.”
“The committee needs to be thoroughly involved in this
COURT RULING BACKS OWNERS CORPORATIONS The NSW Appeals Court has overturned a 2006 Supreme Court ruling that the owners of the Hunter Connection, a commercial strata complex in Sydney, had to upgrade the complex's air conditioning system to accommodate three new food outlets. According to the Sydney Morning Herald, appeals court judge Reginald Barrett said "replacement connotes no more than the installation of one thing in the place of another to achieve functional equivalence", adding that "anything amounting to alteration or addition for the purpose of improving or enhancing the common property is beyond the concept of renewal or replacement". So it is now settled law that common property in good repair and operating as intended does not have to be renewed or replaced, says leading strata lawyer Beverley Hoskinson-Green.
Archers Body Corporate Management is encouraging unit owners to explore solar power as a viable option for reducing personal and strata energy costs and director Sharon Withford said there were three main points unit owners should consider before approaching their body corporate about solar panels. “System cost is often the most disputed factor among unit owners in the solar decisionmaking process,” Ms Withford said. “The committee should investigate and shop around for the best price and system available and then recommend appropriate system for approval by owners at a general meeting of the body corporate.
“The owners corporation does not have to deal with any future eventuality to meet a demand the instant a lot owner might make it.” Owners corporations are legally compelled to maintain and repair common property but the NSW Appeals Court has ruled that simply means replacing like for like. It doesn't mean bringing services and infrastructure like lighting, plumbing, power supplies, lifts or phone lines up to modern standards. Executive committees can now reject individual owners' calls for, say, increased electrical capacity for airconditioning or improved plumbing to deal with additional bathrooms. The ruling could have a major impact on the roll-out of the national broadband network as owners corporations will be able to argue that it's an optional improvement rather than a compulsory replacement.
research and must work to keep all owners informed of the benefits of solar to the building. It’s important to consider where the solar panels will be placed and how the placement will affect the structure and aesthetics of the building in all weather conditions. There have been cases where the weight of the panels or the method of attachment has been detrimental to the building and panels have come unstuck in wild weather.” Ms Withford said many owners would make their decision based on how much money they could save and how quickly the initial expense could be paid off. “The good thing about solar is that owners can often see the savings by the next bill cycle, which provides some instant gratification,” she said. “The pay-off period can vary quite dramatically based on system size and the building’s total energy usage. To find the right system for your complex, it’s best to contact a solar provider and obtain a proposal that’s tailored to your building.”
VCAT TAKES OVER DISPUTES RESOLUTION From 1 October, Victorian residents of company title properties and stratum title subdivisions will have a more efficient way to resolve neighbourhood disputes. Currently, residents must go to a court to resolve disputes about matters such as noise, residents’ conduct, use of common areas, unit repairs and maintenance, and pets. Under the new Company Titles (Home Units) Act 2013, these disputes will be able to be heard by the Victorian Civil and Administrative Tribunal. VCAT will have powers to make orders and impose penalties. However, it will not be able to alter a person’s shareholding or otherwise affect a company’s corporate governance. The new legislation is expected to save time and money for residents and companies. It
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also brings their dispute resolution framework into line with that for owners corporations. Under company title, a property does not have a plan of subdivision but comprises a number of units. A company title corporation, established under the Corporations Act 2001, is the registered proprietor of the entire property. Buying shares in the corporation entitles each shareholder to exclusive use and occupation of a unit. Stratum title pre-dates modern strata title subdivisions. Under stratum title, the property is subdivided into lots. Each unit owner is the registered proprietor of their lot and also holds shares in a service company established under the Corporations Act 2001. The service company owns and manages common property.
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industry Special Report: Music
Using music to heighten guest satisfaction
Larry Mogelonsky LMA Communications Inc
Music can have a profound psychological effect on your mood and how you experience your surroundings. Not hard to understand.
sought out Noel Steen, creative director at Music Direction, to talk about some of the work his company is doing to build branded playlists for hotels, resorts and venues, and to help link consumers’ memories to specific locations. Can you elaborate on some of the psychological effects of matching music with the desired atmosphere of a room? There is no doubt that music has psychological effects on the consumer. The atmosphere of a room is the product of the various elements in that room: colour scheme, lighting, décor, temperature etc. If the music compliments or 'matches' the atmosphere of a room, a more complete and comprehensive experience is created. When all the elements of a brand experience are consistent, the personality of the brand is more clearly communicated. This ultimately
With this as a precedent, it is very important to match your selection of music to the experience you want your guests to have when they are present in a certain room or part of the accommodation complex. Playing distinct and identifiable songs at the right moments can help solidify a memory in a guest’s brain so they remember your property in a more positive light and so the memories remain vivid for a longer period of time (thus aiding with word of mouth). Via these pathways, music can be used to increase overall guest satisfaction. With this as the purpose, I
creates a more memorable and unique experience for the customer. Substantial research has been done on this in the retail sector; studies showing that up to 70% of buying decisions are made in-store, listing the music playing as a contributing factor. Explain the term ‘daily dynamics’. Daily dynamics refers to the fluctuations in energy levels in a business throughout the day; the ebb and flow of customer visits during peak and non-peak times. It also refers to the different moods or attitudes that people have throughout the day: mornings, afternoons, evenings. Our playlists are designed to match the brand as well as the time of day or service segment. How do you create branded music? How does this bolster an accommodation's identity?
We work closely with all our clients to design a custom music profile that’s in line with their brand. A variety of factors are taken into consideration: the mission statement, the design elements of the location, the product offering, the target demographic etc. Our playlist designers handpick each track to ensure it communicates and strengthens a brand's personality. And when the music compliments the other design elements of an accommodation complex, the mind forms a more complete and rich experience. This brand recall elevates the identity of an accommodation complex by projecting the attitude of the brand, whether it's modern, traditional, luxurious or casual. Essentially, branded playlists provide the soundtrack to the business. What particular consumer needs are you addressing through custom playlists?
Bartercard is a business and lifestyle opportunity for investors/owners within a holiday letting pool who want better value and returns from their investment from their property
Accommodation Strata Owner/ Investor
> Create higher OCC levels for owners
unsold room nights low season, at short lead
What to do with Barter Funds > Property enhancements, renovations & repairs
> Use empty, unsold room nights
to accumulate Barter dollars to be re-invested into an additional asset > Enhance personal lifestyle/leisure pursuits
> Generate a secondary income stream for owners > Opting in does not have any effect on the owner’s current CASH income stream > Managers can increase the value of their management rights business via higher OCC performance
Intermediatry/ distribution system/ channel
FIND OUT HOW! 12
Contact: Mark Ferszt Hospitality Product Manager M: +61 424 469 141 E: firstname.lastname@example.org
resortnews | october 2013
Progressive restaurateurs and accommodation providers are becoming aware of the importance of appealing to all five senses in an increasingly competitive environment. The music a consumer hears contributes to the environment to the same degree as interior finishes, furniture and product merchandising. A custom, branded music program addresses the consumer need for a more memorable experience. How does this good music translate into more revenue? First, our playlists elevate the cultural appeal of a room – be it a restaurant, bar or lobby café – encouraging guests to stay longer and purchase more. We’ve developed a particular talent for keeping guests in their seats, especially when it comes to increasing liquor sales. Second, music plays a subconscious role towards higher brand recall which
increases return patronage and recommendations to friends and family. Can you describe a few experiences you've had working with hotels? How did you adapt different music to different parts of the hotel? The Opus Hotel was Music Direction's very first client. I was contacted by the hotel's founder John Evans, before it opened its doors in 2006. John told me all about his vision for the hotel and the important role that music would play in creating the atmosphere and brand personality. John explained that Opus Hotel was to be a boutique hotel with a modern French flare. He wanted an entirely custom music program that would communicate his brand concept. As Music Direction didn't exist yet, I went looking to find a service
that would meet his needs. No such luck. All that existed at the time were satellite providers with a limited number of themed channels to pick from. The only French music available was traditional folk songs and the likes of Edith Piaf – not what I was looking for. With the hotel’s opening date approaching, I decided to take matters into my own hands. At the time, there was a strong Nu Jazz movement happening in Paris from artists like St Germain and Llorca. This was the modern European flare that Opus Hotel needed. I loaded a ton of this music onto a computer and set it up to change playlists throughout the day automatically. Voila! Music Direction was born. With the proof of concept a real success, I built a team to further develop the technology. Opus Hotel now has a Music Direction Player installed in each
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area of the hotel: Opus Lounge, Cafe O and the restaurant, La Pentola. The specifics of each area on considered when designing the playlists. The interior design, lighting, product offering and hours of operation all influence the selection of tracks included. LARRY MOGELONSKY is the president and founder of LMA Communications Inc, an award-winning, full service communications agency focused on the hospitality industry (est 1991). Larry is also the developer of Inn at a Glance hospitality software. As a recognised expert in marketing services, his experience encompasses Four Seasons Hotels & Resorts and Preferred Hotels & Resorts, as well as numerous independent properties throughout North America, Europe and Asia. Larry is a registered professional engineer and received his MBA from McMaster University.
Don't call me Sweetie Roberta Nedry Hospitality Excellence Inc
“Hello Sweetie! What can I get you?” “Hey Honey, let me help you with that?” “Let me put you on hold, Doll, while I check for you.” Aaaaggghhh! I don’t know these people! Do they think they know me well enough to forego all formalities? Why are they using such familiar terms upon our first encounter? I can actually feel the hairs on my neck stand up one by one when I hear these names. In a society that is often much less personal than it used to be, this is the other extreme way more personal than appropriate. Terms of Endearment was a fantastic movie and emotionally riveting. Terms of endearment from my husband or son are meaningful and touching. Terms of endearment from a waitress, valet or hotel employee are not any of these and, in fact, are annoying, inappropriate and sometimes offensive. Why do employees use familiar or intimate terms with those with whom they are not familiar or intimate? The way employees address a guest can make such a positive or negative first, last and middle impression. When employees serving guests and customers use these terms, they risk creating “uncomfortableness” and uncertainty. In some cases, while attempting to be friendly, they may instead be offending the guest. Instead, focus on other options that universally will be accepted and positive and get the experience started on the right foot with the words to follow. Greeting a guest is the first powerful moment to make an impression. When a cheerful hello or welcome is made, followed by that employee’s own name, the guest experience can begin to flow and both guest and employee are on sure footing. If a promiscuous greeting is made, the guest may be thrown off and the experience begins with uncertainty and possible discomfort. When an employee introduces themselves, they have
“Why do employees use familiar or intimate terms with those with whom they are not familiar or intimate?”
begun to build a relationship with the guest versus the one-sided aspect of only calling the guest by name. It also makes it easier for the guest to call upon the employee by name, instead of “waiter” or “housemaid". Employees, like guests, also like to hear their own names. As Letitia Baldrige, the renowned protocol and manners expert once said, “People like to have their names and titles remembered and stated correctly; it’s one of the ‘emoluments’ to which one feels entitled.” I admit I had to look up the word emolument but I loved its meaning of “a form of compensation” to capture the feeling of recognition and a form of reward from hearing one’s own name. And though friendliness is one of the most basic guest needs, you have to become friends first! Actually once a connection is made, knowing the guest’s name can make the most personable and appropriate impact. Saying hello to “Mr Johnson” or “Ms Smith” shows respect and recognition for loyal patronage. Once a regular guest or customer says, “Please, call me John” or “you know me by now, please call me Doris”, then the employee can make the next less formal move. Now, a gracious approach has been made and gracious permission has been granted. Both guest and employee can feel comfortable and empowered to be on more familiar terms. However, the employee must still always take care and still use respect and professionalism even on this level. As Ms Baldrige
notes, “If you have to stop and think about whether or not you should use a person’s first name when you greet him, the answer is you should not. Familiarity does indeed breed contempt and no one likes to be addressed by his or her first name by someone who does not have the right to do so”. I remember this so well as a young girl. A few times, some of my friends would address my mom by her first name, without her permission. She was always Mrs Nedry so this completely caught her off guard and I’d notice a red flushness in her cheeks. She was too much of a lady to say anything but I knew those friends were placed in her own version of a “contempt” box. I made sure never to do the same, knowing how uncomfortable it made my own mother. In some cases, using sir or madam, may be more appropriate. Age and title distinction may warrant more formal salutations. When more senior guests show up, they may appreciate respect for their generation and a time when formality was more common. They may appreciate “Yes sir” and “No madam” and feel like their longevity has earned them those titles. If those senior guests then request less formality, the employee has permission to do so and has followed a gracious protocol. Dignitaries may also warrant formal salutations by virtue of their positions and titles. Showing deference is important. As Letitia Baldrige states, “Deference is defined as high regard and respect owed an elder or superior and we should pay deference to
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visitors from the outside (beyond our organisation’s walls).” Employers should determine standards for greeting guests and better define formal and informal possibilities. Using nicknames with fellow employees can also undermine a guest or even an employee experiences. Back to “sweetie,” “honey” and the plethora of other clever and catchy names, don’t use them in any public environment, especially where the guest is being served. Another problem with using nouns other than a person’s last name is they can sound patronising, even without that intention. Perhaps a guest has a lot of questions and the employee is getting frustrated. An employee may attempt to use one of these terms to calm the guest down. Be prepared. They will become less calm. Keep the terms neutral and professional at all times. Each of these thoughts applies to phone service delivery as well. Professional salutations are especially important as are employee name introductions. Without in person contact, the opportunity for misunderstanding or miscommunication can be greater. Do not allow that to happen by offending the caller with terms of endearment. Do introduce yourself and ask for permission for how to address the caller. The words and tone of those words will lead the call’s effectiveness and impact. Be aware of how jargon can “jar” guests into being gone! Understand how little words make big impressions and focus on the ones that make the guest experience difference. ROBERTA NEDRY is president of Hospitality Excellence, Inc, leaders in guest experience management. Ms Nedry has developed a unique 3D Service methodology to take guest service to the next level. Her firm focuses on guest, customer and client service, the concierge profession and service excellence training for management and frontline employees.
industry ARAMA Report
Branding tourism and the way forward The tourism industry in Australia continues to take up the challenges of economic revitalisation and, as one of the four pillars for growth, is a vital business element for Queensland and Australia. We are already seeing the benefits of a more prominent focus on state and regional events underway and a recognition to market opportunities for domestic visitors as well as overseas tourists. The recent Griffith University hosted Strata and Community Conference clearly identified the interest in Australian accommodation opportunities as we had discussions and visitors from New Zealand, America, Canada, Singapore and Dubai to provide a genuine international input into the community and strata title industry experience in Australia. It is important to note that within the next 20 years, as many as one in four Australians will be living within a density living complex and that whilst we have a diverse tourist industry with many layers of accommodation opportunities, resort complex, small medium and large, still remain the most popular holiday accommodation opportunities. It is pleasing to note that new initiatives are continuing to be rolled out to help maximise the holiday atmosphere of local and regional economies, for both Australian and international holiday makers as well as business and conference travellers. I am excited that the G20 conference to be staged in Brisbane next year will see some 3000 media specialists coming to cover the deliberations and will be filing back their impressions of the land down under and its attractions as they report the issues of what we all hope will be the continuing global recovery. ARAMA is please to see the work that Tourism and Events Queensland are well underway with their objective to enhance the profile of Queensland. The drivers for TEQ is to ensure that there is genuine added value of its
Bill Kemter National President, ARAMA
“...TEQ is keen to genuinely measure the performance of reporting broadcast media values...”
branded messages communicated through the broadcast of major events it supports. As a significant initiative, TEQ will at times cover between 50% and 100% of costs of broadcast media value reports. In arrangements where event organisers will cover 100% of the cost of the reports, event organisers will be required to employ a TEQ endorsed provider. The TEQ strategy requires a consistent methodology to value its branded messages within the broadcast of major events it invests in. This will ensure that messages may include branded signage, including event specific signage and media backdrops, and post carding footage such as Imagery of Queensland destination referencing and promoting the event location and onscreen branding together with verbal mentions. This type of initiative will assist in measuring the "bang for the buck” and provide us all in the tourism industry with update promotional material and real outcomes of what works and what needs to be done to make sure that we communicate successfully with domestic and international visitors. We know that visitors not only come for the sun, surf and relaxation but they come for business, educational, sporting, recreational and cultural conferences to name just a few, special events, concerts and a diverse range of sports and reunions. The TEQ strategy to gather accurate data communication data through a breakdown of value across brands such as domestic and international totals, signage, post carding
footage and total exposure, audience figures and most valuable sources and markets. The brands associated with these messages include the corporate Tourism and Events Queensland and destination brands, such as Queensland – where Australia shines. The challenge we hope, will be the ability to capture and manage assessment of multiple projects simultaneously and of course to
provide value added services. The 21st century throws up many competitive challenges in business, as competition continues to grow in the holiday and travel industry which is such an important answer to the accommodation industry. The important part of attracting people to come a visit recreation centres, whether they be in cities or special spots, or for the travelling tourist is a challenge for us all in ARAMA. We all have a role to play in growing the business and it is important that we will be able to tap into new research resources which may help us all in our business development programs. Australia is well and truly on the world map of attractive destinations and we need to ensure that we are prepared to deliver not only to visitors, but to the group’s who invest in staging events of all descriptions.
MIKE PHIPPS FINANCE ACL (364 314)
management rights and accommodation specialists
fresh ideas... Mike Phipps Paul Grant
resortnews | october 2013
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industry NSW Strata Report
Be careful with your proxies! Col Myers Small Myers Hughes
In the June edition of Resort News, I wrote an article headed Proxy farming that set out the relevant restrictions on caretakers using proxies to vote on motions which confer a “material benefit” on the caretaker (such as a top-up or variation of the caretaking agreement).
“...The important question then is, in what circumstances will a proxy be deemed an agent of the caretaker?...”
As part of that article, I touched upon the issue of caretakers using another person (eg spouse, family member, friendly owner) to hold proxies on behalf of owners and use them in a way that confers a material benefit on the caretaker.
manager or a strata managing agent is invalid if it would obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on, the proxy.”
The relevant section of the Strata Schemes Management Act 1996 schedule 2, section 11 (7A), simply provides: “A vote by a proxy who is a caretaker, an on-site residential property
Unlike the Queensland legislation (which does not have an equivalent section because of the restrictions on the number of proxies that may be held), the SSMA does not define
‘associates’ of the caretaker. Accordingly, there is no express prohibition on an associate or related party of the caretaker exercising proxies to the caretaker’s benefit (presumably, however, the restriction would apply to officeholders or shareholders in the case of a corporate caretaker). As alluded to in my earlier article, the risk of such proxies being declared invalid lies in the common law doctrine of agency. In a matter I was recently involved, a CTTT strata schemes adjudicator accepted that if the proxy holder was acting as an agent of the caretaker, the proxies would be captured by the prohibition in the SSMA and, therefore, invalid. In fact, the adjudicator actually went as far in his decision to re write schedule 2, section 11 (7A) of the SSMA as follows: “A vote by a proxy who is a caretaker, an on-site residential property manager or a strata managing agent [or by a proxy who is an agent of a caretaker, an on-site residential property manager or a strata managing agent] is invalid if it would obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on, the proxy.” The important question then is, in what circumstances will a proxy be deemed an agent of the caretaker? An agent, by definition, is anyone who acts for or on behalf of someone else (as opposed to acting in their own interests). Accordingly, regardless of who holds the proxies and how they are solicited and collected, if it
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can be established the proxy holder is using the proxies to vote under the direction of the caretaker, such proxies could be declared invalid. The difficulty for a person seeking to contest the proxies, however, is establishing such agency relationship exists in situations where the proxy holder has solicited/collected the proxies and is acting under discreet instructions from the caretaker. Further, it would make it even more difficult to establish an agency relationship if the proxy holder is also a lot owner and so has a personal interest in the outcome of the motion. Nonetheless, it appears the only way to fully overcome any risk would be to ensure owners direct the proxy holder (on the proxy form) how to vote on the particular motion – essentially turning the proxy into a voting paper. Moreover, a neutral party (such as the secretary or chairperson) could be given the proxy, rather than someone associated (in any way) with the caretaker. The proxy holder, whoever it may be, will be required to vote in accordance with the owner’s instructions on the proxy form. All this begs the question why the New South Wales legislature has persisted with the current proxy model for so long. As stated in my earlier article, the fight for proxies on important issues affecting the caretaker (and strata scheme more generally) can be the root cause of a lot of resentment within the building. Perhaps it is time for New South Wales to move to the Queensland system of voting papers so owners can have their say simply by circling “yes” or “no” on the voting form and returning it to the secretary or returning officer before the meeting. It seems fundamental that absentee owners should have the right to have their say without the risk of their proxy being declared invalid.
industry SCA Report
Fining of illegal parking offenders key to resolve issue
Simon Barnard President, SCA (QLD)
In a welcome move, the Newman government has last month pushed for consistency in fining illegally parking motorists for parking in disabled carparks. Strata communities have had ongoing issues with motorists parking in reserved car parks such as visitor car parks, allocated exclusive use car parks and disabled car parks, that has affected strata properties by disrupting and blocking ease of traffic on the private properties. The Newman government has recently announced an increase in fines for those caught illegally parking in disabled parking spaces. From early October fines increased from $44 to $250 and it is hoped that this will act somewhat as a deterrent to those people who ignore the law and park in disabled parking spaces. Queensland police officers have the power to issue fines for vehicles illegally parked in disabled parking spaces even if the offence occurs on private property. Unfortunately, SCA (QLD)’s lobbying efforts in 2012 were answered with the reply that it is too hard to administer such a scheme in strata titled communities. While the higher fines are a very welcome move, the issue of illegal parking on common property is yet to be resolved and would seem a long way off but there may be some light at the end of the tunnel and it may come from our cousins in NSW. Recently, in an article in the Sydney Morning Herald, readers may have been surprised to learn that the NSW government was looking at the issue as part of its comprehensive strata law review which is expected to have some effect on the Queensland Property Law Review. Flat Chat columnist Jimmy Thomson said that, “Concerns over illegal parking in strata schemes near railway stations and office developments – and the possibility of apartment and townhouse owners taking the law into their own hands – has prompted Fair Trading NSW and local councils to investigate having parking officers allowed into strata schemes to ticket illegally parked
what they originally appeared to be. Earlier this year Sunshine Coast media reported about such an incident where Betty Burton was slammed with the $4000 bill to fix her damaged, leaking ceiling in her Mooloolaba unit. Such cases of damage emerge after heavy bouts of rainfall in Queensland can result in extensive damage to property and to the hip-pocket if not dealt with immediately.
“...Queensland police officers have the power to issue fines for vehicles illegally parked in disabled parking spaces even if the offence occurs on private property...”
cars.” In the article it suggested that local government parking officers might be invited to patrol parking on common property and issue fines for illegal parking especially around railway stations where the practice is becoming more and more common. If this proves successful then SCA (QLD)’s case for doing the same hopefully will gain momentum. Around 15 months ago we called on various local councils, including Brisbane City Council to utilise its parking inspectors against drivers who park illegally on private property. We will have to see how this issue evolved and hope for a positive outcome in NSW. On another note it is timely for everyone living in strata titled communities to check insurance policies and to prepare now for an early storm and bushfire season. The unseasonal hot weather throughout the state is worrying as for body corporate managers any damages to strata property result in lengthy recovery and repair processes that may be avoided by looking at the fine print in contracts. By law, every body corporate has a system in place that allows its committee members to report issues and have them rectified. However, if repairs are not made in order to prevent further damage, costs may be placed on the owners and not covered by the body corporate insurance. With the start of extreme weather leading into summer, it is best to review your insurance and make necessary repairs before and during the storm season and unpredictable summer months ahead. There have been reports
last summer where repairs were not made to leaking roofs and the result has been an extensive amount of damage and roof repair bills being footed by the individual owners of the property. Unfortunately, owners are being socked with bills because repair work has not been brought to a head in the body corporate function and therefore neglected, with results that are worse than
One of the most important things to note for people living in strata is to know where your property ends and where the common property starts. From time to time this can be critical in determining whose insurance is to cover damage. Common property is an item for the body corporate to take care of and is always marked clearly in the title plans.
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resortnews | october 2013
industry Griffith Strata Conference 2013
Strata manager commissions a hot topic Griffith University has hosted the biennial Strata and Community Title in Australia for the 21st Century conference since 2005. The conference has now established a reputation and tradition that places it in a strong position to attract industry leaders from a range of sectors and countries and to develop a well-orchestrated, topical and provocative agenda to be delivered by top quality speakers. This year the conference, held from 4–6 September, had a focus on developer/builder responsibilities and defects, climate change effects on strata titles, insurance commissions for strata managers, by-laws, the upcoming law review as well as other topical issues. From the Queensland Body Corporate Association position and in consideration of the areas of concern raised by members and the public through our office, the following issues raised during the conference need further consideration for action: •
Full access for owners to all
electronic strata documents; how do we create full access? •
Strata manager insurance commissions; will they be legislated out of existence?
Quote processes for all strata managers' commission quotes; is an escrow system needed?
Insurance legislation; will there be a change to allow mutual schemes for strata?
Strata developer bonds and on-going participation; is a developer bond needed?
Unlimited liability for owners; does this need to change to only the assets of the strata?
Strata managers' licensing; does this need to be nationwide?
Code of conduct for strata managers; who should monitor and apply?
I will cover the QBCA viewpoint on each topic here. Full access for owners to all electronic strata documents - The move towards electronic meetings and document storage is significant and legislation or regulation must
keep pace with the changes. While there is a requirement for full access to all strata records for an owner or a person with valid reason (eg a potential buyer), except for records that may be under current litigation, the reality is that a person searching the records will be provided with limited hard copy documents. There is no computer provided with a master password to permission only files. Solution: A master-password portal for full access to strata documents must be provided for owners and interested parties. Strata manager insurance commissions - From NSW we are hearing there may be legislation that stops strata manager insurance commissions entirely. The whole area of strata manager commissions needs to be placed under close scrutiny, not just insurance commissions. The fact that a manager receives a commission is not the real issue, it is the process that leads to a manager receiving a commission from “preferred suppliers”.
We know an owner or the committee, may bring alternate independent quotes to the manager prior to any quotes being voted on. However, the current process sees the manager in a position of privilege and with higher-knowledge prior to quotes being placed on a meeting agenda. This is where the current process fails the strata industry. This allows the manager to ensure their preferred supplier quote comes in under independent quotes. Some say “that’s great, it lowers the price” and this may be correct in the first year. The second year will see other businesses unwilling to waste their time and resources to quote, and by the third year of preferred supplier quote acceptance there may only be one quote as other businesses drop away. The insurance industry is valid example of this problem. The fourth year, up goes the price, competition is gone. The QBCA viewpoint is that the current process allows anticompetitive behaviour, insidertrading behaviour and conflicts of interest.
Schoolies season – body corporate management issues As we approach the 2013 schoolies season it is timely to revisit the discussion about behaviour management in schemes providing accommodation to the annual influx of school leavers.
access to balconies.
It is especially important to do so following last year’s tragic events involving falls from high-rise balconies both during the schoolies period and earlier in 2012.
By-laws and scheme management - The by-laws for a community titles scheme provide the mechanism under the act for the body corporate to control and manage the scheme property. The registered by-laws for a scheme can usually be found in schedule C of the Community Management Statement for the scheme.
Access to balconies - In focussing attention on how to prevent tragic accidents it is important to examine the scope for body corporate action, including whether it is possible to restrict
Under the Body Corporate and Community Management Act 1997, a body corporate has control over the common property. However it cannot unilaterally take action such as locking doors to restrict access to areas within a lot.
A body corporate may make
‘house rules’ to guide the use of common property and amenities such as a pool or tennis court. However, while ‘house rules’ might provide useful guidance, they are not enforceable unless they are registered as by-laws in the CMS. The act places some limits on the scope of by-laws. Importantly a by-law may not discriminate between types of occupiers. This means, for example, that a body corporate cannot prevent a schoolie from using parts of common property that other occupiers are entitled to use and for which there is no exclusive use by-law. A by-law also cannot prevent or
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restrict a transmission, transfer, mortgage or other dealing with a lot. This means, for example, that the body corporate cannot force an owner to include a condition in a tenancy agreement precluding use of balconies. The body corporate is nonetheless responsible for enforcing the registered by-laws. The body corporate may give a contravention notice to an owner or occupier where it reasonably believes that the person has contravened a by-law and where, given the circumstances, it is likely that the contravention will continue or be repeated.
Solution: QBCA has proposed an independent escrow system be created for all quotes where a manager’s preferred supplier commission is included. Who pays for this? The system can be electronic and paid for by those using the service. Insurance legislation - Two of the major problems facing bodies corporate through Queensland’s current law, is the requirement for a body corporate to hold replacementvalue insurance for the building, and to have the policy-name in that of the body corporate. While there is allowance for the body corporate commissioner to waive the replacement-value requirement if insurance cannot be obtained at all or at a reasonable cost, this is usually only permitted for an agreed-value policy. The current approach of policy-name is very restrictive when there is a very acceptable mutual “assurance” scheme available. In our view it is clear that while mutual schemes do not have stamp duty factored in for government that they will be not acceptable. Solution: The mutual schemes approach used extensively by Victorian councils, professional sports people and franchises should be permitted. These schemes have
an annual “contribution” similar to a premium paid in by the entity being covered. Where there are less claims than funds held a discount for the next years contribution is given, up to 65% in past years. If claims were to exceed funds held there is an umbrella insurance policy. There is no commission payable, there is actuary and administration fees paid from the fund. If this fund could supply the government stamp duty we could see the law changed to allow more agreed-value and mutual schemes. Strata developer bonds and on-going participation - Building defects and developer disappearance were covered extensively within the conference. The overwhelming submission from delegates and the panel on this topic was the need for developers to be held accountable for their developments. Solution: There was a suggestion that a bond of around 2% of the development cost could be held by government in trust for around six years. This would be contestable by the body corporate much the same way as residential tenancy bonds are held. The positive side to this is that there is a real incentive for development companies to not disappear through
liquidation, bankruptcy or other means. What would happen to the bond if the developer did disappear for the six-year period is something to be addressed. Unlimited liability for owners - This topic took many in the conference by surprise. Apparently if you do not have sufficient liability cover for the body corporate and someone makes a claim that exceeds the cover the liability goes through the body corporate to each owner. The liability is joint, several and unlimited. Solution: A body corporate has many strong similarities to a trust, with a board/committee, with assets administered for beneficiaries/ owners. This should be extended to where some trust structures have liability limited to the assets administered. A body corporates liability should be limited to the assets of the body corporate only. Strata managers' licensing - In Queensland there is no requirement for licensing or even a minimum level of qualification for a strata manager. The combined total of funds held over 277,000 bodies corporate funds in an average daily balance exceeds $4 billion nationwide, with Queensland's share being over $1
billion. Any manager may have direct debit powers over considerable sums of body corporate funds. This is completely unacceptable. Would you hand your bank account passwords over to a virtual stranger, of course not. Solution: QBCA supports the call by the Strata Communities Australia for nationwide licensing. Further QBCA supports the SCA as the organisation best suited to administer the licensing as an industry self-regulated scheme. Code of conduct for strata managers - The position on this in Queensland has comparisons with the wild west of America in years gone by, yes there laws but the application of the law is sparse. Solution: Managers will fall under the previous topic if selfregulated licensing begins but failing that we can only hope the government department with jurisdiction for the act and regulations for bodies corporate will take proactive steps to ensure the integrity of the body corporate sector is maintained by monitoring and applying the code of conduct. By Errol Anderson, CEO, Queensland Body Corporate Association
Robert Walker Commissioner for Body Corporate and Community Management
The purpose of this notice is to require the person to remedy the contravention. Under sections 182 and 183 of the act, the decision to serve a contravention notice can be made by the committee or by the body corporate in a general meeting. There is no provision in the act to delegate the enforcement powers to a letting agent. However, the letting agent may report alleged contraventions to the body corporate through the completion of a form 1 notice (available from the BCCM Office or at www.justice.qld.gov.au). If an owner or occupier does not comply with a contravention
notice, the body corporate can lodge a dispute resolution application with the Office of the Commissioner for Body Corporate and Community Management or an application for enforcement procedures with the Magistrates Court.The body corporate cannot seek to enter a lot merely to see whether the by-laws are being complied with. Under section 163 of the act, a body corporate or a person authorised by the body corporate, may enter a lot only in order to perform work or find out whether work is necessary. The examples cited for section 163 do not extend to general by-law matters, such as to check
the use of balconies. In light of these limitations it can be a challenge for a body corporate to ensure that all occupiers (including owners, long-term tenants and those on a short-term holiday) can safely enjoy the facilities on offer in the scheme. Balancing the commercial interests of investment owners against the safety interests of persons enjoying the lots and common property can present greater challenges. An important first step to achieving these goals is to explain to guests the by-laws, facilities and requirements for behaviour on the scheme as soon as possible, preferably before
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entering a lease agreement. It should be remembered that an owner who leases their lot has additional options to regulate the use of the lot under the Residential Tenancies and Rooming Accommodation Act 2008, beyond those available to the body corporate. The body corporate may wish to put forward a proposal to owners individually about how best to regulate use of balcony areas and ensure safety during schoolies season. Ultimately, locking balcony doors or including a condition restricting balcony access in a lease agreement is a decision for owners.
management By All Accounts
Business structures and protecting your assets from business failure The right business vehicle for you. Semi-trailers are not used for fast food home delivery, nor are motor scooters used to transport heavy machinery. Which vehicle to use may be self-evident but when it comes to the financial success of your business, the stakes are too high to run the risk of not setting up the correct business structure for your needs. The purchase of a business usually involves a sizeable investment of money and, as with most investments, comes with an element of risk. If you are buying a business, asset, company or group of companies, taking the time to organise a thorough “due diligence” prior to the purchase of a business or asset is essential for purchasers for identifying and minimising the risks. Due diligence is carried out by the purchaser, in close cooperation with the vendor. It is the last stage of the buying process when the purchaser should get full access to the company’s books, records and files to systematically evaluate information to identify risks and issues relating to a proposed
transaction. The point of the process is to determine at what valuation and, under what terms, to invest in a company or business. The process should also identify any areas of risk or liabilities that may not have been disclosed (or understood) by the vendor. Documents such as financial statements, budgets, legal documents, employment records and contracts, operations plans, marketing plans and materials are all fair game. The purchaser may also ask to speak with existing and former suppliers and purchasers, as well as some staff. Where stock and fixed assets are being acquired, it is also customary for a stock-take and fixed assets inventory to take place. With this amount of commercial exposure at risk, it is essential that legally tight confidentiality agreements are in place. While some of this research is the onus of the purchaser, of course your accountant is an important ally in verifying the financial information and assisting with determining an appropriate offer. A purchaser should begin by compiling:
A detailed listing of the exact due diligence steps to follow
A checklist of everything to complete in each due diligence area
Specific due diligence tasks that need to be completed
All of the materials needed from the vendor before commencement
But beyond financial considerations are also some important cultural considerations that need to be managed throughout the process. For example, who inside the organisation is to be made privy to what is going on? A balance needs to be struck between those employees who reasonably need to be made aware that the business is for sale and those who don’t. For the vendor, if the purchaser intends to take over the business with much or all of the staffing structure in place, then it is important to take every possible step to ally the fears of staff. The better the frame of mind that staff members are in, the more likely they are to provide truthful and positive information to the purchaser making enquiries of them.
Of course, the size of the transaction and the nature of what is being purchased, the relationship between purchaser and vendor and even the degree of government regulation will all determine the scale, scope and duration of the due diligence process. If you are selling your business, preparing in advance for the sale of your business by having your records up to date and available will assist the sale process and help to ensure you achieve close to your asking price. On the other hand, as a purchaser, conducting a thorough due diligence will help ensure you are not paying more than you should for your investment. A thorough due diligence process will have a checklist with anywhere in the vicinity of 70 items to review, depending on the investment. The checklist will cover many issues in the areas of: •
Debtors and creditors information;
• Inventory; •
Letting agency issues It is good to see that recently ARAMA has concentrated on reinvigorating the management rights arrangements for all existing managers who are members by holding workshops to cover particularly the onsite manager's letting agency. I am very pleased that our firm is playing an integral part in covering this important area with managers at the workshops. At the recent Brisbane workshop there was a lively discussion through questions and
answers involving Danny Little and myself along with Trevor Rawnsley of ARAMA. Danny is now a very knowledgeable consultant to the management rights industry, where he will assist managers with many aspects of their management rights business arrangements, by applying his extensive experience and knowledge. Danny was able to run through a great deal of information and give business tips to assist managers in their dealings with owners, bodies corporate and competing outside agents. The big message from him
was to know your business, know your owners and to communicate quickly and accurately with the lot owners, to show them that they are in the hands of the best equipped person, for the management of their lot. For my part, I was able to present from many aspects as I fill many roles: •
a knowledgeable lawyer with 35 years experience in management rights
a life member of ARAMA through my assistance to the
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an owner of several apartments, where I utilise onsite letting managers
an owner of apartments where there is no onsite management
a long serving committee member in a Gold Coast highrise holiday apartment complex
Understanding the position for both the on site letting agent, the lot owner and the body corporate is an important path for all managers to follow. The good news is that, from
Tony Rossiter Holmans
• • • • • • • •
Statutory records; Premises and lease; Financial obligations; Intellectual property; Related party transaction details; Computer and IT systems; Sales records and marketing information; and Other regulatory issues
Protect your assets from business failure - The threat of a forced sale of a valuable asset such as a family home is something that probably crosses most of our minds at one time or another. However, for business owners the thought takes on a whole new dimension with the added fears of facing debts arising from business failure or from being sued for negligence or damages. Increasingly we are seeing complex strategies once employed by corporate giants to shelter family assets now being used by business owners’ right through to selfemployed professionals or those running a home based business. Asset protection is all about drawing a line between your personal assets and business affairs
to minimise any personal liability. But just how effectively can you protect your assets and what is the best solution? The most common strategy is to move assets into a family trust that is controlled by other family members who are not at risk. That is, they have no legal control over the business. Another common strategy is to put the assets into the names of family members, say for example a spouse who again is not legally involved with the business. While certainly effective, both of these strategies have risks if not trade-offs of their own. For example, a family home directed into a trust is not exempt from capital gains tax and is liable to be assessed for land tax as an investment property. A way around this is to transfer the assets into the name of a spouse. This has the added benefit of minimising stamp duty and other transaction costs normally incurred if the asset is directed into a family trust. Simple solution? Maybe not so! The inherent risk involved in any asset transfer to a spouse is the possibility of divorce. While the Family Law Act allows for a reversal
of such a transfer the process can be, not surprisingly, lengthy. The Bankruptcy Act also provides for circumstances where assets can be clawed back by the trustee in bankruptcy. If an asset was gifted, or sold for a value of less than market value within two to five years of bankruptcy, or where it appears the asset was gifted with the intention of avoiding creditors your assets will not be protected. Another strategy to protect family assets not to be overlooked is the use of insurances. Professional indemnity insurance for company directors and senior executives separate work risks from personal assets, as does public liability insurance. The catch with insurance is that people often take for granted what is covered. A good idea is to not only ask your insurance company what your policy covers, but more importantly what it doesn’t protect you against. Being unaware about insurance and the details of your chosen policy can be an expensive exercise. Public liability cover is essential if you are running a home based business. Even if you have home
insurance in place, you run the risk of being personally sued for any damages without this extra cover. Finally, directing your long-term savings and investment assets into superannuation is another strategy used to protect assets. But this option needs to be weighed up against the relative loss of control as you are locking away your assets until retirement. In the end, the choice of asset protection strategies needs to be assessed on a case by case basis to suit individual circumstances. Your solicitor and your accountant can assess your needs and point you in the right direction. The most important piece of advice I can give here is to take action now to protect family assets from business risk well before the threat of insolvency. The information, recommendations, opinions or conclusions provided above are generic in nature and do not express individual advice. You should always consult your professional representatives before taking any action.
John Punch Short Punch & Greatorix
my experiences, onsite management wins by a mile for the letting unit owner. There is consistency and knowledge about the needs of the apartment for its letting that can be quickly communicated to the owner, compared to the offsite agents, who rely on continually changing staff, who have no real “hands on” knowledge of the property and do not have their money invested alongside the lot owners. The important legal and practical information given by me to managers attending the workshop centred on:
Building a strong relationship with every letting unit owner and with any new owner buying in to the complex;
Having the correct legal and professional relationship via a correctly completed Form 20a, regularly updated;
Understanding how the Form 20a works as regards the “fixed” sections, with a properly filled out assignment clause, and the added terms and conditions; Knowing of the possibilities of a 90-day right of termination
and the limitations on commission and management fees, applying to a Form 20a; •
Applying the code of conduct for letting agents under the BCCM Act;
Strict compliance with licensing requirements either with a RLA or a full licence whether or not utilising a corporate involvement;
Properly covering GST and compliance with the code of conduct when attending to lease back arrangements;
Looking for alternatives to
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lease backs, as developed by my firm, in order to properly protect management rights. The conduct of management rights by managers who have invested a great deal of money and time, also deserves a healthy knowledge of the law and the practicalities of its application, if we are to have a strong and sustainable industry. It is therefore very pleasing to be able to assist the industry with these types of workshops, as a part of ARAMA activities.
management Incorporate Bodies
Time is right for legislative review Tim Sheehan SSKB
I think the upcoming legislative review of the Body Corporate and Community Management Act has the potential to be one of the most significant policy reviews in this parliamentary term. So far, the review has been widely welcomed and we also have a great sense of positive anticipation about what it might deliver for all the stakeholders in the strata industry. The review of the Body Corporate and Community Management Act 1997 is part of the Queensland Property Law Review. Our strata industry has long been riddled with complicated amendments and superfluous regulations and what we believe the market needs now, is simplicity and certainty. The review is a step in the right direction for all industry stakeholders, including owners, body corporate managers and resident managers. While the Body Corporate and Community Management Act 1997 is world class legislation, a review brings the potential for further improvement, maintaining Queensland’s preeminence in the area of community living. The big area for improvement is cutting back red tape and making things simpler for all. Since Jarrod Bleijie has been in the position of attorney-general, he has made a point of ridding any unnecessary paper work, arguing it only creates more confusion and stress for all parties involved. He has abolished the warning statement on contractual agreements and will soon be abolishing the BCCMA form 14. That’s six pages of regulation and red tape buyers and sellers will no longer have to worry about by the end of this year. Mr Bleijie said if forms were not serving their intended purpose, they would be abolished. With contractual disclosure, it appears the principle of burying buyers in mountains of paper is what the government wants to avoid. There is a view people don’t read it anyway and it is red tape. However, there is a competing view that giving people the information
“...Committees need legislation that is clear, streamlined and free of confusion...”
they need does allow some people (who take the time to read it) the opportunity to go into apartment ownership with their eyes open. Balancing the competing principles will be difficult. It is important for owners to remember, that even if paper work is abolished, owners can seek advice from industry professionals, lawyers, property agents and body corporate managers. We use our knowledge and experience as community experts, to help educate owners with valuable direction and advice every day. Any changes in the review should allow body corporate managers and resident managers to focus on delivering great service to lot owners and residents. We have a system well established on the basis that a good, cohesive relationship between body corporate manager, on sitemanagement and the committee, produces exceptional results for property owners. The review should concentrate on maintaining this advantage. For lot owners, the lot entitlement system is back on agenda. After what can only be described as a game of ‘political ping-pong’, this is one area that will need to be reviewed with careful consideration. When a body corporate scheme is established, lot entitlements are set by the developer to decide how much each apartment will need to contribute to the overall strata budget. In Queensland, up until 1997; once the lot entitlements were set they were locked in place, and there was no opportunity to have them reviewed. In 1997 a review mechanism was introduced and
the formula the entitlements had to be reviewed against, was “equal unless just and equitable to be otherwise”. The adjustment was done when all the owners agreed or where one owner was able to obtain an order from a court or tribunal for a change to be implemented. However, it was the imprecise nature of the just and equitable formula where the confusion started. This confusion caused anger as owners who bought their apartments under one set of rules, could have the rules changed on them, which may have meant significantly increased financial burden. In 2011 the Labor government passed amendments that allowed lot owners, aggrieved by an order of a court, tribunal or specialist adjudicator for the adjustment of the scheme’s contribution schedule lot entitlements, to overturn that order simply via a motion to the body corporate or its committee. These adjustments inevitably again resulted in owners having to unexpectedly contribute thousands of dollars more, or thousands of dollars less toward body corporate expenses. In 2012 attorney-general Jarrod Bleijie introduced a bill that removed the controversial reversion process altogether. The bill ensured that provision no longer applied so no more reversions could be undertaken. Reversions that were currently taking place were stopped. The current review will look at how entitlements should be calculated (whether the just and equitable principle really works) and whether owners should have the opportunity to have the entitlements changed.
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With this review, Queensland needs to settle on a system that works and stick with it. People do not enjoy having the rules changed on them. This is a chance for all Queenslanders who own strata or community titled property, or who work in the strata industry to contribute to a positive outcome. The Queensland government will partner with the Queensland University of Technology taking sole decision making on policy out of the hands of politicians. The QUT academics that have been handed this review are well respected, highly knowledgeable and have been involved in strata for a long time. But ultimately, successful change will rely heavily on the input of people who are actively participating in the strata industry day in and day out. It’s often forgotten, body corporate meetings are usually run around a kitchen table at 7:30pm when neighbours get together. These are the people who can offer valuable feedback to the review panel. The legislation needs to provide a simple framework so committees can “do business.” Committee members bear a huge reponsibility. These people have to make decisions on behalf of all owners (both resident and investor owners) and often the combined value of the property they are looking after is in the tens of millions of dollars. Additionally, committee members must remain up to date with many pieces of technical legislation. For example the Work Place Workplace Health and Safety Act, where an owner’s life can depend on the committee being able to obtain the right advice from an experienced body corporate manager. Committees need legislation that is clear, streamlined and free of confusion. Whatever happens with the legislation, a good working relationship between all stakeholders is paramount. We believe that by working in partnership with all parties, we can make a positive difference in the lives of lot owners. We do that by educating, supporting and guiding owners in the right direction.
management Permanent Parameters
Should you build a rent roll outside your complex?
Mike Butler Director, RAAS Rights
When old “grey beards” like me qualified for a full real estate agent’s licence back in the eighties, it was not an easy qualification to get! Unlike today, you could not go to a classroom for five or six days and come out with a piece of paper to hang on the wall - and legally call yourself a real estate agent. The deal in those days was that practical experience was just as important as “book learning”. If you had not worked as a practical real estate salesperson for a year or two, you could not get a full licence. From memory, if you had not undertaken formal classroom education at a TAFE college and completed a large number of units, you needed six year's practical experience in real estate sales to get a full licence! Of course, this is not a foolproof system. As we all know, there are people who have ten years’ experience and then there are people who have one year’s experience, ten times! Some of the agents who received their licences in the eighties are just as silly, uneducated and incompetent today as they were then! But I digress. Today (whether I like it or not), it is easy to get a full real estate agent’s licence and this opens up some possibilities for on-site managers. Quite a few of the managers I deal with have their full licences and have decided to take the outside agents on at their own property management game. They are quietly building up a rent roll outside their complex! Question: Is this a good idea and what are the things to be careful of? The first thing you must be careful of is your responsibilities to your body corporate. Your prime job is that of caretaker/ manager of your complex! It is your number 1 business responsibility, and probably you owe your bank a lot of money as a result of your buying that business. At all costs, you must protect this position.
“...The first thing you must be careful of is your responsibilities to your body corporate...”
If your property management activities outside your complex come to the attention of your committee and it is deemed that this outside activity is detrimental to the effective performance of your prime contract, then there may be some angst. It might be a good idea to consult your management rights specialist lawyer to ensure there is nothing in your caretaking/letting agreements that would preclude you from running an outside rent roll from your on-site office. Another area to consider is your professional indemnity insurance. As I have said on many occasions, professional indemnity insurance is an absolute must whether you manage two properties or two hundred properties. Speak with your insurance professional to enquire whether your existing PI policy will cover your involvement with outside managements or only managements within your complex. It is too late to find out that you are on your own after disaster strikes at one of your outside rentals. Income from a traditional real estate agent’s rent roll is calculated differently to that from a management rights rent roll. You will not be able to simply add the outside income to your management rights P&L statement and use the same multiplier for the lot. It will be a little bita more complicated than that. Also, bear in mind that when you finally come to sell your management rights, the buyer may not be interested in purchasing the outside managements at all. This is not necessarily a big problem, as
there are normally plenty of buyers for small rent rolls that can be added on to an existing one. To make your outside rent roll as saleable as possible however, keep it confined to your general geographic area. Managements scattered far and wide are not an attractive proposition to a buyer. Nor are “dumps and dumpettes”! Don’t take on managements of run down properties.
You should only be interested in properties of the same high standard you have in your complex. Tread carefully and tread slowly. There is no reason you cannot build up a nice ancillary business and a valuable future asset, but never lose sight of what is your prime business, and that is your management rights.
Problems Prevented - Problems Solved
SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS... Over 35 years of service to the Management Rights industry, providing assistance in: • Buying and selling • Ensuring agreements comply with the law • Agreement negotiation with Bodies Corporate • Representations to Licensing Authorities • ‘Body Corporate & Community Management Act’ advice • Employee dispute resolution
resortnews | october 2013
Call Martin Punch for expert advice... Short Punch & Greatorix Lawyers
Ph: 5570 9304 Fax: 5539 8745 Email: email@example.com Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC Bundall Qld 9726
Is money becoming superfluous? Arvo Elias Cybercons
It is becoming harder by the day to keep up with the web and the mobile population it is creating at a pace. Just as one acquires the newest and latest skills one is almost instantly out of date. The paradox however is the return the days of the wild west , the likes of Wyatt Earp and the techniques that worked then being brought into the digital age. So here are extracts of the latest news published on the web. Indeed it would serve you well to heed some of these tales. Swiping, waving and tapping may soon become old hat. Just as consumers have become comfortable tapping or waving their credit cards or smart phones to pay for goods, PayPal has unveiled technology that enables consumers to pay without taking their phones out of their pockets. As an aside, I have used that service for a long time. The greatest advantage is that my personal financial data is only in one place rather than scattered all over the web. One week after launching new iPhone and Android apps that allow consumers to order and pay for purchases before they set foot in stores, PayPal has taken the idea of the digital wallet a step further with PayPal Beacon. “We challenged ourselves to find a better experience than swiping a credit card,” said PayPal president David Marcus. “We figured the only better way to pay would be to do nothing.” With Beacon, consumers who have downloaded the PayPal app need only walk into a store and when they’re ready to make a transaction the funds are then transferred securely to the merchant. Using Bluetooth Low Energy, rather than wifi or GPS, the merchant’s Beacon hardware detects when a customer with the PayPal app walks within 10m of the store. At this point, the merchant can attempt to engage the consumer with special offers, discounts or details of new products to steer them into their
“...the merchant’s Beacon hardware detects when a customer with the PayPal app walks within 10m of the store...”
stores. When customers take the bait, their photo will appear on the merchant’s compatible point-ofsale system. Customers only need to give verbal confirmation of the transaction for the payment to go through. Customers are then sent a paperless receipt via email and text to confirm the purchase. The Beacon technology is PayPal’s latest attempt to replicate its large share of the online payments market in bricks and mortar stores. By offering consumers faster and more secure ways to pay and enabling retailers to communicate directly with consumers via their smart phones, PayPal hopes to challenge the dominance of credit card companies such as -MasterCard and Visa. The mobile payments market is estimated to reach $97 billion in 2017, compared to $12.8 billion last year, according to Forrester Research. “We don’t expect cash or credit cards to go away,” PayPal Australia managing director Jeff Clementz told The Australian Financial Review. But as growing numbers of consumers use smart phones to research and pay for goods, PayPal is looking at ways to enhance the functionality of smart phone apps to improve the shopping experience. “The idea of queuing up to pay will change,” Mr Clementz said.
The Beacon technology is bound to trigger concerns about consumer privacy and security. But Mr Clementz says consumers will have control over which retailers can register their presence, if they want to be prompted with alerts and which merchants can charge them automatically. If consumers enter a store or mall and decline to check in or ignore the prompts, no information is transmitted to PayPal or the merchant. “It’s faster than swipe or tap and go, faster than near field communication, uses less battery power than GPS, has better accuracy and maintains privacy and security,” said Mr Clementz. “The consumer is in control.” Beacon will not be available until 2014 but PayPal is unveiling the technology early and has invited app developers to come up with new ways to add value to the technology.
My other tale comes via the BBC who, in their usual and inimitable style, researched the world of the bad guys versus the good guys on the Internet. The ones who find all these security holes in various software systems and force the endless updates we are obliged to do to protect our computers and our data. Just like in the days of the Wild West the bady always wore a black hat while the goody was resplendent in a white hat. Guess Hollywood had to do that since all films in the early days were shot in black and white and those in the audience who let their minds wander needed to tell the difference. If you are a cowboy film fan, and I am, then you would know that to rid the west of criminals, a common method was to offer bounties. You jumped on your horse, tracked your man and once you brought him back to face justice you were rewarded. If I remember correctly the biggest bounty was always payable when the wanted notice read “dead or alive”. Today bounties are offered to those who can find security flaws in our software. They are then invited to submit their discovery and perhaps solutions to the author of the software. Companies like Microsoft, Facebook and many others offer such rewards. This means that a black hat can become a white hat and earn some serious money. Rewards ranging from a hundred dollars to $150,000 are the usual range. However larger bounties exist.
The Beacon device or dongle is expected to sell for less than $100, making it affordable for small merchants like, but not limited to, coffee shops and sandwich bars.
The system is based on trust. No rewards are offered until the problem and the solution is willingly brought to the respective company. There it is evaluated and the size of the bounty decide upon. The system works so we can assume that the deal is considered reconcilable by both parties. A simple way of converting bad to good which serves everybody and reduces the enormous cost malware imposes!
So I suggest you’d better get ready and stay abreast of this one.
This world is becoming incredibly complex!
Apple is reportedly close to launching a similar technology for iPhones, dubbed iBeacon. But PayPal says its Beacon technology works on iPhone and android devices.
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management Keeping House
Keeping track of linens The washable microchip to track frequently “souvenired” items like bath robes, towels and bed linen invented by Linen Technology Tracking in the US a couple of years ago is being hailed as a great development, yet it is slow to be picked up by accommodation providers. To date only a handful of hotels have adopted the technology. Yet those that have, rave about the results. "Our hotel has reduced the rate of missing items from 20% to 30% of all stock to only about 3%," said Sam Jagger, general manager of Los Angeles-based Mr C Hotel Beverly Hills. "The system has paid for itself since its installation in December 2011." A Honolulu hotel that introduced the technology last year, has reduced theft of its pool
towels from 4000 a month to just 750 - a saving of more than $15,200 a month.
linen and when it was manufactured. That information is then stored on the server.
rapidly - something that may not even become evident in monthly stocktakes for some time.
According to the Australian Hotel Association, millions of dollars a year are lost in the hotel industry due to theft.
The tags are designed for use in laundry applications and can sustain up to 550 wash cycles.
The EPC UHF tracking system may have a high initial outlay but the investment can be rewarded with very considerable savings. RFID readers installed at the laundry exit through which all soiled linens pass and at the housekeeping station where the linens are received from a thirdparty laundry service. They can also be stored at storeroom egress to monitor ingoing and outgoing items.
The solution consists of a Linen Technology Tracking EPC Gen 2 passive ultrahigh-frequency tag sewn into every sheet, pillow case, towel, tablecloth and other linen, as well as software to manage the collected read data and a hosted server reporting engine. Linen Technology's proprietary EPC UHF tags, designed specifically to be durable enough to function in the high-temperature and pressure environment of commercial washers, are each encoded with a unique ID number. Each tag's ID is paired with data regarding the linen to which it is attached, including the type of
Pilfering is just one area that accommodation providers can benefit. Even bigger savings are in the offering in the area of inventory management. Many accommodation providers still operate manual counting of items that are sent for offsite laundering, returned, stored and reused - a very labour intensive (and expensive) system that is also fraught with human error. One towel stolen by a guest seems peanuts if a load of towels goes missing between the hotel and the offsite laundry. Shortfalls in items sent to a laundry and not returned can be highlighted very
The server keeps track of each item until its eventual end-of-life. The system has great advantages and, no doubt, as more accommodation providers take up linen tracking systems, more providers will become involved and costs will become more competitive.
Utopia for selfies Being first in anything is a marketer's dream - the rule being everyone else must follow Paul Fischman is a master at it. The 8Hotel's CEO and his team have just spent two years and $30 million to develop the world's first Instagram hotel. If, like the writer, you are still in the era of struggling to adapt to an iPhone and still can't understand how to use it so partake of only 5% of the features available, you might be underwhelmed by this news. But if you are a selfie (and there are millions of them), the photo sharing website Instagram is the utopia for you. We are talking about 8Hotel's latest opening, the 1888 Hotel. The name itself reflects back to innovative picture taking of another era - homage to the year Kodak launched the first box and roll camera.
Originally used for woolstorage, the building itself has undergone a multi million development over the last two years. Everything relates to recording a guest's stay: Guests are greeted by a revolving digital mural of Instagram images plus a selfie space to snap the check in. More than 100 guest-shot Instagram photos adorn the five-story space's 90 rooms. Guests who exceed 10,000 followers get a free night's stay. Travellers who can best capture the beauty of the $30 million establishment win a free night’s stay. "People not only want to visit and stay in beautiful places, they also want to capture and share it with their friends and networks as it happens," says Mr Fischman. "Guests can be obsessive about posting and documenting their stays. That's why 8Hotels built in such heavy social-media integration."
There is free wifi throughout, of course, and an iPad provided in each room for guest's use. The point of the social media experiment is the free publicity the hotel gets from image sharing on social networks with a spin-off in that the hotel can charge abovemarket rates on a full-capacity basis. A risk in the strategy is if the hotel has a customer service catastrophe. Any unhappy incident could be flicked around the world the instant it happens. But 8Hotels appear to be on a good thing. Justin Maas, vice president of client relations at online marketing company fishbat, says the expanding relationship between social media and photography has affected the way we travel and communicate. “A decade ago, with the onset of the first camera phone, sending photo text messages of your trip was a big deal,” he says. “Now, social media
resortnews | october 2013
and the continued need for human connection have made it easy for social media-themed hotels to succeed. Travellers want to share images of their vacation, so this hotel is just the start of a growing trend for social hotels. Now, you can virtually bring along any family member and involve them in your daily activities through the use of social media.” Opening around the same time as the 1888 was the world's first Twitter hotel, complete with Twitter-themed rooms decked out in blue and white decor, matching the social network's iconic colour scheme. Guests at the Sol Wave House hotel in Majorca can checkin, find out about events, order room service and get exclusive deals using dedicated hashtags. The hotel also has Twitter-themed parties and offers Twitter-themed drinks such as a blue mojito.
Breaking up is hard… A major rift between different camps within Unit Owners of Queensland finally spilled over with a breakaway group, the Gold Coast Unit Owners Association, setting up on its own, Resort News reported in October 2003. Garry Maynard was re-elected as president of the UOAQ while the breakawy group was led by Colin Lamont. “The association secretary Peter Carroll, treasurer Mary Mclean and I put together what we sold to members as a ‘friendly co-operative team’ to represent unit and townhouse owners in any industry forum,” said Mr Maynard. “On that team are now experienced and interested unit owners with real enthusiasm for working through industry issues. Members at the AGM in person and by proxy responded enthusiastically to our appeal for support for a positive management committee,” stressed Mr Maynard. The breakaway group including former UOAQ vice chairman Dale Armstrong and the three Gold Coast representatives Colin Lamont, Jan Taylor and Val McCauley said that membership is soaring following its first public meeting.
…amalgamation is easier On a more friendly note, the amalgamation of the bed and breakfast and farmstay industries at the national level was confirmed. The Australian Bed & Breakfast Council and Australian Farm & Country Tourism decided to amalgamate into one peak body to be known as Bed & Breakfast & Farmstay Australia from 1 July 2004. "The amalgamation will streamline this vital and increasingly popular tourism
industry sector and provide enhanced services and benefits to the 1500 member properties that will be represented by the new body," reported Resort News.
Buggy licensing Resort managers around Queensland got a fright when aamendments to vehicle licensing laws required the licensing of golf buggies. The Queensland government introduced "conditional registration" - a new licensing scheme for special vehicles that previously were exempt or unable to be registered, including golf buggies (and similar vehicles). The primary reason, according to the government, was that conditional registration is required is to provide a legal basis to mandate compulsory third-party insurance, thus protecting drivers and injured parties in the event of litigation as a result of bodily injury. The licensing fees wouldn't hurt either!
End of spam "Companies that clog your inbox with unsolicited emails could face fines of $1.1 million a day under proposed anti-spam legislation," Resort News reported. The planned laws, tabled in federal parliament last month, include a ban on the electronic 'harvesting' and marketing of lists of email addresses. “We’re going to come down on them like a tonne of bricks,” communications minister Richard Alston stressed. While conceding that most spam came from overseas and would be beyond Australian laws, senator Alston said he hoped its tough measures would give a lead to similar legislation being prepared in the US and Europe.
others in the profitable sideline of robbing guests. The courts’ solution was to make innkeepers completely liable for the theft, disappearance, damage or loss of guests’ property while it is within the premises controlled by the innkeeper. This liability is commonly referred to as innkeeper’s liability and even in modern times the courts have found it still applies. "The courts have also found that if the liability exists then the innkeeper also has a lien right; that is the right to hold a guest’s property until the guest has paid what the guest owes to the innkeeper for accommodation and other related services supplied. "I have not heard of any case that has involved the application of this liability to management rights operators but current legal opinion indicates that it does. Therefore I would suggest that managers should operate on the basis that they are innkeepers and do have this liability and the corresponding lien right. "Queensland legislation that came into force in August 2001 allows managers to limit the liability they have under the common law. The Traveller Accommodation Providers (Liability) Act 2001 limits the liability of the manager to $250 for each accommodation unit provided for the use of the guest on the day of the loss for the loss of guests property that has not been: accepted by the manager to be
Wonder if it worked…
Managers as innkeepers Martin Punch of Short Punch & Greatorix brought up an interesting point in his Legal Ease column in RN86. "In days of old, courts had to deal with the wide spread problem of innkeepers acting in league with resortnews | october 2013
placed in safe custody; left at the invitation of the manager at a place outside the accommodation unit; and provided that the loss is not caused by the fault of the manager or the manager’s agent. "However, the manager may be separately liable under the common law and trade practices law if safe custody facilities provided by the manager in the accommodation unit as part of the services to the guest are defective. "The act also limits the liability of the manager for any loss of items after they are accepted by the manager for safe custody. The limit is $50,000 for each accommodation unit provided for the use of the guest on the day of the loss but does not apply if the guest notifies the manager in writing that the value of the property is more than $50,000 and if the guest pays or agrees to pay a fee for depositing the property in the safe custody facility." Interestingly the innkeeper’s liability still applies.
The great challenge The Resort News Golf Challenge has been a tradition in the accommodation world in Queensland and the 2003 event was held at the Pelican Waters Golf Club on the Sunshine Coast. "Challenge" has always been the operative word and Brisbane managers Rod Diprose and John Wilkinson dealt with it in fine form to take out top honours.
Compulsory star ratings AAA Tourism wants to sit down with the new Coalition government and discuss how to make star ratings relevant. NRMA chief executive Tony Stuart said the nation's hotel star-rating system, which is controlled by several automobile clubs including the NRMA, needed reviewing because some properties were self-rating with mixed results. Mr Stuart said the TQual accommodation rating system instituted by federal Labor under former tourism minister Martin Ferguson should also be reviewed by the incoming Coalition government. "That may mean rating every single property in Australia," Mr Stuart maintains. Could it be that the system implemented by AAA Tourism a couple of years ago to replace its out-of-date star ratings model is itself irrelevant in today's new world? Mr Stuart, who represents NRMA with about $300 million worth of tourism assets itself, said consumers wanted a better system given some of the questionable accommodation ratings on TripAdvisor. Wasn't the last Star ratings revision supposed to achieve that?
A blimp in development There is a suggestion from the Cairns Regional Council that the Hong Kong developers behind the $4.2 billion Aquis Resort project should be made to fly a blimp over the site at Yorkeys Knob to show locals exactly how large the megastructures would appear on the skyline if built.
One of Disney's central business strategies for the past decade has been to lure more visitors into its hotels and encourage them to spend much or all of their vacations on Disney World property.
End all these pleasures
Aquis Resort at Yorkeys Knob
A passenger scorned…
A different scale
After British Airways lost his father's luggage, Hasan Syed didn't just tweet his complaints at the company.
There's nothing like thinking big. NBCUniversal president and CEO Steve Burke said Universal Orlando needs to expand. "We've done a study that says we could have 10,000 or 15,000 hotel rooms and still have occupancy that makes those rooms profitable." Such an expansion would at least quadruple the 2400 hotel rooms that Universal Orlando currently has, though that figure will jump to about 4200 early next year with the opening of Universal's Cabana Bay Beach Resort. A large infusion of hotel rooms at Universal could pose a direct threat to Walt Disney World that has roughly 26,000 hotel rooms and time-share suites.
He paid for a "sponsored tweet" Don't fly @BritishAirways to broadcast his frustration directly to British Airways 302,000 Twitter followers. The tweet, for which Syed paid an undisclosed sum, appeared prominently in the company's Twitter feed and was read by thousands of other users. Eight hours after the original posting and the tweet had been picked up by news sites, the airline tweeted back, "Sorry for the delay in responding, our Twitter feed is open 0900-1700 GMT."
With the descriptions it's probably no wonder the resort was pretty popular! Who needs TripAdvisor?
Whole new niche market A San Diego man is building what is believed to be the world's largest subterranean doomsday resort— with amenities such as a wine bar, golf course, spa and dance floor for those waiting out the end of the world. Construction for the 185,806m² bunker is underway in the limestone caves of Atchison, Kan, where an apocalypse-adverse family in a 3.5m RV can seek shelter for a $20,000 fee (plus the cost of food). "Hopefully, it will never be needed, but if it is, it will be priceless," builder Robert Vicino said. The massive complex will sit 40m underground and will be sealed with 60cm-thick steel and concrete doors. Mr Vicino, who described the project as an "underground cruise ship," said he plans to open the resort before the apocalypse so that guests can enjoy the amenities.
Aquis was given co-ordinated project status by the Newman government and that makes the Environmental Impact Statement process the only chance for the council to interfere. The council wants to make sure residents know exactly what they would be getting with the Aquis that includes plans for several buildings the same height as the Yorkeys Knob headland and a main building another 25-35m taller than it.
Suriname police put an end to the indecent partying at a resort called Bigi Pan near the village of Wi Santi where "scantily clothed people, dancing to the tunes of kabula music and living sexual pleasures" had been reported. Close to 100 people were ordered from the site after the "wild orgy-like sex escapade", according to Sherwin Piqué, the coordinator restructuring holiday resorts.
"We said, 'Lets not make it just available for a catastrophe, but let's turn it into a 24/7 resort where our members can go until the moment of truth," he said. "You get your cake and eat it too." Hogwarts Castle at Universal Orlando
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Vicino said the Kansas shelter, which has 1500 RV spots, is already at 10% capacity.
Warning for owners of buildings built before 2003 Strata management and bodies corporate should be aware that starting 1 January 2012, buildings built before 31 December 2003 are required to have an asbestos register and signage. Previously these requirements were prior to 1990 when an asbestos register was required to be on site. The register should be reviewed at least once every five years to ensure it is kept up-to-date.
undertaking. The WHS regulations include specific obligations to manage and control asbestos and asbestos containing material at the workplace. In some cases, there may be more than one person with management or control of a workplace for example: •
A person with management of a workplace is a tenant, and
A person with control of a workplace has the power to make decisions and changes to the structure and use of the workplace. This person will usually be the owner of the workplace or a representative of the owner and may:
Changes to your obligations to manage asbestos in the workplace includes: The Workplace Health & Safety Act requires all persons who conduct a business or undertaking to ensure, so far as is reasonably practicable, that workers and other persons are not put at risk from work carried out as part of the business or
Own the workplace and engage workers to carry out work there
Own the workplace but lease it to another person conducting a business or undertaking at the workplace, or Have management or control over the workplace, for example, a property management group or agent.
Who has duties to manage and control asbestos or ACM? The WHS regulations require a person with management or control of a workplace to ensure an asbestos register is prepared and kept at the workplace. The asbestos register must be maintained, reviewed and if necessary revised. A person with management or control of a workplace must: •
Ensure an asbestos register is prepared, maintained, reviewed and kept at the workplace. It must be readily available to workers, their health and safety representatives and other persons Ensure when management or control of the workplace is relinquished, a copy of the asbestos register is given to the person assuming management or control
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The asbestos register is a document that lists all identified (or assumed) asbestos in a workplace. The asbestos register must: •
Record any asbestos or ACM that has been identified or is likely to be present at the workplace from time to time, this would include:
The date on which the asbestos or ACM was identified, and The location, type and condition of the asbestos, or •
State that no asbestos or ACM is identified at the workplace if the person knows that no asbestos or ACM is identified, or is likely to be present from time to time at the workplace.
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The WHS regulation also requires the person conducting a business or undertaking carrying out demolition or refurbishment at a workplace to obtain a copy of the asbestos register before they commence the work. Reviewing and revising an asbestos register A person with management or control of a workplace must ensure an asbestos register is reviewed and where necessary revised by a competent person if: •
The asbestos management plan is reviewed
Further asbestos or ACM is identified at the workplace, or
Asbestos is removed from or disturbed, sealed or enclosed at the workplace.
The register should be reviewed at least once every five years to ensure it is kept up-to-date. Accessing an asbestos register The person with management or control of the workplace must ensure the asbestos register is readily accessible to: •
A worker who has carried out, carries out or intends to carry out work at the workplace and safety representatives who represent workers that carry out or intend to carry out work at the workplace
Indicating the presence of asbestos The WHS regulations require a person with management or control of a workplace to ensure the presence and location of asbestos or ACM identified at the workplace is clearly indicated. If reasonably practicable, the asbestos or ACM is indicated by a label. By Peter Greenham, Independent Inspections
Gym Repairs Feature
Gyms – an essential accommodation facility An accommodation property is multi-faceted and the whole is greater than the sum of the parts. Don’t lose guests to other establishments simply because they are better facilitated. In the accommodation operation, a gym is not a major expense and it will most certainly pay a dividend, many times over. People expect a treadmill and from there order of preference is a bike, rower, cross trainer and finally strength equipment. If you have a lot of space, and dollars, single stations are the ultimate. For most facilities, multi-gyms are recommended. Ensure you have a comprehensive service agreement in place that includes cable replacements as, with the heavy use of the accommodation environment, these will be a regular requirement. The cost of outright purchasing of equipment will vary with property size but for a small a three or four piece gym, suited to the high use it will receive from your guests, budget a capital outlay of at least $10,000. Medium facilities should expect to invest around $25,000 with large facilities towards $40,000. When it comes to financing the fundamental difference between Purchase, Lease or Serviced Lease is that the Purchase option requires an upfront capital outlay and ongoing assessment. A Lease is a financed version of the purchase
option. The Serviced Lease requires no upfront capital and ensures an agreed monthly cost making budgeting simple by including equipment, maintenance, repairs, parts, labour, electrical safety act compliance and equipment upgrades in a flat monthly rate making the serviced lease by far the most popular option amongst building managers and body corporate committees. Be aware that most gym equipment found in retail sports stores are imported and distributed by other companies and it is them who decide the terms of the warranty. Don’t expect a warranty to cover items such as rust and fading along with external factors such as water damage from
pools, abuse, theft or vandalism. It is important to be realistic. Warranties should cover all components of the equipment, under ordinary use for which the equipment was designed, for a minimum of 3 years including service calls, parts, labour and freight. Be aware of disclaimers that state ‘excludes fair wear’ as this omits many items such as belts, decks, bearings, pedals and straps. This minor detail can end up costing you thousands of dollars. If a supplier is not prepared to give you this warranty, walk away. Ensure there is a repair or replace guarantee for if the equipment cannot be repaired within a set timeframe (e.g. two weeks) that a replacement or loan machine will be installed. Once again, if the provider is not
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willing to put this guarantee up against their equipment, consider why you would want to be buying it if they don’t have faith in their product, service or support. Make sure that you understand the procedure in lodging a warranty claim and request a personal contact name and number for someone who will address any issues you have any resolve problems quickly and easily and obtain written advice that the warranty will be honoured in your facility. As with other machinery & equipment around the property regular service, maintenance & safety reports are should be completed with intervals no greater than 3 months. Consider what many properties have done and implement a monthly service routine available from a reputable service provider. Dress the gym area up and create a pleasant workout environment and add some motivation. Consider additions that encourage people to take advantage of your facility. The smallest of spaces can be turned into fantastic boutique style gyms with simple additions such as mirrors, posters, music docks, LCD screens and air conditioning. It all adds to the positive appeal of your property. In a time when workouts are part of everyday life for a large percentage of people, a gym inside your property is a prerequisite.
An option to ugly scaffolding
Emma Peters Business Development Manager, QPAMS Painting
Scaffolding has traditionally been the only option for most accommodation managers when painting the exterior of their building. With more painters obtaining rope access qualifications there is now a choice as to the method of access offered on your project. For accommodation providers operating in today's turbulent economic conditions, cost is a major factor to consider in any maintenance project. A recent client saved in the region of 60% on a paint program as they chose painters who abseiled as opposed to scaffolding their 17 level building in North Queensland. The cost of the installation and annual maintenance of anchor points are minimal compared to the cost of scaffold erection and on-going hire fees.
The anchor points can be dual purpose and utilised during window washing and/or building cleaning in the future. Cost aside, ascetically scaffolding is ugly (sorry scaffolders but it is!) Most accommodation providers do not have the luxury of closing their business during important works such as external repaints. Imagine your dismay as a tourist as you arrive at your luxury holiday destination and the resort looks like a building site. Abseilers are unobtrusive and children think itâ€™s cool to have a painter looking like Spiderman on the building. Rope access has no height limits and for the painters themselves there are no scaffold poles getting in the way of crucial areas they need to paint. With a range of different scaffolding options available and
a host of well qualified erectors across the eastern seaboard, scaffold is still an $850 million industry in Australia. Swing staging can provide a cheaper option than fixed (or static) scaffolding but there are limits on weight and the length of time taken to move each stage into position can be prohibitive. Permits are often required from council prior to erection which can be both costly and time consuming. While scaffolding lends itself well to quality inspection, licenses are required and many managers do not relish the idea of being in a swinging stage so high off the ground. For complex building repairs scaffolding is often preferred as it is easier to work from a platform than from a harness. If you are considering rope
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access then ensure you employ a company who has trade qualified painters trained in abseiling. Use a company that performs high quality workmanship as you are unlikely to be able to inspect all areas of the project from the ground. Wherever possible, ask for examples of high level abseiling projects they have performed and referrals from managers who have chosen abseiling over scaffolding. Ensure your contractor is a member of the ARRA and/or IRATA. While scaffolding has its place in the construction industry and always will do, I would urge resort managers to consider abseiling for their next high level painting project. Using a rope access painter is unobtrusive, safe, quick, cost effective and there is no need for ugly scaffolding!
Outdoor Furniture Feature
Repair your furniture not replace
Bob & Leah Caldwell Coastal Casual Furniture
Save money on your outdoor budget! Don’t throw away your outdoor furniture… repair it. Money is usually pretty tight and budgets can only go so far. There are two main ways to make your outdoor dollars stretch further. Regular preventive maintenance programs and repair. Regular maintenance is important in so many ways. It will definitely extend the life of your property, your patrons will notice well-presented surroundings (resulting in more repeat bookings) and it will help identify problems that need repair earlier, rather than waiting for breakages to occur, and higher repair costs resulting There are repairman businesses that will help you revamp your outdoor furniture. Specifically: PVC tubular furniture – repairing cracks and fittings on tubular furniture is possible for both sun lounges and chairs – potentially saving you thousands of dollars on full replacement. PVC has shown to be the best performer in outdoor coastal conditions. Replacement slings are also available with a wide variety of colours. A repairman business might be able to pick up and deliver your repaired furniture or parts and slings can be delivered anywhere in Australia and beyond for your maintenance section to do the job. Canvas and vinyl products are repairable. How about that outdoor umbrella canopy? Instead of buying a completely new one, replace the canopy and keep all the hardware providing savings galore, especially if you have more than one. Nearly all outdoor canvas products can be replaced instead of being thrown away – director’s chairs, umbrellas, blinds, awnings, shade-sails and lots more. A good repairer will be able to help with all the above. Aluminum furniture has
become so popular – but what happens when the slings break down through time and exposure. Replace it – don’t throw it all away, save maximum dollars by replacing the slings, change the colours, renew your outdoor look for a fraction of the cost. It’s a job that can be done by your maintenance shop if you don’t have a repairer in your area.
With the world focus on living green and saving the planet – consider the need to stop throwing our stuff away. If we can reduce the pressure on landfills in small ways, our world will be a better place.
Replenish the surface with treatments that will enhance the
Rather than the high cost of total replacement, repairs will help your outdoor furniture budget go a lot further. The advantages of repairing your outdoor furniture is that you can control how much you spend and when your spend it! You decide which furniture to repair first and stage the repairs over a period of time, spreading the expenditure throughout the year. Outdoor furniture longevity is increased by maintaining the furniture with oils for timbers, keeping the furniture clean, hosing it down will prevent dust and salts accumulating on the surfaces and in the fabrics. Dust attracts and holds moisture in the small particles, this breeds fungi and mould spores which can eventually rot the materials. All materials are affected, aluminium, powder coating, timber, canvas, vinyl and PVC fittings/metals and mesh materials have a limited life if not maintained.
UV protection. A good outdoor furniture or repair business will be able help.
eventually start to flake and break away. Wiping the furniture down, while using an ordinary mains pressure hose, will do a great job if done regularly. Timbers live longer when oiled or treated with a surface cleaning product. In fact, everything will last longer with a bit of cleaning!
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Some good maintenance practices are to hose down the furniture regularly, however be careful about power cleaning powder coated furniture too aggressively, it can break down the surface coating and will resortnews | october 2013
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Pool Cleaning Feature
Robot cleaning technology – what’s the fuss all about? Robotic pool cleaning technology is gaining a strong and growing following amongst pool owners in Australia market – it is one of the fastest growing product categories in the pool industry. It is worth asking why this is happening and what makes robots better than other cleaning products. The simple answer is value for money. Robots have a significant number of end user features compared to all other pool cleaners.
pool each time they are installed. This means they provide superior coverage and they don’t get stuck. Check out the amazing scanning pattern of the Dolphin below. b. Brushing, scrubbing – Robots are designed not simply to suck debris from your pool but they actually scrub the surface as well. Some even have extra brushes designed to work independently at high speed. c.
So what are these features and why are they superior to their rivals?
Superior cleaning ability a.
Systematic – Many robot cleaners are systematic. The ones that are systematic have in built electronics, with sensors, logic and controls to enable the robot to navigate the pool, the better ones actually map the
Independent filtration – Robots have on board their own independent filtering system. This removes debris from the water and filters as it goes. Comparison’s show this to be at a very high level compared to pressure cleaners.
d. Strong suction power – Robots have an extremely strong suction power –ranging up to 250 litres per minute – that’s as
Dolphin Supreme M5 – triple action brush
much as the main filter pump in many pools. Wall climbing and waterline scrubbing – The enormous suction creates an additional benefit – it enables the robot to climb walls, benches and ledges and once at the surface they can be programmed to scrub the waterline as well.
Easy to use a.
Got a pool problem?
we can solve it! THE NEW GENERATION IN ROBOTIC POOL CLEANERS • Suitable for most types of pool • Gyro scanning – the ultimate for commercial pool coverage • Cleans and scrubs
Easy to use – Robots are extremely easy to use – simply place in the water and press on. No more hoses, floats and bumps, booster pumps. They are simple and ease to set up and simple and easy to use! b. Reclaim your pool – Because robots have superior cleaning abilities, they are really only needed to be used once or twice a week for the majority of your pool can look like a pool again – not like hydraulic factories with pipes and hoses in all directions!
Environment benefits a.
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Save power – Robots operate and filter inside the pool. They are completely independent of the pools main filtration system. The great benefit of this is that water does not have to be pumped 20m of piping through bends, elbows, etc just to get filtered. The water is filtered in the pool. Independent studies by electrical companies have shown that annual savings can be around $300 per annum (even after the small running cost of a robot is taken into account). Note – pool filtration is still needed – just not to anywhere near the level
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required by other cleaners. b. Save water – Because robots filter in the water, they remove the debris from the system. This in turn means that the main pool filter unit does not become clogged as quickly, which results in fewer backwashes. Estimates are that backwashing is reduced by up to 50% when using robots compared to all other cleaning methods. c.
Save chemicals – Robots help to reduce chemical requirements. Australia the vast majority of pools have suction cleaners that are permanently in the pool and connected. In this circumstance, the skimmer is completely ineffective – the result is that all debris landing on the surface must slowly go through the water, making the water cloudier but also requiring chemicals to control. When a robot is used – the pool’s skimmer starts working again! Also, by removing the debris rather than storing it in the pool’s main filter the chemical load is reduced.
So in summary, robotic pool cleaners should form as a key component of every hotel/motel/ apartment pool. They provide a win-win on all fronts: 1. Cleaner pool for users 2. Less disruption so people can enjoy the pool 3. Strong economic savings 4. Strong environment benefits Don’t be left behind – join the robot revolution! By Dan Kwaczynski, Maytronics Australia
tourism Minister's Report
Tourism ready to shine in Queensland Jann Stuckey Minister for Tourism
It was just over 12 months ago that the premier and I hosted the inaugural DestinationQ forum in Cairns. This was the first dedicated tourism conference for Queensland since the mid-1980s and it could not have come at a better time for the industry. At this time the industry was faced with significant external pressures and was in dire need of a boost. One of our first actions was to sign a historic partnership agreement between industry and government to work together to grow the Queensland tourism industry. This was a powerful symbol of good faith by both parties that has proven to be a game changer for the industry. As part of this agreement, we endorsed a set of immediate priorities for getting the industry back on track and positioning it to achieve its target of doubling overnight visitor expenditure from $15 billion to $30 billion per annum by 2020. We have worked hard since this first forum and our efforts are paying off. At this year’s DestinationQ forum, I, along with the premier, my cabinet colleagues and the chair of the Queensland Tourism Industry Council, reported on our progress over the past 12 months. The 12-Month Partnership Report I released at the forum shows that by working together, industry and government have not only delivered the priority actions under the partnership agreement but also acted upon the additional issues identified at last year’s forum. The report tells some great stories about what industry and government have achieved. It shows that this is a genuine partnership where industry has been listened to, promises have been kept and real changes have been made. We know we have to keep working hard to achieve our goals. We know we have to keep looking ahead and be ready to face new consumer trends, adopt new technology and ways of doing business, attract new
investment, and deliver great experiences and service. That is why this year’s DestinationQ forum had a longer term focus. Held at the Gold Coast Convention and Exhibition Centre on 27 and 28 August, the forum saw almost 400 delegates representing Queensland’s tourism industry come together to set the directions for a 20-year plan for tourism. In the months leading up to the forum, more than 450 tourism operators and representatives were involved in 17 workshops across the state and online surveys to tell us about the future they want for their industry. These discussions were informed by a commissioned CSIRO foresight study about the megatrends likely to shape the Queensland tourism industry over the coming two decades. From this broad industry input, we were able to present delegates at the 2013 DestinationQ forum with a vision for the future of tourism that was more than a tagline. Our vision for tourism recognises tourism is multifaceted. It points to the things we want to be known for and what is important for our future success.
Our vision recognises that it is our many destinations that set Queensland apart. Victoria has Melbourne; New South Wales has Sydney. Queensland’s destinations range from the tropics to the Gold Coast, from the Outback to the Southern Great Barrier Reef, from the Whitsundays and Mackay to Southern Country Queensland and from the Sunshine Coast to Brisbane to the Fraser Coast. Tourism is a way to showcase the best of Queensland – its people, its history and its diverse landscapes. We want the world to know how lucky and rich in natural wonder we are. We want people to experience the Great Barrier Reef, the Outback, our rainforests and pristine beaches as well as have memorable encounters with whales, turtles, koalas, dolphins and other native animals now and for many years to come. Our vision also emphasises the need for partnerships – for the industry to be engaged with each other, with governments and with the community. If we are going to compete effectively in a global market, we need to attract good people as our operators and as our workers.
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We need to focus on quality, great service and giving our visitors an experience of a lifetime whether they come for a weekend or a month. Achieving our vision won’t be easy. If it was, it wouldn’t be visionary. The Courier Mail summed our challenge up well in their editorial during DestinationQ: “The key to a sustainable and healthy tourism sector is the same as for the state’s other four economic pillars – a committed and visionary private sector willing and able to back itself”. We will continue to work with our industry partners to turn the vision and the directions identified by industry at the 2013 DestinationQ forum into a long term plan for tourism in Queensland. I look forward to presenting this plan in early 2014 and working with the industry to achieve our vision. The past 12 months have given me great confidence that together we can restore Queensland to its rightful status of Australia’s number one tourist destination. This truly is an exciting time to be in tourism.
46,760 visitors arrived in NSW from the Middle East
Middle East visitor arrivals welcomed NSW Premier Barry O’Farrell has welcomed an almost 10% increase in the number of people visiting NSW from the Middle East. Mr O’Farrell says the latest International Visitor Survey shows that for the year to June 2013 there were 46,760 visitors who arrived in NSW from the Middle East. “That compares with the 42,680 people who arrived in NSW in the year earlier, which is a 9.6% increase within just 12 months,” he said. “We’re also seeing a spike in the number of people arriving from the United Arab Emirates, with UAE
arrivals in the year to June 2013 jumping more than 15%. “NSW is home to a large Arabic community that makes a major contribution to the multicultural fabric of the state. These are impressive results that show more Middle Easterners are choosing to come to NSW to visit their families and tourist destinations, and to conduct business. “There’s also been a huge 60% increase in the number of visitor nights spent in NSW, indicating more Middle Eastern people are staying longer once arriving in the state."
Simple environmental approvals for tourism Streamlining environmental approvals will provide greater certainty for investors in Queensland’s tourism industry, according to Tourism & Transport Forum. Federal minister for the environment, Greg Hunt, and Queensland minister for environment and heritage protection, Andrew Powell, have signed a draft memorandum of understanding aimed at streamlining environmental approvals in Queensland.
TTF chief executive Ken Morrison said, “Having a single environmental approvals process would give investors greater certainty and confidence to put money into new tourism products and experiences,” said Mr Morrison. “The duplication of state and federal approvals processes is an unnecessary burden that delays important projects. “The proposed one-stop-shop doesn’t mean lower environmental standards, it just means a simpler process. “Investing in new products and experiences is an important part of refreshing Queensland's tourism
The lyons and the wolf A golf resort in the Poconos that has been in disrepair over the years is getting a second chance. With the help of TV realty program Hotel Impossible.
The resort is Wolf Hollow at Water Gap County Club in the Poconos in the US state of Delaware. The show has a team of people who come out to hotels
that have seen better days and renovates them. Shaun Lyons, the new owner of Wolf Hollow, says the crew started its renovations the first day. “We closed about Wednesday and had Hotel Impossible here as well,” said Mr Lyons. “They closed off the lobby. We couldn’t use the lobby and we had a wedding the same week. We reached out to the wedding party and let them know we were filming.” Hotel Impossible with host Anthony Melchiorri didn’t only give Wolf Hollow a cosmetic
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upgrade. It also helped the hotel with a budget and a business plan. The owner says both are working. Before Hotel Impossible started filming in the lobby, the owner of Wolf Hollow had some renovations already underway, his focus was the bar area and restaurant, right next to the lobby. And the owner isn’t done. He’s renovating parts of the golf course. The Lyonses purchased the Water Gap Country Club — including a historic golf course, restaurant, bar and 24 guest rooms — last April.
industry, particularly at the luxury end of the market to entice high yield international visitors. This move is especially welcome as many of Queensland’s island resorts are entering a re-investment phase."
unforgiving environment, and sometimes there are no second chances.” Tourism Minister Jann Stuckey said with more than 20 million visitors travelling to Queensland each year, the app would provide an important service in keeping tourists safe. The Beachsafe app is available for free for IOS and Android and can be downloaded from iTunes and Google Play.
New app translates into saving lives The release of a Surf Life Saving Australia smart phone app which provides real time beach and water safety messages in 72 languages aims to save lives on Queensland beaches this summer. The Beachsafe app lets users obtain beach safety information and conditions for more than 12,000 Australian beaches and will support the Queensland government’s On the Same Wave initiative, a partnership with Surf Life Saving Queensland. Queensland’s multicultural affairs minister Glen Elmes said, “We are home to a culturally diverse community, with people from more than 220 different countries who speak more than 220 languages living in Queensland. Unfortunately, drowning victims in Australia include an over-representation of people from culturally diverse backgrounds who are considered a
"Obviously, the place needed a lot of work," Mr Lyons added… "It needed more than I thought it needed." Melchiorri drove that point home. Hotel Impossible focused on the guest rooms, including calls "old bedding, dirty carpets and a hole in the wall where the AC goes". Lyons, his family and staff worked that week and into the summer sprucing up the course, replacing the bar and renovating the restaurant. So did they learn anything from Melchiorri's intervention? Yes, Mr Lyons said, "Attention to detail. One customer at a time."
Indigenous festival launches 2013 program Surf Life Saving Australia smart phone app
high-risk group by surf authorities. “Last financial year, six of the eight recorded drownings were of an international background, and all were male. “The year before, there were five recorded preventable surf/ beach related drownings in Queensland, and again all male. “Understanding beach and surf conditions and following safe surfing techniques are prerequisites to enjoying our great beach environment incident-free." “The surf can be an
Westin moves to Singapore Singapore's first Westin hotel opens in November. The upper upscale hotel will be located on levels 32 to 46 of the brand new Asia Square Tower Two development, overlooking the vibrant Marina Bay in the heart of Singapore’s financial district. Each of the 305 guest rooms and suites have been fitted with floor to ceiling windows, offering views of the city, and will each come equipped with the signature Westin Heavenly Bed and Heavenly Bath with signature amenities. The Westin Singapore will also offer a range of dining and entertainment options offering
The NSW governor, Marie Bashir, joined NSW minister for tourism, major events and the arts, George Souris, and the Corroboree Council of Elders in launching the official program for this year’s Corroboree Sydney, Australia’s newest annual, national indigenous festival. The program for Corroboree Sydney, which takes place from 14 to 24 November, includes a range of free and ticketed events held around Sydney’s Harbour foreshore, arts precinct and parks showcasing Indigenous literature, visual arts, performing arts, live music, films, crafts and design. Nine of Sydney’s premier institutions with strong indigenous
programs have contributed to the Corroboree Sydney program, including Bangarra Dance Theatre, the Royal Botanic Garden Sydney, State Library, Australian Museum, Museum of Contemporary Art Australia, Art Gallery of NSW, Sydney Opera House, Blackfella Films and Koori Radio 97.3FM. Many of Accor’s 15 hotels across Sydney will be involved as key accommodation and promotional partners during the event, including the Sebel Pier One Sydney, Mercure Sydney, Novotel Sydney Central, Ibis World Square, The Sebel Surry Hills Sydney, and the Mercure Sydney Potts Point. Corroboree Sydney is expected to draw some 55,000 visitors to Sydney from NSW, interstate and internationally over the next three years. Program highlights include a parade of 1000 school children through Sydney’s city streets in celebration of local Aboriginal culture, a special firelight ceremony and a range of activities taking place at Corroboree Central based at Walsh Bay’s historic Pier 2/3 including the Corroboree Black Arts Market, Corroboree Cinema and Corroboree Studio.
nourishing SuperFoodsRx dishes. These include signature venue Seasonal Tastes that offer five interactive kitchens and lunch and dinner buffets, and gastro pub Cook & Brew. Guests will be able to rejuvenate with a signature treatment in the Heavenly Spa by Westin, recharge in the WestinWorkout fitness studio and experience the outdoor infinity pool on level 35 with distinctive views of Singapore’s south coast. For business meetings, conferences, weddings or other social occasions, the property also offers 10 individual meeting rooms spanning a total of 1350m², along with state of the art meeting technology that will redefine event expectations.
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events & appointments
RNR move to FNQ company RNR Strata Sales has reestablished its far North Queensland MLR sales division and formed a new company, RNR Strata Sales FNQ, which benefits from local ownership and operation. Robert Willemse is director and sales executive operating from his Cairns Northern Beaches office and servicing the area from Townsville to Port Douglas. Robert has extensive background knowledge of management rights having owned and operated in the area for the last 10 years.
BDM appointment for Wyndham Wyndham Hotel Group in the South Pacific has appointed Nicole Hill to the role of business development Nicole Hill manager. Nicole’s previous position was general manager at a Victorian golf resort. Prior to this she worked as director of sales and marketing at Phillip Island Nature Park and director of sales at hotels in Geelong and Wisconsin. She has also worked as the national account manager at Baskow & Associates in Las Vegas. Nicole will be based in Victoria in her new role, which will focus on improving the sales and marketing performance of Wyndham Hotel Group and Wyndham Vacation Resorts Asia Pacific across the South Pacific.
TEQ loses CEO Robert Willemse
Pan Pacific boss quits Pan Pacific’s president and CEO, A Patrick Imbardelli, has resigned from the company. In a statement released to the Singapore Exchange, the board of directors of UOL Group Ltd announced Patrick's last day of service would be 30 November and his resignation is “due to his intention to pursue other career opportunities”. Pan Pacific has not announced any succession plans for Patrick’s position.
A Patrick Imbardelli
Tourism and Events Queensland has announced the resignation of our CEO Steven Wright. Steven has been on sick leave and for health reasons will not be continuing in his role. Our group executive, destination partnerships – Leanne Coddington – will act in the CEO role effective immediately. TEQ group executive Megan Saunders confirmed Steven had resigned because of health reasons. Steven had been in the role for nine months.
Victoria, South Australia and Tasmania. Prior to joining Accor, Sally was destination publicist at Destination NSW and has also held the positions of public relations director at Four Seasons Hotel Sydney and Small Luxury Hotels for the World. Sally joins Accor’s awardwinning communications team which consists of Rebecca Freestun, Angela O’Connor and Ginni Post, with Gaynor Reid currently based in Singapore.
SCDL charts new direction Queensland’s Sunshine Coast Destination Ltd is to appoint a new chair, following the decision of current chairman, Barrie Adams, to step down after almost three years on the board. Barrie has been on the board since SCDL was established as a separate destination marketing entity in 2010. The SCDL board has instituted a targeted search for a new chair with the right qualifications in tourism to help guide SCDL through a new era of progress and development. The new chair is expected to be announced when Barrie steps down at the SCDL annual general meeting in November. The appointment of a new chair follows the recent recruitment of a new CEO, Simon Ambrose and head of marketing who will join the organisation in the coming weeks.
Communications manager for Accor Accor Asia Pacific has appointed Sally McCann to the position of communications manager. In addition to Sally McCann overseeing the public relations strategy for Pullman Hotels and Resorts, Sally will manage the publicity for Accor’s hotels in
Victoria. Based in Melbourne, Julie will assist the director of sales and marketing Li Hawkins with the development and implementation of strategic sales plans for the Australian arm of the Singaporean based serviced residence provider. Julie has a high level of expertise in sales and marketing, specialising in hospitality. As part of her new role Julie will focus on sourcing and developing new business opportunities for The Ascott Limited’s properties in Melbourne, Hobart and Perth.
Ancillary product manager for Cover-More Australia’s provider of travel insurance and emergency assistance, Cover-More, has appointed Magda Magda Biniaszewski to Biniaszewski the newly created position of ancillary product manager. Magda’s immediate priority will be further developing CoverMore’s world-first Global SIM offering which the company launched earlier this year. She joins Cover-More from Citibank Australia, where she was marketing manager, brand and advertising, responsible for overseeing the bank’s above-theline and digital marketing strategies. She has also held positions at BT, ING Direct, GE Money and Médecins Sans Frontières in a career spanning Sydney, Melbourne and London.
Tune names GM in Melbourne
Ascott appoints sales assistant director The Ascott Limited has appointed Julie Avotins to the position of assistant director of sales in
resortnews | october 2013
Tune Hotels has appointed Nathan Copsey as the general manager of its new Melbourne property. At just 29 years of age, Nathan is one of the brand’s youngest general managers. He will be responsible for managing the hotel's operations, along with around 20 staff when it officially opens for business on 1 November.
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Paul Picone. Geoff came from a challenging corporate background, having spent over 25 years in Melbourne and Sydney’s banking and finance industry. Together, Geoff and Mary also successfully owned and operated three small resorts prior to Ocean Pacific Resort.
Despite his age, Nathan has worked at hotels including the Melbourne Parkview Hotel and Bayview on the Park Melbourne, along with The Chamberlain Hotel in London.
Wyndham appointments Wyndham Vacation Resorts Asia Pacific has appointed former Billabong finance manager Michael Gray as its new vice president of finance and group financial controller.
Resort News profiled the Ocean Pacific Resort, Geoff and Mary just last month.
He has previously worked in senior finance leadership roles for businesses including Villa World Ltd, Tabcorp Holdings Ltd, Domain Principal Group and Ocean Capital Ltd. Michael also has significant experience in global international financial reporting, gaming and casinos and property construction. Wyndham Hotel Group has
also appointed Ral Italiano to the position of sales manager. Ral's Brisbane-based role will focus on achieving sales and marketing objectives while boosting the brand of both Wyndham Hotel Group in the South Pacific and Wyndham Vacation Resorts Asia Pacific. Ral was previously the
director of sales for a Queensland island resort.
VALE - Geoff Spicer It is with deep sadness we have to report that Geoff Spicer died suddenly earlier this month. With his wife Mary they managed Ocean Pacific Resort for
NUMBERS ARE LIMITED We hosted over 100 Players at our last Golf Challenge so get your team in ASAP.
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all over the world to recognise and honour the hard work that the accommodation industry housekeeping department employees perform. This year PEHN had a Mini Olympics held at the Flagstaff Gardens last month with over a 100 housekeeping staff from, Clarion Suites Gateway, Crown Metropol, Crown Promenade, Crown Towers, Park Hyatt, RACV, Radisson Flagstaff Hotels participating in the event.
Don't miss a great golf day Last year the Resort News Golf Challenge hosted a full complement of more than 100 resort managers and associates at Twin Waters. This year the Resort News Golf Challenge will be at the fabulous Noosa Springs course and the organisers expect even bigger interest this year. As places are limited, we urge you to register early. Only $88 per player (inc GST) and that includes lunch, golf, cart and presentation BBQ. Sponsors are Archers, Suncorp Bank, RAAS Rights, CHU Underwriting
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The games kicked off with lawn bowls which was won by the Crown Metropol Team followed by the three legged race which was also won by the Metropol team.
Venue: Noosa Springs Resort, Links Drive, Noosa Springs, Noosa Heads.
The amenities soap stack was judged on creativity and the loudest applause was won by the RACV Hotel. The toilet roll mummy was well and truly wrapped up by Crown Towers, who finished first.
Tuesday, 12 November 2013 11.00am registration, 4 ball ambrose, 12.00pm shotgun start
PEHN 'olympics' to be annual affair International Housekeeperâ€™s Week is a yearly event celebrated
The overall games winner was Crown Metropol for winning two events, the place for the runner up was decided via tiebreaker question which was
PEHN's Mini Olympics fun
resortnews | october 2013
won by the RACV Hotel and hence third place went to Crown Towers. The trophy won by the overall games winner will be passed around to the winner of each years games, due to the success and fantastic attendance to this event, PEHN plans to hold this each year, so at least once a year the teams from different hotels can get together, enjoy and have fun. The night ended with a raffle of prices thanks to the kind donations of prizes, food and party items by the hotels and suppliers. PEHN's next event is the AGM in October and the very popular Christmas party in December.
India on tour in January The prospectus is available online for TEQ's Queensland on Tour India that will run from 13 -17 January 2014 visiting Delhi, Kolkata, Chennai and Mumbai with an optional extension to the United Arab Emirates from 19 - 23 January 2014.
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Quest Wodonga opening celebration
Andrew Weisz pulls a pint at Huon Hill
The Victorian minister for planning Matthew Guy officially opened the $25 million dollar Quest Wodonga property last week. The opening of the new accommodation facility is recognition of the region’s burgeoning growth. Andrew Weisz, general manager – locations for Quest Serviced Apartments highlighted the regions successful business conditions were justification to build the property. “The Albury/
Wodonga region is in the process of undergoing a multi-million dollar redevelopment across the next two years, this combined with the 8000 businesses already in the area means there is a huge demand for our style of accommodation.” Located in the centre of Wodonga the property features 80 brand new studio, one, two and three bedroom serviced apartments, a gym, pool, business lounge, and conference room. Directly adjacent to Quest is Huon Hill, accessible via a visually striking aerobridge, which is set to become the social hub of Wodonga boasting dining facilities, café, bar and event centre. Franchisees Noel and Madeleine Wood and Jason and Natasha Callewaert said that the opening event, held at Huon Hill’s event centre, was a great celebration in recognition of a great development.
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SEQPHA held its Hotel Grand Chancellor Breakfast last month when it raised over $200 for charity.
email@example.com www.hirum.com.au resortnews | october 2013
TAHL was formed in 1993 (founded by Accor Asia Pacific honorary chairman David Baffsky), listed on the ASX in 2006 and privatised in 2002 by a consortium that included Babcock and Brown and Accor Hotels. The deal gives the Middle Eastern group, which is a major hotel investor around the world, ownership of a portfolio of 31 properties. It is also one of the largest leased property portfolios of its kind in the Asia Pacific. Best Western Ballina Island Motor Inn
NSW GAINS TWO BWS
BW OPENS IN BALLINA - A DREAM FOR OWNERS With over 20 years’ experience running hotels and a number of hospitality awards under their belts, Best Western’s newest hotel owners John and Tina Turner have this week completed one of their ultimate bucket list projects, opening the Best Western Ballina Island Motor Inn a short 20 minutes’ drive south of Byron Bay along the famous Brisbane to Sydney Pacific Highway route. Best Western Ballina Island Motor Inn is a resort style property offering 40 spacious, fully refurbished and well-appointed rooms and a free continental breakfast for each guest. Choose from executive family rooms, queen rooms or even a spa room, all including free wi-fi, free parking, LCD TVs and Foxtel. Dine at the onsite Balinese themed Lilly’s Garden Restaurant serving modern Australian cuisine crafted by executive chef Latasha Ball.
Best Western Plus has arrived in two of New South Wales’ popular regional destinations, with the opening of the Best Western Plus Apollo International Hotel in Newcastle’s upbeat Charlestown and the Best Western Plus HW Boutique on Port Macquarie’s stunning beachfront. Rob Anderson, Best Western Australasia chief executive said, “Signing the 94-room Best Western Plus Apollo International Hotel comes at a time when Newcastle is looking to revitalise itself through its City Evolutions strategy. This includes developing East Newcastle to be the home of new vibrant restaurants, bars, galleries and venues, boosting Newcastle as a new events and family holiday destination. Similarly, in Port Macquarie the Best Western Plus HW Boutique has 44 beautifully appointed rooms, each with free wi-fi, LCD TVs, an express check-in facility, free parking and plush modern amenities.
The third hotel for the couple, Tina said they purchased the property because of its close location to Byron Bay and to be part of the friendly Ballina community best known for its profusion of antiques, art and craft shops, boutiques and markets.
Trevor Morris, director of Linear Group that owns the two hotels believes the Best Western Plus HW Boutique has arguably the best location and ocean views in Lake Macquarie, while the Best Western Plus Apollo International Hotel in Newcastle is well known in the area and has recently undergone a complete refurbishment and added 44 new rooms to its inventory.
LONG ISLAND NOW BREAKFREE
OAKS BUILDS 3 MORE IN QLD
Long Island Resort in the Whitsundays will join Mantra's BreakFree portfolio next month, taking the brand network to 27 properties across Australiasia.
Oaks Hotels & Resorts is set to significantly grow its presence nationally in the last quarter of 2013 and early 2014, with three new properties launching in Queensland.
The signing of the 140-room property, owned by Ocean Hotels and Resorts, "embodies" the BreakFree brand promise, according to Mantra chief executive Bob East.
New-build 4½ star hotels are currently under construction in key regional destinations including Middlemount, Moranbah and Gladstone, taking Oaks Hotels & Resorts’ total property portfolio to 44.
"BreakFree prides itself on being a quality, cost-effective accommodation option for travellers in exceptional locations and Long Island is an excellent representation of this that I'm sure will be well received by our guests," he said.
On track to open on 21 October 2013, Oaks Middlemount, located in the heart of Central Queensland mining town Middlemount, will offer a selection of spacious one and two bedroom apartments spread across two levels, each fully self-contained with modern kitchens and laundries, and all air conditioned.
Meanwhile, Ocean Hotels & Tourism was confident the new management deal would increase its exposure in the "competitive" Australian marketplace.
TAHL SELLS 31 HOTELS Australia’s largest hotel owner Tourism Asset Holdings Ltd has sold its 31 hotels to the Abu Dhabi Investment Authority for $800 million. The properties, under the Pullman, Novotel, Mercure and ibis brands, are leased (29) or managed (2) by Accor Asia Pacific on a long-term basis. Properties in the sale included: Novotel and ibis, Sydney Darling Harbour; Novotel and ibis Sydney Olympic Park; Pullman Sydney Olympic Park; ibis Sydney Airport; Mercure Parramatta; Novotel Langley Perth; Novotel Canberra; Mercure Treasury Gardens Melbourne; ibis Melbourne; Mercure Broome; 13 ibus Budget hotels throughout the Australian eastern seaboard; and 8 ibis Styles hotels in Western Australia, Northern Territory and Queensland.
Further north and scheduled to open on 28 October, Oaks Moranbah in the Isaac Region will offer a brand new accommodation alternative in the young coal-mining town. In the final stages of construction and spanning three levels the property features a great selection of one and two bedroom, self-contained apartments featuring full laundry and kitchen facilities, Internet access and cable TV. Located on Bacon Street, the hotel is in close proximity to the newly refurbished town centre, comprising an exciting selection of cafes and restaurants, as well as the Moranbah Golf Club, shopping centre, handful of grassy parks and of course, the many nearby mines. Gladstone is also gearing to welcome a brand new addition, with the construction of 144 one-bedroom apartments, named Oaks Grand, currently underway. The property is set to boast exceptional entertainment and leisure facilities including a pool, gym and spa, as well as unsurpassed hospitality options. Once complete, the property will stand at 13 levels, offering unrivalled views of the surrounding Gladstone region.
resortnews | october 2013
Pullman Melbourne Albert Park
PULLMAN MELBOURNE OPENS AFTER UPGRADE Pullman Melbourne Albert Park has opened its doors following a multimillion dollar renovation of its 169-guestrooms, executive lounge, meeting spaces and public areas. The hotel is the first of Australia’s largest and fastest growing 5-star hotel brand to open in Melbourne. Enjoying a spectacular location overlooking Albert Park Lake and the Formula 1 Grand Prix track, Pullman Melbourne Albert Park will be a front row seat to the popular racing event taking in more corners than any other view in Melbourne from the top floor suites. Having long held the reputation as Melbourne’s premier business and events hotel, the former Sebel has received the 5-Star Pullman treatment of its business facilities and meeting spaces making it a luxurious yet functional experience for travelling executives. The new look lobby features a spiral staircase and a striking light feature creating an impressive sense of arrival for guests complemented by a personalised and friendly check-in process.
As part of the hotel’s dramatic transformation, the guestrooms have been updated with a contemporary colour palette of gold, red and chocolate. Each guest room features an iPod and iPad docking station, a multimedia connectivity panel, glass work table, lounge chair and well-appointed Roger&Gallet bathroom amenities, meeting the needs of both business and leisure guests.
NEW NAME FOR COUNTRY CLUB HOTELS 1834 Hotels is excited to announce the launch of seven new hotel websites, along with a fresh new name and corporate identity. Formerly marketed as Country Club Hotels & Resorts, the group has rebranded to 1834 Hotels with the launch of their new website www.1834hotels.com.au now showcasing the network of South Australian hotels that are managed by 1834 Hospitality. Chief executive officer Andrew Bullock says the new websites provide an enhanced platform for marketing each individual property more effectively in the digital environment and offer customers a new, more user-friendly tool to book online.
Welcome to this month’s
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resortnews | october 2013
“The new-look booking engines are an integral part of the new websites, with the capability to view a fortnight date range of room availability, compare room types and book packages online,” Mr Bullock said. 1834 Hotels manage seven hotels, motels and resorts in various locations across South Australia. They are: Adelaide Meridien Hotel & Apartments (North Adelaide), Adelaide Royal Coach (Kent Town), Apartments on George (Norwood), Clare Country Club (Clare), McCracken Country Club (Victor Harbor), Naracoorte Hotel/Motel (Naracoorte) and John Pirie Motor Inn (Port Pire).
HAYMAN SOLD TO ONE&ONLY Hayman Island in the Whitsundays, originally developed in the 1950s by Reg Ansett, is to be sold to billionaire South African hotelier Sol Kerzner. It is understood that the Malaysian-based Mulpha Australia Ltd that bought the 292ha island in 2004 has reached an agreement with Kerzner International Holdings to take over the lease of the resort. The Cape Town-based Kerzner operates seven One&Only branded resorts in the Indian Ocean and Africa, Arabian Gulf, the Pacific and Caribbean with a further three due to be added. Kerzner plans to close the resort for three months in January to implement a $40 million refurbishment. The island will be relaunched in April as a One&Only resort. Under the changes the number of rooms will be reduced from 209 to 160. A new lounge area will be introduced around the adults-only pool with day beds and cabanas, a new beauty salon beside the health spa and a new state-of-the-art gym with personal trainers.
houses a guest gym, and a multi-purpose conference room facility. Quest Rockhampton franchisees, Graham Archer and Mandy Fallon, recently relocated from Brisbane to Rockhampton, and are thrilled to be joining the lively sunny regional town. “We are very excited about being a part of Quest’s further expansion and investment into regional Queensland. We were fortunate enough to be offered the opportunity to be the franchisees for Quest Rockhampton. We’re looking forward to this exciting new venture,” Mr Archer said. Mr Archer and Ms Fallon have partnered with established Quest franchisees Mark Peterswald and Michelle Fallon, who have been part of the Quest network for seven years, operating Quest on Story Bridge and Quest Chermside in Brisbane.
QUEST OPENS SECOND PROPERTY IN MACKAY Thriving business conditions in regional North Queensland have motivated Quest Serviced Apartments to expand its growing network – officially opening the $30 million Quest Mackay on Gordon. Located in the centre of Mackay, the property features 115 brand new studio, one and two bedroom serviced apartments. The property also has meeting and conference facilities, secure undercover car parking, a recreational deck including a swimming pool, spa, and a gymnasium. Quest Mackay on Gordon is a joint venture between Russell and Elise Spurrell - current Franchisees of Quest Mackay and Mackay locals, Rob and Corinna Cotter. All four are excited about expanding the Quest brand in the region.
QUEST OPENS NEW PROPERTY IN ROCKY Quest Serviced Apartments has continued its ambitious expansion plans - opening a property in the thriving regional Queensland town of Rockhampton. The 4½ star, $20 million Quest Rockhampton is centrally located in the Rockhampton CBD, overlooking the Fitzroy River. Quest Rockhampton has 73 brand new one and two bedroom serviced apartments and studios. Each apartment is fully equipped with kitchen and laundry facilities, Foxtel, wi-fi and multi-unit desk chargers. The property also SUNSHINE COAST & QUEENSLAND WIDE
Quest Mackay on Gordon Damian Quinn
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BACKPACKERS FOR SALE Gladstone Backpackers is up for sale according to Raine & Horne's Darryl Branthwaite who said the owners were looking for offers over $950,000. Long-time owner Lynda Odgers has managed the business with her daughter Lesley Belcham, for six years. Mr Branthwaite said while the backpackers was in a good location, it also was an income producing block. He said a husband and wife team would be ideal to take over the business that had an occupancy rate over 90%.
resortnews | october 2013
PARADISE LINKS RESORT PORT DOUGLAS Luxury Holiday Resort With Spectacular Golf Course Views
66 lots with 43 in the holiday letting pool, a mixture of one and two bedroom dual key apartments and spacious two, three and four bedroom villas Located only 500 metres from Four Mile Beach, set amongst 10 acres of lush tropical gardens with spectacular golf course views Excellent facilities include two heated lagoon swimming pools, bbq areas, tennis court, bike hire, tour desk and Wi-fi Generous office and storage together with substantial guest reception/lounge area
This business is arguably the best management rights resort business available in north Queensland. Great profitability and lifestyle on offer. Motivated Vendors
Nett Profit: $450,000 Total Asking Price: $2,200,000
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The opportunity exists for this resort to be managed by a family or business partnership and the incoming managers have a choice of residence - either a 2 bedroom apartment or 3 bedroom villa - either or both will be offered for sale separately. Both provide excellent residential accommodation with 2 bathrooms, full kitchen, air conditioning and ceiling fans, private balcony area and views – either of the lush tropical gardens and green fairways or lagoon pool
For further information on this management rights business opportunity, contact: Exclusive Agent Geoff Ellis 0432 790 959
Head Office: Suite 1 Ground Floor Equinox Sun Resort, 3458 Main Beach Parade, Surfers Paradise Qld 4217 Ph: 07 5555 8200 | Fax: 07 5570 4693 | Email: firstname.lastname@example.org
Property management rights • hotels • motels • resorts • holiday parks • time share • hosted Guide motel market thinking finance
To fix or not to fix: That is the question So, Kevin is out, Tony is in and we can expect no more great big new taxes. That is unless they start tinkering with the GST of course. The boats will stop, the carbon tax will be repealed and hopefully the incoming senate will recognise a mandate when it sees one. Those of you who take an interest in this column may recall that in August I suggested that a vote for Tony might be a vote for increasing interest rates and that if an Abbott government got in it might be time to fix rates. Some of you might be trying to better understand why rising rates are not all bad news given my comments in August. Certainly very high interest rates are unhealthy for any economy but so, too, are very low rates. Central banks cut rates when an economy is in danger of stalling. The more cuts the more chance that the stall will become a recession and I suspect no one is looking forward to another one of those. The Reserve Bank of Australia has been cutting the cash rate since November 2011 with the rate now at an historically low 2.5%. That same cash rate was 14% in 1990. Hard to believe but there it is. The comparable central bank rates in some other countries like Greece, Italy and Spain are at or close to zero and you would hardly say that those economies are shooting the lights out. Clearly ultra-low central bank rates are not the sign of a healthy outlook for any economy. Given that our central bank uses the cash rate to help manage inflation and inflation is driven by wage growth and consumer demand we can see that a lack of consumer confidence and no material wages break out since the GFC has ultimately led to very low interest rates by historical benchmarks. Great for borrowers but sadly a sign that not all is great in the broader economy. What might happen next you ask?
...Certainly very high interest rates are unhealthy for any economy but so, too, are very low rates...
Mike Phipps Phipps Finance
one of the most dysfunctional federal governments in living memory. We have the quite probable repeal of a tax that had scared the hell out of the average punter in the suburbs and we now have the very likely flow on effect of increased resource sector investment as future certainty improves.
63%, Qantas 28%, Telstra 33% and Woolworths 39%. The average equity ratio for the four major banks in Australia is 4.6%. Yes, that is not a typo! 4.6%.
I suspect that consumer confidence will improve and a chunk of those advance payments will be redrawn and spent on holidays, new cars, home improvements and ever bigger TVs.
The banks say that such an impost will drive up rates as they are forced to use more shareholder funds and less debt to fund lending.
I also suspect that consumers will take some of the $4 billion quarterly national interest savings that has lifted disposable income by 10% and they will spend it on stuff as well.
Think about this. Consumer confidence is the key and is driven largely by job prospects. The research tells us that if a consumer feels comfortable with ongoing employment prospects they will borrow and spend. To give you some idea of the lack of confidence in the consumer sector, since the interest rates have been dropping most home borrowers have simply kept making the same repayments. There is now $1.25 billion dollars sitting in advance home loan payments in Australian banks. The only other country on earth that reflects this sort of consumer behaviour is Canada and they don’t have anywhere near the same per capita advance payments. We now have a new government that has followed
All this will ultimately drive price and wage pressure and we all know where that leads. The RBA will have no choice but to play with the cash rate and variable rates may well rise as a result. Of course, by the time all this becomes a little clearer the markets will have priced in the possible trend and the fixed rate horse will have bolted. Now here’s the sleeper in the mix. When you go to your bank and they tell you that you are too highly geared think about this. The average borrower in the accommodation sector is geared somewhere between 50% and 70% of the underlying value of the financed asset. So equity is between 50% and 30% with debt making up the balance. For home loan borrowers it’s an average of 60% to 90% gearing depending on borrower type and geographic area. To put this in perspective David Jones has an equity ratio of
resortnews | october 2013
There is increasing pressure on the banks to improve this equity ratio with some regulators calling for a ratio as high as 20%.
If we add to this that there is a home loan pricing war going on in the Australian banking sector then I suspect that ultimately it will be business borrowers who are most at risk of interest rates hikes. In 1990 business loans in Australia were 270% of home loans. They are now 57% of home loans so the pressure on the banks to look after this section of their balance sheets has come off to some degree. There’s a lot of numbers here but for me the message is clear. We are entering an era of economic recovery and growth. The cash rate and bank liquidity will both be under pressure and that will drive up interest rates. Business borrowers are most likely to bear the brunt of these trends and should seriously look at interest rate risk management strategies right now. I’ll leave you with another favourite of mine from Winston Churchill: “We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle”.
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Area Inner City Inner City Inner City Inner City Inner City Inner City Inner City Eastside Eastside Eastside Eastside Eastside Westside Westside Westside Southside Southside Southside Southside Southside Southside Southside southside Southside Southside Southside Southside Southside Southside Southside Northside
Distance to CBD 0-5 0-5 0-5 0-5 0-5 0-5 0-5 10-15 15-20 15-20 15-20 25-30 5-10 10-15 10-15 10-15 10-15 10-15 10-15 10-15 10-15 15-20 15-20 20-25 20-25 25-30 25-30 25-30 25-30 25-30 5-10
Nett Income $245,000 $175,000 $120,000 $200,000 $400,000 $149,371 $257,602 $383,000 $150,000 $150,000 $163,000 $115,000 $147,000 $158,000 $163,000 $116,000 $31,000 $51,000 $27,000 $422,000 $100,000 $197,000 $98,000 $70,500 $86,000 $180,000 $220,000 $91,000 $142,000 $335,000 $164,800
Business Price $1,230,000 $750,000 $600,000 $1,060,000 $1,850,000 $500,000 $1,300,000 $1,854,000 $567,000 $645,000 $621,000 $450,000 $661,000 $770,000 $801,000 $462,000 $109,000 $163,000 $158,000 $2,245,000 $480,000 $990,000 $441,000 $280,000 $343,000 $840,000 $820,000 $440,000 $495,000 $1,675,000 $792,000
Manager Total Price Unit $650,000 Motel $600,000 $0 Motel Motel $650,000 $425,000 $449,900 $330,000 $459,000 $300,000 $485,000 $430,000 $469,000 $401,000 $399,000 $420,000 $399,000 $455,000 $360,000 $340,000 $310,000 $375,000 $395,000 $250,000 $330,000 $360,000 $375,000 $450,000 $448,000
$1,880,000 $750,000 $1,200,000 $1,060,000 $1,850,000 $500,000 $1,950,000 $2,279,000 $1,016,900 $989,000 $1,081,000 $750,000 $1,146,000 $1,200,000 $1,270,000 $863,000 $508,000 $583,000 $557,000 $2,700,000 $840,000 $1,330,000 $751,000 $655,000 $738,000 $1,090,000 $1,150,000 $800,000 $870,000 $2,125,000 $1,240,000
New Under Contract
Sold Under Contract Under Contract New New Under Contract New
New New New
Under Contract Under Contract Under Contract
Distance to CBD
Area Northside Northside Northside Northside Northside Northside Northside Northside Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Gold Coast Sunshine Coast Sunshine Coast Sunshine Coast Mackay
$130,000 $685,000 15-20 $220,000 15-20 $46,800 25-30 $105,000 25-30 $145,000 25-30 $98,000 25-30 $385,000 Coolangatta $253,000 Coombabah $83,336 Broadbeach $162,000 Broadbeach $90,000 Broadbeach Waters $130,000 Commera $257,000 Commera $212,000 Burleigh Head $119,000 Runaway Bay $200,000 Runaway Bay $188,000 Southport $139,000 Surfers Paradise $170,000 Surfers Paradise $272,000 Surfers Paradise $33,000 Surfers Paradise $258,000 Surfers Paradise $530,000 Surfers Paradise $558,000 Surfers Paradise $106,000 Labrador $163,000 Beerwah $160,000 Maroochydore $170,000 Mooloolaba $600,000 City $516,500 5-10
Manager Total Price Unit
$455,000 $350,000 $3,767,500 $665,000 $1,069,000 $330,000 $155,000 $319,000 $440,000 $400,000 $550,000 $398,000 $430,000 $220,000 $1,860,000 $415,000 $1,150,000 $545,000 $369,000 $342,000 $800,000 $400,000 $280,000 $420,000 $580,000 $345,000 $978,250 $399,900 $806,000 $394,000 $488,000 $470,000 $932,000 $820,000 $695,000 $550,000 $620,000 $375,000 $635,000 $315,000 $1,255,000 $425,000 $100,000 $210,000 $1,290,000 $360,000 $2,780,000 $870,000 $2,862,240 $850,000 $350,000 $340,000 $720,000 $275,000 Freehold Motel $800,000 $595,000 $2,850,000 $600,000 $2,582,000 $1,318,000
$805,000 New $4,432,500 $1,399,000 Under Contract $474,000 $840,000 Sold $948,000 $650,000 Under Contract $2,275,000 Under Contract $1,695,000 $711,000 $1,200,000 $700,000 $925,000 Under Contract $1,378,150 New $1,200,000 $958,000 $1,752,000 $1,245,000 $995,000 $950,000 $1,680,000 Under Contract $310,000 $1,650,000 Under Contract New $3,650,000 $3,712,240 $690,000 $995,000 New $1,250,000 $1,395,000 $3,450,000 New $3,900,000
Net Income: $422,400 Remuneration: $167,000 Manager Unit Value: $455,000 Agreement Remaining: 20 Manager Unit: 3 bedrooms, 2 bathrooms air conditioned townhome with double garage.
Net Income: $469,000 (projected) Remuneration: $166,000 (projected) Letting Pool: 166 (projected) Manager Unit Value: $794,800 Agreement Remaining: 25 Manager Unit: Two 3 bedroom 2 bathroom brand new townhomes.
High income, great location!
102 units in letting pool, units renting between $415 and $450 per week, well established business with easy care living.
Two projects, one sale, located adjacent to each other, why not buy both? Complex one comes with 91 townhouses plus managers unit featuring an office. Construction is underway, soon to be released! NRAS Pending. Complex two comes with 75 townhouses plus managers unit featuring an office. Construction expected to commence Dec 2013. NRAS Pending. Great off-the-plan opportunity not to be missed!
Gold Coast, QLD
Gold Coast, QLD
Net Income: $529,600 (actual) Remuneration: $160,000 Manager Unit Value: $870,000 Letting Pool: 42 Managerâ€™s Unit: 1x 2 bed, 2 bath Managers Unit, 1x 1 bedroom manager unit, 2 Car Parks, Conference room, Reception and Luggage Storage, Executive Managers Office.
Net Income: $272,000 (actual) Remuneration: $53,000 Letting Pool: 21 Manager Unit Value: $425,000 Manager Unit: 2 Bedrooms
Minutes drive to Carindale Shopping Centre & Gateway Motorway this popular villa complex is fully gated and offers pool, gym & tennis Court.
Impressive modern high rise with exceptional resort facilities including a fully equipped conference facility and other commercial areas on title. Tremendous growth potential. All two bedroom units are dual key and furnished with quality package.
This holiday apartment complex is perfectly situated right in front of the sparkling beach and offers direct access to the fine sandy shores of Gold Coast. Minutes walk from all the exciting holiday destinations in Surfers Paradise and bus stops that can take you directly to all the theme parks. The complex offers family units that are fully self-contained with modern furnishings including complete kitchen and laundry facilities. Enjoy breathtaking ocean views from the sun drenched north-east facing balconies.
Contact: Robert Lin (Principal, MREIQ) Mobile: 0433 000 888 Office: (07) 3344 5858 Email: email@example.com
DEAL WITH THE TEAM WHO KNOW THE MANAGEMENT RIGHTS INDUSTRY FROM THE INSIDE!!
CAIRNS CBD LOCATION Net Profit Unit Price
Business Price Total Price
THE BEST AVAILABLE IN THE NORTH $695,000 $985,000
If you want a great income based on a reasonable workload with absolute security then look no further. This complex is very compact so the grounds are easy. It’s on a main road near the city centre so you get walk ins as well as bookings. Trade is consistently good and getting better. Cairns is on the cusp of a huge improvement in business and you can be part of it.
Net Profit Unit Price
Business Price Total Price
What a Fabulous Complex! Set in ideal location just minutes from the heart of Cairns City, beautiful tropical gardens, resort pools, 2 tennis courts, Gym and adjoins the Cairns Golf Club. This Management Rights Business offers: Four Bedroom Managers Residence, Large Office on a Separate Title, 192 Apartments in the two adjoining buildings.
Peter Hales 0416 063 952
Peter Hales 0416 063 952
YOU CAN’T FIND BETTER!
NOOSA - NATIVE FAUNA RETREAT
Net Profit Unit Price
Net Profit Unit Price
Business Price Total Price
Rare as hens teeth is the best way to describe the location, operation and price Vs income of this Resort and its Management Rights business. The solid history and solid presentation, coupled with a solid and astute business operator will reap a growth of income, yet to be seen…
Net Profit Unit Price
Business Price Total Price
Ideally situated opposite the Logan Hyperdome in the booming Brisbane/Gold Coast Corridor, this management rights business is now surplus to Queensland Government requirements. Valuation available.
Robert Collins 0404 678 792
Absolutely superb setting. Explore the rainforest garden from the boardwalk to the private river beach being Noosa Sound, all with views to the ocean. Only a hop, skip & jump to Noosa Main Beach, local shops, Hasting Street, but yet so quiet & peaceful. The managers residence is a renovated large 3 bed with some area’s air con. It overlooks the pool & gardens, with some views of the water.
Sasha Jancevski 0406 075 270
SURPLUS TO GOVERNMENT REQUIREMENTS!
Business Price Total Price
Lindsay Petty 0407 029 138
BURLEIGH WATERSIDE COMPLEX Net Profit Unit Price
Business Price Total Price
This complex of ten two-storey buildings sits in the heart of Burleigh Waters. Close to schools, shopping and the beach. The managers unit is a spacious two bedroom home which has an open plan kitchen and living area that opens into a large outdoor entertaining area overlooking tropical gardens.
Kristine Lehmann 0412 203 770
www.raasrights.com.au • Phone 07 3299 1744
DEAL WITH THE TEAM WHO KNOW THE MANAGEMENT RIGHTS INDUSTRY FROM THE INSIDE!! VICTOR ISLAND LODGE
BEAUTIFUL VICTOR ISLAND
WHY NOT TRIPLE YOUR CHANCES OF SELLING BY TRADING OTHER REAL ESTATE I HAVE THREE QUESTIONS FOR YOU!! 1. Do you own a MR’s worth between $ 2M-$4M ? (YES) 2. Would you like to sell and put cash in your pocket ? (YES) 3. Would you like to own your very own Island ? (YES)
If you answered yes to 2 or 3 of the questions then ring Rod, a Specialist property trader of 30 years. It will surprise you how easy it is. The method can apply to any MR’s, CALL Rod Falcke: 0418 752 966
TRINITY LINKS RESORT: EXCLUSIVE Nett Profit: $485,000
Total Price: $2,860,000
What A fabulous complex: Set in ideal location just minutes from the heart of Cairns City, beautiful tropical gardens, resort pools, 2 tennis courts, Gym and adjoins the Cairns Golf club. This business offers: 4 bedroom Managers Residence, large office on a separate title and 192 apartments in the two adjoining buildings. This is one of the largest available here in the North. The vendor will look at trading Real Estate with income. This complex is perfect for a partnership or an investor as staff is already in place.
For an inspection call: PETER HALES 0416 063 952
BAYVIEW PAVILIONS: EXCLUSIVE MANGEMENT RIGHTS: CARETAKING ONLY Nett Profit: $26,000 P.A. Total Price: $352,000 Many outside lettings lots of blue sky, 2 bed, 2 bath, ground floor apt. Waterfront complex with pool.
For an inspection call: ROD FALCKE 0418 752 966
www.raasrights.com.au • Phone 07 3299 1744
Property management rights • hotels • motels • resorts • holiday parks • time share • hosted Guide motelmanagers new market
Resort News Sales Report
Regatta at West End Regatta at West End was just the complex Ken & Jenny Chen were looking for. After months of searching, when that perfect complex finally came along, Ken & Jenny Chen and family could not be more pleased. Regatta at West End was the right one! Ken & Jenny bring a wealth of knowledge to their new role. Jenny, a qualified agent, has broad property management experience, and Ken’s previous life as an engineer with a Masters Degree in IT guarantees a perfect fit for the owners at Regatta. Ken & Jenny are appreciative of the service that Lee Boyle and the team at RAAS Rights, both during the sale and after settlement.
Proudly brought to you by: MANAGEMENT RIGHTS Gold Coast Savannah Waters Lake Hills Chevron Palms Paradise on Palms Surfers Palms Plaza Lakeside Manors–Kensington Gate Shanandoa Court
Gavin Arnold Brian & Tina Nicholas Chris, Fiona & Sandy Li WTTJ Holdings P/L Dolores & John Hunter Gary & Elizabeth Crouch Alex & Amy Yan
Coomera Carrara Chevron Island Palm Beach Benowa Arundel Robina
RAAS RAAS VENZ VENZ PPRE MRS RBA
Gary & Angeline Wang
Davinci on Sanders Helen Rossi Upper Mt Gravatt Regatta Apartments West End Jenny Wen West End Vicinity Sheng-Yuan Hsaio & Weng-Ling Lu Kangaroo Point Amirage Sparkling Management P/L Lawnton Richland Pines Phil & Vanessa Critchley Richlands
RAAS RAAS RAAS VENZ RBA
Palm Springs Retirement Village
Catherine & Steve Forth
Charles & Julie Gatwood Sunny Coast Management P/L Dunes on Dunes Pty Ltd
Pelican Waters Mooloolaba Agnes Waters
TMR VENZ MRS
Sunshine Coast Harbour Lights Caribbean Mooloolaba Edge on Beaches
North Queensland Marquis on Grafton Whitfield Waters
The residents at Palm Springs Retirement Village can’t believe their luck! Ella and Eddie Weiss took over the business as from the 1 July this year, and with Ella being a fully qualified chef and Eddie being a mechanical engineer, the place is really humming! Ella has worked in the retirement village industry as an employee for some five years and now that she controls her own kitchen, she can introduce her personal European cooking style. From the looks on the residents’ faces they are lapping it up for breakfast, lunch and dinner. Eddie's mechanical skills are gradually transforming the grounds, notwithstanding the lack of rain. Ella and Eddie worked closely with Mike Mallory of RAAS Rights to navigate the rather complicated purchase.
Lee Williams & Paul Robinson
Far North Property Developments P/L
Star Resorts P/L
Rhys & Larysa Hanson
John & Gai Seaton
Paul Higgins & Ana Susanty Tweed Heads South
NSW Flynns Beach Resort Byron Links Apartments
MOTELS & OTHER Sunshine Coast Caboolture Motel
NSW East Port Motor Inn Kew Motel Junee Tourist Park City Lights Motel
Park Hill Village
Apartments @ Glen Island
Geoff & Lesley Argaet
NT Poinciana Inn Note: Agent/Broker involved in the sale is listed last. Agent - KEY: ARMS - Australian Resort Management Sales; CBRE - CB Richard Ellis; CPDR - Cairns & Port Douglas Resort Sales; LIZ - Liz Lavender Management Rights; MRS - MR Sales; PPRE - Property Pacific Real Estate; PRB - Platinum Resort Brokerage; QTH - Queensland Tourism & Hospitality Brokers; RAAS - RAAS Rights; RBA - Resort Brokers Australia; TB - Tourism Brokers; TMR - Think Management Rights; VENZ - Venz Management Rights Specialists
Send your sales and new managers information to firstname.lastname@example.org
Like many people who enter the management rights industry, Bill and Jane Francis wanted to escape the corporate rat race and enjoy a more relaxed lifestyle. An interstate move from Adelaide saw them purchase beautiful Park Hill Village at Murarrie. The complex was listed by Robert Collins of RAAS Rights on the Thursday and snapped up by Bill and Jane on the Saturday. A very satisfactory outcome for everyone!
YOUR COMPLETE ACCOMMODATION SOLUTION 07 5574 4990 email@example.com www.hirum.com.au
resortnews | october 2013
1300 512 566 firstname.lastname@example.org
www.tourismbrokers.com.au Too many to list here go to our website 380+ Listings
TOWNSVILLE HIGH QUALITY PERMANENT COMPLEX Net Profit: $236,000 • • • • •
Price: $1,374,000 (incl residence)
Modern gated complex with great B/C salary Easy care tropical landscaping and resort swimming pool Currently run under management with room for growth No set hours in agreements. 108 apartments in total Great residence with separate well equipped office on title
MORE GREAT PROPERTIES Trinity Beach Holiday complex - (incl 2 aptmnts) Cairns Holiday complex
Net $225,000 Net $250,000+
Price $1,400,000 Price $1,290,000
CALL CHRIS ROWE ON 0408 225 220 TO ARRANGE YOUR PRIVATE INSPECTION
ABSOLUTE WATERFRONT, LOW MULTIPLIER Net Profit: $188,032 • • • •
Asking price is less than the purchase price in 2007 • Multiple only 3.6 Growing rental pool • Can be run by one person Absolute waterfront • Water views from all units All rental units have been renovated
MORE GREAT PROPERTIES Holiday with upside, one person business Holiday, can live off site, rent managers unit Holiday, retiring owners, esplanade location Mixed letting, close beach and shops, only 5yo
Net $164,121 Net $185,362 Net $257,117 Net $398,434
Price $1,099,000 Price $995,000 Price $1,695,000 Price $2,900,000
CALL GERARD DIXON ON 0433 617 515 TO ARRANGE YOUR PRIVATE INSPECTION
SPECTACULAR VIEWS - FANTASTIC LOCATION Net Profit: $169,450
Holiday Management Right, 30 (1, 2 & 3 bedroom) self-contained apartments, 18 in letting pool. An excellently presented complex including penthouse roof top units. North facing with spectacular ocean views and only 50 metres to beach. Stylish Managers Residence also with great views of the beach. A short stroll to shops, restaurants and public transport.
MORE GREAT PROPERTIES Iconic Holiday Management Right 1/2 Holiday 1/2 Permanent Right Holiday Highrise Management Right Resort Style Holiday Management Right
Net $610,000 Net $115,010 Net $309,000 Net $175,775
P.O.A. Price $980,000 (incl unit) Price $1,775,000 (incl unit) Price $1,455,000 (incl unit)
CALL JIM BEARD ON 0425 168 244 TO ARRANGE YOUR PRIVATE INSPECTION
National Coverage and Expertise in the Sale, Leasehold & Freehold of Motels, Caravan Parks, Hotels and Management Rights
Call Us Nationwide On 1300
512 566 email@example.com
Property management rights • hotels • motels • resorts • holiday parks • time share • hosted Guide motel market
A full car park When I first came into the business brokerage industry as a motel broker some 18 years ago I was told by a motel operator that he was the best operator in town because his motel achieved a 90% occupancy rate that year. “No other motels in town come close to that,” he said. Being none the wiser I accepted that this must be a great motel operation all round, even though the presentation was quite poor. It soon became evident that although the motel ran at a high occupancy, the average tariff being achieved was approximately $35 per night. The other motels of a similar standard in the area were averaging tariffs upwards of $50 per night and were running with an average occupancy rate of 65%. The right is a very simplified table but it does show that the annual income for Motel B and D, although running at a much lower occupancy rate, still shows a much higher profit than Motels A and C that are underselling their rooms. The resultant sales income in each case is quite similar so it is not the income that is greatly affected by tariff discounting. It is the cost of renting the motel units that is the big problem. The same principles apply now that did 18 years ago. The costs to operate Motel A and C at 90% occupancy compared to Motel B and D’s 65% occupancy is substantial. The two types of expenses being fixed costs
...the number of cars in the car park does not tell the full story...
Andrew Morgan Motel Broker/Director, Qld Tourism & Hospitality Brokers
1995 Motel A
2013 Motel B
Average Nightly Tariff
Unit nights rented
Costs to Rent a Unit
Total Annual Costs to Rent Units
Net Operating Profit
Annual Accommodation Income
$294,190 Note Tariffs exclude GST
and variable costs can help to explain this. Some of the fixed costs of renting a room may include property rates, insurance, accounting fees, and rent (in the case of a lease). These fixed costs will always be there, and will not vary whether a room is rented or not. However the variable costs will increase the more times a room is rented. This is where Motels A and C come off the rails. Some of the variable costs of renting a room may include – electricity, linen, repairs and maintenance, and wages. Therefore the more rooms rented, the higher the costs of renting a room due to the
increase in variable costs. If the total fixed and variable costs of renting a room in a particular motel are known, then for each of the room nights rented, the costs can be seen in the above table. The table confirms that Motels B and D are far more successful accommodation operations because the profit margin on the sale of each room night is much higher than Motels A and C. A higher tariff and lower occupancy rate wins the race. This of course works for this example, however, if Motel B and D’s occupancy rate at the nightly tariff was only 30%, then it would indicate that Motel B and D’s nightly room rate was
resortnews | october 2013
too high and not meeting the market. Also what the numbers confirm is that Motels A and C may be turning each room over almost every night and appearing on the surface to be the more successful, however the number of cars in the car park does not tell the full story. An equilibrium occupancy rate for Motel B and D to meet the same profit level of Motel A and C would show that Motel B would still be able to operate at a low occupancy rate (at the higher tariff) and yet still maintain at a similar net operating profit position.
Beach on Sixth
Spreading happiness Beach on Sixth is a beautifully presented, luxuriously selfcontained accommodation property in Cotton Tree - just minutes from Maroochydore, in the heart of the Sunshine Coast. This complex of 33 apartments, with 23 in the letting pool are lavish and modern, they overlook the idyllic crystal blue waters of the Pacific Ocean and all 13 levels benefit from sumptuous northeast facing ocean views. Beach on Sixth has attained the number one position on TripAdvisor: not only because of the luxurious presentation, enviable location and breathtaking views, but due to the sheer hard work of Lynne Delany and her team. This team of down to earth, genuinely good-hearted people has worked methodically and tirelessly around the clock to ensure that holidaying guests want for nothing. Beach on Sixth is still a relatively new complex; it opened February 2010 and Lynne Delany purchased the management rights in November 2010. Lynne is the sole owner and operator. She is a single mum of one and very proud of her, “gorgeous 14 year old boy”. As you can imagine, her life is very hectic but she is able to “do it all” because she has the support of, “awesome Nan,” the person she describes as “the Coast’s best apartment inspection guide!” Let me explain: Nan is not a blood relative but she is a second mum to Lynne, she lives with Lynne and her son Cody and helps with the business. Lynne and Nan used to work together in
Sydney and since Cody was born she has been every bit an awesome Nan... And not just to Lynne and Cody, as everybody calls her Nan! Nan is well loved by all the staff at Beach on Sixth and even the guests. Nan is a great asset to this business as Lynne explains: “We get an awful lot of people walk in, wanting to inspect apartments before they book and she takes the time to show them around and 90% of them book because they love her!” It is obvious that Nan is well loved and she is a key asset to the business. Beach on Sixth is rated 4½ stars by AAA Tourism and is a T-Qual qualified self-catering holiday
Sunshine Coast Brochure Display The regions’ original and leading brochure service and provider of information displays
“Congratulations to Lynne and the team! We look forward to continuing and developing our relationship with Beach on Sixth.”
apartment complex. Lynne should be congratulated for maintaining its top rating under the new and much tougher standards. Due to Beach on Sixth’s top position on TripAdvisor this business has not only received a certificate of excellence in 2013 but it has just been announced as a finalist in the Sunshine Coast Business Awards under the tourism category, accommodation. Lynne insists that all these accolades are down to her having the support of a great team; Nan, as well as the two amazing, hard working contract staff at her disposal: Iain who works weekends in the office and John the maintenance supervisor who looks
after all the common areas. Lynne also insists that she is lucky to have, “the coast’s best tradies – they are amazing plumbers/electricians, etc., and I feel very blessed to have a great team of people around me.” Before Beach on Sixth, Lynne’s background was liquor marketing and she was the general manager of a liquor marketing company in Sydney (Liquor Stax) for 14 years. After deciding that she’d had enough of the “rat race,” she sold up and moved to Port Douglas for eight months before she discovered the gorgeous Sunshine Coast. This is her home now and she feels, “very privileged to live in such a stunning area.”
Congratulations Lynne on all your success, wishing you all the best for the future BCP Strata has made strata property ownership easy for over 20 years
• All in one Strata Property Solutions for Owners and Developers • Working with your Resident Manager and your Committee to make the Body Corporate Management of your Strata Property simple • Helping Developers establish well run Strata Communities • Personal, professional and friendly service
Phone: 07 5499 6222 Mobile: 0412 587 288
Suite 3 K1, Level 2, 16 Innovation Parkway, Kawana Waters QLD 4575 T. 07 5438 4000 E. info@bcpstra ta.com.au www.bcpstrata.com.au
resortnews | october 2013
Beach on Sixth
As far as Lynne is concerned, when it comes to her business customer service and cleanliness top of her list of priorities. Her goal is to make guests feel like they can relax and enjoy their holiday and she is always most complimented when she hears comments like, “Oh you guys are so friendly – normally in a posh place like this the staff are very snooty!” Lynne and her team go above and beyond the call of duty to ensure that their guests enjoy their stay and she says that she aims to ensure, “that the Sunshine Coast lingers longer in their memory as an ideal holiday destination. "Little things like if a regular guest is arriving late, whatever we
are having for dinner we will cook extra and leave it in the apartment for them, or we will leave them some bubbles or a cheese platter – whatever it is.” On one occasion Lynne describes how they were roped in as assistants to an elaborate marriage proposal plot! In order for a guest to make the perfect romantic gesture for his girlfriend, she says, “We went and got candles, candle holders and rose petals and when they went out to dinner we set the apartment up to create an intimate ambience for their return. We threw in a bottle of Champagne and she said ‘yes’! A good result all round.” Lynne has many stories of
Nan and Lynne Delany
fabulous times and fabulous gestures and the one thing that comes across is just how much effort Lynne and her team make for their guests. She admits, “I just believe if you go the extra mile it comes back to you!” That extra mile has come back to her in abundance! Not only has she been awarded with the gratitude of her guests, but with accolades and great reviews. Importantly Lynne can be proud that her efforts have doubled the business’s success within 18 months - that is great news for her apartment owners! Lynne has worked exceedingly hard over the years to get this far but she had to learn that, “I was not super woman! After working 18 hour days, 7 days a week for the first 8 months, nearly breaking my back (literally), I am very happy to have learned that I cannot do it all – I needed help and the team I have now make life easier and I get to spend some quality time with my son!” She insists that her lesson must be passed on to other resort industry business owners: “Work hard but don’t be a martyr.”
resortnews | october 2013
This advice is crucial; the only way to look after your customers is to look after yourself too and be happy. Lynne’s other piece of essential advice is to spend money on marketing, “it is a necessary evil!” After hiring a new marketing company because she felt she needed to “move it to the next level” she has happily seen her website be re-vamped, it now includes a blog and monthly newsletters. The guest response to these changes has been phenomenal! Ultimately for Lynne and Nan it is all about the people – the guests - especially the regulars who come back time and time again. They have made a lot of wonderful life-long friends and they love to see their guests enjoying themselves. Lynne elaborates: “People tend to be happy – they are on holiday so their happiness is contagious!” At Beach on Sixth I do not quite agree with Lynne’s analysis, I tend to think that the happy bug starts with Lynne and Nan as they seem to spread genuine holiday joy and happy customers mean a happy, healthy bottom line! By Mandy Clarke, Industry Reporter
Ivory Palms Resort
Old friends return to resort management Geoff and Tamara Hussin recently purchased the management rights to one of Noosa’s premier accommodation properties - Ivory Palms Resort. This welcoming, family friendly resort is perfectly situated on Hilton Terrace, Noosaville just a short stroll from the beautiful Noosa River district. It is great news within the industry to have the Hussin family return to resort management after a short break; after all, they are old friends of Resort News! Geoff reminisces that several years ago he called into the Resort News office to obtain some magazines so that he could do some research into resort management; this was after catching a glimpse of one of our magazines on the Sunshine Coast. At Resort News we are so
pleased that we had a hand in helping this fabulous couple venture into the resort management industry. Geoff and Tamara have a wonderful back-story; they originally owned a business on the Central Coast of NSW. It was a car yard that they worked hard to build up from scratch until it achieved the status of the sixth largest Suzuki dealership in the country. Katelyn, their daughter was born in 2006 and this event, Geoff explains, “changed our perspective on life and we decided to sell up and spend 18 months caravanning around Australia. It was a great adventure but all good things must come to an end.” At this point the young family paused for a breather in Perth, where they agreed they needed to start working again and so decided to find somewhere to
settle. Three days later they headed across the Nullarbor, through the middle of Australia and after a brief stop on the Gold Coast they arrived at Coolum on the Sunshine Coast to visit old friends. It was here that someone asked if they knew anything about
management rights and they were given a copy of Resort News to browse. Geoff recalls that this was the start of a new chapter in their life and he admits that reading back copies of Resort News was, “a great way to get to know and understand the industry.”
Buying Selling Extensions Advice on all Body Corporate issues Proud to have assisted Geoff & Tamara with the purchase of Ivory Palms We act for buyers and sellers of management rights in ALL STATES of Australia
Holmans are proud of our relationship with Geoff & Tamara Hussin. We congratulate them on their purchase of Ivory Palms and wish them every success for the future.
Holmans ... Your FIRST Resort in Management Rights Some of the valuable services we provide at Holmans include: • Accounting, taxation & trust account audits • Business structuring advice • Exit strategies & retirement planning • Settlement procedures & checklists
• Asset protection advice • Financial due diligence • Income tax planning • Sale of business statements
Holmans are now regarded as one of the leading Accounting & Financial Advisory Firms in Queensland ... who have you entrusted to look after your financial future?
Gold Coast Level 14 Corporate Centre One Cnr Bundall Road & Slatyer Avenue Bundall Q 4217 p 5677 0522 Brisbane Level 14 300 Adelaide Street Brisbane Q 4000 p 3041 1311 Sunshine Coast 97 Noosa Drive Noosa Heads Q 4567 p 5430 7600
creating wealth | managing wealth | enjoying wealth resortnews | october 2013
Ivory Palms Resort
Research led the family to a building in Coolum that they later purchased; a great start for them in the industry but after three successful years they sold up and were able to purchase a property in Cooroy Mountain.
Brokers; the same broker who sold them the Coolum Property and the sale went through with help of Simon Neuwirth from NAB after being told by another bank that the deal could not be done.
Here Tamara realised a dream and has recently started a Miniature Galloway breeding program!
Geoff says, “His help in getting this deal through was truly appreciated. Simon not only got it done, his rates were better.”
After a short break from the industry, they purchased the management rights for Ivory Palms Resort; falling head over heels in love with the beautiful 2.6ha family resort and its abundant potential. They purchased this business through Glenn Millar of Resort
Ivory Palms Resort was built in three stages over the last 15 years is essentially a lovely family resort with a main heated swimming pool, a hot spa and two additional swimming pools, sauna, two tennis courts a children’s playground and several BBQ areas.
d linen to pliers of be
Proudly servicing Ivory Palms Resort • Professional cleaning of carpets, rugs and upholstery • Specialising in resorts, multi-storey apartments and bond cleans • Both maintenance and service cleans across the Sunshine Coast • 7 day emergency service • Water extraction and flood restoration • Reliable service to meet client needs
Contact David Proud 0438 302591 www.firstresort.com.au
POLESY COMMERCIAL Market Leaders in Product Quality and Service Excellence
Don’t reach the last resort with your carpets... call First Resort! 54
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Talk to Wendy or Davina at the Loganholme office/warehouse Ph: 07 3806 4100 firstname.lastname@example.org or email@example.com
resortnews | october 2013
Ivory Palms Resort
Geoff and Tamara (far right with daughter, Katelyn) feel the entire Ivory Palms Resort team contribute to the success of the property
The pretty ponds that meander throughout the resort give a quintessentially relaxing feel and are home to the 1345 ducks that absolutely love it! A restaurant, conference centre and large office were all included in the purchase and Geoff explains that, the conference centre has an entry directly to the playground, which was recently completed this makes the holiday kids club very easy to manage. The children are able to do activities inside and run straight to the playground to burn off some energy, then pop back inside to finish their activity. Children love this resort for its variety and fun,
with the Paddle Pop Lion even popping in during the September school holidays! Geoff admits that it is not just a wonderful resort because of its location and its fabulous amenities but also because of the stellar staff they inherited and employed; all of them dedicated to the improvement of the wonderful property. He says: “We are lucky to have such a great on-site manager who is an awesome handyman/ maintenance manager, we have a fantastic five star chef, managers, cooks, baristas gardeners and cleaners. We are very fortunate to have a great management team of Anita, Taz and Lianne in the office.
If we all work together as a team, we know that they we can make this fantastic resort the absolute best that it can be.” Geoff and Tamara have led a very varied life and have absorbed life’s rich experiences to make them the resort managers they are today. One of the lessons that they learnt early on from the car industry was that your stock is your most valuable asset; without stock you have nothing to sell. Translating this into the resort industry they recognise that the owners are their valuable stock and as such they are the most important part of this business. Geoff and Tamara will therefore
ensure that their first priority as managers is to ensure the happiness of the owners. Only then can they concentrate on the property, the staff and the systems. Their journey will take some time but they are confident and positive that they can make huge improvements across the board and when the time is ready they will use their marketing skills. Tamara has already been working on the website for three months now and they know from their experience at Coolum that good and accurate marketing will improve their business by at least 20%.
Why not deal with the experts? We know what we’re talking about... just ask Geoff & Tamara
Simon Neuwirth, management rights specialist at Noosa Business Banking, is proud to have supported Geoff & Tamara in the purchase of Ivory Palms Resort. Talk to Simon today Simon Neuwirth, 0400 711 720
For your nearest management rights expert,
visit nab.com.au/mr HELPING YOU BUY & SELL MOTELS & MANAGEMENT RIGHTS resortbrokers.com.au
resortnews | october 2013
The Original & Still No.
Ivory Palms Resort
They are certainly prepared for all the hard work. This resort oozes family, with its fabulously comfortable two and three bedroom family apartments, remarkable pools, children’s activities and wonderful family-friendly location in Noosaville it certainly has something to offer every member of the family. Geoff proudly describes the resort, “The atmosphere at Ivory Palms is wonderful. It is like a country resort with Mums, Dads, Grandma, Grandpa and the kids enjoying the large spacious grassed areas, the tennis courts, swimming pools, playground and games room hut. We have beautifully manicured gardens and lawns thanks to an awesome Groundsman on staff - Ross who has worked here for a few years
now and has changed the quality of the grounds immensely.” Judging by the reviews on TripAdvisor, guests most certainly agree that it has a relaxing family vibe. TravellorTweedHeads describes her break as “relaxing,” and enjoyable. A particular highlight, she says was when, “We had the ducks come to visit on our balcony.” Resort News wishes Geoff, Tamara and Katelyn the very best when tackling this exciting new venture, one thing we know for sure is that the hard-working family will take on all challenges faced at Ivory Palms Resort with gusto, humour and incredible determination. By Mandy Clarke, Industry Reporter
Supplier Testimonials NAB When Tam and I were looking around for Management Rights to purchase again we gave NAB another shot because they helped us the first time. We shopped around with another Bank and a Finance Broker who were both very helpful. After 2 weeks of shopping and analysing the offers, we had 3 reasons to use Simon Neuwirth from NAB Noosa Civic. The rate was the most competitive and saved us over $10,000 per year, we were offered more flexibility in repayment options and they would lend us the amount that we required to make the purchase. The great service was just a bonus! Thanks to Simon and his team for a great experience.
Resort Brokers Tam and I purchased our first Management Rights business through Glenn Millar at Resort Brokers. It was a great purchase and Glenn helped us the whole way. When it came to our next purchase we found that Resort Brokers had the best range of properties to choose from and again Glenn helped us look for the right business to suit our needs and skills. Glenn has obviously had a lot of experience in this Industry and that helped us narrow our choices very quickly and purchase the right property.
Sunshine Coast Brochure Display The regions’ original and leading brochure service and provider of information displays “We are proud to be a preferred supplier to Ivory Palms Resort. We thank Geoff and Tamara for their support and look forward to continuing and growing our relationship with the Ivory Palms team”
Phone: 07 5499 6222
Ivory Palms Resort, Noosaville, provides a range of accommodation options for families, couples, wedding parties and conference groups.
Mobile: 0412 587 288
To do list...
Entertain in the comfort of your private villa or enjoy a meal at our onsite restaurant and bar. Relax poolside or at one of the community barbecue areas, tennis courts, games room and comfortable guest lounges.
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We offer first class facilities in one, two or three bedroom accommodation - from the comfort of a villa to the affordability of a family apartment.
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There is something for everyone on a Noosa Holiday and Ivory Palms Resort is the perfect place to stay whilst you enjoy all that the picturesque Sunshine Coast has to offer.
r local Contact you e ic ff Archers o
Phone: 07 5473 1700 | Fax: 07 5474 1922
73 Hilton Terrace Noosaville QLD 4566 firstname.lastname@example.org | www.ivorypalmsresort.com.au
Sunshine Coast | Gold Coast | Brisbane | Airlie Beach | Townsville | Cairns
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www.emerlite.com.au resortnews | october 2013
Talk to our trusted Management Rights Specialists today Natasha Gray Business Banking Manager, Gold Coast 0459 840 305 Cameron Wicking Business Banking Manager, Brisbane South 0423 849 124 Steve Austin Business Banking Manager, Sunshine Coast 0408 776 067
Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No. 229882 (“Suncorp Bank”) 15389 09/09/13 A
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Sub- Section2 - NORTH QUEENSLAND -
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Serv c iciNG 230 McCormack St Manunda QLD airNS
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Specialising in Management Rights, Motel & Resort Sales Servicing Queensland & New South Wales Head Office: Suite 1 Ground Floor Equinox Sun Resort, 3458 Main Beach Parade, Surfers Paradise Qld 4217
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Sub- Section2 - SUNSHINE COAST -
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The sign of an Industry Specialist. resortnews | october 2013
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