As borders reopen and North Queensland again becomes one of Australia’s favourite tourist destinations, the historic Townsville landmark, Yongala Lodge by the Strand, is perfectly located to reap the winds of change.
The famous homestead and restaurant has views of the ocean from the front verandas, and enormous cashflow opportunities.
The motel accommodation is in two low-maintenance brick buildings at the rear of the property, with 10 apartments, eight rooms and a studio. The historic main building is a blank canvas to develop into more revenue raisers, including additional rooms, a cafe, function rooms or a sub-lease.
The pool was built in 2014, and the pool equipment was more recently upgraded. There have already been $600,000 in major renovations to the property.
“It’s a great business and a great location,” said Michael Philpott from Tourism Brokers. “The property provides excellent, accommodation but there is also the opportunity to increase revenue through the restaurant and other features of the property.
“It’s in an impressive location within walking distance to really upmarket restaurants, the casino, marina, the CBD, and the new North Queensland Stadium.
“It oozes opportunity.”
Mr Philpott said Townsville would be one of the main locations to benefit from the opening of borders as the COVID pandemic eases.
“We have already made a number of sales in North Queensland recently,” he said. “The economy is booming in Townsville. The city and waterfront area has gone through a great deal of upgrades and additional spending because the armed forces are there. Tourism will be the cream on the cake which is brilliant for all of North Queensland.”
The Adjusted Net Profit for the property in the 2021 calendar year was $692,398, and Mr Philpott said Yongala Lodge was well priced at $3.95m, with a freehold going concern yield of 17 per cent being achievable.
“It’s a low maintenance, beautifully maintained property with a long term solid and consistent trading history,” he said. “A new buyer could move in today and make a great income immediately. But they could also enhance the offering by developing the main homestead and make considerably more profit for minimal cost. This is a very rare and fantastic opportunity.”
The earliest section of the two-storeyed, historic main building was built between 1883 and 1887, on land acquired by John and Matthew Rooney, who were local builders and timber merchants.
The Strand is a 2.2 km palm-lined beachfront promenade with magical views of Magnetic Island and Castle Hill. The airport is a 10 minute-drive away.
Townsville, itself, is a vibrant tropical city that boasts glorious beaches, sublime weather and countless attractions, with all the facilities of a metropolitan city with the laidback charm of a country town.
The city has major shopping complexes throughout the CBD and suburbs, as well as art galleries, quality restaurants and the Great Barrier Reef on its doorstep.
Among the popular attractions in Townsville are the Great Barrier Reef Magnetic Island, the Reef HQ Aquarium, the Museum of Tropical Queensland, and the Billabong wildlife sanctuary.
The Yongala Lodge was named after the SS Yongala, a passenger and cargo ship that sank during a cyclone off Cape Bowling Green, in 1911, on its way from Melbourne to Cairns.
The wreck, which has not discovered for almost half a century, is located 89 km south-east of Townsville, and is regarded as one of the world’s best dive sites.
More than 10,000 divers visit the site every year. And most of them need somewhere to stay.
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