The leasehold interest in Toowoomba’s 4.5-star Platinum International Motor Inn, one of the city’s premium accommodation assets, has been sold for the first time since it opened in 2008.
New operators have secured a 30-year lease to run the deluxe 52-unit James Street business through accommodation sector specialist ResortBrokers in a deal jointly handled by managing director, Ian Crooks, and senior broker, Russell Rogers.
Whilst ResortBrokers declined to disclose the exact sale price, it is understood the lease was valued at close to $2 million.
Buyers, former Brisbane-based business owners Tony and Nicolle Rummeny, have taken over the leasehold operation from Platinum International’s original owner-developer, Colleen Cosgrove, who retains freehold ownership.
“Widely recognised as Toowoomba’s best motel, Platinum International was developed in two stages by Colleen and her late husband Graham Cosgrove,” Mr Rogers said.
“The first 36 units opened in March 2008 while the remaining 16 were completed in November 2013, so this is a quality, contemporary complex with excellent exposure to the main western access route and centrally positioned in relation to numerous attractions.”
He said the Rummenys, who had previously owned a successful real estate agency in Brisbane, decided to invest in the accommodation sector after gaining experience as relief managers at a major Ibis property in regional NSW.
“Leasehold motels are undeniably some of the best investments available in Australia.
“As banks will lend up to 50 per cent of the purchase price, the cash-on-cash return on investment can be quite extraordinary,” Mr Rogers said.
“For example, a leasehold motel with a one million dollar purchase price can easily net a husband and wife team almost $6,000 a week before wages.”
Platinum International Motor Inn is a two-level complex with impressive facilities including a resort swimming pool, barbecue area, gymnasium, two-bedroom manager’s apartment, onsite laundry, car parking spaces for 80 vehicles and a coach bay.
The business sale includes the operation of the onsite conference and function facility for 80 guests and popular Images Lounge Bar and Restaurant.
Mr Crooks said the sale underlines confidence in Toowoomba’s visitor economy and accommodation sector.
“Accommodation businesses in Toowoomba benefit from multiple income drivers because the city is a major administration and commercial centre, an education hotspot and an attractions and events hub.
“Toowoomba attracts both strong corporate trade and holiday visitation, and the Platinum International Motor Inn has demonstrated consistently high occupancy,” he said.
“Growth prospects are also exceptionally strong with an internationally-capable airport, excellent road connectivity and the prospect of the proposed national inland rail.”
Toowoomba’s reputation as a tourism destination was further underlined this month when the famous Toowoomba Carnival of Flowers took out the Australian Tourism Awards Major Festival or Event title for the third successive year.
The number of international tourists visiting Southern Queensland Country, which includes Toowoomba, hit a record high last year (YE Sept. 2018) reaching 54,000 p.a., a rise of 16 per cent on the previous year.
This was in addition to two million domestic overnight visitors to the region during the period, who stayed 5.9 million nights and spent almost $783 million.
