Atherton, Queensland
Long Lease, Strong Occupancy, Significant Upside
$730,000
Business Description
One of only two motels in Atherton, this well-established leasehold business offers long lease security, strong occupancy and genuine opportunities to grow profits.
•⭐ Key Investment Highlights
•🏷️Asking Price: $730k (neg)
•💰 Net Profit: Over $224k adjusted
•📈 Return on Investment: 30%
•🛏️ 17 Motel Rooms
•📅 27 Years Remaining on Lease
Positioned directly opposite Atherton Hospital and only moments from the town centre, this 17-room motel enjoys strong repeat corporate and tourist trade with consistent occupancy and excellent forward bookings.
The current owners have invested heavily into upgrading and modernising the property over recent years, creating a highly efficient and largely automated operation with minimal ongoing capital expenditure anticipated.
Key improvements include:
• Refurbishment of 5 guest rooms and 1 two-bedroom apartment
• New bathrooms, furniture and fittings
• New roof
• New CCTV system
• New commercial laundry equipment
• Full repaint of motel frontage and doors
• Numerous operational and equipment upgrades throughout
The business currently operates with a simple staffing structure consisting of casual cleaners only, with automated check-in systems significantly reducing front desk requirements.
Features include:
• Long 27-year lease tenure
• Strong occupancy averaging approximately 79%
• Average room rate approximately $155 per night (inc)
• Consistent corporate, hospital and tourism trade
• Opposite Atherton Hospital
• Easy-to-operate business model
• Manager’s residence included
• Opportunity to improve margins through increased direct bookings
• Further upside through meal service or expanded guest offerings
• Strong forward bookings exceeding $140,000
The motel was originally operated successfully by a husband-and-wife team with minimal staff involvement, providing flexibility for incoming owners to tailor operations to suit their preferred lifestyle and management style.
The current owners also heavily utilise Online Travel Agents for bookings, presenting a clear opportunity for incoming operators to improve profitability by increasing direct bookings and reducing commission costs.
Regional leasehold motels with long tenure, strong occupancy and limited competition remain tightly held and highly sought after.
Inspection strictly by appointment only.
Business Summary
Key Investment Insights
AI generated. Confirm details with the seller.
1. Asking price $730,000 negotiable, presenting entry at sub-million valuation for a regional motel.
2. Net profit over $224,000 adjusted, indicating strong current cashflow.
3. Return on investment approximately 30%, signalling high yield relative to price.
4. Long 27-year lease remaining, providing tenure security and investment stability.
5. One of only two motels in Atherton, limited local competition supporting demand and pricing power.
6. Prime location directly opposite Atherton Hospital and moments from the town centre, driving consistent corporate, hospital and tourist trade.
7. Strong occupancy averaging around 79 per cent, supported by excellent forward bookings in excess of $140,000.
8. 17 motel rooms with an average room rate of about $155 per night inclusive, offering clear revenue baseline.
9. Recent capital upgrades including refurbished rooms and apartment, new bathrooms, furniture, roof, CCTV, commercial laundry and repaint, reducing near-term capex needs.
10. Simple, low-cost operating model with casual cleaners, automated check-in and manager’s residence included, enabling owner-operator flexibility.
11. Clear upside via increasing direct bookings to reduce OTA commissions, plus potential to add meal service or expanded guest offerings to improve margins.
12. Energy rating 1, indicating poor energy efficiency and a potential area for improvement or future capital investment.
