Atherton, Queensland
Strong Returns with Great Growth Potential
$730,000
Business Description
Do Not Miss Out on this great motel that delivers strong income but still has growth potential for the new owner!
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. Adjusted net profit exceeds $224,000, with an advertised 30% return on investment and asking price of $730,000 negotiable.
2. Long 27 year lease provides substantial tenure security for this established leasehold motel.
3. Seventeen rooms achieve approximately 79% occupancy and an average room rate of approximately $155 nightly, including tax.
4. Positioned opposite Atherton Hospital and near the town centre, supporting corporate, hospital and tourism trade.
5. Strong forward bookings exceeding $140,000 provide visible future revenue.
6. Recent upgrades include refurbished rooms, new bathrooms, furniture, fittings, roof, CCTV, laundry equipment and frontage repainting.
7. Automated check in and casual cleaners enable a straightforward operation with limited front desk requirements.
8. Manager’s residence is included, supporting flexible owner operator accommodation arrangements.
9. Direct booking growth could improve margins by reducing reliance on Online Travel Agent commissions.
10. Further potential exists through meal service or expanded guest offerings, subject to the incoming owner’s approach.
