Atherton, Queensland
Long Lease Motel with Strong Occupancy and Simple Operation
$730,000
Business Description
An outstanding opportunity to acquire a well-presented and easy-to-run leasehold motel in the heart of the Atherton Tablelands.
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 30-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
1. Long 30 year lease provides tenure security and investment stability.
2. Strong occupancy averaging approximately 79 percent indicates reliable cashflow.
3. Average room rate approximately $155 per night supports healthy revenue per room.
4. Prime location opposite Atherton Hospital and close to town drives consistent corporate and hospital trade.
5. High level of repeat corporate and tourist bookings, with strong forward bookings exceeding $140,000.
6. Significant recent capital works including new roof, refurbished rooms and apartment, new bathrooms, furniture and fittings, and full repaint, reducing near term capex needs.
7. Operational efficiency from automated check in systems and numerous equipment upgrades reduces labour requirements.
8. Simple staffing model with casual cleaners only, allowing low wage overheads and flexible owner operator options.
9. Manager’s residence included, enhancing operational convenience and reducing accommodation costs for management.
10. Clear upside from reducing OTA reliance and increasing direct bookings to improve margins and lower commission expense.
11. Additional revenue opportunities exist through introducing meal service or expanded guest offerings.
12. Energy rating 1 signals limited energy efficiency, representing a potential cost or improvement opportunity.
